ANGELA MERKEL

Sarkozy pledges new era of change

POSTED: 2218 GMT (0618 HKT), May 16, 2007
Story Highlights
• Nicolas Sarkozy officially inaugurated as France's new president
• Conservative replaces rival and former mentor Jacques Chirac
• Sarkozy has pledged a new era of change, promised to reunite France
• New president expected to appoint opposition members to his cabinet
PARIS, France (CNN) -- France's new president, Nicolas Sarkozy, reached out to his political opponents in his
inaugural speech, pledging to reunite the country as he was formally sworn in Wednesday in an elaborate
ceremony at the Elysee Palace in Paris.
The conservative, elected on a platform of economic reform and tough policies on crime and immigration,
replaces his rival and former mentor, outgoing leader Jacques Chirac who is stepping down after 12 years in
power. (Watch Sarkozy celebrate election victory .)
In his inauguration address, Sarkozy recounted the legacies of French leaders before him and said as president he
would use the mandate the French people had given him to push forward progress in their name. (Full story)
"At this, so solemn a time, I think above all of the French people," he said.
Sarkozy said there has never been "such a need" for reforms in France and laid out a long list of domestic
development initiatives and said he would be a strong proponent in the international effort to curb climate
change.
"Never has opposition to change been so dangerous for France," Sarkozy said, adding that there is a need to
"unite the French" and "rehabilitate the values of work, effort, merit and respect."
"For me the service of France is a duty," he added.
CNN's Senior European Correspondent Jim Bittermann said the new president also appealed to his opponents in
an effort to bolster support for his presidency in the face of upcoming general elections.
Sarkozy said he was not asking rivals to give up their beliefs but that individuals would have to make up their
own minds about how best to serve their country.
Sarkozy took the opportunity to meet and greet prominent members of the community including political,
religious and civil society leaders. Bittermann said many of the people attending the ceremony wore "opposite
political stripes," representing Sarkozy's desire to form a broad base of support for his reforms.
Eager president
Arriving a few minutes early, Sarkozy received his first military salute as president and made the long walk up
Elysee Palace yard.
Chirac, who gave his final address as president a day earlier, greeted his replacement on the red carpet. (Chirac
urges unity in farewell speech.)
After meeting privately for approximately 30 minutes, the two emerged in the yard where Sarkozy walked Chirac
to his car and said goodbye. Chirac left the Elysee Palace, expected to travel to his temporary Paris apartment
across from the Louvre Museum.
Stylistically different from his predecessor, Sarkozy is expected to catalyze the country with swift reforms and
his cabinet of ministers is expected to represent a radical departure from the Chirac era.
Bittermann said the ceremony was indicative of what to expect from Sarkozy. The new president was sworn in
and began delivering his inaugural address before the completion of a traditional 21-gun salute. Bittermann said
only eight shots had been fired by the time Sarkozy began speaking.
France's new leader began gearing up for presidential duties even before taking office, meeting with leaders of
the Socialist party as well as union leaders to organize his cabinet and lay out his vision for France's future.
(Sarkozy's pledge for his first 100 days in office.)
Jonathan Fenby, author of "France on the Brink," told CNN that Sarkozy is energetic but can also be overzealous
and impatient. He added that if anyone could get France back on track, it is Sarkozy.
The ambitious and politically-young 52-year-old has been keen to distance himself from Chirac, whose policies
in recent years have been seen as a cause of the economic stagnation and high unemployment that has plagued
the country.
Fenby said the French people were glad to "see the back of Chirac" and that Sarkozy's proposals are an attempt to
strike a balance between old and new.

1
While he is appealing to traditional values of morality, hard work and law and order, Sarkozy is trying to
reconcile those things with progress and change in an effort to convince the country his reforms are the way
forward.
"I think he's got a very good chance, so long as he reigns in his more energetic extreme impulses," Fenby said.
Upcoming reforms
Seen as a bustling modernizer, Sarkozy is expected to bolster France's role in global affairs as well as improve
economic conditions. (Watch analysis on what could be next for France .)
He has already laid out plans to form new ministries of economic strategy and employment, sustainable
development as well as immigration and national identity.
While many are cautious of his reforms, criticizing them as potentially brutal and xenophobic, Sarkozy has
embarked on an apparent census-building charm offensive in recent days to pave the way for coming change.
Bittermann said Sarkozy has been making inroads with potential rivals in an effort to help ease his way in to the
kind of reforms he put forward during his campaign. He added that Sarkozy would have to work to insure he
made reforms in a way that didn't lead to "confrontations in the street."
Sarkozy is expected to fly to Germany following the ceremony to meet with Chancellor Angela Merkel, wasting
no time in building a relationship with the European neighbor.
In his victory speech, Sarkozy also reached out to the U.S., whose relationship with France has been frosty over
the Iraq War.

WORLD
Q&A: Why the EU treaty arguments?
POSTED: 1011 GMT (1811 HKT), June 22, 2007
By CNN European Political Editor Robin Oakley
BRUSSELS, Belgium (CNN) -- Why is the EU arguing, yet again, over its constitution?
Because the institutions of the EU, largely designed for the original membership of six nations, are creaking now
there are 27 members.
Jose Manuel Barroso, the President of the European Commission, complains it can take six years to get an agreed
policy implemented in the EU. In an age of alarm about terrorism it took at least three years for the EU countries
to set up a common arrest warrant.
Many members argue they need more decisions taken by majority voting rather than by the traditional unanimity
and most agree that with 27 members the European Commission is too unwieldy.
There is confusion about who speaks for the EU to the outside world. Is it the current holder of the six-monthly
rotating EU presidency, currently German Chancellor Angela Merkel, is it the EU's so-called "High
Representative" for Foreign Affairs Javier Solana, who is mandated by the Council of Ministers of the 27 EU
states? Or is it the EU's External Affairs Commissioner Benita Ferrero-Waldner, who has charge of the EU
funding abroad and runs its diplomatic service?
What went wrong with the last constitution, agreed by the leaders in 2003?
The people of France and the Netherlands voted down that constitution in 2005 when their governments staged
referendums. There are arguments as to whether that was because of the constitution itself, the unpopularity of
the governments putting the question to voters or whether it was a backlash against Europe's leaders over the
rapid process of EU enlargement and the agreement to negotiate Turkish membership.
In fact 18 nations in the EU endorsed that constitution, two of them by referendums and the other 16 by
Parliamentary ratification. Many of those governments, the "maximalists" and those who want more European
integration, want to retain as much as possible of the 2003 agreement. Most leaders, including the new French
President Nicolas Sarkozy, want a minimalist agreement that they can have endorsed by the Parliaments rather
than have to stage more referendums.
So has a lot changed in the draft now being championed by Angela Merkel?
That will depend on what the leaders finally settle on in Brussels, if they do manage to reach an agreement.
Suspicious minimalists say it is really just a re-branding of the 2003 constitution with less pretentious language.
Merkel and her allies like Sarkozy have stopped calling it a "constitution" and refer to it as a mere "treaty
amendment." She has taken out language implying EU statehood, such as references to the EU flag and the "Ode
to Joy" anthem , though nobody believes those will disappear in practice. Argument is continuing about such
issues as the status of the Charter of Fundamental Rights and the enshrinement of the EU as a "legal entity" able
to sign treaties.

2
Why are the British among the major critics of the treaty in the run-up to the summit and what are their
objections?
The Dutch and the Czech Republic have some reservations. But the largest stumbling blocks are provided by the
Poles and the British.
Tony Blair, who is at his last summit and who is prepared to accept an extension of majority voting in some
areas, has set out red lines beyond which he will not go in accepting a deal. He won't accept a treaty which
allows the Charter of Fundamental Rights for EU citizens to change UK law in any way (for example weakening
British labor laws by enshrining the legal right to strike).
He will not agree to any definition of an EU Foreign Minister's role which "displaces the role of British foreign
policy." He will not agree to the extension of majority voting which would force Britain to cede control over its
common law, police and judicial system.
And he says: "We will not agree to anything that moves to qualified majority voting something that can have a
big say in our tax and benefits system." Blair says he is not prepared to deal on those questions, he must be given
arrangements which ensure all his reservations are met.
What then are Poland's objections and why is there such bitterness involved?
The position is complicated by past history between Poland and its big neighbor Germany. President Lech
Kaczynski and his identical twin brother Jaroslaw Kacznski, the prime minister, have been stern critics of
Germany, notably over the deal between Germany and Russia for a gas pipeline by-passing Poland through the
Baltic sea. Essentially they oppose anything which they see as extending Germany's power in the EU.
Under a previous voting system agreed in 2000 Poland had 27 votes to Germany's 29 in matters decided by
majority votes. But under the new constitutional plan there would be a "double majority" system -- items would
become EU law if backed by 55 per cent of the 27 EU states, providing they represented 65 per cent of the EU
population.
Poland's leaders, in a country with less than half the German population of 80 million, say that that favors the
bigger countries, Germany in particular. Not only that. Lech Kaczynski has upset and infuriated EU leaders by
saying in a radio interview that if Nazi Germany hadn't invaded Poland it would now be a country of 66 million.
Anders Fogh Rasmussen, the Danish Prime Minister, has said that it is 'absurd' to base current decisions on the
tragic circumstances of World War II. Jean-Claude Juncker, the Luxembourg Prime Minister, has complained
that Poland is "obsessed" with Germany and Alfred Gusenbauer, the Austrian Chancellor, has accused the Polish
leaders of being motivated by a desire to prevent Merkel having a successful summit outcome.
But with 25 countries basically agreed on wanting to forge ahead with a new treaty aren't Poland and Britain in a
weak position?
Not as weak as it looks. A new treaty outline (with the fine details to be settled by an intergovernmental
conference in time for the 2009 European Parliament elections) requires the unanimous consent of all the 27 EU
partners. Blair is hinting that if all his "red lines" are not met then Britain would be forced to hold a referendum
on any treaty deal . And the other leaders know that British voters would probably reject the deal, taking them
back to the drawing board again. But Barroso, a Blair ally on many issues, is insisting that you cannot have "an a
la carte Europe of exceptions and exemptions."
(He has also hinted that if Poland continues to be an awkward partner in the EU it can expect to do less well next
time it comes to the allocation of EU funds.)
How big a blow would it be for the EU if the leaders don't do a deal at this summit?
Minimalists argue that it would not be massive. The EU economies are doing better than they have done for
years. The EU has recently reached a major agreement on tackling climate change. But others say that the EU has
suffered from a collective loss of confidence since the 2005 referendums and that that would be intensified.
The prospect of another round of discussions on constitutions and institutions would bore the pants off European
electors, leave the EU with an incoherent voice in the world and divert its leaders from effective collective action
on big worldwide problems like the Middle East peace process, the Doha trade round, energy security and
counter-terrorism.
In addition there is the fear that the EU would have proved itself unable to function effectively as an organization
of 27 countries and that it would split into a two-tier organization with those who find it easier to agree common
policies pushing ahead on their own. Failure to agree would too deal a heavy blow to the prospects of further EU
enlargement.
Analysis: Bad start for Sarkozy's EU Presidency
Story Highlights
Sarkozy last year helped to rescue the EU's new constitution

3
Will now be forced to trek to Dublin, Prague and Warsaw to re-salvage constitution
Sarkozy is clashing once again too with the European Central Bank
By CNN's European Political Editor Robin Oakley

LONDON, England (CNN) -- Nicolas Sarkozy had intended to take Europe by storm with an exciting new
agenda when France inherited the six-month revolving presidency of the EU on July 1. Instead he is being
buffeted by storms of others' making, forced into a patch-and-mend role on the European constitution.
French President Nicolas Sarkozy attends a meeting on competitiveness in Limoges, France.
In an outward show of unifying Euro-enthusiasm the Eiffel Tower was emblazoned with the EU's blue and gold
stars. The European flag billowed around the Arc de Triomphe. But in the corridors of the Elysee Palace there
were dark mutters about irritating Irish, curmudgeonly Czechs and pesky Poles. For Europe is far from united.
Along with Germany's Chancellor Angela Merkel, it was President Sarkozy who last year helped to rescue the
EU's new constitution, re-packaged as the Lisbon Treaty. But just before France took over the EU leadership
Ireland's voters, the only electorate in Europe given the chance to vote directly on the Treaty, rejected it by 54
per cent to 46.
The Czech Republic's Eurosceptic president Vaclav Klaus duly pronounced the treaty dead. And then,
provocatively on Day One of Sarkozy's term of office Poland's President Lech Kaczynsky announced that he
would not be signing the Treaty which has already been ratified by the Polish Parliament. Certainly not until it
was clear what Ireland would do next.
So Sarkozy, instead of launching a new agenda including initiatives on energy security, European defense and
illegal immigration, plus an ambitious plan for a new union of all the countries bordering the Mediterranean, will
now be forced to trek from Dublin (on July 11) to Prague to Warsaw in an effort to re-salvage the constitution.
There has been a fractious start to his six months in other ways. Sarkozy has become involved in a spat with EU
Trade Commissioner Peter Mandelson, whom he accuses of selling out Europe's farmers in world trade talks
negotiations and whom he seeks to blame for the Irish referendum result. "Nothing" he insists "will make me
accept a cut in farming production on the altar of global liberalism."
Mandelson's team have hit back, saying that the EU needs a unified approach on trade and that 'food
protectionism does not feed the world'. Even Mandelson's arch-rival in domestic politics Gordon Brown has
defended the Trade Commissioner's performance and pointed out that he is negotiating on a mandate agreed by
the 27 EU countries.
Some EU leaders reckon too that the warnings in advance from Sarkozy's Foreign Minister Bernard Kouchner
that the Irish would be the biggest losers if they rejected the treaty and his finance minister's talk of unifying
Europe's business taxes (Ireland's boom has been built on low business taxes) contributed even more to the Irish
'No' campaign.
Don't Miss
EU leaders defiant amid treaty crisis
Analysis: Red faces follow Irish vote

EU turmoil after Irish no

Sarkozy is clashing once again too with the European Central Bank, declaring that any hike in Eurozone interest
rates will stifle European growth and do nothing to curb Europe's rising inflation.
The French President's attempts to assert political control over the ECB have been strongly resented by
Chancellor Merkel, who is alienated by his touchy, feely style when they meet and who is deeply suspicious too
of the plans for a new 'Mediterranean Union' he announced the very night he was elected as France's President.
Already fearful that the EU itself would be undermined by such an organisation, she has forced him to water
down his scheme. And some Mediterranean countries have begun voicing their criticisms. Libya and perhaps
Algeria seem ready to pull out of the grand meeting Sarkozy has planned of all the Mediterranean states on July
13. Turkey has made plain its suspicion that the Union is no more than a French plot to frustrate Ankara's aim of
eventual EU membership.
Sarkozy had hoped to work for the unification of business taxes and of immigration policy in Europe and to build
up a European defence dimension at the same time as taking France back into the NATO military command. He
campaigned without success ahead of the latest Brussels Summit for EU-wide cuts in VAT duties on fuel. And
he wants to get the EU countries to commit at their December summit to deeper cuts in CO2 emissions and more

4
ambitious plans for boosting renewable energy sources. But how much of his programme he will achieve will
now depend on the time and energy he has to expend on Europe's renewed constitutional crisis.
One of the first tests will be on immigration. A new European 'pact' is due to be presented on July 7 , providing
for more shared information on illegal immigrants, tighter border controls and extra help for countries on the
EU's outer fringe. But the EU has been talking about enhanced co-operation on immigration policy since the
1990s without achieving a common policy.
The Sarkozy master plan for the EU on that and other "bread and butter" issues on which he would like it to
concentrate will be unveiled to the European Parliament on July 10. Just to underline his problems that is the day
before he heads to Dublin to seek to persuade the Irish to vote again on the Lisbon Treaty.

Obama: New walls need tearing down

Story Highlights
U.S. presidential candidate Barack Obama gives speech in Germany
Obama: Berlin's history offers hope for the future
Obama: Remove walls between religions, races, and the rich and poor
Trip is intended to shore up Obama's foreign policy credentials

BERLIN, Germany (CNN) -- U.S. presidential contender Barack Obama used a speech Thursday in Berlin -- the
German city that once symbolized Cold War division --- to warn about the dangers of allowing new walls to
come between the United States and its allies.

Barack Obama presses the flesh in Germany after his speech in Berlin's Tiergarten Park.
Obama highlighted what he sees as common transatlantic goals while also accepting the differences of the Bush
years.
He is on the latest leg of an international trip intended to bolster his foreign policy credentials at home and set out
his vision for a new era of transatlantic cooperation.
In an echo of former President Ronald Reagan's speech when he demanded the Berlin Wall be pulled down,
Obama said: "The walls between the countries with the most and those with the least cannot stand. The walls
between races and tribes; natives and immigrants; Christian and Muslim and Jew cannot stand. These now are
the walls we must tear down."
Obama introduced himself to the Berlin crowd as a proud U.S. citizen and a "fellow citizen of the world."
He said: "This city, of all cities, knows the dream of freedom. And you know that the only reason we stand here
tonight is because men and women from both of our nations came together to work, and struggle, and sacrifice
for that better life." Watch Obama in Germany »
He touched on issues that have generally divided Europe and the U.S. such as climate change as well as
comparing Berlin's Cold War struggle with today's international challenges like fighting terrorism.
"People of the world - look at Berlin, where a wall came down, a continent came together, and history proved
that there is no challenge too great for a world that stands as one," he said.
Obama said: "While the 20th century taught us that we share a common destiny, the 21st has revealed a world
more intertwined than at any time in human history."
He said the fall of the Berlin Wall offered hope as the world faces up to international challenges such as
terrorism, climate change and loose nukes
"In this new world, such dangerous currents have swept along faster than our efforts to contain them. That is why
we cannot afford to be divided," Obama said.
He also addressed differences between the U.S. and Europe but added: "In Europe, the view that America is part
of what has gone wrong in our world, rather than a force to help make it right, has become all too common.
"In America, there are voices that deride and deny the importance of Europe's role in our security and our future.
Both views miss the truth...
"In this new century, Americans and Europeans alike will be required to do more - not less. Partnership and
cooperation among nations is not a choice; it is the one way, the only way, to protect our common security and
advance our common humanity."
Turning to global warming, Obama said: "This is the moment when we must come together to save this planet.
"Let us resolve that we will not leave our children a world where the oceans rise and famine spreads and terrible
storms devastate our lands. Let us resolve that all nations - including my own - will act with the same seriousness
of purpose as has your nation, and reduce the carbon we send into our atmosphere."
5
CNN's Christiane Amanpour said despite the pro-Obama crowd who gathered at the Victory Column in Berlin's
Tiergarten Park hours before the speech, many had serious questions about his policies.
Tucker Bounds, a spokesman for Obama's Republican rival John McCain, said: "John McCain has dedicated his
life to serving, improving and protecting America. Barack Obama spent an afternoon talking about it."
Obama earlier played down suggestions he was delivering a campaign speech but conceded that his performance
was intended as much for an American audience as for the gathering German crowds.
He had originally hoped to speak in front of the iconic Brandenburg Gate, where U.S. President John F. Kennedy
was photographed during a visit in 1963 shortly after the Berlin Wall had been built. Expressing solidarity with
the people of the divided city during the same trip, Kennedy declared "Ich bin ein Berliner."
The gate was also the site of a speech by U.S. President Ronald Reagan in 1987 in which he memorably urged
Soviet leader Mikhail Gorbachev to "tear down" the wall.
But use of the landmark was apparently vetoed by German Chancellor Angela Merkel, who a spokesman
Wednesday said disapproved of plans to co-opt it as a "campaign backdrop."
CNN European Political Editor Robin Oakley said Obama enjoyed widespread popularity in Europe, partly
because of his optimism and partly because he is not President George W. Bush.
But Oakley said Obama needed to prove to Americans that he could defend U.S. interests abroad. Republican
rival John McCain's campaign team has frequently criticized Obama as being inexperienced on foreign policy
and a recent poll suggested just 48 percent of Americans thought he would make a good commander in chief,
compared to 72 percent for McCain.
Germany's ties with the Bush administration have warmed since a fallout over the Iraq war, which Germany
opposed. Germany and the U.S. have also disagreed over NATO member Germany's refusal to send troops into
combat zones in southern Afghanistan.
Oakley said European leaders would be seeking confirmation that Obama, if elected, would be a "listening
president." In addition to Merkel, Obama is slated to meet with British Prime Minister Gordon Brown and
opposition leader David Cameron as well as French President Nicolas Sarkozy.
Obama's arrival in Europe follows earlier stopovers in Afghanistan, Iraq, Jordan, Kuwait, Israel and the
Palestinian territories. He says he is making the trip as a U.S. senator rather than a presidential contender
Georgia signs cease-fire agreement

TBILISI, Georgia (CNN) -- Georgian President Mikheil Saakashvili signed a cease-fire agreement on Friday,
which the U.S. said means Russian troops must begin withdrawing.
The office of French President Nicolas Sarkozy, who brokered the agreement, said Russian President Dmitry
Medvedev also had confirmed Russia's cooperation.
"His country will sign a cease-fire accord with Georgia and scrupulously respect all agreements, including a
troop withdrawal," Sarkozy's office said.
Fighting that started last week has died down in the region, but Russian forces remain. The warfare raged for
several days until Sarkozy's diplomatic efforts helped lessen the violence. Sarkozy undertook the role because he
holds the rotating presidency of the European Union.
U.S. Secretary of State Condoleezza Rice said the priority now was "all Russian troops and irregulars that
entered Georgia with them must leave immediately."
Rice said international observers followed by neutral peacekeepers should be dispatched quickly to Georgia and
its separatist regions of South Ossetia and Abkhazia, where Russia has a peacekeeping mission.
Saakashvili warned at a news conference with Rice that "this is not a done deal yet" unless it included ways of
stopping a repeat.
"We are under Russian occupation," he said.
The Russian Foreign Ministry confirmed that President Dmitry Medvedev has agreed to sign the document but
added that it was not clear whether it has been amended since Russia made the commitment to sign. conflict
began late last week, when Georgia launched a military incursion into South Ossetia in an effort to rout separatist
rebels.
Russia -- which supports the separatists, many of whom claim Russian citizenship -- has peacekeeping
responsibilities for the region and responded by sending tanks into the province for what it said was peace
enforcement. From there the violence spread into Georgia and Abkhazia.
Under the cease-fire, about 1,500 Russian peacekeepers are allowed to remain inside, and can do patrols about 6
kilometers outside, the "zone of conflict," a reference to South Ossetia and Abkhazia.

6
They are not permitted to patrol in Gori and other Georgian cities and cannot hamper aid distribution or control
ports, highways or railroads, the officials said. The limited exception for the Russian peacekeepers is allowed
only until a more robust international peacekeeping force can be deployed.
Analysts see the conflict in Georgia, which is seeking NATO and EU membership, as having wider international
implications as Russia seeks to reduce Western influence on its doorstep.
President Bush earlier chided Russia for Cold War-style behavior in its territorial conflict with Georgia, accusing
it of "bullying and intimidation" as international pressure grew on Moscow to withdraw its troops from the
region.
Medvedev remained defiant over Moscow's actions, saying Russia had brought peace to the region.
Russian troops remained in control of two key Georgian cities despite pledges of a withdrawal. The Russians
occupied the cities of Gori and Poti after conflict flared over the breakaway province of South Ossetia.
Reports emerged Friday of widespread looting in the decimated city of Gori and witnesses said they heard small-
arms fire in South Ossetia, one of the two disputed territories at the center of the conflict.
But Russia's military spokesman said Friday that "there's absolutely no firing" under way in Georgia and that his
government is concentrating on getting humanitarian aid to residents there.
Bush said the United States stands "with the people of Georgia and their democratically elected government."
Medvedev said Russia will "guarantee" peace in the Caucasus region but made no commitment to remove
Russian forces from Georgia or its breakaway territories.
"Peace needs to re-established in the region and guaranteed and underpinned so that no one again will get idiotic
ideas, and this I see as the main task of the Russian Federation," Medvedev said.
German Chancellor Angela Merkel, in a news conference with Medvedev, called for the withdrawal of Russian
troops from central Georgia, where they remain in control of large areas of the country.
International rights body Human Rights Watch on Friday accused Russia of dropping cluster bombs -- outlawed
by more than 100 nations -- on Georgia, killing civilians. The claim was denied by Russian officials.
A senior U.S. State Department official familiar with negotiations said the version of the one-page, six-element
agreement that Rice carried to Tbilisi closed a loophole in the hastily written preliminary peace plan that Georgia
and Russia agreed to Tuesday. Under Rice's plan, new wording would clarify that Russian would have a "very
limited to a light patrolling ability, such as a few kilometers outside of South Ossetia, not the right to maintain a
presence inside Georgia."
It is unclear how many people have been killed in the conflict, but various claims put the figure in the thousands.
The U.N. High Commissioner for Refugees said Friday that it estimated that more than 118,000 people have
been displaced by the fighting, citing statistics supplied by the Russian and Georgian governments.
About 30,000 people from South Ossetia fled to Russia, according to officials in the Russian region of North
Ossetia, and up to 15,000 people from South Ossetia went south into Georgia proper, the Georgian government
said.
Around 73,000 people in Georgia proper are displaced, including most of the population of Gori. A further 732
Georgians living in Abkhazia were evacuated from the remote Khodori Valley.
Lawmaker hints at long stay in Georgia, despite cease-fire
Story Highlights
Lawmaker: Troops to leave "sooner or later," depending on Georgian behavior
Russian president's office says troops will pull back as cease-fire stipulates
German Chancellor Angela Merkel warns Russia to keep word
U.S. Defense Secretary Robert Gates skeptical about quick withdrawal

TBILISI, Georgia (CNN) -- Though Russia says it will begin pulling back its troops from Georgia on Monday,
it's unclear how long the redeployment will take, and a Russian lawmaker has compared the situation to the U.S.
presence in Iraq.

Russian President Dmitry Medvedev says his troops will begin withdrawing from Georgia on Monday.
more photos »
Russia President Dmitry Medvedev told French President Nicolas Sarkozy on Sunday that Russia would start
pulling back its forces from Georgia on Monday, Medvedev's office said.
Sarkozy, who holds the rotating presidency of the European Union, brokered a cease-fire between Russia and
Georgia last week.

7
Russian troops will begin withdrawing to a buffer zone and into the breakaway province of South Ossetia as
stipulated by the cease-fire, Medvedev's office said.
Moscow gave no indication of when the withdrawal would be completed.
German Chancellor Angela Merkel, visiting Georgia, called on Russia to stick to its agreement to pull its forces
out of Georgia within "the next few days."
Speaking Sunday at a joint news conference with Georgian President Mikheil Saakashvili, she said a "very
prompt withdrawal" was needed so international peacekeepers could be dispatched to Georgia.
"President Medvedev agreed, but we cannot postpone and we cannot delay with these tasks," Merkel said in the
Georgian capital, Tbilisi.
However, lawmaker Konstantin Kosachev, head of the Russian parliament's foreign affairs committee, said
Moscow will withdraw only when it is "assured that Georgians will not continue to use military force" in the
breakaway regions of South Ossetia and Abkhazia.
ussian troops will leave "sooner or later," Kosachev said, saying the timetable depends "definitely on how
Georgians will continue to behave."
"If I would ask you in response to the same question how fast the American forces can leave Iraq, for example,
the answer would be as soon as we have guarantees for peace and security there," Kosachev said. "The same
answer would be toward this situation."
The United States has been in Iraq since its 2003 invasion.
Medvedev signed the truce deal Saturday, a day after it was signed by Saakashvili.
The conflict began more than a week ago when Georgia launched a military incursion into South Ossetia to rout
separatist rebels.
Russia -- which supports the separatists, many of whom claim Russian citizenship -- has peacekeeping
responsibilities for the region and responded by sending tanks into the province for what it said was peace
enforcement. From there, the violence spread further into Georgia and Abkhazia. Watch more on the cease-fire
»
The Georgian troops withdrew, and Russian forces took control of several areas inside the country -- prompting
an international outcry.
Six-point truce
Russia and Georgia agreed to six points in their truce deal completed Saturday:
• Do not revert to force again.
• Definitively stop all hostilities.
• Give free access to humanitarian aid.
• Georgian forces withdraw from areas of occupation.
• Russian forces withdraw to positions at start of hostilities.
• Open international discussions on South Ossetia and Abkhazia.
Russia maintains it is protecting its peacekeepers and citizens from Georgian forces in the breakaway republics,
but Saakashvili insists Moscow is trying to assert control over the former Soviet republic.
"It is up to Russia now to decide whether it will continue to defy the world ... or accomplish its final goal of
regime change in Georgia," Saakashvili said Sunday.
U.S. Defense Secretary Robert Gates said he was skeptical that Russia would quickly withdraw its forces.
"My own view is that the Russians will probably stall and perhaps take more time than anybody would like,"
Gates said in an interview broadcast Sunday. "I think we just need to keep the pressure and ensure that they abide
by the agreement that they've signed, and do so in a timely way."
Secretary of State Condoleezza Rice, who just wrapped up a visit to Tbilisi, also expressed skepticism about a
prompt Russian withdrawal.
"I would think that when the Russian president says that a signed cease-fire accord will mean the withdrawal of
Russian forces, that Russian forces would then withdraw. They did not," she told Fox News on Sunday.
"However, yet again, the Russian president has given his word, and this time, I hope he'll honor it." Watch
President Bush on "why Georgia matters" »
It is unclear how many people have been killed in the conflict, but various claims put the figure in the thousands.

The U.N. High Commissioner for Refugees said Sunday that it estimated the fighting has displaced more than
158,000 people, citing statistics from the Russian and Georgian governments.
Almost 99,000 of those displaced were in Georgia, while 30,000 were displaced in South Ossetia and 30,000
have fled to Russia, the UNHCR said.

8
IMF: Europe must act like U.S. on credit crisis

PARIS, France (CNN) -- Europe must show that it can respond like the United States in the "trial by fire" of the
global financial crisis, International Monetary Fund head Dominique Strauss-Kahn says.
French President Nicolas Sarkozy has denied he wants a European version of the U.S. banking bailout.
European leaders met in Paris, France, on Saturday to discuss their approach to the global financial crisis.
Strauss-Kahn said the financial situation was an unprecedented test for the countries that use Europe's common
currency, The Associated Press reported.
The IMF boss said that the crisis was worrying and that his organization would lower its economic growth
forecasts.
Strauus-Khan commented after meeting with French President Nicolas Sarkozy to discuss Europe's response.
Sarkozy also planned to meet with British Prime Minister Gordon Brown, German Chancellor Angela Merkel
and Italian Prime Minister Silvio Berlusconi.
Also expected to attend was Luxembourg Prime Minister Jean-Claude Juncker, who heads the Eurogroup,
comprising the finance ministers of the 15 countries using the euro.
European Commission President Jose Manuel Barroso and European Central Bank President Jean Claude Trichet
were also expected at the summit.
Sarkozy said the economic crisis required a global response, but Brown said that no strong bank should be
allowed to fail for lack of solvency.
He also mooted setting up a $21 billion European fund to help small businesses through the economic downturn.
Europe has been hit with bankruptcies and stock declines since the crisis unfolded in the United States last
month.
Europe has welcomed the approval in the U.S. Congress of a $700 billion financial industry bailout. However,
most of the leaders at the summit are against a similar Europe-wide bailout.
Sarkozy has denied that France was backing the creation of a special fund to rescue any crisis-hit European
banks, despite the French finance minister floating the idea.
The European Central Bank left its key interest rate unchanged Thursday, but it and the Bank of England are
under increasing pressure to cut rates quickly in the face of declining economic activity and an increase in
unemployment.
Euro-zone leaders to meet over financial crisis
Story Highlights
Leaders of 15 European nations using common currency to meet in Paris
France, Germany say they are opposed to common currency rescue fund
Germany's Merkel suggests session may form a "common tool box" for nations

PARIS, France (AP) -- President Nicolas Sarkozy said he expects a meeting of 15 European leaders Sunday to
produce an ambitious, coordinated plan to battle the effects of the global financial crisis.
German Chancellor Agnela Merkel and French President Nicolas Sarkozy speak to reporters Saturday.
Decisions taken by the heads of countries where the euro currency is used will be submitted to the 12 remaining
European Union countries at an EU summit Wednesday, the French president said.
Before the summit, Sarkozy greeted each of the other European leaders on the steps of the Elysee Palace. He met
with British Prime Minister Gordon Brown, whose partial bank nationalizations provide a potential model for
decisions by the euro-zone countries. Britain does not use the euro.
Some European officials said one proposal on the table was sure to be government guarantees of interbank loans
in order to unfreeze credit markets locked up by fear and uncertainty among lending institutions.
Such broad guarantees would follow the lead of Britain.
Brown, writing in the Daily Mirror on Sunday, stressed the need for drastic action because of the essential role
played by banks; "getting a mortgage, paying the bills and saving for old age."
However, a comprehensive approach is needed, he wrote. "For Europe, the stakes could not be higher and this is
a moment of truth."
Sunday's meetings come after an exceptionally bad week on European markets, as stock indexes dived across the
continent despite individual government steps.
Last weekend, the leaders of Europe's four biggest economies met but failed to agree on any specific plan. And
on Saturday, finance ministers of the Group of Seven met but did not commit to anything firm.

9
The president of the European Commission, Jose Manuel Barroso, said he was hopeful leaders would "take an
important step forward today by agreeing to a clear response for the euro area to the current crisis." Barroso was
present for the meeting with Brown.
An "unprecedented level of coordination" is needed to make clear to both Europeans and the markets of the
ability to act with a single voice, he said.
German Chancellor Angela Merkel, stressing the need for a "coherent, efficient and synchronized" response, said
Saturday that a "common toolbox" could be the outcome of the summit.
Individual countries "could use these tools to respond to (their) particular situation," she said after a meeting
outside Paris with Sarkozy.
"We need a common approach in Europe, but we must be able to adapt to each national situation in a flexible
way," she said.
Merkel and Sarkozy stressed at a news conference Saturday that coordination is vital to taming the crisis and
putting an end to the go-it-alone approach that has predominated thus far in Europe.
Sarkozy said ahead of the summit that he would "announce a certain number of measures" Monday for France.
The summit follows a weekend meeting in Washington of finance ministers from the Group of Seven -- Japan,
Germany, Britain, France, Italy, Canada and the United States.

Ireland's unilateral move to guarantee all bank deposits caught other EU nations off balance, and led to fears of a
flight of capital to the Emerald Isle.
Britain then announced a £50 billion ($88 billion) plan to partly nationalize major banks and promised to
guarantee a further 250 billion pounds ($438 billion) of loans to shore up the banking sector. The Belgian-Dutch
bank Fortis got a bailout, and so did lender Dexia SA, helped by France, Belgium and Luxembourg.
Sarkozy y Merkel declaran la guerra
a los fondos de alto riesgo especulativos(alltheportal.net el pais)
El presidente francés y la canciller alemana piden mayor transparencia en los mercados

JOSÉ COMAS, Berlín El presidente de Francia, Nicolas Sarkozy, y la canciller federal alemana, Angela
Merkel, declararon ayer que Europa debe enfrentarse a los fondos de alto riesgo que invierten con fines
especulativos. Sarkozy exigió una “moralización de los mercados financieros”, y Merkel, una mayor
“transparencia”. Los dos mandatarios proponen la creación a medio plazo de un consejo de sabios encargado de
definir el futuro de la Unión Europea. Merkel y Sarkozy no entraron en detalles sobre las diferencias entre
Francia y Alemania sobre la política industrial y el futuro de las empresas dedicadas a la energía nuclear. El
encuentro de ayer, en el palacio de Meseberg, en los alrededores de Berlín, fue el tercero entre Merkel y Sarkozy
desde la toma de posesión el pasado 16 de mayo del presidente francés. El primero fue de cortesía, el mismo día
en que Sarkozy asumió la presidencia; el segundo,en Toulouse, se centró en los problemas de la empresa
aeronáutica europea EADS. El de ayer venía precedido de las diferencias sobre la participación del consorcio
alemán Siemens en la empresa atómica francesa Areva. Se piensa en Alemania que Sarkozy intenta que Francia
se haga con el control total y compre la parte de Siemens. El diario Süddeutsche Zeitung atribuía en un
comentario ayer a Sarkozy nada menos que “nepotismo napoleónico”, y afirmaba que el presidente francés
quiere entregar la empresa al empresario de la construcción y testigo de su boda Martin Bouygues. Éste ocupó un
tercer lugar en la comparecencia ante la prensa de Merkel y Sarkozy, que lo trataron casi como una patata
caliente. Los dos dirigentes abrieron boca con el tema de una iniciativa europea para “limpiar las condiciones de
comercio y de competencia y la transparencia de las instituciones financieras”.
Sobre este tema, Sarkozy se mostró contundente y afirmó: “No se puede permitir que los especuladores
destruyan los mercados financieros. Esta falta de transparencia no puede continuar”. Añadió que propondrá el
tema para la próxima reunión del Ecofin. En respuesta a una pregunta sobre cómo concretar los controles sobre
los fondos de alto riesgo, Sarkozy declaró: “No se puede permitir que unas decenas de especuladores echen por
tierra todo un sistema internacional adquiriendo dinero sin importar en qué condiciones, comprando a no importa
qué precio y sin saber quién presta”. Sarkozy se declaró partidario de la economía de mercado y de la
globalización, pero opuesto a los que llegan, compran una empresa,
despiden a la mitad de la plantilla, la venden y se llevan los beneficios. Hizo Sarkozy profesión de fe capitalista,
pero “un capitalismo para las empresas y no para los especuladores”. Merkel estuvo más suave y habló de
transparencia y de llevar el tema a la reunión del Fondo Monetario Internacional y el Consejo Europeo. Merkel
asumió de lleno la propuesta de Sarkozy de crear un consejo de sabios que se encargue de diseñar el futuro de la
UE. Este consejo, que Merkel ya ha tratado con la actual presidencia portuguesa de la UE, se creará a medio

10
plazo, después de las elecciones al Parlamento Europeo de 2009. Según Merkel, lo formarán personalidades
independientes que aporten conocimientos, distancia y sabiduría, sin que por ahora se haya pensado en su
tamaño. La canceller trató de quitar la impresión de que este consejo tenga como objetivo impedir la entrada de
Turquía en la UE, un punto en el que coincide con su interlocutor Sarkozy. El tercer asunto que ocupó la
conferencia de prensa fue la cuestión
energética. Aprovechó la occasion Sarkozy para entonar un canto a la energía nuclear y defender la posición
favorable de Francia, porque no se puede esperar que con la energía eólica y similares se solucione el problema
del abastecimiento en Europa. Según Sarkozy, “Europa no puede quedar ante una situación en la que en un siglo
no haya más gas y en 30 o 40 años no haya más petróleo. Nadie se puede imaginar que la energía eólica sirva de
base para abastecer a Europa”. Dejó claro que Francia mantendrá su apuesta por la energía nuclear. Merkel, por
consideración a su socio de gran coalición, los socialdemócratas, optó por no comprometerse, pero el lenguaje
corporal daba a entender que compartía la opinión de Sarkozy.Sobre el vidrioso tema de la participación de
Siemens en la francesa Areva, Merkel defendió la cooperación entre Francia y Alemania,y aprovechó para hacer
publicidad del grado de conocimiento de Siemens en el campo de la energía atómica. Sarkozy se limitó a una
declaración general sobre la
disposición de Francia a cooperar

Nicolas Sarkozy cere un supraguvern economic pentru Zona Euro(euractiv)

Publicat: 21 Octombrie 2008 @ 23:43
Presedintele Frantei, Nicolas Sarkozy, a cerut marti crearea "unei guvernari economice clar identificate" in Zona
Euro, care sa lucreze alaturi de Banca Centrala Europeana, anunta AFP. "Zona Euro nu poate continua fara o
guvernare economica identificata clar", a declarat Sarkozy, la Strasbourg, in fata Parlamentului European.
Banca Centrala Europeana, singura institutie federala din Zona Euro, la ora actuala, "trebuie sa fie
independenta", dar institutul monetar de la Frankfurt, care gestioneaza moneda Euro, "trebuie sa poata discuta cu
un guvern economic", a adaugat seful statului francez, care asigura presedintia Uniunii Europene.

Presedintele Frantei s-a pronuntat pentru crearea unor "fonduri suverane" in Europa care, coordonate, ar putea
permite oferirea "unui raspuns industrial crizei" actuale: "Va cer sa ne gandim la oportunitatea de a crea, fiecare
dintre noi, fonduri suverane care, coordonate, ar putea oferi un raspuns industrial actualei crize", a spus Sarkozy,
in fata Parlamentului European.

Create de anumite guverne, fondurile suverane reprezinta instrumente speciale de investitii pentru gestionarea
investitiilor din strainatate. Activele acestor fonduri sunt estimate la 5.000 de miliarde de dolari si sunt foarte
dezvoltate in Asia si la nivelul tarilor producatoare de petrol.

"Sunt perfect constient de dezacordurile dintre anumite state" asupra acestui subiect, dar este evident ca avem
nevoie de un raspuns unitar, la nivel european, in fata actualei crize financiare, a aratat Sarkozy.

"Datoria noastra este sa putem construi mai departe, in Europa, vapoare, avioane sau autoturisme", a subliniat
presedintele Frantei.

In momentul in care o criza ajunge la asemenea proportii, "simpla reuniune a ministrilor de Finante" nu poate
oferi raspunsurile necesare, a spus el, explicand ca doar sefii de stat si de guvern "dispun de legitimitatea
democratica" ceruta de astfel de decizii.

Franta castiga teren in fata opizitiei Germaniei

Un astfel de guvern economic, ale carui contururi nu sunt inca suficient de clare, reprezinta, de mai multi ani, o
idee draga Frantei, care militeaza pentru o conducere politica la nivelul zonei euro, in fata atotputernicei Banci
Centrale Europene, noteaza AFP.

Parisul a incercat pentru prima oara sa impuna aceasta idee in primavara trecuta, cu putin timp inainte de a prelua
presedintia UE, prin evocarea posibilitatii de a convoca un summit al sefilor de stat din Zona Euro.

11
Dar Franta a fost obligata sa dea inapoi in fata opozitiei Germaniei, care a acuzat Parisul ca incearca sa puna sub
semnul intrebarii independenta Bancii Centrale Europene, acuzata frecvent ca mentine dobanzi de interventie
ridicate, orbita de lupta impotriva inflatiei.

Criza financiara actuala i-a oferit ocazia presedintelui Sarkozy de a pune in practica aceasta idee: summitul
sefilor de stat si de guvern din cele 15 tari membre ale Zonei Euro a avut loc la Paris, in 12 august, si a avut ca
scop conturarea planului coordonat de salvare a bancilor.

Acest plan, imbratisat ulterior de toate statele membre ale Uniunii Europene si imitat de Statele Unite, l-a plasat
pe Sarkozy intr-o pozitie de forta fata de cancelarul german Angela Merkel.

Presedintele Frantei a subliniat importanta ca Uniunea Europeana sa poata vorbi cu o "voce puternica" in actualul
context global. De altfel, Sarkozy a anuntat convocarea, in perioada urmatoare, a unui summit extraordinar la
nivelul UE, pentru a pregati reuniunile mondiale dedicate intaririi sistemului financiar international.
Early life
Angela Merkel was born as Angela Dorothea Kasner in Hamburg, as the daughter of Horst Kasner (b. 6 August
1926 in Berlin-Pankow), a Lutheran pastor and his wife, Herlind (b. 8 July 1928 in Elbing as Herlind Jentzsch), a
teacher of English and Latin. Her mother is a member of the Social Democratic Party of Germany. Her
grandparents on her mother's side lived in Elbing in East Prussia; one of them had Polish origin[citation needed].
She has a brother, Marcus (born 7 July 1957), and a sister, Irene (b. 19 August 1964).
Merkel's father studied Theology in Heidelberg and, afterwards, in Hamburg. In 1954 her father received a
pastorship at the church in Quitzow near Perleberg in Brandenburg, and the family moved to Templin. Thus
Merkel grew up in the countryside 80 km (50 miles) north of Berlin, in the socialist German Democratic
Republic (GDR). Gerd Langguth, a former senior member of Merkel's Christian Democratic Union states in a
book[1] that the family's ability to travel freely from East to West Germany, as well as their possession of two
automobiles, leads to the conclusion that Merkel's father had a 'sympathetic' relationship with the communist
regime, since such freedom and perquisites for a Christian pastor and his family would have been otherwise
impossible in East Germany.[2]
Like most pupils, Merkel was a member of the official, socialist-led youth movement Free German Youth (FDJ).
Later she became a member of the district board and secretary for "Agitprop" (agitation and propaganda) at the
Academy of Sciences in that organisation. However, she did not take part in the secular coming of age ceremony
Jugendweihe, which was common in East Germany, and was confirmed instead.
Merkel was educated in Templin and at the University of Leipzig, where she studied physics from 1973 to 1978.
Merkel worked and studied at the Central Institute for Physical Chemistry of the Academy of Sciences in Berlin-
Adlershof from 1978 to 1990. Angela Merkel speaks Russian fluently, and even earned a statewide prize for her
proficiency. After being awarded a doctorate (Dr. rer. nat.) based on a doctoral thesis on quantum chemistry[3]
she worked in research.
In 1989, Merkel got involved in the growing democracy movement after the fall of the Berlin Wall, joining the
new party Democratic Awakening. Following the first (and only) democratic election of the East German state,
she became the deputy spokesperson of the new pre-unification caretaker government under Lothar de Maizière.
[4]
[edit] Member of Bundestag
At the first post-reunification general election in December 1990, she was elected to the Bundestag from a
constituency which includes the districts of Nordvorpommern and Rügen, as well as the city of Stralsund. This
has remained her electoral district until today. Her party merged with the west German CDU[5] and she became
Minister for Women and Youth in Helmut Kohl's 3rd cabinet. In 1994, she was made Minister for the
Environment and Reactor Safety, which gave her greater political visibility and a platform on which to build her
political career. As one of Kohl's protégées and his youngest cabinet minister, she was referred to by Kohl as
"das Mädchen" ("the girl").
[edit] Leader of the Opposition
When the Kohl government was defeated in the 1998 general election, Merkel was named Secretary-General of
the CDU. In this position, Merkel oversaw a string of Christian Democrat election victories in six out of seven
state elections in 1999 alone, breaking the SPD-Green coalition's hold on the Bundesrat, the legislative body
representing the states. Following a party financing scandal, which compromised many leading figures of the
CDU (most notably Kohl himself, who refused to reveal the donor of DM 2,000,000 because he had given his

12
word of honour and the then party chairman Wolfgang Schäuble, Kohl's hand-picked successor, who wasn't
cooperative either), Merkel criticized her former mentor, Kohl, and advocated a fresh start for the party without
him. She was elected to replace Schäuble, becoming the first female chair of her party, on 10 April 2000. Her
election surprised many observers, as her personality offered a contrast to the party she had been chosen to lead;
Merkel is a Protestant, originating from predominantly Protestant northern Germany, while the CDU is a male-
dominated, socially conservative party with deep Catholic roots, and has its strongholds in western and southern
Germany.
Following Merkel's election as CDU leader, she enjoyed considerable popularity among the German population
and was favoured by many Germans to become Chancellor Gerhard Schröder's challenger in the 2002 election.
However, she did not receive enough support in her own party and particularly its sister party (the Bavarian
Christian Social Union, or CSU), and was subsequently out-manoeuvred politically by CSU leader Edmund
Stoiber, who had had the privilege of challenging Schröder but squandered a large lead in the opinion polls to
lose the election by a razor-thin margin. After Stoiber's defeat in 2002, in addition to her role as CDU
chairwoman, Merkel became leader of the conservative opposition in the lower house of the German parliament,
the Bundestag. Her rival, Friedrich Merz, who had held the post of parliamentary leader prior to the 2002
election, was eased out to make way for Merkel.
Merkel supported a substantial reform agenda concerning Germany's economic and social system and was
considered to be more pro-market (and pro-deregulation) than her own party (the CDU); she advocated changes
to German labour law, specifically, removing barriers to laying off employees and increasing the allowed number
of work hours in a week, arguing that existing laws made the country less competitive because companies cannot
easily control labour costs at times when business is slow.[6]
Merkel argued for Germany's nuclear power to be phased out less quickly than the Schröder administration had
planned.
Merkel advocated a strong transatlantic partnership and German-American friendship. In the spring of 2003,
defying strong public opposition, Merkel came out in favour of the U.S. invasion of Iraq, describing it as
"unavoidable" and accusing Chancellor Gerhard Schröder of anti-Americanism. This led some critics to
characterize her as an American lackey. She criticised the government's support for the accession of Turkey to
the European Union and favoured a "privileged partnership" instead. In doing so, she was seen as being in unison
with many Germans in rejecting Turkish membership of the European Union.
[edit] Comparisons
As a female politician from a centre right party, and a scientist, Merkel has been compared by many in the
English language press to former British Prime Minister Margaret Thatcher. Some have referred to her as "Iron
Lady", "Iron Girl" and even "The Iron Frau" (both alluding to Thatcher, whose nickname was "The Iron Lady" --
Thatcher has an undergraduate degree in chemistry). Political commentators have debated the precise extent to
which their agendas are similar.[7]
In addition to being the first female German chancellor and the youngest German chancellor after the War,
Merkel is also the first from East Germany (although born in Hamburg), the first born after World War II, and
the first with a background in natural sciences. She studied physics; her predecessors law, business and history.
Merkel topped Forbes magazine's list of "The World's 100 Most Powerful Women" in 2006, 2007 and 2008. [8]
On 30 May 2005, Merkel won the CDU/CSU nomination as challenger to Chancellor Gerhard Schröder of the
SPD in the 2005 national elections. Her party began the campaign with a 21% lead over the SPD in national
opinion polls, although her personal popularity lagged behind that of the incumbent. However, the CDU/CSU
campaign suffered when Merkel, having made economic competence central to the CDU's platform, confused
gross and net income twice during a televised debate. She regained some momentum after she announced that
she would appoint Paul Kirchhof, a former judge at the German Constitutional Court and leading fiscal policy
expert, as Minister of Finance.
Merkel and the CDU lost ground after Kirchhof proposed the introduction of a flat tax in Germany, again
undermining the party's credibility on economic affairs and convincing many voters that the CDU's platform of
deregulation was designed to benefit only the rich. This was compounded by Merkel proposing to increase VAT
to reduce Germany's deficit and fill the gap in revenue from a flat tax. The SPD were able to increase their
support simply by pledging not to introduce flat taxes or increase VAT. Although Merkel's standing recovered
after she distanced herself from Kirchhof's proposals, she remained considerably less popular than Schröder, and
the CDU's lead was down to 9% on the eve of the election. Merkel was also criticized for plagiarizing a passage
from a speech used by President Ronald Reagan in a 1980 US presidential debate for her own television election
duel with Gerhard Schröder, the Social Democratic chancellor.

13
On 18 September Merkel's CDU/CSU and Schröder's SPD went head-to-head in the national elections, with the
CDU/CSU winning 35.3% (CDU 27.8%/CSU 7.5%) of the second votes to the SPD's 34.2%. Neither the SPD-
Green coalition nor the CDU/CSU and its preferred coalition partners, the Free Democratic Party, held enough
seats to form a majority in the Bundestag, and both Schröder and Merkel claimed victory. A Grand Coalition
between the CDU/CSU and SPD faced the challenge that both parties demanded the chancellorship. However,
after three weeks of negotiations, the two parties reached a deal whereby Merkel would become Chancellor and
the SPD would hold 8 of the 16 seats in the cabinet.[9] [10] The coalition deal was approved by both parties at
party conferences on 14 November.[11] Merkel was elected Chancellor by the majority of delegates (397 to 217)
in the newly assembled Bundestag on 22 November but 51 members of the governing coalition voted against her.
[12]
Reports had indicated that the Grand Coalition would pursue a mix of policies, some of which differ from
Merkel's political platform as leader of the opposition and candidate for Chancellor. The coalition's intent was to
cut public spending whilst increasing VAT (from 16 to 19%), social insurance contributions and the top rate of
income tax.[13] Employment protection will no longer cover employees during their first two years in a job,
pensions will be frozen and subsidies for first-time home buyers will be scrapped. On foreign policy, Germany
would maintain its strong ties with France and eastern European states, particularly Russia, and support Turkey
for one day joining the European Union.[citation needed]
Merkel had stated that the main aim of her government would be to reduce unemployment, and that it is this
issue on which her government will be judged.[14]
[edit] Chancellor of Germany

Merkel at the European Parliament in Strasbourg (17 January 2007).[15]

On 22 November 2005, Mrs Merkel assumed the office of Chancellor of Germany.
[edit] Foreign policy

Wikisource has original text related to this article:

Angela Merkel's 2007 Speech to the European Parliament
In her first week in office, Merkel visited the French president Jacques Chirac, the EU leaders gathered in
Brussels, the Secretary-General of NATO, Jaap de Hoop Scheffer, and British Prime Minister Tony Blair, and
received President Pohamba of Namibia.
On 25 September 2007, Chancellor Angela Merkel met the Dalai Lama for "private and informal talks" in Berlin
in the Chancellery amid protest from China. China afterwards cancelled separate talks with German officials,
including talks with Justice Minister Brigitte Zypries.[16]
[edit] Policy on the Middle East and Iran
According to ‘Mail & Guardian Online’ and ‘Deutsche Welle’, Merkel in August 2006 informed the German
news agency Mehr that she had received a letter from the Iranian president Ahmadinejad.[17][18] She further
told Mehr, that to her opinion this letter contained “unacceptable” criticism of Israel and “put in question” the
Jewish state's right to exist, and that therefore she would not formally respond to the letter.
On 16 March 2007, Merkel, along with half her cabinet, arrived in Israel to mark the 60th anniversary of the
Jewish state. She was greeted at the airport by Prime Minister Ehud Olmert, an honor guard and many of the
country's political and religious leaders, including most of the Israeli Cabinet.[1][2] Until then, U.S. President
George W. Bush had been the only world leader Olmert had bestowed with the honor of greeting at the airport.
[3][4] Merkel was granted special permission to speak before Israel's parliament, which is normally done only by
heads of state.[5] Merkel made her first visit to the Middle East as President-in-office of the European Council
on 1 April 2007. She offered Europe's help to get Israel and the Palestinians back to the negotiating table, and
tried to restart international efforts for renewed peace talks.[19]
[edit] Economic and financial policy
In her first government address on 30 November 2005 she announced her objective of improving the German
Economy and reducing unemployment.
[edit] Liquidity crisis
Following major falls in worldwide stockmarkets in September 2008, the German government stepped in to
assist the Mortgage company Hypo Real Estate with a bailout which was agreed on October 6, with German
banks to contribute €30 billion and the Bundesbank €20 billion to a credit line.[20]
On Saturday October 4, following the Irish Government's decision to guarantee all deposits in private savings
accounts, a move she was strongly critical of,[21] Merkel said there were no plans for the German Government
14
to do the same. However the following day, October 5, Merkel then stated that the government would guarantee
the deposits in private savings accounts. [22] However on Monday, October 6 it emerged that the pledge was of a
political nature and that no legislation would be enabled.[23] This confusion led to major falls in worldwide
stockmarkets with the FTSE 100 and DAX stock exchanges falling 6% at one point. The German response led to
other European governments either raising the limits or promising to guarantee savings in full.[23]
[edit] Cabinet
See also Cabinet Merkel
The cabinet of Angela Merkel was sworn in at 16:00 CET, 22 November 2005.
Angela Merkel (CDU) – Chancellor
Frank-Walter Steinmeier (SPD) – Vice Chancellor and Minister of Foreign Affairs
Wolfgang Schäuble (CDU) – Minister of the Interior
Brigitte Zypries (SPD) – Minister of Justice
Peer Steinbrück (SPD) – Minister of Finance
Michael Glos (CSU) – Minister for Economics and Technology
Olaf Scholz (SPD) – Minister for Labour and Social Affairs
Horst Seehofer (CSU) – Minister for Consumer Protection, Food, and Agriculture
Franz Josef Jung (CDU) – Minister of Defence
Ursula von der Leyen (CDU) – Minister for Family, Senior Citizens, Women, and Youth
Ulla Schmidt (SPD) – Minister for Health
Wolfgang Tiefensee (SPD) – Minister for Transport, Building, Urban Development
Sigmar Gabriel (SPD) – Minister for Environment, Nature Preservation and Nuclear Safety
Annette Schavan (CDU) – Minister for Research and Education
Heidemarie Wieczorek-Zeul (SPD) – Minister for Economic Co-operation and Development
Thomas de Maizière (CDU) – Minister for Special Affairs and Director of the Chancellor's Office
On 31 October, after the defeat of his favoured candidate for the position of Secretary General of the SPD, Franz
Müntefering indicated that he would resign as Chairman of the party in November, which he did. Ostensibly
responding to this, Edmund Stoiber (CSU), who was originally nominated for the Economics and Technology
post, announced his withdrawal on 1 November. While this was initially seen as a blow to Merkel's attempt at
forming a viable coalition and cabinet, the manner in which Stoiber withdrew earned him much ridicule and
severely undermined his position as a Merkel rival. Separate conferences of the CDU, CSU and SPD approved
the proposed Cabinet on 14 November.
[edit] Personal life
In 1977, Angela Kasner married physics student Ulrich Merkel. The marriage ended in divorce in 1982.[24] Her
second husband is quantum chemist and professor Joachim Sauer. He remains out of the spotlight. She has no
children, but Sauer has two adult sons. [25]
Merkel is also prominent at German national football team's matches, and is an honorary club member of Energie
Cottbus.
[edit] Honours
In 2007 Angela Merkel was awarded the honorary doctorate of the Hebrew University of Jerusalem.[26][27] She
received the Karlspreis (Charlemagne Prize) for 2008 for distinguished services to European unity.[28][29] In
January 2008 she was awarded the Bundesverdienstkreuz (Grand Cross of the Order of Merit of the Federal
Republic of Germany).[30] She was also awarded the honorary doctorate from Leipzig University in June
2008[31] and University of Technology in Wrocław (Poland) in September 2008[32].

15