This book is a “disgusting litany of false arguments”, announces Frankfurter Rundschau. The German daily notes that Sarrazin, who worked for the IMF, the German Ministry of Finance and the Bundesbank, should have some mastery of the subject, which “he fails to address” –

Sarrazin constructs an opposition between an efficient Northern Europe  and a chaotic South   –  between workers and layabouts, and whites and dark-skinned people. He refers to countries which he claims behave irresponsibly as “Club Med” states. And where does he situate France? In this Club Med! […] As an adversary of the euro, he puts forward a theory as to why Germany has been pro-European until now: the Germans’ persistent enthusiasm for Europe can only be explained by “the moral deadweight of the Nazi era”. This is a book of lies. […] Let’s hope it rots on booksellers’ shelves!

If the radical left-wingers win the 17 June elections and stick to their promise of scrapping the €130 billion bail-out and its austerity requirements, Greece could still stay in the eurozone without financial aid if it introduced a parallel currency. The "Geuro" would come as promissory notes, a form of government-issued debt that can be sold on. It would devaluate sharply against the euro but would allow the government to buy itself some more time to carry out reforms and pass budget cuts... [...] One pre-condition for the scenario to work would be that aid would still come from other euro-countries and the International Monetary Fund [...] Cash-strapped Greek banks would also need to be rescued by creating a European "bad bank" – according to the Deutsche Bank projection.

‘In 2010 and 2011 half of China’s imports from the European Union came from Germany, which is up from 39 percent in 2000.’ This reinforcement of Germany’s significance as a major trading partner of China has also helped bring European business to China. The fact that Europe has not lost market share in China in the last ten years – unlike Japan and the United States – is largely thanks to Germany. Moreover, Germany is one of those few European countries to enjoy a trade surplus with China. Buoyed by the strength of trade relations built up between Beijing and Berlin, the EU therefore has no choice but to weigh up this new economic partner.

That privileged relationship, however, risks harming the relationship between China and the EU, as it is primarily a bilateral one. “The Chinese want a recovery in Europe to be led by the Germans,” writes Le Temps of Geneva. Looking at the conclusion of the study, the Geneva daily warns -

The only possible balance must be through the EU. To convince the Germans to remain good Europeans in this area, however, a strategic partnership between the EU and China must be developed, and with some urgency.

The unknowns concern the willingness of the new president to cut spending ... and also François Hollande's ability to change his position on Eurobonds and alter the role of the ECB.

However, Anne-Marie Le Gloannec, says "some compromises seem possible: the treaty [the fiscal pact] will not be renegotiated but rather, they will agree a pact on structural growth, both for Europe and for France, which François Hollande has already broadly sketched."

The two leaders will "become closer", adds La Croix, saying -

Principles first: in a united Europe, nothing is possible if France and Germany disagree. Pragmatism, too... The political crisis in Greece means that we cannot afford to get lost in quarrels over principle. A little realism is required about the inner workings of each country.

From the German perspective, Süddeutschte Zeitung asks  -

Is this the end of the Franco-German partnership? Not at all! Hollande will be moderate, Merkel will move. ... François Hollande does not have the vision of Napoleon or Mitterrand.

In another comment piece, the daily adds that François Hollande is -

a new chance for Merkel. [They] will be remembered as the people who ensured the survival of the euro or who masterminded its demise. They are forced to succeed from their first meeting. This pressure should give hope to all of Europe.

For the Frankfurt daily –

The theme of debt reduction, which already figured large in the CDU’s failed campaign in Schleswig-Holstein state elections, will only attract votes if it is presented in a credible manner. The Environment Minister, who banged on about savings and cost-cutting while advocating extremely costly adjustments in energy policy, is the embodiment of an inconsistent approach to this theme. Furthermore, it was contradictory to insist on “Greek conditions” and to simultaneously announce that Germany has never been better off. Finally, the CDU assumption that voters are virulently opposed to debt appears to assume that the French and the Greeks inhabit a completely different planet.

On this point, in France Le Monde argues that the result of the German vote “is bad news for the German Chancellor and good news for François Hollande, who will meet Angela Merkel on 15 May in Berlin, immediately after his official inauguration”.

In recent weeks, Mr Hollande has become the leading European exponent of a growth strategy to overcome the euro crisis, while Mrs Merkel has continued to advocate budgetary rigour as the only possible foundation for “sustained growth”. The success of Mr Hollande has prompted high expectations in EU states struggling to cope with the debt crisis, and the ideas he has proposed have also attracted support in the ranks of the SPD on the other side of the Rhine. Mrs Merkel is aware of this, and the blow of Sunday’s election will be a further encouragement for her to be more flexible on the issue of a growth pact.

Simple and without any experience of speech making, the Protestant pastor’s daughter, who was born in East Germany, succeeded in establishing a rapport with the entire nation, and especially with West Germans whom she judged to be “spoiled, as well as a little cowardly, and lazy”. As for the West Germans themselves, they were soon to be “merkelised” – caught up in cult that worshiped her supposed weaknesses of sobriety and a lack of glamour. And it was the euro crisis that marked the high point of this transformation. As Ulrich points out-

In 2005, Merkel felt she had to give Germans a boost. Today she has to convince her voters to help others, to keep a clear head, and most importantly, to continue their wise and zealous consumption. Her policy has been completely reversed. The question is: has she completed her mission in Germany? Has she migrated to Europe? [...] Were it not for German normality, and the fact that it is protected by an ultra-normal chancellor, Europe would have been plunged into chaos ages ago.

Far from imagining an imminent end to the Chancellor’s career, Ulrich concludes-

It may be that the German Merkel is now in decline, while the European Merkel is still at the height of her powers. Perhaps we no longer need her here, but rather in Europe. [...] She is only 57 years old, and is thus a woman politician with a future. However, where exactly that future lies remains to be seen.

the Achilles heel of Spanish banks. Toxic assets due to real estate continue to rise, and there are more and more buildings on banks' balance sheets that have been acquired as a result of unpaid loans.

"Is Germany to blame for the housing bubble in Spain?" in turn asks ABC. The newspaper quotes a report from a Japanese bank, Nomura, which states that German and French banks had a role in the current situation-

the policy of low interest rates that the European Central Bank (ECB) applied in the years preceding the crisis has helped the moribund German economy to recover, but it was also a decisive factor that caused housing bubbles in peripheral European countries, [...] exacerbated by capital flows from the German and French banks.

To address the risk of bankruptcy of banks exposed to toxic assets related to real estate, the government "requires [the banks] to put aside larger provisions" for such credits, concludes El País.

Le Figaro lists the facts that will inevitably lead to a show of force between Angela Merkel and the French President-elect:

Berlin is clearly irritated by the Hollande team's repeated calls to renegotiate the fiscal pact in order to add a section on growth. Seeking to reassure the chancellor's entourage on this point, advisors to the socialist candidate hinted that these were just 'campaign promises'.

The chancellor knows that François Hollande's situation does not allow for much room for manoeuvre and that he will "seek to impose himself at all cost in order to score points," Le Figaro writes –  

Yet she should not yield on the obligation to sign the treaty as is, even if it is resubmitted later. It would thus be up to the French president-elect to take the first step and to sign the pact as it is. A move that would be counter to the campaign waged against austerity in Europe.

Nonetheless, notes Le Figaro, the two leaders have some points in common. "The only good surprise, when the chancellor greets the French president-elect in Berlin, could be that of a meeting" between two leaders who have demonstrably "normal and humble personalities".

Far from being anecdotal, this personal link is the foundation of trust which allows Paris and Berlin to overcome their differences. This could lead to a consensus that would draw Europe along in the wake of the Franco-German team. If Hollande and Merkel get off on the right foot, everything is possible.

In Berlin, the Tageszeitung has strong doubts that François Hollande will get very far with his plans to favour growth. Certainly, the paper notes, several Brussels heavyweights eyeing José Manuel Barroso's post as EU Commission chair, such as Martin Schulz, president of the Euro Parliament and Viviane Reding, the vice-chair of the Commission, were quick to agree with Hollande by pleading for a growth pact. However,

...in the end, this is a classic Brussels compromise. A hand is extended to the new arrivals to better draw them in. For Brussels, a totally watered-down growth pact is very attractive because it would leave Chancellor Angela Merkel's budget pact unchanged. It would probably not even frighten the markets. That way everyone is satisfied: Merkel and Hollande, the citizens and the markets. MEP Elmar Brok (CDU) sums up the views of many European political leaders, saying, 'by June at the latest, Hollande should be back in line'.

Germany's leadership is thus not about to dim and, reinforced by the support of the markets, the free-market rhetoric from Brussels and Berlin resists change, TAZ says. Add to that the Greek crisis and

...the June EU summit could once again become a Greek summit, uniting Merkel and Hollande. As to what will become of the socialist's platform, heaven only knows.

Die Welt, a daily close to Angela Merkel, looked at the outcome in terms of the effect on the ruling coalition in Berlin, noting that the idea of an alliance between the SPD and Greens, such as occurred under the Social Democratic Chancellor Gerhard Schröder, is becoming increasingly unlikely, because "many people are hoping for a grand coalition between the SPD-CDU".

On 25 April, the President of the European Central Bank, Mario Draghi’s allusion to a “growth compact” met with support from the German Chancellor. But the fact that two major proponents of debt reduction and budgetary discipline are employing the same terms as those used by the French presidential candidate does not mean that they agree with his programme; rather that the lines are being drawn by two camps preparing for a battle that will be fought over the next few months.

On one side, François Hollande is advocating infrastructure projects financed by European “project bonds”, a greater role for the European Investment Bank, a tax on financial transactions and the utilisation of European structural funds that have not been spent. On the other, Mario Draghi is insisting that budget policies “must be subject to mutual surveillance and corrected if required”, and that “structural reforms to facilitate entrepreneurial activities, the start-up of new firms and job creation” are necessary, even if they are painful.

Supply or demand, liberal reform or Keynesian kick-start: this is not a new debate,  but it is one that had almost disappeared in the EU. Which side will prevail? If he wins on 6 May, Hollande will enter the arena with the legitimacy of an elected representative which some of the other key figures lack. Having said that, it is not certain that he will be able to turn the tables in an ensuing power struggle.

We should bear in mind that only two months ago, 12 european leaders called for stimulus measures. But the proposals outlined in their open letter – labour market reforms, opening up the internal market for services etc. – are closer to the vision favoured by Draghi and Merkel than the one espoused by the French presidential candidate. In this regard, the Chancellor’s approach to Mario Monti strongly resembles a manoeuvre to isolate Hollande, who will need support from another European heavyweight economy, even if he is counting on a win for the Labour Party in the next Dutch elections.

It appears that that the European Council will soon be characterised by a genuine left-right  alternative, which should encourage a real debate on the socio-economic orientation of the Union. After two years of crisis, it will not hurt to have a frank discussion, and even a touch of democracy.

In addition to the possible loss of traditional stalwarts France and Netherlands (the Dutch government resigned following a row over austerity), Merkel’s fiscal discipline creed came under fire yesterday as ECB chairman Mario Draghi declared that fiscal consolidation cannot be achieved through cuts and taxes alone, and requires “structural measures to favour economic growth”.

Resuming this position with “More courage for growth” as headline, the Turin daily notes that -

While waiting for the French election verdict Merkel paid heed to Draghi, finally coming to a formal acknowledgment that 'we need growth, to be sustained through structural reforms.'

The range of measures will include: initiatives to develop better cooperation with refugee source countries, most notably with North African states; reinforce Frontex, increase surveillance of the Turkish-Greek border, and improve the management of migratory flows as well as more efficient procedures for deportations and to combat human trafficking.

The proposals have come at time when illegal immigration is the cause of growing concern in Denmark. However the newspaper also notes –

… according to the Ministry of Justice, we do not know how many illegal immigrants there are in Denmark. However, there is some justification for the worry that the large number of immigrants who are currently in Greece and Italy may decide to move north.

The measures are also justified for practical reasons, argues Marlène Wind of Copenhagen University, who is quoted by the daily –

Problems linked to illegal immigration are a threat to the single market and the European spirit of free movement. For this reason, it will also be a victory for the Danish Presidency to have the project implemented.

The rise of the far right shows that many countries are still unable to offer an appropriate response to simplistic solutions proposed by populists. Voters continue to be unaffected by the language of the EU and national governments, but they are more than willing to accept the populists’ facile slogans.

On a more pragmatic level, this trend is bad news for Angela Merkel, as Süddeutsche Zeitung points out –

The fall of the Rutte administration in the Netherlands is a bitter blow for the German government, which has lost a major ally in the drive for more austerity. And Angela Merkel could soon lose her most powerful supporter. The French President has lost the first round of voting in the presidential election to challenger François Hollande [...]. Many Spaniards are crossing their fingers in the hope for a socialist win in France. [...] And a similar sentiment prevails in Italy. With this in mind, the amount of time attributed to the two countries to reduce their spending will not change much.

In the letter Claude Gueant and Hans-Peter Friedrich suggest that suspension of the Schengen treaty is justified where security is insufficient at some of the EU external borders, and to address internal security matters and safeguard national sovereignty, the Munich daily writes.

The Süddeutsche Zeitung adds that the resumption of border monitoring would aim to combat economic migration, and suggests this could foster anti-European political sentiment –

What is the value of it, open borders without restrictions? [...] What is the point of freedom of movement if European governments are able to limit it? If member states withdraw into their national territory when there are problems, they are demonstrating that they believe their small nation state is far better than Europe. In this case we should not be surprised if nationalist parties, populist and the extreme right are on the rise throughout Europe. The temporary closure of internal borders is a continuous advertisement for the enemies of Europe.

A week after its publication, this cover, along with an accompanying article that is discriminatory and racist, continues to provoke widespread criticism in the international press. The Central German Council of Sinti and Roma has complained of demagoguery and has demanded the weekly be withdrawn from newstands.

In Berlin, the Tagesspiegel has investigated the story behind the photo and discovered that Weltwoche, reputedly close to the populist Swiss right, took the picture out of its original context. The intention of the Italian photographer, Livio Mancini, Tagesspiegel writes, was to demonstrate the plight of Roma families in Europe -

Mancini photographed Roma children in the slums of the city of Gjakova in Kosovo, where their families washed up after the war. Their hovels are built on a toxic landfill, where they live off what they can find in the garbage to eat or to sell.... The series of photos of these children at the landfill is not depicting an isolated tragic case. The ten to 12 million Sinti and Roma are the biggest minority in Europe and live in the worst conditions. The majority are poor and threatened by pogroms. [...] Mancini’s photographs criticise this situation. (In Weltwoche) they were just twisted around to make the victims into perpetrators.

In an email to the Tagesspiegel Mancini denounces the “abuse of my photograph.”  Weltwoche has responded to the harsh criticism by defending its “facts”. “The abuse of children for criminal purposes”, the magazine declares, has been obscured by the controversy, but it avoids discussing its lack of “visual ethics”. Livio Mancini, nevertheless, is pleased that the theme of the poverty of the Roma has been brought to public attention.

In view of the threat “of the extinction of the Iranian people”, the Nobel Prize laureate notably insists that Berlin should refuse to supply submarines to Tel-Aviv, arguing that Israeli nuclear capability is “a danger to the fragile peace in the world”. At the same time, the writer offers less detailed criticism of Iranian President Mahmoud Ahmadinejad, whom he simply describes as a “loudmouth”. 

Grass, who shocked Europe with the 2006 revelations of his involvement in the Waffen SS, explains that fear of the “habitual verdict of anti-Semiticism” led him to remain silent for too long.

In Germany, controversy immediately followed the publication of the text, which featured on the front pages of three national dailies, including Die Welt, which headlined: “Günter Grass, the eternal anti-Semite”. The star columnist of the Berlin daily, polemicist Henryk M. Broder remarks –

Grass is the prototype of the educated anti-Semite, who is well-meaning when it comes to Jews. Haunted by feelings of guilt and shame and also driven by the desire to settle history, he is now attempting to disarm the 'cause of the recognizable threat.'

Germany, with a rate of 5.7% of unemployed seems like a jobs paradise (only the Netherlands, Austria and Luxemburg have lower rates). As German daily Die Welt puts in in a headline, "Berlin is advertising to Europeans" to attract labour.

Some regions and some sectors in Germany are in a full employment situation and are urgently seeking German-speaking, foreign workers. A migration expert quoted by the paper, however, warns that expectations should not be too high. "Germany is not a first choice for skilled labour, it is in competition with other States," he says. This concerns for example English-speaking academics who are more likely to seek work in Great Britain. Berlin is not expecting a massive assault of Greek and Spanish unemployed, Die Welt concludes.