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Merkel, after years of uncontested success, is facing massive pressure not only from other countries, but from within her own party, to beef up the German government's response to the financial crisis. She will have to give an outstanding speech to retain her reputation as a disciplined, calculating and determined leader.

'The speech is everything,' said Philipp Missfelder, chairman of the Christian Democrats' young conservatives. 'It does not matter what the stock markets do that day. What matters is that Merkel delivers a speech that gives Germans a perspective. The party needs it, and so does the public.'

The speech Monday has become so important because Merkel has publicly shown little leadership during a crisis that seems to be turning more serious by the day. While often fiercely critical of plans by President Nicolas Sarkozy of France and other EU leaders for protecting Europe against the meltdown, she has come up with no alternative. 'Madame Non,' the Parisian daily Les Echos dubbed her.

Even when Germany's leading economic institutes recently predicted a sharp fall in economic growth for this year and zero growth for 2009, Merkel and Finance Minister Peer Steinbrück, a Social Democrat, remained detached from the forecasts. And when the institutes suggested that the government increase the economic stimulus package from €6 billion, or $7.8 billion, a year to at least €12 billion or consider tax cuts to fight recession and avoid increasing unemployment, they received hardly any formal response from Merkel.



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