Germany is not planning to change its approach to Europe's debt crisis despite growing opposition to Berlin's austerity policies. Chancellor Angela Merkel dismissed the idea that Europe was about to make a major policy shift after François Hollande's victory in France and the backlash against spending cuts in Greece. Merkel's allies indicated that they expected Hollande to make concessions, rather than Germany changing its stance. Volker Kauder, the parliamentary leader of Merkel's conservatives and a close ally, stated that the German government's stance is clear: they will continue to prioritize saving. Following another disappointing night for her Christian Democrats (CDU) in a state election on Sunday, Merkel is aware that in order to secure a third term next year, she cannot ignore the demands of German voters who do not want their money to be given away to foreigners. Kauder, her ally, expressed concern that Germans may end up bearing the financial burden of the Socialist victory in France through increased guarantees and funds, which he finds unacceptable. Germany is not here to provide financial support for the promises made by French politicians. These promises, made by Hollande, include balancing the French budget in five years, hiring thousands of new teachers, implementing a 75% tax on million-euro annual incomes, raising the minimum wage, introducing joint euro zone bonds, and giving the European Central Bank a more active role in promoting growth - all of which go against Germany's beliefs. Andreas Schockenhoff, a prominent CDU lawmaker, anticipates that Hollande will soon commit to "stability policies". Repeatedly questioned at a news conference about the potential impact of the French and Greek votes on the policy debate in Europe, Merkel's spokesperson Steffen Seibert emphasized that the way forward was growth through structural reform, specifically focusing on tax and labor rules to enhance trade, rather than relying on debt-funded stimulus plans. Merkel herself emphasized that while there was room for discussing tactics, the overall strategy agreed upon by EU leaders regarding fiscal consolidation was non-negotiable. She acknowledged that France, under its new president, would bring its own perspective to the debate, but stressed that solid finances and growth were essential for progress. Merkel reached out to Hollande, whom she had never met, after his victory, and the two leaders spoke for nearly fifteen minutes with the assistance of interpreters. Sources informed Reuters that the discussion between Hollande and Merkel was amicable, with Hollande reassuring Merkel of his desire for strong relations. Hollande is scheduled to visit Berlin, most likely on May 16, the day after his inauguration and first foreign trip. Merkel expressed a warm welcome for Hollande, and Germany has indicated readiness to discuss a "growth pact" with the new French president. While the specifics of the pact may be unclear, this would enable Hollande to claim success in his efforts for a more balanced response to the crisis. However, it is improbable that bold new initiatives that could significantly improve struggling economies such as Greece and Spain will be implemented. CDU budget expert Norbert Barthle mentioned to Reuters that while boosting growth is important, the focus should be on structural reforms. German officials have suggested the possibility of using EU structural funds more flexibly, increasing the capital of the European Investment Bank (EIB), and permitting the issuance of "project bonds" to finance infrastructure investments. These measures would not necessitate a large amount of new funds from Berlin, which is why they are considered acceptable. However, Germany is against the idea of implementing new government stimulus programs, granting euro members more time to reduce their deficits, or giving the ECB additional powers to boost growth. A high-level German source emphasized that there will be no relaxation of deficit targets, citing Hollande's commitment to working with Germany as shown in his victory speech in Tulle. Hollande's second priority was mentioned as cutting deficit, which was seen as a significant signal. Hollande's chief economic adviser, Michel Sapin, also stated that it is not expected for the new government to simply distribute money upon taking power. Officials in Berlin and Brussels are taking a firm stance on Greece, insisting that the country must adhere to the terms of its multi-billion euro rescues by the European bloc and the IMF. With the recent political shift in Greece and the rise of extreme parties, there are concerns about whether Athens will uphold its commitments and speculation about the possibility of being expelled from the euro zone. A senior euro zone source stated that Greece must either follow the program and receive financing from member states or face default, which could result in further difficulties for Greek citizens. At the heart of the European project, which was established by France and Germany to put an end to a series of wars, Hollande can turn to Italy, the euro zone's third largest economy, for support. Despite facing challenges such as a stagnant business environment and budget cuts aimed at satisfying cautious creditors, Prime Minister Mario Monti's technocratic government has backed the new French president's pro-growth policies. Hollande's approach towards Germany, France's key ally, will become clear when he announces his government later this month. Jean-Marc Ayrault, a potential candidate for prime minister who is fluent in German and has expressed conciliatory gestures towards Berlin, may be chosen over Martine Aubry, a more traditional Socialist figure, signaling Hollande's willingness to compromise. Louis Gargour, chief investment officer of hedge fund LNG Capital, expressed curiosity about whether Hollande will begin his presidency by challenging Merkel. Gargour sees this as a clash between Keynesian economics and a push for growth, versus a prolonged period of austerity that voters are starting to grow weary of.