Chancellor Angela Merkel looked on track to win a third term in this weekend’s election in Germany but faced a battle to preserve her centre-right majority and avert a potentially divisive coalition with her arch rivals, the centre-left Social Democrats (SPD).

Chancellor Angela Merkel says that Germany’s election in four days will be a referendum on the euro’s future stability, as she appealed to voters to reward her handling of the debt crisis with a third term.

Germany’s education minister resigned today after a university decided to withdraw her doctorate, finding that she plagiarised parts of her thesis – an embarrassment for Chancellor Angela Merkel’s government as it prepares for elections later this year.

The European Commission has insisted that the next leader of the International Monetary Fund must come from the European Union, a stance backed by Germany, the continent’s economic heavyweight.

A WARNING that Spain’s credit rating may be cut resulted in a fresh rush of concern about the euro yesterday on the eve of a meeting of EU leaders determined to keep markets calm.

General Motors will sell its Opel unit and other European assets to Canada’s Magna International Inc in a deal German Chancellor Angela Merkel said today would protect the assets from GM’s likely bankruptcy.

A top-level meeting in Germany approved a plan today for Canadian car parts firm Magna to rescue Vauxhall parent General Motors’ European arm.

The financial world stepped back from the brink today after bank rescue packages worth hundreds of billions were unveiled by Britain and Europe as the US continued to forge ahead with its own salvage plan.

The German government said today that it will guarantee all private savings accounts.

The Europe-wide tax cut proposed by France to combat soaring fuel prices received a cool reception from other countries today.

G8 leader Germany is pledging to make Africa a central point of next month’s summit and is calling for more aid, further debt relief and improved financial oversight.

FOREIGN-EXCHANGE rates will be a central theme when finance ministers from the Group of Seven rich nations meet in Germany this week, Deputy German Finance Minister Thomas Mirow said yesterday.

US TREASURY Secretary Henry Paulson was aiming a shot across Europe’s bow about currency intervention, rather than Japan’s, when he warned that he opposed any such bid to alter relative currency values.

Finance ministers and central bankers from the Group of Seven industrialised economies gathered today to take stock of global economic health amid worries that a US slowdown may stifle global growth.

Germany’s conservatives are moving toward completing the lineup of Chancellor-designate Angela Merkel’s cabinet, with a key ally preparing to nominate his final choice for the new government.