Setback for Merkel's Pet Project German States Blackmail Berlin over Fiscal Pact

The fiscal pact, designed to impose budgetary discipline on the EU, is one of Chancellor Merkel's pet projects for fighting the euro crisis. But she needs the support of Germany's 16 states to get the treaty through parliament. The governors are selling that support at a high price.
The federal government met with the governors of Germany's 16 states last week.

The federal government met with the governors of Germany's 16 states last week.

Maurizio Gambarini/ dpa
dgs/SPIEGEL