The prime minister faces a resurgent opposition campaigning against generous benefits for foreigners.
Thorny issues on the campaign trail
A radical Muslim cleric once dubbed "Osama bin Laden’s right-hand man in Europe" was released from prison on Monday. The freeing of Abu Qatada has stirred controversy over the role of the European Court of Human Rights.
As buildings around Greece smoldered on Monday, Europe was cautiously optimistic the country could see at least short-term economic stability following parliament's approval of another round of biting austerity measures.
Charities in the UK are warning of a personal debt crisis, as many in Britain take out "payday" loans to pay their bills. High interest rates are turning small debts into large debts in a hurry.
German chemical giant BASF has announced it has taken over US-based Ovonic Battery Company - the global leader in nickel-metal hydride battery technology. BASF hopes to boost its electric car development.
Boeing and Indonesian carrier Lion Air have signed a multi-billion dollar contract which is billed as the largest order in the history of commercial aviation. First deliveries will be made in 2017.
The OECD has warned Germany that its economy might fall back unless it speeds up reforms. A shortage of skilled labor, an ageing population and high social costs all need urgent fixes.
The German chancellor has pledged European Union sanctions against the Syrian regime. In a meeting with the head of the Arab League in Berlin, Angela Merkel praised the Arab group for its "firm stance" on Syria.
For years, neo-Nazis have marched on the anniversary of the 1945 Dresden air raid. In 2011, tension with counter-demonstrators escalated into clashes. But this year, the city seemed to have learned from past mistakes.
Thousands commemorated the bombing of Dresden and spoke against far-right extremism on Monday, the anniversary of the Allied air assault that devastated the eastern city. Police escorted a march of up to 1,600 neo-Nazis.