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The Guardian Original article ›
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Demand slipping in Europe for German cars as China with overcapacity puts more cars into EU markets, including Germany. Millions of jobs may be at stake and many production facilities may need to be closed. About 3 million jobs in Germany are dependent on the German car market.

The Wall Street Journal Original article ›
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German economic growth drops in 2026 to below 1%. What is happening?Germany manufacturing jobs drop to 6.6 million lowest in 10 years in 2026 as China makes same products for less and better. China is shipping more of its products to the German market and displacing German products in world markets. The same problems affecting the US in loss of manufacturing jobs is affecting Germany. This is happening as China uses long range plans coordinated with industry and state owned companies to deliver superior results in world markets to American and German companies competing on their own without coordination with the government in a long range plan and effort. The American and German companies face greater uncertainty in markets and are slow to invest in critical areas and technologies as a result leaving them exposed to Chinese competition. China has used the Japanese style subsidizing its industries and has another advantage in doing this in that many are state owned companies or heavily subsidized and supported by the state. After 1990 the fall of the Soviet system led to a sense that free markets in their purest form were better. This was not really true as the soviet system of state planning failed because it did not use the best features of the market economy that work. Japan adapted the market system to its needs and used state partnership with private industry to produce good results. The US did not learn from Japan's example. China learned from both the failure of soviet style planning and the success of the Japanese system to adapt its state plannning system by including aspects of the market economy. The US and Germany can only learn from these examples and adapt US market economy by including aspects of what worked for China and Japan of state plannning and long range plans of industry and government. Look back to how FDR won the war- within 5 years 1940-1945 he combined the best aspects of the planning and coordination of government and industry to achieve goals not thought possible. Britain did the same which shows such planning and coordination is not only a part of the US system of business and industry, it is just that these lessons and the lessons of other nations like Japan and China after 1950 were forgotten. India is now adapting its system for business and industry, and government for five year plans borrowing and learning from the examples of the US, Japan, China and the EU. ...
NYTimes.com Original article ›
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The European Union is about to ban social media platforms from accessing children under age 13. This is how Ursula Van Leyen puts it - it is not about children accessing social media, it is about social media platforms accessing our children, says Leyen. She will announce this in her address to the European Union in September. A new report by a psychologist Fegert and an epidemiologist Melchior comes to the conclusion that social media is harmful for children, not just under 13 years, restrictions should be placed on 13 to 18 year olds also to prevent infinite scrolling and other addictive features. Australia has announced a ban setting the age at 16 years. Britain is tightening its ban. France is planning to ban setting the age at 16. The following countries are about to do this- Denmark, France, Germany, Spain, India, Indonesia and Malaysia. When the EU announces a ban it will apply to all of Europe. In the US Florida passed a ban setting age at 14 years. Across Europe children spend 4 to 6 hours on social media a day and for 60% of children it is having harmful effects on emotional health and creating psychosocial problems for children. It also affects the education, the reading comprehension of children as less books are read, and a whole new generation of children is growing up in a way that was never before seen in the Modern period where books and reading were a key aspect of modern society for the last 200 years. ...
The Guardian Original article ›
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China's export dependent economy with 4% decline in fixed investment Jan-May 2026 and 27% jump in exports.1 million car exports per month in June. Exports make up 20% of China's GDP. China is challenging German companies in their home markets in Europe. Domestic sales of cars are down 16% in June. What this means is that China's growth now depends on exports alone, with construction slowdown, and weak consumer spending. How does this tie into China's posture in trade with the US? It negotiated from a position of strength on rare earths not to give in to DJT tariffs yet knows the importance of trade for the Chinese economic model, importance of US and EU markets, markets worldwide. China's strategy is to shift some of the lost US sales due to tariffs to other countries in Latin America and Asia. A top priority is to keep trade with the US and European Union on a good footing, so that its exports can be absorbed. How does it affect Hormuz? For China Hormuz as an oil source is much lower in importance and China can do without Iran, it absolutely cannot do without the US and European Union to take a big part of its exports. It also does not openly say this but it also shares concerns similar to the US, on nuclear weapons in Iran. India, Japan and the EU have similar concerns. As shown in the articles on this page China has large unused oil in reserves and coal supplies, has lower oil demand at 4% growth, and is accelerating renewable energy, so that it is now importing 8.5 million barrels a day down from 12.5 million barrels a day. By doing this China puts this oil back into the world supply leading to lower oil prices. This means the world can do without the supplies from Hormuz, keep lower oil prices, and go on as before if Hormuz remains closed. The US can focus on domestic issues and its involvement in the Middle East can be limited to naval blockade which the US Navy is capable of doing. This is good for China, good for the US, and good for the World. Local governments in China, provincial authorites, pushed growth in building road, bridges, factories during the 30 year growth phase 1990-2020. In 2026 local governments with debt loads and lack of good projects for investment are a bottleneck to growth. This is the first time fixed investment is in decline, except for the years in 1961 and in 1967. The year 1961 is a result of many mistakes made by chairman of CCP, Mao, by shifting 2 million in farm labour to work in iron foundries, and the shift from private farm plots to soviet style commune farms, coupled with floods leading to 43-46 million famine deaths (1994, Chen Yizi, top advisor to CCP General Secretary Zhao Zhiyang). 1967 is the chaotic situation of the Great Proletarian Cultural Revolution launched by Mao. What it shows is that the China Miracle like the Japan Miracle and the German Miracle of recovery after World War II, is based on certain conditions and will enter a phase of lower growth closer to 3% like other industrialized nations over time. India and Indonesia are larger than China and will be the next growth story, which is also shown on these pages this week, with the address to the Indonesian parliament by Modi, and Indonesian president Prabovo's saying that he has studied Modi's economic changes and is copying them as there is no copyright. ...
DW.COM Original article ›
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Polls on Deutchland opinion trends show Merkel has gained support with her careful handling of Brexit, and the AfD has lost support. Only a month ago media reports covering the immigration issues had put AfD in the light of gaining using this issue. The infighting in the Conservative Party and the lack of any plans of ministers in the British government favoring Brexit for leaving the EU have Germans questioning this kind of politics compared to Merkel's promise of a "calm and composed manner" in dealing with issues of people's lives and the future of Europe. The extensive coverage in Germany of the vote for Brexit, the EU referendum in Britain, increased awareness in Germany of the benefits of the European Union. Merkel and other leaders offered their assessment of how the European Union has brought peace to Europe and improved the lives of the people during the pre Brexit media coverage. Now Infratest Dimap polls show the popularity of Merkel has increased to 59%. Compared to a June poll before Brexit things look better for Merkel-  the AfD Alternative for Germany has lost 3 percent of support dropping to 12 percent, the Christian Democrat party of Merkel is up by 2 percentage points to 34 percent in popular support, the Social Democrats also increasing support by 1 percent to 22 percent.The vast majority of people said the European Union provides security (74 percent) and prosperity (79 percent). Germans are skeptical about the value of referendums on such major decisions as EU membership because of swings in popular opinion such as that on immigration that swayed British voters- 49 percent saying parliament does better in these situations than a referendum, 42% saying referendums are better. For voters who said Germany was hindered by membership only 11% supported that proposition and 52% said the EU is beneficial for Germany. Over 75% actually favor more cooperation on refugees, data policies and energy, setting the prospect for a stronger European Union. Also proving the importance of responsible politics, and honest, flexible leadership, responding to people's concerns yet not pandering to swings in opinion for temporary advantage. A separate piece in the Guardian by Yonge points out that Cameron actually won only 23 percent of the eligible voters for Conservatives in the 2015 elections in Britain, reflecting a two decade slide. Brexit only made this failure widely visible, and did not escape the attention of the German people.   ...
DW.COM Original article ›
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The German French plan for 500 billion euro of outright aid as non repayable subsidies is supported fully by Merkel as she calls for massive amounts of aid to help the EU recover from th pandemic. Asd the pandemic was exceptional so must the aid be exceptional says Merkel.  The Bavarian state premier Soder supports it, so does the FDP's Lindner.  This report looks at why Merkel has pushed forward with this plan after supporting a decade of austerity in Europe following the Greek loan bailouts. Merkel sees aid that is repayable worsening the debt ratios of countries like Italy to the point that this would be stones not bread. This would strangle Italy's and other economies such as Spain and Portugal. It is not in Germany's interest, it is best to make partners. Only Austria, Netherlands, Sweden and Denmark oppose this. Yet this is shortsighted. Most of these northern tier countries have pursued their own self oriented interests not that of a European community of nations in crisis. ...
dw.com Original article ›
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Germany imports hardly 6% of it's oil from the Middle East compared to 13% for the European Union. This makes it possible for Germany to take its own position on Iran independent of oil supply considerations.  More important for Germany is Iran's support for Russia in the Ukraine war, a sore point for Germany and the EU considering the enormous damage done by Iranian drones in Ukraine including civilian targets. Merz says" the threat posed by this regime stretches far beyond the region. It must be shut down."  A breakdown of German imports of oil shows mostly all from outside the Middle East, after the shift away from Russia Germany has made a decision to stay away from the volatile Middle East for supplies. (Germany had a deal with Qatar for LNG but the EU has already done a deal with the US for LNG and Germany has followed the EU with its own trade deal to import LNG from the US.) Norway, 2.5 million tons, United States, 12.4 million tons Libya, 10.4 million tons, Kazakhstan 10.3 million tons The UK, 8.7 million tons, Guyana, 4.2 million tons ...
DW.COM Original article ›
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US president Biden says efforts are being made to provide emergency assistance to India for vaccine making supplies, as well as therapeutics, ventilators and other equipment. The White House says "The United States has identified sources of specific raw material urgently required for Indian manufacture of the Covishield vaccine that will be immediately be made available for India." Joe Biden said that "Just as India sent assistance to the United States as our hospitals were strained early in the pandemic, we are determined to help India in its time of need." This assistance is now being coordinated at the highest levels and being done round the clock. Chancellor Merkel of Germany - "The fight against the pandemic is our common fight. Germany stands in solidarity with India and is urgently preparing a mission of support."  The European Union's von der Leyen said "The EU is pooling resources to respond rapidly to India's request for assistance via the EU Civil Protection Mechanism. We stand in full solidarity with the Indian people."   ...
The Wall Street Journal Original article ›
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China's dependence on an export sector that is uncertain 14% growth (EV's electronics) vs. 0.2% growth in domestic spending April 2026. Costlier energy inputs are affecting China in the way that is affecting Germany's economy in 2026. The US has increased tariffs, Germany and the EU are likely to do the same as they see their economy erode with Chinese exports in German markets replacing German manufacturing. China has set 4.5% growth target much of it from ramping up exports and depends on cheaper inputs for energy as Germany has done for economic growth. This is being gradually eroded as US/EU want to reindustrialize and make things and products realizing the errors in industrial policy of previous administrations Bush and Obama in US and Schroeder/Merkel in Germany. At the same time India wants to be a manufacturing hub like China. When that happens by 2030 China's growth will be similar to the US of 2-3% a year as exports decrease. Eastern India is the New East and South China with 700 million people for the first time in 2025-2026 under double engine governments. Double engine meaning state, local and federal governments all under the same party (the BJP National party) so that industrial policy is conducted along the lines of a Master Plan tested in western Indian states of Gujarat and Maharashtra. This has been seen before. As Japan rapid rise of the 1960's and 1970's slowed by 1980, China's rapid rise of the 1990's and 2000's slowed by 2025 and India in 2025 is picking up from China in the way China picked up from Japan. This means an industrialized US and EU, rapidly industrializing India will face a slowing China and aging China by 2030. Knowing this pattern helps US and EU leaders, Indian leaders, look at the long term in their plans, having confidence in their investments in industrial progress for the next 5 years. ...
BBC News Original article ›
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In extended diplomacy Carney visits Beijing, China and says middle powers are seeking ways to interact and trade in a world of big power rivalry. His visit is followed by visits by UK's Starmer and Germany's Merz, and preceded by Macron. At the same time Merz visits Ahmedabad for a kite festival and signs a new trade agreement with India, followed by Leyen and Costa of the EU who sign a EU-India trade agreement for 27 countries of the European Union. All this suggests carefully planned effort in Europe to create new channels of trade and reorient existing trade relationships that will be more resilient with the US shifting to focus on Monroe Doctrine idea of the Western hemisphere as its region of influence and security. This report shows pictures of Starmer and Xi meeting at the Plough Pub in UK in 2015 and reflects on how this has changed 11 years later with China now  a dominant power with the world's 3rd largest economy and a third of world's manufacturing and logistics. How does this change the relationship with China in 2026 for UK and Canada, and the EU? At the same time Germany-India and EU-India relationship creates a 2 billion people market with capital, technology and labor potential to create the largest potential driven economic group in the world, combining EU's 20 trillion to India's $4 trillion economy and mutually complementing, which has potential to rival the US at $30 trillion by 2030 as India grows rapidly in the new EU/Germany/India market and the EU gets a new boost with the complementarity of the two regions by 2035. This suggests that something new is happening and Germany after a lot of soul searching have hit on something we should see blossom by 2030 in the way China has grown since that picture with Cameron of Xi at the Plough Pub in UK. A problem China faces as it continues to push exports is that EU/ India and US will take in less exports and there is only so much it can put in Latin American and African market, UK/Canada market leading to industries with massive oversupply. Major economic redirection may result from the Merz/Leyen/Costa visit and firming up trade agreements with India if the EU, Germany and India have the determination to seize this opportunity in the 21st Century. As Leyen said it has the potential to create a stable world with values of the Bible, the Bhagavad Gita, and Mahajima Nikaya of the Buddha supporting the industrial states that emerged from the Industrial Revolutions. ...
Wall Street Journal Original article ›
WSJ Original article ›
dw.com Original article ›
The Wall Street Journal Original article ›
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The largest US military community of outside the US is Kaiserslautern 73 miles from Frankfurt in Germany. Kaiserslautern is 10 miles from the Ramstein Base which is where the US European Command is located. US president is considering reducing the US military presence in Germany, as it shifts responsibilities for European defence to Europe. Failure of the EU , Germany, Britain, Italy and France to support the US in its Iran effort to get nuclear materials transferred outside to Russia or some other country is leading to a rift in trans-atlantic relations. 

The Guardian Original article ›
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India will allow automobile imports at 10% duty instead of 110%, allowing 250,000 EU automobiles into the Indian market, as part of the deal that benefits Germany. Tariff on European wines will go down from 150% to 20-40%. Duties on olive oil and processed food such as pasta and chocolates will go down to zero, which will benefit Italy, and Switzerland. A labor mobility agreement will let professional workers and seasonal workers from India into EU and EU to India. New talks will bring India into the EU's Horizon Research Programme.

It will double EU exports to India by 2032 over 6 years when it is implemented starting in 2027. An astonishing 97% of traded goods are included for cutting or eliminating tariffs. It will save EU 4 billion euros in duties, says the EU. Tariffs are cut on a vast arrayof industrial products- iron and steel (India benefits) chemicals, plastics, pharmaceuticals (India benefits) and machinery (Germany benefits).

dw.com Original article ›
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Foreign Minister Wadephul of Germany in India for talks on a free trade agreement that would double trade volume to $64 billion- September 2025. It is notable that German Foreign Minister is in New Delhi to improve relations and shift to larger trade relationship with India at the very time US under pressure from Europe and Germany, France is pushing India to shift away from buying Russian oil to other sources. Each side is aware of the complexities in the relationships. In the long run Germany under Merz will after the experience of China's support of Russian invasion in Ukraine, make the changes that never happened under Merkel- making India its major trade partner in Asia. By 2030 Germany trade's with India could exceed $100 billion.

dw.com Original article ›
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How European countries Germany, Poland, Britain, France, and Italy are increasing their defense forces and defense budgets to counter Russia's invasion of Ukraine and its military preparations is shown here in DW.com. Under chancellor Merz Germany plans to invest 5% of its GDP in defense for the first time and build Bundeswehr defense forces as the best in Europe. A key factor says DW.com was the speech of chancellor Scholz three days after the invasion of Ukraine, a speech that changed minds in Germany about the needs for defense in the 21st century. It is called the Zeitenwende or turning point speech on Feb 27, 2022.

dw.com Original article ›
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Germany's leading candidate for chancellor Merz gets an exemption for Germany to EU Common European Asylum System (CEAS) asylum laws for National Security reasons. The goal is to tight Schengen border controls to keep out illegal migrants.  EU president Von der Leyen calls Merz action on CEAS  asylum laws "innovative solutions." Germany takes U turn on asylum law as public opinion shifts with a series of crimes committed by illegal migrants allowed to stay in Germany including car rampages through crowds on streets, most recently in Munich. A sense of fatigue in EU with illegal migrants and a desire for normalcy, the old way of life, and secure neighborhoods and urban spaces. It is now seen in CDU as Merkel's policy errors and failure of judgement in letting in a flood of illegal migration.

France 24 Original article ›
dw.com Original article ›
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DW.com on what international students from India or China pay at EU universities-  44000 euros in UK vs 4000 euros or less in Germany and France. For Chinese or Indian students Germany and France offer education for bachelor and masters degress that is attractively priced even at the higher prices being now set by the government. In the past Chinese students in France were able to get Masters degrees at very little cost. Germany is looking at the higher prices as a way to increase the salaries of teaching staff and professors whose salaries lag far behind the salaries in the US and other countries. For China and India no aid program is as vital for their economies and industrial development as the access the EU provides to its universities and educational system at a fraction of the real cost. Today German universities are attracting large numbers of Indian students from middle class families where the parents life goals are to get their children into European universities. American universities cost significantly more today as American bachelors and masters degree can cost upwards of 50,000 euros a year. Even local students in the US pay between $30,000 and $100,000 a year making bachelors and masters degrees no longer affordable for much of the American middle class and leaves working class parents children totally out of the universities system. One immigrant is from Cuba- Marco Rubio of Florida, now Foreign Minister of the US. He describes in his book - "Decades of Decadence How America's Spoiled Elites Blew Up Inheritance of Liberty, Security and Prosperity"- an average factory job in Florida in the seventies enabled his parents to send him to college, which he says is no longer possible for immigrants to the US today, and no longer possible for working class parents in general. For this reason Germany and France have to be commended for their generous policies towards Chinese and Indian students. Increases in the university prices in Germany and France to 4000 euros a year for international students makes a lot of sense when British universities charge about 44000 euros a year. ...
BBC News Original article ›
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Three BBC correspondents on China's 2026 National People's Congress - effort to invest in childcare and elder care services to increase consumer spending. To continue in solar, robotics, AI, EV's, and exports as before. The problems of industrial overcapacity and pushing subsidized product into the US or EU that cause trade tensions and tariffs will continue.  New 301 investigations by US Trade Representative are taking place and will complete by mid-July. Germany's chancellor was in Beijing making a similar point about industrial overcapacity and German business is now facing the same threats to their business that the US has gone through. The one other way for China to grow is to increase consumer spending- hence the effort to help young people with childcare costs and retired people with elder care. The payments to seniors is low says the BBC's McDonnell who says the increase in payment to rural and non-working urban residents of $3 per month is miniscule. No details given for housing support to newly married couples. On one aspect relevant to the Iran war-China is increasing its efforts on renewable energy to reduce imports from volatile Middle East. ...
dw.com Original article ›
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China is competing directly in advanced industrial goods such as semiconductors, EV's, machine tools and other products that German industry produces, shrinking the market for German products. By keeping its markets open after the US limited access to its markets for highly subsidized products made in china -with the goal of displacing American goods, jobs and factories under China's successive 5 year plans- Germany now faces the same direct threat the US faced and which took away America's production base. America's textbook based economists, and their followers in American business, who added loads of meaningless math to economics - adding lack of transparency for financial shenanigans- and took out the economic history, who lacked humility to see that other rivals could emerge from nowhere, bear a great deal of responsibility. Germany is now awakening to this experience of the United States and the threat it poses to its own industry.

ZEIT ONLINE Original article ›
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This response by experts on transatlantic relations rejects the other view expressed in Zeit Online that the U.S. under Trump remains estranged from Germany and the EU. These experts from the American Institute for German Contemporary Studies, American German Council, and Centers at John Hopkins and Georgetown for German Studies, reject the view that the Trump administration and Germany are that far apart on many issues as it appears from media coverage.  Foremost it points out that civil society relations are sound and growing. About 50 million Americans trace their descent to Germany, including president Trump, much larger to over half the U.S. population considering European descent. Much larger is the sense of a culturally shared future with the European Union, with the nations of Europe including Germany, France, Italy, Spain, the nations of Eastern Europe, and Britain. The civil society relationships run deep in a way that is hardly affected by the Trump administration. Within the Trump administration the policies to Europe these experts remind the reader, are determined by the "adults" in the administration, who are senior members of the administration. This is a crucial point as Trump administration policy is not determined by the president's liking for tweets as much as by senior cabinet members Tillerson at the State Department, Gen. Mattis at Defense, Kelly at the White House, and senior members of Congress including Senators Corker and other senior committee members. This is why Republican Senator Kay Hutchinson was chosen as Ambassador to NATO. It should be noted in this context of German-EU relations in president Trump's first year that there was a period of German disillusionment with president Obama, exacerbated by the NSA spying on German chancellor Merkel and on the EU delegation to the UN, with president Obama's failure to offer any apology. Relations recovered from that low point. No one suggested that there be a German led decoupling of the EU with America at that low point, or at another low point in German-U.S. relations with the setup of American Pershing II nuclear missiles on German soil under the Reagan administration when there were large scale protests.  The American view that the U.S. should not have to shoulder major responsibilities for defense and foreign relations by itself is not new say these experts, and goes back to earlier administrations before Trump.  The experts argue for an active role by Germany with its partners in Europe for defense and foreign relations, which should not be seen as a result of U.S. pressure, only responding to the situation as it has evolved upto this time. Views on immigration are also changing with effort by the EU and Germany, France, to reduce immigration from the source countries in Africa, and the changing perceptions about uncontrolled immigration in Germany and France, say the authors. A coordinated policy towards Russia  is seen as not having changed. And much as a reset in relations was advocated by Obama in the first year of his first term, the current policy of the Trump administration to work with Russia to lower tensions can be seen in the same way say these experts, and not as a fundamental shift in American policy. The deep relationship of Germany and the EU with China is another positive aspect that will also help the U.S. in framing its own policies towards China. The German-American relationship, and the European Union relationship with the U.S.  is seen as basic to the values and interests of the U.S. and Europe. This relationship is too deep and supported by civil society and Congress, the Republican Party, and the Democratic Party, by large trade relationships, to be affected by temporary differences under any one administration. Even these differences are part of a larger debate that is part of dialogue on issues in a democratic society, sometimes raucous and loud, and could be welcomed and carefully channelled in constructive ways.     ...
DW.COM Original article ›
The Times Original article ›
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The head of the CDU party who would become chancellor after Merkel, makes an emotional plea to the British people to change their mind and remain in the European Union. In an affectionate letter to The Times of London many leading figures from politics, industry and the arts in Germany made a plea that Britain remain in the EU "from the bottom of their hearts." A look at dozens of letters in response to this article in The Times shows that many Britons feel that Britain would have voted to remain if Germany and Merkel had given prime minister Cameron a better response during negotiations in 2016. Even chancellor Merkel warned Germans not to take an indifferent or complacent attitude to Britain's staying in the EU. The letter makes amends by saying there is an indissoluble bond between Britain and Germany because of the help given by Britain to rebuild Germany after the war. "Without your great nation this nation would not be what it is today, defined by freedom and prosperity," the letter says. It says "should Britain wish to leave the EU it will always have friends in Germany and Europe. But Britons should equally know that know choice is irreversible. Our door will always remain open: Europe is home."  Katarina Barley, Germany's Justice Minister whose father is British, says she supports a second referendum on Brexit. The letter is signed by Andrea Nahles, head of the Social Democrats, Annalena Baerbock head of the Greens party. Also signing it are the heads of Daimler, Airbus and the German Federation of Industry. Annegret Karrenbauer, head of the CDU says it is looking for constructive proposals from Britain, now that the deal put forward in the British parliament was defeated by a large margin. "We will not block the path to Britain remaining in the EU." The letter is significant in that it changes the whole tone of German leaders across the spectrum towards Britain- as critical to the idea of Europe, and the dawning in German minds that Europe would never be Europe without Britain, would never be Europe simply with France and Germany and the other nations. ...

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