“The Spanish were a bit hesitant but now they are ready to request aid,” a senior European source said. Three other euro zone senior euro zone sources confirmed the shift in the Spanish position, all speaking on condition of anonymity because they were not authorised to discuss the matter.

German Finance Minister Wolfgang Schaeuble has said Spain is taking all the right steps to overcome its fiscal problems and does not need a bailout, arguing that investors will recognise and reward Spanish reforms in due course.

Privately, several European diplomats and a senior German source said Chancellor Angela Merkel preferred to avoid putting more individual bailouts for distressed euro zone countries to her increasingly reluctant parliament.

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Germany is set to advance a bill Wednesday imposing a spate of new rules on high-frequency trading, escalating Europe’s sweeping response to concerns that speedy traders have brought instability to the markets.

The measure seeks to require traders to register with Germany’s Federal Financial Supervisory Authority, collect fees from those who use high-speed trading systems excessively, and force stock markets to install circuit breakers that can interrupt trading if a problem is detected.

The new rules, which also grant the regulator the power to compel firms to detail their trading practices, will apply to anyone trading in Germany, no matter where they are based. If it is approved in cabinet, the bill will move to the Bundestag, the lower house of the German Parliament. The bill is widely expected to pass later this year.

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…Rajoy is the victim of his electoral success: his majority government, ironically, is weaker for not including regionalist partners. The Catalan government sees the dissatisfaction with Madrid’s handling of the crisis as an opportunity: it may give the regionalists enough of a boost at the polls to force Madrid to hand them more autonomy, in other words, control of taxes. If Catalonia had control over its own taxes, the argument goes, the region would not have needed a bailout.

Rajoy’s choices are limited: he either refuses Catalan demands for more autonomy and risks enflaming Catalan nationalist sentiment, or agrees to increased autonomy, and risks enflaming Spanish nationalist sentiment.

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[Ludwig ] Guttmann was a refugee from Nazi Germany. Born into an orthodox Jewish family, by 1933 he was Germany’s leading brain surgeon. Then Hitler came to power and in 1939 he came to Britain where his skill in neurology led to his being asked by the government to set up the National Spinal Injuries Centre at Stoke Mandeville hospital, which he did in 1943.

At that time it was assumed that paraplegics would never be able to live any kind of normal life. The best that could be done for them was to keep them sedated by high doses of drugs, and left hospitalized and bed-ridden until they died.

Guttmann was appalled. He believed that they each had a life ahead of them, not just behind them. With faith and determination, they could leave their beds, go out into the world, have jobs, marry,find happiness and the dignity of achievement. The film tells how, by sheer will and unshakable obstinacy, he gave paraplegics back their life.

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O God, by whose grace thy servant Hildegard, enkindled with the fire of thy love, became a burning and shining light in thy Church: Grant that we also may be aflame with the spirit of love and discipline, and may ever walk before thee as children of light; through Jesus Christ our Lord, who with thee, in the unity of the Holy Spirit, liveth and reigneth, one God, now and for ever.

Germany should leave the euro zone if it is not prepared to take a more decisive lead in helping the euro zone’s weaker nations escape a spiral of increasing indebtedness and economic decline, veteran financier George Soros said on Saturday.

Soros said Europe faced a prolonged depression and an acrimonious end to the European unification project if steps were not taken to help its southern nations grow their way out of the debt crisis by collectively assuming some of their debt and relaxing its German-led insistence on austerity.

“Germany should either lead in developing a growth policy, political union and burden-sharing, accept the cost of leadership, or leave through an amicable arrangement,” Soros said in an interview with Reuters television in Vienna.

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Greeted with initial fanfare by investors and economic officials, the unlimited bond-buying plan that the European Central Bank president, Mario Draghi, announced Thursday ran into immediate political problems in the crucial countries of Germany, Spain and Italy.

In Germany, despite Chancellor Angela Merkel’s support for Mr. Draghi and the independence of the Central Bank, political and news media reaction was scathing, with accusations that the bank, in seeking to stabilize the euro currency union, was subverting its mandate to fight inflation and forcing debt upon euro zone members.

“A Black Day for the Euro,” “Over the Red Line” and “Pandora’s Box Opened Forever” were some of the German headlines, with the normally sympathetic Süddeutsche Zeitung headlining an editorial: “The E.C.B. Rewards Mismanagement.” Even the German Bundesbank, officially part of the European Central Bank, put out a statement commenting acidly that the plan was “financing governments by printing bank notes.”

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Berlin’s senate said doctors could legally circumcise infant boys for religious reasons in its region, given certain conditions, ending months of legal uncertainty after a court banned the practice this year.

The ruling in June by a district court in Cologne outraged Muslims and Jews and sparked an emotional debate in the country.

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There was a head-spinning moment in Germany last week: News emerged that a rabbi had been criminally charged for performing his religious duties. Rabbi David Goldberg of northern Bavaria, who shepherds a 400-member community, is the first person to run afoul of a ruling by a Cologne judge earlier this year that criminalized circumcision, a basic religious rite.

There is some precedent outside of Germany for such a ruling. In 2001, a Swedish law sparked a protest from Jews and Muslims by requiring that a medical doctor or anesthesia nurse accompany registered circumcisers, and that anesthesia be applied before the procedure. The law is still in effect….

The ban by the court in Cologne, however, is the most troubling. For decades Germany has been an example of how a nation can take responsibility for its previous crimes. It is very moving to see Germany’s Holocaust memorial in Berlin, just two blocks from the country’s parliament. But the circumcision ban deserves universal scorn.

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Christian Berntsen is nothing if not enthusiastic. An activist with Bunt statt Braun, a group dedicated to combating right-wing extremism in the northern German city of Rostock, Berntsen has been instrumental in helping plan and stage events dedicated to commemorating the xenophobic, 1992 assault on an asylum-seekers home in the city quarter of Lichtenhagen. The list of activities is long: films, podium discussions, international cooking courses in local schools and presentations by local and regional politicians of all stripes.

“The city is working hand-in-hand with us when it comes to the remembrance program,” Berntsen says ardently. “And the events have been extremely well received and well attended.”
The effort in Rostock is indeed impressive. The city has gone out of its way to ensure that the kind of hateful violence that flared up two decades ago does not make a reappearance. But elsewhere in Germany, particularly in the east, the situation offers decidedly less cause for optimism. There are, to be sure, myriad groups pursuing goals similar to Bunt statt Braun, but entire regions remain where foreigners are afraid to venture, towns dominated by neo-Nazi thugs and repeated attacks against those who look different. Twenty years after the despicable Rostock violence, Germany’s xenophobia problem remains daunting.

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German Chancellor Angela Merkel faces one of the toughest choices of her career in the coming weeks: whether to risk the unraveling of the euro zone, or her government.

After a summer lull, Greece is again Ms. Merkel’s biggest headache.

The Greek government, struggling with depression-like conditions that have pushed the economy to the brink, is likely to need many billions of euros of additional aid to avoid bankruptcy.

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….rather than scour tarnished Weimar, we should read much deeper into Germany’s incomparably rich history, and in particular the indelible mark left by Martin Luther and the “mighty fortress” he built with his strain of Protestantism. Even today Germany, though religiously diverse and politically secular, defines itself and its mission through the writings and actions of the 16th century reformer, who left a succinct definition of Lutheran society in his treatise “The Freedom of a Christian,” which he summarized in two sentences: “A Christian is a perfectly free Lord of all, subject to none, and a Christian is a perfectly dutiful servant of all.”

Consider Luther’s view on charity and the poor. He made the care of the poor an organized, civic obligation by proposing that a common chest be put in every German town; rather than skimp along with the traditional practice of almsgiving to the needy and deserving native poor, Luther proposed that they receive grants, or loans, from the chest. Each recipient would pledge to repay the borrowed amount after a timely recovery and return to self-sufficiency, thereby taking responsibility for both his neighbors and himself. This was love of one’s neighbor through shared civic responsibility, what the Lutherans still call “faith begetting charity.”

How little has changed in 500 years. The German chancellor, Angela Merkel, a born-and-baptized daughter of an East German Lutheran pastor, clearly believes the age-old moral virtues and remedies are the best medicine for the euro crisis.

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….for this very practical woman there is also a practical reason to start contingency planning for a break-up: it is looking ever more likely. Greece is buckling (see article). Much of southern Europe is also in pain, while the northern creditor countries are becoming ever less forgiving: in a recent poll a narrow majority of Germans favoured bringing back the Deutschmark. A chaotic disintegration would be a calamity. Even as Mrs Merkel struggles to find a solution, her aides are surely also sensibly drawing up a plan to prepare for the worst.

This week our briefing imagines what such a “Merkel memorandum” might say (see article). It takes a German point of view, but its logic would apply to the other creditor countries. Its conclusions are stark””not least in terms of which euro member it makes sense to keep or drop. But the main message is one of urgency. For the moment, breaking up the euro would be more expensive than trying to hold it together. But if Europe just keeps on arguing, that calculation will change….

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The world must “never forget” the terrorist attacks that killed Israeli athletes at the Munich Olympics, David Cameron has said.

On the 40th anniversary of the attack, the Prime Minister led tributes to the 11 men who lost their lives on “one of the darkest days in the history of the Olympic Games”.

He said Britain understands the terrible impact of terrorism as the London 2012 Olympics were announced the day before the bombings on July 7, 2005.

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The anger within the three parties of the ruling coalition is understandable. These are the parties of the German taxpayer, after all, and ever since the sovereign debt crisis began they have been reciting the mantra that the eurozone is not and will not become a “transfer union”; that there will be no mutualisation of debt; that Mediterranean sloth and tax evasion will not be rewarded by payments from hardworking, honest Nordic Germany.

If this sounds racist, it’s because the debate is tinged on all sides by nationalist stereotypes. The German middle class feels it has been had and the country is digesting Moody’s downgrading of its credit rating. “Is this what we get for saving the Greeks?” asks the tabloid Bild. Good question….

It is impossible to explain to a German who has had her retirement age upped to 67, or an unemployed German whose benefits have been cut to balance the budget, why billions of euros should go south to support governments that didn’t have the guts to slash social spending or who let their citizens retire to the beach at 55.

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A Cologne court has decreed that a child’s circumcision is “bodily harm” and thus verboten. Unless the German Bundestag intervenes, which it has pledged to do, about four million Muslims and 100,000-plus Jews will have to practice a central part of their religion in the catacombs of Berlin, Frankfurt and Munich.

It is all God’s fault. “This is my covenant,” He ordered in Genesis 17:10, “which ye shall keep, and thy seed after thee. Every man child among you shall be circumcised.” The original criminal was Abraham, who laid hand on himself””without sterile equipment, let alone novocaine. Then he inflicted the same on his son Isaac on the eighth day after his birth, circa 4,000 years ago….

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While several governments around the world have set up commissions to study Scientology in order to determine whether it qualifies as a religion, Germany broke new ground when, in 1992, the city of Hamburg set up a “Scientology Task Force” to monitor the group, assist members who have left the Church and are thus cut off from their families, and discourage citizens from joining it in the first place. (That office, which maintained a vast and extensive archive of official Scientology documents, many of them classified by the Church, was closed due to government budget cuts in 2010.)

The former head of the Task Force, Ursula Caberta, has labeled Cruise “an enemy of [the German] constitution” and has not so subtly likened the Church to the Third Reich, calling it a “totalitarian organization that seeks to control everybody else, a dictatorship.” Hers is a view that an overwhelming number of Germans seem to share: A 2007 poll found that 74 percent favor banning Scientology. The German equivalent of the FBI, the Federal Office for the Protection of the Constitution (the Bundesamt für Verfassungshutz, or BfV), has been monitoring Scientology since 1997. On the BfV’s homepage, Scientology is listed alongside “Right-wing extremism,” “Islamism,” and “Espionage” as one of its focus areas. (The Hamburg government has even printed pamphlets warning about the dangers of Scientology in Turkish for the country’s sizable Turkish minority.)

Contrast this response to the attitude toward Scientology in the United States, where the Church, though largely seen as a celebrity curiosity, is a tax-exempt, legally recognized religious faith….

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Discussion among eurozone leaders about the future of their single currency has become an increasingly divisive affair. On the surface, religion has nothing to do with it – but could Protestant and Catholic leaders have deep-seated instincts that lead them to pull the eurozone in different directions, until it breaks?

Following the last European summit in Brussels there was much talk of defeat for Chancellor Merkel by what was described as a “new Latin Alliance” of Italy and Spain backed by France.

Many Germans protested that too much had been conceded by their government – and it might not be too far-fetched to see this as just the latest Protestant criticism of the Latin approach to matters monetary, which has deep roots in German culture, shaped by religious belief.

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A controversial German court ruling on circumcision has outraged Muslim and Jewish groups in Germany and abroad. German commentators say the decision was misguided and could have devastating consequences.

The ruling came nearly two weeks ago, but the reaction is getting increasingly vocal. At a meeting of the orthodox Conference of European Rabbis in Berlin on Thursday, the group’s head warned that a June 26 court decision making a case of circumcision a crime had been the “worst attack on Jewish life since the Holocaust”. Rabbi Pinchas Goldschmidt also threatened that Jews might leave Germany if the country doesn’t move to provide legal certainty that the tradition of circumcision can continue.

In a case involving a Muslim boy, the Cologne regional court ruled that the doctor performing the circumcision had committed bodily injury to a child, thus criminalizing the act. The ruling has no legal bearing on other cases, but some fear it could be used as a precedent by other courts.

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Congratulations to them they played well; Buffon is quite the goalie.

With Chancellor Angela Merkel cheering every step of the way, Germany dominated Greece ”” on the soccer field.

The Germans reached the European Championship semifinals for a record seventh time by beating Greece 4-2 Friday in a match played amid the contentious political backdrop between the countries.

But just as in the real world, where Germany has been a major contributor to economic bailouts for Greece, the three-time champions were in control at the Arena Gdansk. And after the match, Merkel visited the players in the changing room.

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As financial markets slide toward disaster, scarcely pausing to celebrate the “success” of the Greek election or the deal to recapitalize Spanish banks, the euro project is finally revealing its fatal flaw. One country poses an existential threat to Europe ”“ and it is not Greece, Italy or Spain. Every serious proposal to resolve the euro crisis since 2009 ”“ haircuts for bank bondholders, more realistic fiscal consolidation targets, jointly guaranteed eurobonds, a pan-European bailout fund, quantitative easing by the European Central Bank ”“ has been vetoed by Germany, and this pattern looks likely to be repeated next week.

Nobody should be surprised that Germany has become the greatest threat to Europe. After all, this has happened twice before since 1914. To state this unmentionable fact is not to impugn Germans with original sin, but merely to note Germany’s unusual geopolitical situation….

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I tried to watch both at the same time (which was a challenge). These two teams deserved to go through; nice to see Ronaldo have a good game.

After spending yesterday in Berlin, I can tell you the German government is mightily fed up with all this speculation – and fed up with getting blamed for everything bad happening in the global economy (last week’s cover of the Economist, for example).

I interviewed the Deputy Finance Minister – Secretary of State Steffen Kampeter – after the German chancellor’s strident speech to the Reichstag.

He made clear that on one major point – eurobonds – the speculation about what Germany might be willing to accept in time for the summit was simply wrong.

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For one thing, such a bailout is illegal under the Maastricht Treaty, which governs the euro zone. Because the treaty is law in each member state, a bailout would be rejected by Germany’s Constitutional Court.

Moreover, a bailout doesn’t make economic sense, and would likely make the situation worse. Such schemes violate the liability principle, one of the constituting principles of a market economy, which holds that it is the creditors’ responsibility to choose their debtors. If debtors cannot repay, creditors should bear the losses.

If we give up the liability principle, the European market economy will lose its most important allocative virtue: the careful selection of investment opportunities by creditors. We would then waste part of the capital generated by the arduous savings of earlier generations. I am surprised that the president of the world’s most successful capitalist nation would overlook this.

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“Germany should reflect quickly but deeply, and act,” Italian Prime Minister Mario Monti said late last week.

Few Germans, however, share that sense of urgency. With German unemployment at a 20-year low and falling, and the country’s economy continuing to grow despite the debt crisis, not many Germans see the crisis as a threat to their way of life.

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Almighty God, who didst call thy faithful servant Boniface to be a witness and martyr in the lands of Germany and Friesland, and by his labor and suffering didst raise up a people for thine own possession: Pour forth thy Holy Spirit upon thy Church in every land, that by the service and sacrifice of many thy holy Name may be glorified and thy kingdom enlarged; through Jesus Christ our Lord, who liveth and reigneth with thee and the same Spirit, one God, for ever and ever.

On consecutive days last week, two of the most powerful figures in Europe ”” Mario Draghi, president of the European Central Bank, and Olli Rehn, the most senior economic official in Brussels ”” warned that the future of the euro zone was in doubt. In the words of Mr. Rehn, the union might well disintegrate unless policy makers took steps to bind the euro’s 17 nations closer together.

Coming as they did from two men at the very soul of the European project, the reprimands were a stark reminder of just how much the Spanish financial meltdown had shaken the confidence of the European brain trust, to say nothing of investors from New York to Beijing.

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What will become of the European Union? One road leads to the full break-up of the euro, with all its economic and political repercussions. The other involves an unprecedented transfer of wealth across Europe’s borders and, in return, a corresponding surrender of sovereignty. Separate or superstate: those seem to be the alternatives now.

For two crisis-plagued years Europe’s leaders have run away from this choice. They say that they want to keep the euro intact””except, perhaps, for Greece. But northern European creditors, led by Germany, will not pay out enough to assure the euro’s survival, and southern European debtors increasingly resent foreigners telling them how to run their lives.

This has become a test of over 60 years of European integration….

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