German Chancellor Angela Merkel is losing her grip on her European dominance, with her own party members now openly opposing her latest plans, according to Der Spiegel.
Since launching her “Pact for Competitiveness” with French President Nicolas Sarkozy, Merkel has seen her own party turn against her. Members of the Christian Social Democrats were recently seen cheering for Hungarian Prime Minister Viktor Orbán, who spoke out against her plan. Orbán isn’t exactly a well respected character in European politics, having just put in place restrictive rules on the press in his country.
All the while, Merkel has lost Germany’s leading seat at the ECB, with Axel Weber, her hawkish Bundesbank chief and potential ECB president, choosing to step down.
Both non-Eurozone members and zone members other than France and Germany are openly opposed to Sarkozy and Merkel’s plan. The space for compromise, with so much opposition, seems limited.