by Calculated Risk on 9/05/2011 12:12:00 AM

A couple of points from the WSJ: Euro Falls on Greece Worries

Rival [German] parties gained fresh support in the elections Sunday, piling further pressure on [Chancellor Angela] Merkel ... the loss of regional influence comes as Merkel's party prepares for a much-anticipated vote in the German parliament at the end of the month on changes to the euro-zone's temporary bailout mechanism.
...
The news follows Friday's suspension of talks between the Greek government and representatives of the International Monetary Fund, European Central Bank and European Commission over new bailout funds.

And from Reuters: German court to rule on Sept 7 on euro,Greek bailouts

Germany's constitutional court will announce its verdict on September 7 on whether the government broke the law with last year's euro zone and Greek bailout packages, it said in a statement on Tuesday.

It is unlikely the court will rule against the bailout, but Merkel is losing political support. It appears the changes to the bailout mechanism will pass the German parliament, but the vote might be close.

The European crisis is heating up again ...