According to a survey by polling institute Forsa, published just 100 days before general elections on September 22, “more and more Germans no longer vote, even if they are interested in politics” — a worrying development that amounts to “a danger for democracy,” points out the newspaper.

Abstention, which has steadily increased over the decades — passing from 10-15 per cent between 1950 and 1980, to 20-23 per cent between 1990 and 2005, and then climbing to 28.2 per cent in the most recent general elections in 2009 — is ”the expression a sentiment of powerlessness and alienation” with regard to politics, remarks Handelsblatt. The newspaper adds that Angela Merkel’s Christian democrats have benefited significantly from this trend.

In 2009, the Chancellor succeeded in winning the election with just 23.6 per cent of votes, thanks to the 28.2 per cent who did not cast their ballots for her adversary of the time, social-democrat Frank-Walter Steinmeier.

According to a June 13 report by the OECD, human migration within the EU is once again on the rise, after three consecutive years of contraction due to the crisis. However, foreigners’ chances of finding jobs have diminished: approximately half of out-of-work immigrants has been unemployed for more than 12 months.

“Germany unable to keep immigrants for long,” headlines Die Welt, noting that only one in two Greeks and just one in three of Spaniards who arrived in Germany in 2011 stayed for more than a year. Figures for Italian migrants are only slightly better, with 40 percent opting to settle in the country, explains the newspaper. According to an OECD expert:

Germany should do more to welcome migrants and to update the skills of workers whose qualifications do not comply with German standards.

In Vienna, Der Standard voices a similar opinion. “Austria could benefit more from immigrants,” writes the newspaper. Improving their integration on the labour market would could generate an additional €1.2bn for the state, which it should invest not only in training for recently arrived workers but also for second generation immigrants:

The daughters of migrants from the former Yugoslavia are twice as likely to be unemployed as the similarly-aged daughters of families that have lived in Austria for several generations.

In contrast, Switzerland “benefits from immigrants” announces the headline in Neue Züricher Zeitung: along with Luxembourg, it is the OECD country that derives optimal advantage from migration. The newspaper highlights three reasons for this success:

Firstly, there is high proportion of immigrants when compared to the number of Swiss citizens; secondly, the immigrants that arrive in Swizerland are of working age, and thirdly, most of the best qualified hold down jobs.

Germany must start taking the lead if Europe’s battered economies are to recover, says The Economist, but is unwilling, due to the weight of history, the perception that the “laziness of southern Europeans” is the cause of the eurozone crisis, and the strategic approach of guiding “from the rear”.

However, this combination of barriers does the continent’s economy and politics more harm than good, says the British economic weekly: “Across southern Europe austerity policies are associated with Mrs Merkel,” it argues, citing a recent survey finding 60 to 78 percent of populations in southern states believe European integration has harmed their economies.

The Economist argues that now that fiscal austerity is being “grudgingly” relaxed, Merkel could work to establish a “proper banking union” and take “a host of pro-growth reforms” to encourage privatisation and boost public and private investment in southern Europe.

Several European capitals are critical of Prime Minister Recep Tayyip Erdoğan’s crackdown on demonstrations in Turkey to the point where dialogue between Ankara and the EU on Turkish accession may be undermined.

German Foreign Minister Guido Westerwelle has declared that he expects Erdoğan to adopt “a calmer policy, that respects European values.”

In a June 12 statement, the EU High Representative for Foreign Affairs Catherine Ashton argued that for the EU: “This is not the moment to disengage from Turkey but to engage more closely.” However, according to diplomatic sources in Brussels, accession negotiations with Turkey are unlikely to resume on the planned date of June 26.

After the German Constitutional Court on June 11 started debating the legitimacy of the European Central Bank’s (ECB) Outright Monetary Transaction (OMT) plan to purchase bonds of struggling Eurozone members, the Milan stock exchange lost 1.63 per cent and Italian bond yields were back on the rise, Il Sole reports.

The Italian economic daily denounces Germany’s shortsightedness in trying to block ECB president Mario Draghi’s plan to relieve Europe from its current dangerous illiquidity, and accuses the Bundesbank of inflation “hypochondria”.

In a separate analysis, Il Sole notes that the Court’s attack on the ECB may become a “farce” as its legal grounds are shaky, adding that it hopes that the debate will lead to more independence for Frankfurt.

Germany’s Constitutional Court held a public hearing on June 11 to probe whether an element of the European Central Bank (ECB) debt purchase programme – a key part of Portugal’s economy in the post-troika period – violates the German constitution.

If the Court rules that Outright Monetary Transactions (OMT) are unconstitutional, Portugal will lose access to a financial stream that is underwriting its return to the markets and avoiding a second bailout, writes the economic daily.

The OMT programme provides the ECB with the ability to backstop government bonds, in exchange for oversight and structural reforms.

In the runup to the German Constitutional Court’s examination of euro bailout policy, which is set to begin on June 11, the German government has refused to sanction a partial write-off of Greek debt, demanded by the International Monetary Fund.

For Handelsblatt, the move amounts to a clear message from Berlin to the Constitutional Court, the ECB and other Eurozone countries to the effect that “no money will be wasted by us.” The business daily continues —

The government is presenting itself as a guardian of German interests with regard to stability policy: in the event of any further partial write-off’s of Greek debt, Berlin has for the first time threatened to cease contributing to aid for stricken Eurozone state.

Three weeks after the German government announced it was to abandon the €500m Euro Hawk surveillance drone project, Defence Minister Thomas de Maizière has claimed he holds no responsibility for the fiasco.

In a report published on June 5, the minister says that he "was not sufficiently involved in this affair" and goes on to blame his undersecretaries and his predecessor.

"I can't do anything, it was them – what a chump," says Die Tageszeitung in its headline, accompanied by a photo spoofing the famous crop dusting scene in Alfred Hitchcock's film North by Northwest.

"The North is sinking," headlines Czech financial daily Hospodářské Noviny, as flooding in Bohemia continues for the fourth consecutive day. In Prague, where the Vltava broke its banks on Tuesday morning, the situation seems to have stabilised but Ústí nad Labem and the north of the country are threatened by the rising Elbe River, the paper says, adding that –

The flooding of the Danube is ravaging Austria and in particular Salzburg, the Tyrol and the Vorarlberg region. Austrian daily Die Presse warns that "400,000 buildings in Austria are in areas at risk of flooding, mud slides, or avalanches, including 150,000 in permanent-risk 'red zones'". The paper adds that –

In Germany, Chancellor Angela "Merkel awards €100m to the flood victims, headlines German daily Der Tagesspiegel. In the Bavarian town of Passau, the waters reached a record level of over 12 metres – "the worst flood in more than a half-century," the paper says. It also notes that, just three months before scheduled legislative elections, Merkel has kept a low profile during her recent trips to the flooded areas–

"The waters can flood the country," says the front page of Hungarian daily Népszava. It is Hungary's turn to prepare for the onslaught of the historic flooding by the Danube. The river's level could reach 8.75 metres, or 15cm over the record highs posted in 2002 and 2006. Népszava adds that –

The major countries of the Eurozone are ignoring the Commission's recommendations while France and Germany are openly defying the it, notes El País.

"The crisis is eroding the influence of [Commission President José Manuel] Durão Barroso," reports the Spanish daily, adding that "the European Commission, which is in middle of a power struggle with Germany, is suffering from a credibility crisis."

Although the powers of the EU's executive branch have been reinforced in recently years, its recommendations and measures required of the member states are only followed "when the markets demand it or within the framework of a bailout plan," says El País.

Angela Merkel and François Hollande have made up. The "Franco-German contribution," announced on May 30, shows that the German Chancellor now supports the French President's proposals concerning the governance of the Eurozone. French financial daily Les Echos notes that –

In a leader article, French daily Le Monde explains some of the measures proposed –

Reaction in the German press was mixed. Spiegel Online notes that the French President is now "getting all cosy" with the German Chancellor. The web site of the weekly magazine, however, remains sceptical that the "turning point" is genuine, even if Hollande is "making efforts to establish a Franco-German entente".

For business daily Handelsblatt, Angela Merkel and François Hollande's wish to put in place a full-time president and an independent budget for the Eurozone gives the impression of "the Eurozone seceding in secret from the rest of the EU"

As for daily Frankfurter Allgemeine Zeitung it says that François Hollande has long been a "master of duplicity" –

"Another row over the capital's new airport," writes German daily Die Welt. Due to a citizens' initiative, "the EU has begun a legal case charging breach of contract against Germany," the paper explains, because the new air routes for the Willy Brandt Berlin-Brandenburg airport, which differ from those approved by Brussels, could fail to conform to European environmental regulations.

The habitats of several bird species, such as cranes, sea eagles, storks and crakes, could be threatened by take-offs and landings.

The opening of the airport, currently the costliest construction project in Germany, has already been delayed "due to insufficient fire protection," the paper notes.

“Italy pays immigrants to go to Germany,” headlines Linkiesta quoting an accusation by the Hamburg immigration office. The city’s authorities say they have arrested around 300 African immigrants holding expired temporary permits issued in Italy and demand they are removed. The immigrants said they were explicitly told by Italian officials to head to Germany, the destination of choice for most immigrants arriving in the EU through Mediterranean country, and were given up to €500 if they agreed.

According to the news site, Italian authorities have tacitly admitted their responsibility and declared themselves ready to take back the immigrants. Most of them were accepted as refugees because they fled the civil war in Libya in 2011 and the subsequent wave of xenophobic attacks, which followed Muammar Gaddafi’s demise. The problem is that they are citizens of “countries listed as democratic like Ghana, Togo and Nigeria”, writes La Repubblica, meaning that in Germany they are not eligible for asylum granted to those fleeing violence.

The issue, which reportedly stems from the need to close temporary detention centres in Italy, was discovered several months ago and involves a much higher number of immigrants across Germany, writes La Repubblica, adding –

Now that German federal elections are approaching, it’s easy to imagine that discussing it in public may be of some use.

At the May 28 opening of the 6th Integration Summit in Berlin, Angela Merkel declared that the term integration is ”outmoded” in a world where immigrants should be “respected and urged to participate” in civic life.

The chancellor deplored the persistence of prejudice and “structural discrimination”, which particularly affects immigrant entrepreneurs who face significant difficulties obtaining loans, reports Die Welt. She also proposed to reinforce labour market mobility with greater recognition for foreign qualifications. Die Welt points out that 52 per cent of Germany’s unskilled unemployed are of foreign origin.

“Vienna has called on the EU to limit the number of German students,” reports Süddeutsche Zeitung. The newspaper explains that, according to figures from the Austrian Ministry of Economy, one in every nine first year university students is from Germany. In certain courses and institutions, for example the psychology faculties at Salzburg and Innsbruck, which are close to the German border, they account for more than 80 per cent of students.

As the Austrian newspaper Kurier explains, the Minister for Science and Research, Karlheinz Töchterle now wants “to give priority” to Austrian students.

To this end, Töchterle has asked the Commission for permission to follow in the footsteps of Sweden, Denmark, the Netherlands, Belgium, and other European countries struggling with a large influx of foreign students, so that he can introduce measures “to prevent imbalances that create an anti-European atmosphere” in the country’s universities.

“As it stands, it is not clear what criteria will be used to distinguish between foreign and local students. To date, only the country’s medical schools have imposed a 75 per cent quota for Austrian students,” points out Süddeutsche Zeitung.

Until now, any limit on the number of university places for foreign students has been viewed as an infringement of the free movement of persons within the EU, explains Kurier.

Germany's top 30 Blue Chip [DAX] companies created 36,909 new jobs in 2013, according to calculations made by German financial daily Handelsblatt, based on an analysis of their company reports. This represents a "considerable increase" compared with the previous year, the paper notes.

"Germany's largest publicly quoted firms are contributing to the new employment miracle, which began in 2009 with the rise in plant slowdowns aimed at avoiding massive layoffs," the paper reports. The trend has marked a change in German employment policy. Long accused of "relocating activity in order to increase profits, [...] firms are no longer presenting themselves as stateless but as patriots," the paper says.

At a meeting with Chinese Prime Minister Li Keqiang on May 26 in Berlin, Angela Merkel declared that “Germany will do its utmost to avoid controversy that will result in tit-for-tat increases in customs tariffs,” reports Frankfurter Allgemeine Zeitung.

Li was adamant in his rejection of “anti-dumping procedures” announced by the European Commission, which would impose a tax on Chinese solar panels and telecommunications equipment.

The daily explains that Germany aims to act as a mediator at an informal encounter between Chinese and EU officials on May 27 in Brussels.

“Greece, Cyprus and now Croatia. Indebted, corrupt and haunted by high unemployment: that is Croatia,” announces an alarmed Bild

The tabloid seriously doubts that the “EU will be doing itself a service” by making Croatia its 28th member on July 1.

“Brussels has already shelled out a billion to assist the Zagreb government's accession,” points out the newspaper, which announces that ”the euros will flow even more readily after accession, because the Croats are hoping to cash in on €3bn in EU funds.”

At his meeting with the German Chancellor on the occasion of the May 22 European Council, “the Hungarian Prime Minister will have had to contend with a few tense moments”, remarks Népzsabadság.

Is he intending to apologise for affirming that “the Germans have already sent in the cavalry, to be precise in the form of tanks, [which was] not a good idea at the time, and did not work”? wonders the daily.

This was how Orbán responded to Angela Merkel’s remarks on recent legislative changes that have undermined the rule of law and democracy in Hungary. The Chancellor’s exact words were: “We will do everything to encourage a return to the right path, without going as far as to send in the cavalry.” According to diplomatic sources cited by Népzsabadság, Orbán is unlikely to present an apology, “if it is not specifically demanded by the German Chancellor.”

It’s “the Hoeneß effect,” announces Berliner Morgenpost. In the wake of the President of FC Bayern Munich’s confession that he had a Swiss bank account, which is estimated to hold €10m, more and more tax dodgers are turning themselves in.

The daily explains that the numbers admitting to tax evasion have shot up in the first five months of 2013: notably in the state of Berlin, where 225 presented themselves to authorities, resulting in a net gain to the taxman of €6m.

The number of those admitting to tax fraud has also increased in other states, like North Rhine-Westphalia, where more than 700, three times as many as in 2012, have admitted to owning foreign bank accounts.

The leader of the Christian Democratic and Christian Social Union parliamentary group wants to outlaw symbols of the German Democratic Republic (GDR), the former communist East Germany, reports Berliner Morgenpost.

Volker Kauder wants to avoid further “provocations”, following a May 9 parade of former soldiers of the National People’s Army (NVA), in which armed men, wearing Stasi and NVA uniforms and carrying flags of the GDR gathered around the Soviet War Memorial in Berlin's Treptow Park.

Kauder’s proposal is supported by liberals in the ruling coalition. The deputy president of the liberal parliamentary group, Martin Lindner, also wants to introduce a law to outlaw symbols of the Socialist Unity Party of Germany.

Beijing has threatened to contest the European Commission's decision to impose taxes on Chinese solar panels and telecommunications equipment before the World Trade Organisation.

Germany, which accounts for more than half of the EU’s exports to China, has voiced its concern over the power struggle and called for an amicable settlement.

“It is high time that Europe gave up its fascination with the size of the Chinese market and demanded, like the United States, a minimum of fair exchange”, argues Le Figaro, which adds —

The interdependence of global economies will add to pressure for an amicable settlement, as desired by Berlin. But for that, it is time for Europe to put its foot down and to set aside any naivety. Given China’s rapid rise to power, soon it will be too late.

France is to buy two American Reaper surveillance drones to be deployed in the war in Mali before the end of this year, announces Libération.

The daily, which points out that France is planning to acquire 12 surveillance drones over the next few years, explains that —

Above and beyond the acquisition of the two Reapers, more of these aircraft will have to be bought in the medium term. [...] France especially wants its assembly lines to produce the drone of the future, a kind of armed Rafale without a pilot, between now and 2035. “In a collaborative programme with the British, we have both invested €20m,” says the Ministry of Defence. Doubtless this one of the final opportunities to avoid definitive dependence on the American ally.

Libération notes that French Defence Minister, Jean-Yves Le Drien, has spoken of “possible European collaboration” and is hoping to “bring the British and the Germans, ‘who have similar needs’, into the loop.” However, “this process appears to be deadlocked,” in the wake of a recent move by Le Drien’s German counterpart, Thomas de Maizière.

He cancelled the purchase of four Euro Hawk drones, built by EADS and American company Northrop Grumman. His decision was announced in the wake of revelations in Frankfurter Allgemeine Zeitung that “the Ministry of Defence had continued with the EuroHawk programme, whose costs ran to several billion euros, even though it was fully aware that it would not be authorised to use the aircraft in German and European airspace,” because of its lack of an anti-collision system.

“The embarrassing truth does not only concern the current Minister of Defence,” remarks *FAZ. But also —

… his predecessors Guttenberg (CSU), Jung (CDU) and Struck (SPD). All of whom failed to pose the crucial question: How can a drone be authorised to fly in civil airspace, if it is not equipped with reliable anti-collision system?

In an interview with Bild am Sonntag, Bundesbank President Jens Weidmann has “poured cold water on the European Central Bank’s timid economic stimulus policy,” notes La Vanguardia.

Weidmann argues that the ECB and France “are slacking in the fight against the causes of the crisis.” He is particularly critical of the reduction in interest rates decided by the ECB and the decision to allow France more time to meet its deficit targets.

The daily reports that, for his part, Mariano Rajoy has decided “to go on the offensive.” The Spanish Prime Minister is preparing for a June 5 meeting in Brussels in which he is hoping to convince the European Commission of the validity of his reforms.

Some Europeans have their gaze fixed on Malmö at the moment, where the Eurovision Song Contest is being hosted. Though, it might be worth paying attention to what is going on in London, Paris and Berlin, where different visions of Europe, which we ought to be debating, are developing.

On May 14, the British Conservative Party tabled a bill calling for a referendum, to be held no later than December 31, 2017, on the question: “Do you think the United Kingdom should remain a member of the European Union?” The terms of the debate were set out by Prime Minister David Cameron in January, when he called for a “new deal” between his country and a more flexible EU. In doing so, he unwittingly laid himself open to pressure from the Eurosceptics in his party and from the UK Independence Party, while writing the referendum into law makes it very difficult for him to back out of it. But he also forced his partners to face up to their responsibilities.

On the continent, François Hollande has finally delivered a broad sketch of his thoughts on the union. On May 16, he gave the EU two years to define the content of a political union. “It is a matter of urgency for Europe,” the French president declared. That these two years will bring us to the end of David Cameron’s government is perhaps no accident.

The French president also proposed an economic government for the Eurozone, with a president and monthly meetings, as well as “a new stage of integration with a fiscal capacity given to the Eurozone and the possibility, gradually, of raising loans.”

It remains to be seen what Germany will propose. And that will have to wait until September 23 and the outcome of the German elections. Angela Merkel seems securely entrenched in the Chancellery, but the country hasn’t heard the last from the Red-Green alliance.

This perhaps explains why the head of the Social Democrats, Peer Steinbrück, also came out with his own vision of Europe on May 14. The programme envisages a stronger European Parliament, which would participate in European Council meetings, and the transformation of the Commission into a government that eventually will be elected and accountable to Parliament.

And Angela Merkel? One year ago the Chancellory expressed its desire to see the Commission play the role of a government and the council of heads of state or government play the second chamber of parliament with reinforced powers. More recently, German Finance Minister Wolfgang Schäuble repeated that the banking union, considered a crucial element for the stabilisation of the Eurozone, would not go ahead without a new European treaty. He is therefore expected to know what Merkel is proposing these days.

François Hollande's speech was received cautiously in Berlin, where a gesture from Paris, whose voice has often been hard to hear over the past year, was expected. But no Franco-German initiative is anticipated before the end of the year, when we will know if Hollande and Merkel are condemned to work together for a few years more, or if a Franco-German axis with the Social Democrats may be possible.

The hardest part will come afterwards, when this potential vision will have to confront the vision of the British – and when it will have to confront the reality of European opinion as well. From this point of view, this is another Franco-German initiative that can – and must – promote a concrete vision of the future of Europe: that one that must be put forward by the next European summit, to tackle youth unemployment. We'll certainly be debating that.

“At last a French proposition for Europe!” announces Le Monde, which welcomes the new European attitude outlined by the French President during his May 16 statement —

François Hollande’s address to Europeans and Germany at his press conference, finally put an end to the dodging and obstruction of European policy that have marked his tenure since his election. […] In affirming that France should be the "link" between northern and southern Europe, the head of state has given up on the idea of rallying Latin countries to oppose a Germanic Europe.

The daily also argues that in calling for united “economic government” in the Eurozone —

François Hollande is taking Angela Merkel, who proposed a political union a year ago, at her word. At the time, he was critical of an empty proposition. Today he has given it "substance". Taking Germany at its word is the right strategy. At last, France is once again bringing a proposition to the European table. However, it will only be credible if Mr Hollande sets his French house in order.

In Germany, where François Hollande’s remarks have been received with much less enthusiasm, Die Welt points out that the “so-called offensive is mainly composed of measures that were already presented by his predecessor,” whether they be —

… the European economic government that was called for by Sarkozy before the European Parliament in Strasbourg in 2008, or the idea of issuing bonds, which for tactical reasons Hollande is no longer calling Eurobonds, in the hope that the stubborn Germans will one day accept them.

With regard to his address to Germany, Die Welt remarks that Hollande’s attitude consists of “moaning about German austerity not only as a statement of his ideological position, but also as a tactical measure.” For the newspaper —

… in presenting himself as someone who is willing to do battle with the spectre of a Merkel style austerity diktat, he is trying to obtain room for manoeuvre that, in a best case scenario, will enable him to push through unpopular reforms. It follows that Angela Merkel will have to continue to allow him use her as a European punching-ball for some time to come.

The Bundestag committee of inquiry into the National Socialist Underground (NSU) has highlighted what it describes as a “total failure” of German security services.

Tagesspiegel explains that in its final report, due to be presented to the Bundestag in August but released on May 16, the committee deplores “a police and secret service investigation marked by blind prejudice,” and “a massive underestimation of the danger of right-wing extremism by regional and federal authorities which failed to exchange sufficient information.”

Numerous experts, including police trainers, have called for centralised coordination of initiatives to combat right-wing extremists, as well as counselling programmes for those who have left extreme right circles.

German Chancellor Angela Merkel and Social Democrat candidate for the chancellor’s office Peer Steinbrück crossed swords in Berlin at a forum on Europe on May 16 over the issue of possible sanctions against Hungary, which has been accused of violating the principles of EU law.

Steinbrück, reports Népszava, raised the question of the exclusion of Hungary from the EU and asked Merkel to exert more pressure on Prime Minister Viktor Orbán, both personally and within the framework of the European People’s Party, of which they are both members.

The chancellor voiced her agreement with the European Commission on the need to modify the contested Hungarian legislation and remarked that she preferred persuasion to threats. She also pointed out that she is demanding “changes to laws or constitutional amendments, if they do not comply with EU treaties.”

German officials have criticised the policy of austerity and tax increases – the two economic tools favoured by the troika of international leaders – accusing the European Commission of incompetence and stiffness, reports the daily.

"Berlin considers tax increases to be a mistake, which penalises disadvantaged populations and kills economic growth," writes Público, without identifying its sources.

"Berlin’s irritation" is particularly aimed at the European Commission and its President José Manuel Barroso, which the newspaper says paradoxical, "as many of the austerity conditions applied to countries within the rescue programme are implicitly presented in Brussels as result of German demands."

In a verdict announced on May 13, the federal court in Germany ruled that Google's auto-complete system, which automatically generates search suggestions, infringes the rights of individuals and companies.

To illustrate the issue, the compact edition of Die Welt publishes the suggestions prompted by a search on Angela Merkel —

Angela Merkel / Angela Merkel naturism / Angela Merkel twitter / Angela Merkel CV / Angela Merkel swimsuit / Angela Merkel Joachim Sauer [Angela Merkel’s husband] / Angela Merkel thesis / Angela Merkel private / Angela Merkel contact / Angela Merkel holidays

“In this case, the search terms added by Google are moderate and amusing,” notes the daily. But from now on Google will be obliged to remove them if someone believes his or her rights are being infringed.

The court ruled in favour of a businessman who sued Google for automatically associating “scientology” and “fraud” with his name.

At the demography summit held in Berlin on May 14, Angela Merkel asked her government to facilitate the mobility of workers within the EU.

“Because we will have six million fewer workers in 2025, we should be open to young people who want to come to our country,” said the chancellor.

Germany offers good conditions for immigrants but suffers from a reputation of being a standoffish country, explains Frankfurter Allgemeine Zeitung. German Interior Minister Hans Peter Friedrich is mainly counting on an influx of skilled workers from the countries of southern Europe.

"The European Union prepares its entire arsenal to fight youth unemployment," writes the financial daily, as the French and German governments prepare to unveil a €60bn plan, known as the “New Deal for Europe”, on May 28.

The new scheme will mastermind a seven-year push to find jobs for people aged under 25, while Brussels will also ask European countries with high unemployment to go even further with their labour market reforms, continues the daily.

Meanwhile European Employment Commissioner Laszlo Andor prompted Spain on May 13 to adopt “a single open-ended contract” to fight youth unemployment, but Spanish PM Mariano Rajoy, refuses to introduce further labour market reforms.

“Germany’s population is shrinking and aging,” reports Handelsblatt on the eve of a summit on demography organised by Chancellor Angela Merkel.

The daily points out that the number of residents in the country declined from 82.5 million in 2003 to 81.7 million in 2011, and this figure is expected to fall to 65 million in 2060.

If Germany does not take action, the workforce will shrink from 50 million to 42 million by 2030. The business daily notes that “Economics Minister Philipp Rösler is counting on immigration” to resolve the problem. For her part, Angela Merkel is expected to call on companies to continue to provide training for older employees.

“Wall Street’s renewed health is spreading to other markets, and in particular to Europe, which is a poor relation in terms of economic growth,” writes Les Echos.

In Frankfurt, the DAX “has gained 124 per cent since March 2009,” while the FTSE in London “has reached its highest level since November 1, 2007”.

For the business daily, “the markets have benefited from a number of favourable elements,” notably encouraging figures for industrial production in the United Kingdom and Germany, positive corporate results, and a calming of tensions on the issue of sovereign debt.

The stabilisation of the debt crisis —

has reassured investors, who did not fail to take advantage of Portugal’s return to financial markets [an encouraging sign for Greece which is hoping to resume bond sales before 2014].

A total of 1.08 million people, including 966,000 foreigners, moved to Germany in 2012. The highest figure since 1995, reports Frankfurter Allgemeine Zeitung, which headlines with “Immigration to Germany reaches record level in 2012”.

According to the Federal Statistical Office, immigration increased by 13 per cent when compared to 2011. Most of the immigrants were from Poland, Romania and Bulgaria.

German authorities expressed their delight with the figures: “This influx represents an enormous opportunity for everyone concerned, because the new wave of immigrants is younger and better trained,” declared the Minister of Labour, Ursula von der Leyen.

In spite of the numbers arriving in the country, tens of thousands of vacancies, notably in the healthcare sector, have yet to be filled. Frankfurter Allgemeine Zeitung explains that the shortfall will soon be addressed by “new employment regulations, set to come into force on July 1, which will facilitate the immigration of specialised workers,” and also open the labour market to non-EU citizens.

The countries of central and eastern Europe, as well as southern European states hard hit by the crisis, are the major sources for migrant labour in Germany. As El País explains —

… the bulk of today’s migrants come from eastern Europe. But the largest upsurge is in the numbers arriving from countries affected by the euro crisis: notably Spain (31,145 in 2012), Greece (34,109) and Portugal (11,762). […] The main countries of origin from within the EU are Poland (176,000), followed by Romania (116,000) and Bulgaria (59,000).

Italy is not far behind: more than 42,000 Italians emigrated to Germany last year, notes Il Manifesto, whose front page compares Germany to “Lamerica”, the America that inspired the dreams of late 19th Century emigrants. According to the communist daily the influx —

… is an advantage for Germany, which has a declining population and needs to renew its workforce. However, for the countries of the South, which spend on the education of the young graduates who make up the bulk of the migrants, it represents a loss.

This success is largely due to the efficiency of the German Federal Employment Agency, explains Mediapart —

… the Bundesagentur für Arbeit publishes hundreds of thousands of vacancies on its website, which is accessible in several languages. It also seeks out workers on foreign labour markets, which have been devastated, and organises delocalised job centres.

However, the French news website notes —

Access to the new Eldorado requires a certain effort [...] Along with a mastery of the language, which is indispensable for those in search of skilled jobs, there are other obstacles to moving to the country […]: the non-recognition of certain qualifications, the fact that many employers, and in particular SMEs, are reticent about recruiting foreigners, and administrative barriers for low-skilled jobs. The reality can even prove to be disappointing, in particular for the many graduates of universities in southern countries, who have to put up with precarious part-time work and the absence of recognition for their degrees.

EU authorities, which recently granted France an additional two years to rein in its spending deficit, are nonetheless pressing Paris to push through reforms, writes Le Figaro.

On May 7, a day when French and German finance ministers — Pierre Moscovici and Wolfgang Schäuble — met in Berlin, the European Commission recommended that France should implement “audacious” reforms to improve competitiveness. Adding weight to this request, European Commission President Herman Van Rompuy urged Paris to introduce “far reaching” reform.

However, the conservative daily notes —

Burdened with an outsize public sector and held captive by a ruinous social model, France has taken no steps to implement the far reaching reforms that the Europeans are clamouring to see.

Meeting in Madrid on May 6, Spanish Prime Minister Mariano Rajoy and his Italian counterpart Enrico Letta agreed to "pressure" the EU to approve a youth unemployment plan at the European Council summit in June.

The two leaders also emphasised the need for new policies to combat populism and anti-European sentiment, which is increasingly prevalent in all EU countries.

La Vanguardia remarks that the "Italian-Spanish front is still alive", and eager to exert pressure on northern countries and German Chancellor Angela Merkel to proceed with the implementation of measures decided at the Rome summit in June 2012. These include the progressive introduction of a banking and budgetary union in the EU.

The trial of five members of the neo-Nazi terrorist group NSU, which began on May 6 in Munich, was adjourned when lawyers for the main defendant challenged the impartiality of the judge, who had ordered that representatives of the defence be searched before entering the courtroom. Hearings will resume on May 14.

At the opening of the trial, “alleged neo-Nazi terrorist Beate Zschäpe did not say anything,” recounts Tageszeitung. The newspaper continues —

She chewed gum and showed no sign of emotion when looking at victims families [...] When silence reigns, it is a moment for the interpretation of non-verbal signs. At first glance, Beate Zschäpe is a woman approaching her 40s, dressed in a navy jacket and white blouse [...] With her arms folded, she appears to be physically very tense, […] and also serious, discrete, conventional, […] and careful about her appearance. […] The facade representing normality is a role that Zschäpe knows how to play.

In an exclusive interview with the business daily, German Finance Minister Wolfgang Schäuble airs his views on the Brussels decision to allow Paris two more years in which to rein in its deficit to 3 per cent.

Pointing out that both “France and Germany have a special duty” with regard to Europe, he notes that the European Commission granted the extension on condition that there would be “a clear demonstration of commitment to necessary reforms.”

Schäuble also commented on the controversy triggered by an internal French Socialist Party document, which described Angela Markel as an “austerity chancellor” —

Instead of tackling the real causes of ongoing problems, some politicians prefer to hunt for scapegoats. It is a tendency that also exists in our country. But at the end of the day, what counts is what governments and peoples actually say. And both governments have clearly expressed the importance they attribute to Franco-German friendship.