Support for Chancellor Angela Merkel's conservatives has nudged higher, an opinion poll showed, but the weakness of two smaller parties highlights the trouble she may face building another centre-right coalition after Germany's 2013 election.
Confidence in the state of the world economy over the next 12 months fell to the lowest level in five quarters, according to the Global Confidence Index prepared by the World Economic Forum.
Forbes magazine ranked German Chancellor Angela Merkel the most powerful woman in the world for the second year in a row in the annual list dominated by politicians, businesswomen and media figures. US Secretary of State Hillary Clinton placed second, followed by Brazilian President Dilma Rousseff, making the top three spots unchanged from last year.
The number of babies born in Germany sank to a record low in 2011, official statistics showed Monday, but a surge in immigration to Europe's top economy led its population to grow.
Chancellor Angela Merkel said she was confident that a majority of German lawmakers would back aid for Spain's ailing banking sector at a special sitting of the lower house Bundestag set for Thursday.
The leaders of France and Germany joined in a symbolic celebration of unity, hailing a relationship that has brought peace to Europe for 50 years but must now prove it can survive its most serious crisis to date.
Greece must not lose time trying to renegotiate its foreign bailout but focus on reforms instead, European Central Bank policymaker Joerg Asmussen said on Monday, in a blow to Greek hopes of winning quick concessions from its lenders.
Spain's economy shrank further in the second quarter but looks set to stabilise over the rest of the year while the government continues to push structural reforms and budget austerity, Economy Minister Luis de Guindos said.
As expected, more than two-thirds of the lawmakers in Germany's parliament moved on Friday to approve the permanent Euro rescue fund, the European Stability Mechanism, and a fiscal pact long championed by Chancellor Angela Merkel.
Greece's new government should stop asking for more help and instead move quickly to enact reform measures agreed to in return for previous bailouts from its European partners, German Finance Minister Wolfgang Schaeuble said.