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Wednesday, 13 June 2012

2012.06.13 14:35:15 Euro Zone Industrial Output Falls Sharply

BERLIN--Support for German Chancellor Angela Merkel's ruling coalition
party declined, a survey showed as the euro-zone's debt crisis
deepened with financial aid given to Spanish banks and Cyprus saying
it also needs rescue funds.

The poll of 2,504 Germans by the Forsa Institute showed approval for
Mrs. Merkel's Christian Democrats fell from 33% to 32% while her
junior coalition partner the Free Democratic Party's support level
rose to 5% from 4%. It was conducted between June 4-8 and carried
Wednesday by Stern magazine and RTL television.

Mrs. Merkel has struggled to convince German taxpayers of the need to
commit more money to shore up the 17-nation euro zone. Spain secured
Saturday a 100-billion euro ($125 billion) bailout for its ailing
banks. Cyprus said Tuesday it urgently needs European financial aid to
boost its banks' capital, a step that would make it the fifth country
from the currency bloc to seek financial rescue.

Germany, Europe's biggest economy has the most economic clout to help
keep vulnerable countries afloat, asking for public-spending cuts in
return that have dampened consumer spending.

Germany holds elections in fall 2013. The ruling center-right parties
trail the combined 41% support for the opposition Social Democrats and
Greens which garnered 27% and 14% backing respectively in the poll.

The survey showed the Pirate Party, a loosely organized group of
digital activists looking to challenge Germany's political
establishment, scored their weakest result since March. Mid-March,
polls showed the party scoring 13 % but this week the Pirates fell to
10%.

Manfred Guellner, the head of the Forsa Institute that conducted the
polls, told Stern weekly magazine that the Pirates' result is still
impressive, given that they are a very young party and lack structure
and organization. He said their popularity reflects the performance of
the established elite.

"Whoever votes for the pirates, is unhappy with established parties," he said.

-Write to Franziska Scheven at franziska.scheven@dowjones.com


(END) Dow Jones Newswires

June 13, 2012 06:55 ET (10:55 GMT)

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