Merkel, Roesler Clash as Greek Default Splits Coalition
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German Chancellor Angela Merkel’s government lurched into open conflict over tackling the debt crisis, as Merkel called for Greece to get more time and her coalition allies suggested it may need to default and leave the euro area.
The deepening divisions underscore Merkel’s challenge of keeping her three-party coalition united behind bailout aid for Greece as she seeks to prevent a breakup of the euro while prodding Europe toward more joint economic and fiscal policies. A state election in Berlin on Sept. 18, the last of seven this year that have seen the coalition parties punished amid bailout fatigue, further adds to the political pressure.