Merkel rejects ally's call to use gold as bailout loan collateral

GERMAN CHANCELLOR Angela Merkel last night gave short shrift to a political ally’s call for the use of gold as collateral for all future euro zone bailout loans. Labour minister Ursula von der Leyen’s suggestion yesterday caused ructions in Berlin and prompted an immediate denial that it represented government policy. The solo run appeared a calculated effort by the minister to boost her domestic profile ahead of an emergency Bundestag sitting of the ruling Christian Democratic Union (CDU) last night. Dr Merkel, without mentioning her minister by name, said making new ideas via the media was “not the way to get things done” in the euro zone crisis.