She's saying: 'I will be a friend to you but I will not be an uncritical friend.
It established her as someone to be reckoned with.
Angela Merkel may very well be a dead woman walking. My gut instinct tells me Merkel is in a very difficult position, which is why the Social Democrats are grinning so broadly. Right now, everybody is playing chicken.
Some people saw (the 1-euro jobs) as a welcome way of working and achieving some form of dignity. But those who had grown up in the German welfare system found it humiliating to be doing serious work and only paid a euro.
Germany has somewhat been pushed into the lead in Europe. This implies great opportunities for Merkel, something that hasn't escaped Bush.