Germany is not considering changing its approach to Europe's debt crisis, despite increasing opposition to Berlin's austerity policies following elections in Greece and France. Chancellor Angela Merkel dismissed the idea of a major policy shift after Francois Hollande's victory in France and Greek voters punishing ruling parties for spending cuts. Hollande criticized Germany's focus on budget cuts and labor reforms, suggesting a move towards higher-spending policies. Merkel's allies indicated that they expected Hollande to make concessions, as they viewed his promises as risky for the eurozone. Volker Kauder, parliamentary leader of Merkel's conservatives and a close ally, stated that the German government's stance is unequivocal - they will persist in their efforts to save. Following a disappointing state election for her Christian Democrats (CDU), Merkel understands 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 to foreigners. Kauder, her supporter, expressed concern that Germans may have to foot the bill for the Socialist victory in France with additional guarantees and money, which he deems unacceptable. Germany is not willing to fund the promises made by France during their elections. French promises such as balancing the budget, hiring 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 fostering growth go against Germany's beliefs. Andreas Schockenhoff, a CDU lawmaker, predicts that Hollande will soon commit to stability policies. At a news conference, Merkel's spokesman Steffen Seibert emphasized that the key to moving forward in Europe was through growth achieved by implementing structural reforms, such as changes to tax and labor rules to enhance trade, rather than relying on debt-funded stimulus plans. Merkel herself stressed that while tactics could be discussed, the overall strategy agreed upon by EU leaders for fiscal consolidation was non-negotiable. She acknowledged that France, under its new president, would bring its own perspective to the debate, but emphasized that both solid finances and growth were essential for progress. Merkel reached out to Hollande, whom she had not previously met, after his victory, and the two leaders had a lengthy conversation with the help of interpreters. Sources informed Reuters that the discussion between Hollande and Merkel was amicable, with Hollande expressing his desire for strong relations. Hollande is scheduled to visit Berlin next week, most likely on May 16, the day after assuming office and embarking on his first foreign trip. Merkel stated that Hollande would be received warmly. Germany has indicated willingness to negotiate a "growth pact" with the new French president, even though the specifics of the agreement may be unclear. This would enable Hollande to claim success in his efforts for a more equitable approach to the crisis. However, it is unlikely that bold new initiatives that could provide a significant boost to struggling economies like Greece and Spain will be implemented. German officials are focused on structural reforms rather than simply boosting growth. They are considering using EU structural funds more flexibly, increasing the capital of the European Investment Bank, and issuing "project bonds" to finance infrastructure projects. Importantly, these measures would not require a significant amount of new funds from Germany, which is why they are seen as acceptable. However, Germany is opposed to the idea of implementing new government stimulus programs, extending deadlines for euro members to reduce deficits, or granting the ECB additional powers to boost growth. A senior German official emphasized that deficit targets will not be relaxed, citing French President Hollande's focus on deficit reduction in his victory speech as a positive sign of cooperation with Germany. Hollande's economic adviser, Michel Sapin, echoed this sentiment by stating that their government does not plan to simply spend money without careful consideration. Officials in Berlin and Brussels are taking a firm stance on Greece, stating that there is no room for the country to back out of or alter the terms of its multi-billion euro rescues by the European bloc and the International Monetary Fund. The recent election results in Greece, which saw a rise in support for extreme parties, have raised concerns about whether Athens will uphold its commitments and sparked speculation about a possible exit from the euro zone. A senior euro zone source stated that Greece must adhere to the program to receive financing from member states, or else face default. The consequences of a default are uncertain, but it would likely result in further hardship for Greek citizens. At the heart of the European Union project, which was established by France and Germany to prevent further wars, President Hollande can count on Italy, the euro zone's third largest economy, for support. Italy, facing economic challenges and budget cuts to satisfy creditors, has backed Hollande's pro-growth agenda. Hollande's approach towards Germany, France's key partner, will be revealed when he announces his government later this month. Jean-Marc Ayrault, a potential prime minister candidate who is familiar with Germany and has shown willingness to reconcile, may be chosen over Martine Aubry, a more traditional Socialist, indicating Hollande's readiness for compromise. Louis Gargour, chief investment officer of hedge fund LNG Capital, expressed curiosity about whether Hollande will begin his presidency by challenging Merkel. He sees this as a clash between Keynesian economics and a focus on growth, versus a prolonged period of austerity that voters are increasingly weary of.