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Page last updated at 09:01 GMT, Thursday, 20 May 2010 10:01 UK

Germany's 'big domestic battle' over euro

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Yesterday the German Chancellor Angela Merkel gave a dire warning about the future of single European currency, and pushed for tougher regulation of financial markets and strict penalties for EU countries that run high debts.

Economics editor Stephanie Flanders analyses the euro's mounting problems.


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