Marcus Walker & Matthew Karnitschnig:

Chancellor Angela Merkel roundly rebuffed U.S. President Barack Obama’s call for Germans to aid the global recovery by spending more and relying less on exports, even as she warned that Europe’s own financial crisis is far from over.
In an interview with The Wall Street Journal in her Berlin chancellery, an unapologetic Ms. Merkel said the nations that share the beleaguered euro have merely bought some time to fix the flaws in their monetary union. She called on the Group of 20 industrial and developing nations meeting in Toronto this weekend to send a signal that tougher financial-market regulation is on its way to dispel the impression that momentum is fading amid resistance by big banks.
She took aim at an idea voiced by France, the U.S. and others that Germany could help global producers by spurring its persistently weak consumer demand. The latest call came in a letter last Friday from Mr. Obama to the G-20, in which he asked big exporters–Germany, China and Japan–to rebalance global demand by boosting consumer spending rather than exports.