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Tuesday, 3 July 2012 - German CSU threatens to quit Merkel coalition over euro |
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See the best of Reuters photography.  See more | Photo caption  Raging wildfires Raging fires strike Colorado and Utah.  Slideshow  Gay Pride parades Revelers celebrate Gay Pride month with parades all around the world.  Slideshow  German CSU threatens to quit Merkel coalition over euro Tweet Share this Email Print Related News Finns, Dutch cast first doubt on euro zone deal Mon, Jul 2 2012 Rising star helps SPD gain on Merkel in German poll Sun, Jul 1 2012 EU deal for Spain, Italy buoys markets but details sketchy Fri, Jun 29 2012 UPDATE 3-German parliament approves EU bailout fund Fri, Jun 29 2012 HIGHLIGHTS-Comments from EU leaders' summit Fri, Jun 29 2012 Analysis & Opinion Successful summit didn’t solve crisis EU summit aftermath Related Topics World » The leader of the Christian Social Union (CSU) party Horst Seehofer leaves the Chancellery after talks with the heads of the government coalition parties in Berlin, June 4, 2012. Credit: Reuters/Thomas Peter By Madeline Chambers BERLIN | Tue Jul 3, 2012 11:21am EDT BERLIN (Reuters) - The leader of Bavaria's conservatives threatened on Tuesday to pull out of German Chancellor Angela Merkel's centre-right coalition if further euro zone states secure bailouts, saying there were limits to how far his party was prepared to go. Although burly Bavarian premier Horst Seehofer, who faces a state election next year, has a tendency to pick fights and talk tough, his threat highlights the pressure Merkel is under at home after last week's euro zone deal. In what was widely seen as a defeat for Merkel, euro zone leaders agreed last Friday to let the region's bailout fund inject aid directly into stricken banks and to intervene on bond markets to support troubled member states. Merkel relies on votes from the Bavarian Christian Social Union (CSU), sister party to her own Christian Democrats (CDU), in parliament and in theory he could bring down her government. "At some point, the time will come when the Bavarian state government and the CSU cannot say 'yes' anymore," Seehofer told Stern weekly in an interview. "And without CSU votes, the coalition has no majority." In comments that will go down well with voters in his state who are generally more skeptical about Europe than CDU supporters, Seehofer said he was worried that financial markets might think Germany had taken on too much of a burden. "That is what I think is the most dangerous point," he said. The chancellor has been hammered by German newspapers for being outfoxed by the leaders of Spain and Italy. Asked about Seehofer's comments at a joint news conference on Tuesday with the prime minister of Slovakia, Merkel said she had spoken at length with the Bavarian premier. "I think that we will cooperate well in the coalition, not only on European issues," she said. "ROUGH SEAS" Merkel's pro-business Free Democrats (FDP), also traditionally more skeptical about Europe than the CDU, sprang to her defense. "At the current difficult time for the euro and Europe, Germany needs a stable government which is capable of taking action," said FDP General-Secretary Patrick Doering. "On rough seas, you don't question the course or the leadership," he told Handelsblatt daily, adding that the FDP would ensure Germany did not take on more liabilities in the euro zone without adequate controls. Voters in Germany, which has effectively become Europe's paymaster, and several other northern European states, are fed up with footing the bill for what they see as profligate southern states such as Greece. Seehofer's comments chimed with remarks from Slovak Prime Minister Robert Fico who warned that his country was not prepared to provide financial assistance to other euro zone countries if they failed to commit to reforms. "The (Slovak) public's patience is wearing thin," Fico said at his joint news conference with Merkel. Merkel faces an election in September 2013 and she is still one of Germany's most popular politicians. But the gap between her conservatives and the opposition Social Democrats (SPD) has narrowed in the last two months as the euro zone crisis has racked financial markets again. (Editing by Gareth Jones) World Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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