Berlin’s insistence on involving private creditors in a new Greek bailout has made Germany unpopular with some of its European partners, including the ECB. Hopes are high that Friday’s summit between Chancellor Angela Merkel and French President Nicolas Sarkozy will lead to a breakthrough. But if she backs down, Merkel risks losing domestic support.

The welcome will once again appear very cordial. It won’t be as grandiose as it was three weeks ago at the G-8 summit in the seaside resort of Deauville in Normandy, France, with its red carpets and enthusiastic crowds. But Nicolas Sarkozy and Angela Merkel will also work the cameras this time around when the French president visits the Chancellery in Berlin: A kiss on the left cheek, a peck on the right one, smiles and waving.

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