German chancellor Angela Merkel faces increased dissent within her governing coalition over extending Greece’s bailout as part of her goal of keeping the eurozone intact.

Spanish prime minister Mariano Rajoy said the “credibility of the euro won” in Saturday’s request by his government for as much as €100 billion in European Union aid to restructure the nation’s banks.

A senior German Social Democrat today said he expected his centre-left party to show “great unity” in backing conservative Angela Merkel, its one-time opponent, as chancellor in a parliamentary vote this week.

Germany’s main parties have come one step closer to building a coalition, agreeing on several points including raising the retirement age and a policy on Turkey, but they still must overcome the hurdle of plugging a huge budget shortfall.

Aides to Chancellor Gerhard Schroeder and rival Angela Merkel showed no signs of compromise on their competing leadership claims as the pair met today for a second round of talks on forming a new German government.