Guardian reports split in Germany's Conservatives.

The left-wing newspaper report from the UK is linked here. A better feel for what is afoot in Merkel's coalition can IMO be gained from this report in Open Europe's daily e-mail as follows:

Former German President: Eurozone crisis could threaten democracy

In an interview with the German Bundestag’s weekly paper, Das Parliament, former German President and former Chairman of Germany’s Constitutional Court, Roman Herzog, warned that the eurozone crisis could be a threat to democracy. He also argued that “the EU was not conceived as a super state. It will not work. We live in a world which depends on flexibility and the individual initiatives of states. Even today the EU is hamstrung by the masses of rules produced by Brussels...First of all around half of the 70,000 pages of EU regulations ought to be repealed.”
Separately, writing in yesterday’s Handelsblatt, former president of the Federation of German Industries, Professor Hans-Olaf Henkel, describes Chancellor Angela Merkel’s claim that “if the euro fails Europe fails” as a “fallacy”, arguing that “the guarantor of peace is democracy and not the euro…The increasingly undemocratic attempts at crisis management – the constant meddling of German politicians in the affairs of other countries, the limitation of the budgetary control of member states’ parliaments by un-democratically elected centralist supervisors – are leading to a dangerous erosion of democracy.”

The Guardian is linked by Open Europe for a rubbish report about Tory eurosceptics wooing LibDem coaltion partners for a joint position on the EU, I scoured that article for names of such supposed eurosceptical conservatives and found not one, try yourself from here - what rubbish journalism from the Gruniad!