>> If losing a local election to an anti-immigration party was a small headache for Angela Merkel, the economy is fast becoming a migraine. New data shows the biggest fall in industrial production in nearly two years, a surprise drop of 1.5% in July capping a run of weak numbers.
Merkel's fortunes still appear intact despite her party coming third in the weekend state ballot. Though increasingly, they do turn on the divisive issue of immigration. The chancellor now launching a spirited defense of her pro-refugee policies in Parliament with, in the background, the hint of tax cuts to come after next September's federal elections.
An apparent sweetener for voters of up to 15 billion euros outlined by her finance minister on Tuesday, new measures needed, he said, where old ones were failing. Reform, improving frameworks, investments, those are the only answers that have a chance of succeeding in the face of another big, unjustified consort.
Interest rates that are far too low. Which poses its own pain for Mario Draghi as he gathers his policymakers. Their decision on Thursday not expected to add more easing this time around, but with little apparent doubt it's still an option later on.