Merkel’s Party Suffers Hamburg Defeat Amid Debt Crisis
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Chancellor Angela Merkel’s party suffered its worst defeat in Germany’s richest state since World War II, the first of seven state elections this year that threaten to limit her scope to tackle Europe’s debt crisis.
The loss in Hamburg, the city-state of Merkel’s birth, underscores the challenge she faces trying to balance public opposition to bailouts for debt-wracked states against pressure from investors and fellow euro countries to lead the way in stemming the debt contagion. Merkel faces three more state ballots next month either side of a March 24-25 European Union summit called to form a comprehensive plan for the crisis.