When Chancellor Angela Merkel's current government came into power, Germany was just emerging from the economic crisis. But despite pledges to curb deficit spending, Merkel's administration has been running up debt at a record pace -- and bailing out Greece will only exacerbate the situation.
As the financial crisis in the euro zone worsens and the heads of the IMF and the ECB come to Berlin to persuade Germany to help Greece now, local commentators are calling for speed and decisiveness. As they see it, political jockeying before the May 9 election in North Rhine-Westphalia is no reason for German politicians to endanger the whole euro zone.
The 750 billion euro package the European Union passed last week to prop up the common currency has been heavily criticized in Germany. Former Bundesbank head Karl Otto Pöhl told SPIEGEL that Greece may ultimately have to opt out, and that the foundation of the euro has been fundamentally weakened.
Rumors of the imminent collapse of the eurozone continue to swirl despite the Europeans' best efforts to hold the currency union together. Some accounts in the financial world have even suggested that Germany's frustration with the crisis could cause Berlin to quit the eurozone - as soon as this past weekend, according to some - while at the most recent gathering of European leaders French President Nicolas Sarkozy apparently threatened to bolt the bloc if Berlin did not help Greece. Meanwhile, many in Germany - including Chancellor Angela Merkel herself at one point - have called for the creation of a mechanism by which Greece - or the eurozone's other over-indebted, uncompetitive economies - could be kicked out of the eurozone in the future should they not mend their "irresponsible" spending habits.
At a defining moment for the European Union, its largest country, Germany, appeared divided and its leader absent, raising significant concerns about what kind of leadership Chancellor Angela Merkel can offer as the region tries to stabilize financial markets and shore up its common currency.
Knowing a bailout for Athens would be unpopular, Chancellor Angela Merkel wanted to postpone taking action on the Greek crisis until a key state election on May 9. But financial markets don't care about domestic German politics. Her delay could end up costing the country billions.
Germany balked for weeks over a possible bailout for Athens. Now its delays are coming back to haunt it in the form of intense international criticism of Angela Merkel's crisis management.
The Greeks are mainly responsible for their current predicament. But the German government has made the country's situation worse with its lectures and reluctance to provide assistance. Chancellor Angela Merkel is mainly to blame for the fact that German taxpayers now have to suffer.
On Monday, Brazil and Turkey brokered a deal with Iran that would see it trading enriched uranium for nuclear fuel. Observers in Germany see a diplomatic coup for the rising powers, but warn that it could just be another ploy on the part of Iran.
On Wednesday, the government's partial ban on so-called naked short-selling took effect, as part of Berlin's effort to protect its biggest financial institutions and the euro currency from investors who have been betting against them.
United States and the European Union "are using the same recipe that the IMF applied on Argentina" to address the current global financial crisis and this only leads to "stagnation" said Nobel laureate Joseph Stiglitz attending a gathering of Nobel Prize recipients and young economists in Lindau, Germany.
Chancellor Angela Merkel's ruling coalition was seriously weakened last night after her party suffered a humiliating defeat in a key regional state election which was certain to deprive her government of its crucial working majority in Germany's upper house of parliament.
Angela Merkel told a meeting of international financial leaders that the G-20 must work together to reform the finance system. Merkel is pushing for tougher market regulations despite resistance from many countries.