Can't imagine what will happen to euro if Germany doesn't back it. Merkel getting signficiant push back....see Bloomberg article below. Happy Labor Day! susan

German Chancellor Angela Merkel’s party suffered its fifth election loss this year after she failed to sway voters in her home state with a campaign based on her handling of the euro-area debt crisis.

The Social Democrats, the main opposition party nationally, took 35.7 percent to win yesterday’s election in Mecklenburg- Western Pomerania, preliminary results show. Merkel’s Christian Democratic Union had 23.1 percent, its worst tally since voting began in the state in 1990 after reunification that year between West Germany and the former communist East Germany.

The result in the eastern state where Merkel’s election district is located means her national coalition has been defeated or lost votes in all six German state elections so far this year as voters resist her bid to prevent a euro-region breakup by putting more taxpayer money on the line for bailouts.

“Merkel’s problem is that she fails to generate confidence in her policies and those of her coalition partner,” Gero Neugebauer, a political science professor at the Free University in Berlin, said by phone. “It’s about the consistency of her statements” on bailouts for indebted euro countries.

Merkel took her crisis-fighting strategy directly to voters in eight campaign stops over 18 days, telling election rallies of the need for euro-area countries to step up deficit cuts and reiterating her rejection of joint euro bonds. She canceled her appearance at the final CDU rally two days ago after the death of her father, aged 85.