Editing Angela Merkel (section)

==== Eurozone crisis ====
{{Main|European debt crisis|2008 financial crisis}}
{{See also|Greek government-debt crisis#Germany's_role_in_Greece}}
On 4 October 2008, following the [[Government of Ireland|Irish Government]]'s decision to guarantee all deposits in private savings accounts, a move she had strongly criticised,<ref>{{cite news |author=Dougherty, Carter |date=5 October 2008 |title=Germany guarantees all private bank accounts |newspaper=Forbes |url=https://www.nytimes.com/2008/10/05/business/worldbusiness/05iht-hypo.4.16708030.html |url-status=live |access-date=6 October 2008 |archive-url=https://web.archive.org/web/20140423001915/http://www.nytimes.com/2008/10/05/business/worldbusiness/05iht-hypo.4.16708030.html |archive-date=23 April 2014}}</ref> Merkel said there were no plans for the [[German Government]] to do the same. The following day, Merkel stated that the government would guarantee private savings account deposits, after all.<ref>{{cite news |last=Whitlock |first=Craig |date=6 October 2008 |title=Germany to guarantee Private Bank Accounts |newspaper=[[The Washington Post]] |url=https://www.washingtonpost.com/wp-dyn/content/article/2008/10/05/AR2008100500816.html |url-status=live |access-date=6 October 2008 |archive-url=https://web.archive.org/web/20140110151109/http://www.washingtonpost.com/wp-dyn/content/article/2008/10/05/AR2008100500816.html |archive-date=10 January 2014}}</ref> However, two days later, on 6 October 2008, it emerged that the pledge was simply a political move that would not be backed by legislation.<ref name="bbc">{{cite news |date=6 October 2008 |title=Bank uncertainty hits UK shares |work=[[BBC News]] |publisher=[[BBC]] |url=http://news.bbc.co.uk/1/hi/business/7654182.stm |url-status=live |access-date=6 October 2008 |archive-url=https://web.archive.org/web/20081007064831/http://news.bbc.co.uk/1/hi/business/7654182.stm |archive-date=7 October 2008}}</ref> Most other European governments eventually either raised the limits or promised to guarantee savings in full.<ref name="bbc" />

The German government stepped in to assist the [[mortgage loan|mortgage]] company [[Hypo Real Estate]] with a bailout. The deal was agreed upon on 6 October, with German banks contributing €30 billion and the [[Deutsche Bundesbank|Bundesbank]] €20 billion to an emergency credit line.<ref>{{cite news |last=Parkin |first=Brian |author2=Suess, Oliver |date=6 October 2008 |title=Hypo Real Gets EU50 Billion Government-Led Bailout |newspaper=[[Bloomberg L.P.|Bloomberg]] |url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=amxJTktF7JMs |url-status=dead |access-date=6 October 2008 |archive-url=https://web.archive.org/web/20121022213102/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=amxJTktF7JMs |archive-date=22 October 2012}}</ref>

At the time of the [[Greek government-debt crisis]], Germany was the largest creditor of the Greek government, giving it significant negotiating power.<ref name="Rankin-2021">{{Cite news |last=Rankin |first=Jennifer |date=23 September 2021 |title=The crisis manager: Angela Merkel's double-edged European legacy |language=en-GB |work=The Guardian |url=https://www.theguardian.com/world/2021/sep/23/the-crisis-manager-angela-merkels-double-edged-european-legacy |access-date=25 June 2023 |issn=0261-3077 |archive-date=23 September 2021 |archive-url=https://web.archive.org/web/20210923141710/https://www.theguardian.com/world/2021/sep/23/the-crisis-manager-angela-merkels-double-edged-european-legacy |url-status=live}}</ref> Merkel is often credited as having "saved the Euro", primarily due to her coordinating role in the development of debt relief policy.<ref name="Rankin-2021" /><ref name="Matthijs-2021" /><ref>{{Cite news |date=12 September 2021 |title=Merkel legacy: EU's queen with a tarnished crown |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-europe-58498231 |access-date=25 June 2023 |archive-date=13 September 2021 |archive-url=https://web.archive.org/web/20210913010507/https://www.bbc.com/news/world-europe-58498231 |url-status=live}}</ref> The austerity measures imposed on debtors such as Greece, which were a significant part of Merkel's position in the negotiations, have been criticised as overly harsh by some observers.<ref>{{Cite web |date=23 September 2021 |title=Auf Wiedersehen, Angela: How Merkel has shaped Europe and Germany |url=https://www.euronews.com/2021/09/23/angela-merkel-europe-s-fiercest-crisis-manager-likely-to-leave-a-void |access-date=25 June 2023 |website=euronews |archive-date=23 September 2021 |archive-url=https://web.archive.org/web/20210923113318/https://www.euronews.com/2021/09/23/angela-merkel-europe-s-fiercest-crisis-manager-likely-to-leave-a-void |url-status=live}}</ref><ref name="Matthijs-2021" /> Critics also highlighted Germany's own debt management issues.<ref>{{Cite news |date=21 June 2011 |title=Economic Historian: 'Germany Was Biggest Debt Transgressor of 20th Century' |language=en |work=Der Spiegel |url=https://www.spiegel.de/international/germany/economic-historian-germany-was-biggest-debt-transgressor-of-20th-century-a-769703.html |access-date=25 June 2023 |issn=2195-1349 |archive-date=11 May 2012 |archive-url=https://web.archive.org/web/20120511205116/https://www.spiegel.de/international/germany/economic-historian-germany-was-biggest-debt-transgressor-of-20th-century-a-769703.html |url-status=live}}</ref> A [[Bloomberg News|Bloomberg]] opinion piece noted that "irresponsible borrowers can't exist without irresponsible lenders"; accordingly, "Germany's banks were Greece's enablers."<ref>{{Cite news |date=23 May 2012 |title=Hey, Germany: You Got a Bailout, Too |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/opinion/articles/2012-05-23/merkel-should-know-her-country-has-been-bailed-out-too |access-date=25 June 2023 |archive-date=19 January 2019 |archive-url=https://web.archive.org/web/20190119170336/https://www.bloomberg.com/opinion/articles/2012-05-23/merkel-should-know-her-country-has-been-bailed-out-too |url-status=live}}</ref>

In the course of the [[2008 financial crisis]], the Merkel cabinet increased the budget of the [[Kurzarbeit]] programme significantly and extended the permitted duration of such contracts from 6 months to 18 months.<ref>{{Cite news |date=24 November 2009 |title=Krisenhilfe: Merkel will Kurzarbeit bis Ende 2010 verlängern |language=de |work=Der Spiegel |url=https://www.spiegel.de/politik/deutschland/krisenhilfe-merkel-will-kurzarbeit-bis-ende-2010-verlaengern-a-663048.html |access-date=26 July 2023 |issn=2195-1349 |archive-date=9 March 2021 |archive-url=https://web.archive.org/web/20210309154845/https://www.spiegel.de/politik/deutschland/krisenhilfe-merkel-will-kurzarbeit-bis-ende-2010-verlaengern-a-663048.html |url-status=live}}</ref> Although similar provisions had existed previously, the Merkel cabinet's expansion of the programme was widely praised and is credited with having saved 500,000 jobs during the [[2008 financial crisis]].<ref>{{Cite news |date=14 September 2021 |title=Marking Merkel |language=en |work=Reuters |url=https://www.reuters.com/graphics/GERMANY-POLITICS/MERKEL/mopankkkova/ |access-date=26 July 2023 |archive-date=20 December 2022 |archive-url=https://web.archive.org/web/20221220134537/https://www.reuters.com/graphics/GERMANY-POLITICS/MERKEL/mopankkkova/ |url-status=live}}</ref><ref>{{Cite web |title=Kurzarbeit: Germany's Short-Time Work Benefit |url=https://www.imf.org/en/News/Articles/2020/06/11/na061120-kurzarbeit-germanys-short-time-work-benefit |access-date=26 July 2023 |website=IMF |archive-date=8 July 2020 |archive-url=https://web.archive.org/web/20200708022836/https://www.imf.org/en/News/Articles/2020/06/11/na061120-kurzarbeit-germanys-short-time-work-benefit |url-status=live}}</ref><ref>{{Cite web |work=OECD |date=2009 |title=Employment Outlook 2009 – How does GERMANY compare? |url=https://www.oecd.org/employment/emp/43707146.pdf |archive-date=24 September 2015 |archive-url=https://web.archive.org/web/20150924133418/https://www.oecd.org/employment/emp/43707146.pdf |url-status=live}}</ref>