THE TELEGRAPH: Fears over the political survival of German Chancellor Angela Merkel sent tremors through European markets late on Wednesday, puncturing the near euphoric mood after a crucial funding operation by the European Central Bank eased doubts over bank stress.
The rally across European bourses sputtered as news emerged that Mrs Merkel's candidate for president lost two rounds of voting in the electoral college, delivering an effective vote of no confidence in the ruling Christian Democrat-Liberal coalition.
The post is largely ceremonial but the vote had become a litmus test for the Merkel government. Almost 30 members of her coalition used the secret ballot to force a change.
Mrs Merkel has been badly bruised by the eurozone debt crisis: attacked by populists for agreeing to the Greek rescue and to Germany 's €147bn (£120bn) share of the broader EMU bail-out fund, but also excoriated by pro-Europeans for a lack of statemanship early in the crisis. The liberals are angry she rammed through the bail-out without full debate. >>> Ambrose Evans-Pritchard | Wednesday, June 30, 2010
