Merkel Relents: Economic Rescue Plan for Europe Approved

Germany last night backed down in a row with Britain over the economic rescue plan.

Chancellor Angela Merkel announced they backed a Europe-wide plan to put £200billion into the economy.

She said: "We support the view that we need to provide the stimulus package to strengthen the economy."

But hours earlier her finance minister Peer Steinbruck attacked plans and singled out the UK for criticism.