Berlin - German Chancellor Angela Merkel and her party eased Saturday their opposition to using a multi-billion state fund to nationalize industries that are reeling from the world recession.

Only a day earlier, Merkel had said through a spokesman that the planned 100-billion-euro (135-billion-dollar) fund would merely extend financial guarantees to troubled companies such as the Opel division in Germany of the US carmaker General Motors.

Paris - French President Nicolas Sarkozy and German Chancellor Angela Merkel said Thursday in Paris that Israel must be given certain security guarantees before the fighting in the Gaza Strip can end.

"Certain conditions for a ceasefire must be created. The key is to give Israel security guarantees that arms smuggling across Egypt's border with Gaza will cease," Merkel told journalists after a meeting with Sarkozy.

Berlin - Amid a dispute over tax cuts, German Chancellor Angela Merkel's ruling coalition prepared the groundwork Monday for a new economic stimulus package designed to protect Germany from recession.

A key element of the talks between Merkel's conservative Christian Democrats (CDU) and her Social Democrat (SPD) partners was how to secure jobs and increase investments, the chancellor said.

Berlin - Chancellor Angela Merkel's ruling coalition met Monday to discuss a new economic stimulus package designed to protect Germany from recession amid a rift over tax cuts.

The talks between Merkel's conservative Christian Democrats (CDU) and her Social Democrat (SPD) partners are expected to lay to groundwork for a decision on new fiscal measures by mid-January.

With general elections looming in September, the two sides went into the talks with different plans on how to shield Europe's biggest economy from the global economic downturn.

Berlin  - A spokesman for German Chancellor Angela Merkel rejected criticism Thursday of her forthright support for Israel during the conflict with Hamas in the Gaza Strip.

Merkel's assessment, offered during her New Year address, matched that of the European Union foreign ministers, the spokesman said.

She had made it clear that she too desired a truce in the fighting as soon as possible, he added.

"However conditions have to be met, and the most important condition in the view of the chancellor is that Israel's security must be secured," said the spokesman at her office.

Berlin  - German Chancellor Angela Merkel denied Thursday any bias in plans to spend billions of euros on repairing roads and schools to jolt the flagging economy back to life.

The funding, for projects which have already been waiting approval, would be spread fairly to all regions, she said after meeting premiers of the 16 states.

Merkel had triggered a cry of protest when she said in an interview this week that it was time to help western Germany, 19 years after massive federal spending started to modernize formerly communist eastern Germany.