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Angela Merkel's Christian Democratic Union party suffered a major defeat in North Rhine-Westphalia. Exit polls show the SPD Social Democrats party winning 38.9% of the vote, increasing its vote by 4.4%. The CDU won only 26.3% of the vote, dropping 8.3% from the last election. The SPD state premier, Hannelore Kraft, proved to be a popular campaigner. Her opponent Mr Rottgen made debt-financed spending an issue and told voters this was a referendum on Merkel's policies for Europe. Ms. Kraft said after the win: "We made people the central focus again." This has overtones of the victory of Francois Hollande in France, a few days ago, and shows a fundamental shift in Europe. German media described it as debacle for the conservatives considering the size of the margin between SPD and CDU. The Greens secured 11.6% of the votes and this will enable Ms. Kraft to govern easily compared to an earlier minority government she led. This state is the largest in Germany, with one of every five Germans living here, with the capital in Dusseldorf. The Pirates party secured 7.8% of the vote, and the Free Democrats staging a recovery with 8.3% of the vote under a popular young leader Christian Lindner. Upto this point the SPD lacked an effective leader to challenge Merkel. The sense now is that Ms. Kraft will emerge as the SPD's challenger to Merkel in elections in 2013, or earlier. French president Hollande goes to Berlin on May 16, 2012, and the SPD win is expected to strengthen his position in negotiations....

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Speaking to Cadena Sur, a Spanish radio network, EU Commission Vice President, Joaquin Alumnia said the EC will have plans to monitor the restructuring of each bank that gets EU funds. He said: "Whoever gives money never gives it for free. There will be people coming to Spain to make sure the money will be properly used."

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A detailed account of the developments that unfolded for Bankia bank during and after the initial public offering of its shares, after it was put together from seven failing cajas savings banks with bad real estate loans made during the housing bubble. The procrastination and small steps taken to paper over the problems by the Spanish government and regulators during the last year of the Zapatero administration and into the first year of the Rajoy administration.

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France's central bank chief Christian Noyer, says public spending to create jobs has the drawback of creating yesterday's jobs, but lasting job creation has to look at today and the future for effective job creation. Once government spending crosses a certain level, about 55% of GDP, a level France has crossed, further spending becomes counterproductive, reducing public confidence in the economy, as higher future taxes are anticipated canceling any benefits.

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Polls show 83% of the German public support increasing the minimum wage to 8.50 euros an hour. About two thirds of the public support increasing income taxes on high wage earners. The Social Democrats talks with the CDU to form a coalition are likely to lead to CDU accepance of the condition for a minimum wage of 8.50 euros an hour, but not to the condition for raising the taxes on high income earners. The SPD sees the higher taxes as a way to pay for new infrastructure. A survey done for TV broadcaster ZDF shows 61% of Germans favoring a SPD-CDU coalition. In the 2013 elections the SPD gained 25.7% of the vote and the CDU-CSU gained 41.5%. The SPD is pushing for flexible retirement age, equal pay for men and women, a tighter financial regulation, and a growth and employment strategy in the EU.

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Lower amounts for financial aid available offset the lower rise in tution costs to leave students just as worse off as before with large amount of student debt in 2013-2014.

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Estimates of the contraction of the Iranian economy in 2012-2013 show GDP declines for 2012 and 2013. The IMF estimate of the economic contraction for fiscal year ending March 2013 was 6%. Former president Ahmadinejad's policies led to hyper inflation, a sharp depreciation of the currency rial, similiar to the situation in Venezuela under Chavez and Maduro. To get a sense of the the scale of the damage to the Iranian economy- a decline of 39% in vehicle production in 2012 with the lack of essental parts and decline in demand, oil production declining to about 700,000 barrels at one point in 2013 from over 2 million barrels in the period before 2012. This was a result of lack of access to needed technology and parts as sanctions began to take a toll, and because of the decline in exports from the enforcing of sanctions by 2013. By June 2014 the newly elected leader Rouhani had made economic recovery the to priority- inflation had been cut in half and the rial currency had recovered from the lows in 2012-2013, and oil production increased to 1.2 million barrels. The IMF forecast is for GDP growth of 2.35% for 2015. The auto maker Khodro Industrial Group is keen on increasing production and partnering again with Renault, which left the country with the sanctions. Iran's oil producing company estimate is that about 700,000 increase in production could be achieved quickly with the lifting of sanctions for oil technology and parts. Rouhani has put together a large group of business leaders inside Iran and overseas to improve Iran's image with investors and attract foreign investment....

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Google's Schmidt reminds newspapers that they can opt out of Google Search and Google News with a single line of simple code. Schmidt understands that the Web runs a serious risk of becoming a wasteland as reporting declines. Only a few brave reporters take up the immense burden of keeping the U.S. public informed in international crises, at important international events, and as major changes take place in different parts of Asia and Europe. Reporters in the U.S. perform similiar tasks, with fewer reporters assuming bigger responsibilities for informing the public. Newspapers in other advanced countries Germany and France face a similiar situation.

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WSJ reporter Monica Langley provides a glimpse behind the scenes of how Donald Trump comes up with his attacks on rivals, and statements on immigration, terrorism, refugees. Trump pays close attention to what is riling voters on any particular week, but other rival politicians are not willing to say. He looks for what resonates with the public, and in today's environment where politicians are cautious, careful and plodding, this strategy works. Donald usually puts down a few points on his private plane, looks at reports from campaign staff, yet makes all the decisions himself on what and how to say it. His memory helps, he says. And he has a flair for words, sounding uncouth at times, but yet choosing words carefully enough to sound reasoanble to his audience. In Jan 2016 this approach has worked for Trump in the Iowa and New Hampshire primaries, stalling progress by rival Ted Cruz, and holding back other rivals. Yet this approach has its risks as the primary season progresses. One of the changes in the Republican party politics in 2016 is the emergence of two candidates Donald Trump representing the white working class, and Ted Cruz representing evangelicals, who are both strident and willing to take strong positions on issues in striking contrast to leading Democrats. Trump on China, immigration, refugees, and Cruz on taxes, cultural issues for evangelicals, IRS, Affordable Health Care Act, and both candidates on terrorism. ...

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Finley describes the alienated white working class voters, at a Trump rally in Orlando, Florida, at the University of Central Florida CFE Arena, March 8, 2016. It includes a laidoff Disney employee who says she was told to train foreign workers on H1-B visas who would take her job, a money manager who bellieves it is time to be tough on immigrants, including ban on Muslims entering the country. She describes them as agitated and angry at what they see as the decline into mediocrity of the country.

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IMF's differences with Greece and Germany on relative weight of tax hikes and cuts to pensions for the Third Bailout Program accepted by Greece in July 2015. The IMF wants to see further cuts in pensions, the Tsipras centre- left government in Greece is committed to protecting pensioners and the poor, and has agreed to tax hikes that do not put a disproportionate burden on the poor and working class. The IMF fears the relative weight on tax hikes for generating a surplus to pay down debt could hurt prospects for economic growth.

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The German people offer a heart warming welcome to refugees suffering enormous hardships as they make their way through countries in Eastern Europe to Germany.

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Paul Ryan asks President Obama to put forward his plan for deficit reduction the day after the passage of the August 2, 2011 Debt Ceiling and Deficit Reduction bill in Congress. Ryan points out that health care cost increases are on an unsustainable path with costs going up by 8% in 2011 and projected to go up by 8.5% in 2012. The Obama Health Care legislation tries in Ryan's view the same failed bureaucratic efforts of the past to cut health care costs. Without a genuine and sure plan to cut costs the only way to pay for Medicare with new mandates is to increase taxes again and again. He cites the CBO's Long Term Outlook in June that total tax revenues would have to double by 2050 to finance the current rate of spending on Medicare and other programs. For Ryan the failure of the Obama administration to come up with its own plan for deficit reduction after passing the Health Care legislation- with expanded mandates and no certain cost control in the reform - is the most difficult to swallow. ...