Obama, party allies raise $68 million for re-election (Reuters)

WASHINGTON (Reuters) – President Barack Obama's re-election campaign and its Democratic allies raised more than $68 million in the last three months of 2011, dwarfing Republican rivals as the White House race approaches.

In a video message sent to supporters on Thursday, Obama's 2012 campaign manager Jim Messina announced the haul, which brings the shared fundraising by Obama's campaign and the Democratic National Committee at over $200 million for 2011.

With most of that money said to be coming in small-dollar sums from thousands of Americans, the fundraising gives Obama, a Democrat, a nice cushion as he campaigns for re-election against Republicans sparring to see who will be their nominee in November's election.

Although the money given to the DNC is effectively Obama's for grabs, his own campaign -- which faces lower contribution limits -- received $42 million during the last three months of 2011.

Still, that far outstrips the amounts donated to the Republican campaigns, which do not yet receive financial backing from the Republican National Committee.

Front-runner Mitt Romney's campaign said on Wednesday it had raised $24 million in the fourth quarter. Ron Paul raised $13 million and Newt Gingrich raised $9 million.

The Obama team is shooting to top the roughly $750 million it raised when he was elected president in 2008.

Much of Obama's success in 2008 was credited to his grassroots support illustrated by small donations, which Messina said continue to flow. Similar to the previous quarterly report, 98 percent of the donations to Obama's campaign were made up of $250 or less, he said.

In the video, Messina again rejected the expectation that the campaign would raise $1 billion. That false expectation, he said, was giving donors the misimpression Obama did not need their financial support.

"Too many Obama supporters think we don't need their money, or they don't need to give now," he said in the video.

"We won in 2008 because every single supporter and volunteer viewed their role in this campaign as absolutely essential to us winning. But now we're in danger of letting that very belief slip through our fingers this time."

One major campaign donor highlighted the financial challenge Obama faces from "Super PACs," the groups that technically cannot directly communicate with campaigns but can accept unlimited donations in support of a candidate.

"The race is going to be expensive. The fact is that there are these unlimited buckets of (Republican) PAC money," he said.

"The Obama campaign is going to need money from here for the duration. And once (the Republicans) have a nominee, that's when it starts getting expensive."

Some 1.3 million Americans gave to Obama's campaign last year, including 583,000 donors in the fourth quarter alone. Of those, almost a third were first-time donors, Messina said.

The campaign beat its goal of raising $60 million in the fourth quarter, although the amount brought in was just under $70 million raised in the third quarter. Through the end of September, the campaign and the DNC had raised roughly $155 million.

Messina's email to supporters asked them to chip in $25 now; often Obama fundraising appeals start with a much lower $3 donation request.

The campaigns have until Jan 31 to release their full fourth quarter reports.

(additional reporting by Eric Johnson in Chicago and Patricia Zengerle in Washington; Editing by Philip Barbara)

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Merkel and euroskeptic allies beaten in Berlin (Reuters)

BERLIN (Reuters) – Germany's Social Democrats beat Angela Merkel's conservatives in a regional vote in Berlin on Sunday, handing the chancellor her sixth election defeat this year ahead of a key euro zone vote in parliament in two weeks' time.

Merkel's center-right coalition suffered a further setback when their junior coalition partners at the national level, the Free Democrats (FDP), failed to clear the five percent threshold needed to win seats -- for the fifth time this year.

The beleaguered FDP, which had attempted to attract voters in Berlin with its increasingly euro-skeptic tactics, plunged to 1.8 percent from 7.6 percent in 2006, preliminary results showed.

Their eroding support nationwide could destabilise Merkel's center-right coalition, analysts said.

Merkel, under fire for her hesitant leadership in the euro zone crisis, is halfway through a four-year term. But election setbacks for her CDU have hurt her standing before the vote on euro zone measures in parliament on September 29.

"We would be wise to show humility about this result," said a visibly stunned FDP deputy party leader, Christian Lindner. "It's a low-point but also a wake up call. We knew it was going to be a difficult year and that's been dramatically confirmed."

The SPD won 28.2 percent of the vote in Berlin, down from 30.8 percent in 2006 in Germany's largest city with 3.4 million inhabitants, according to an exit poll on ARD television.

SPD Mayor Klaus Wowereit appeared to be headed for a third five-year term, with the Greens as his most likely coalition partner.

"The best part of the result tonight is that the voters showed the FDP they won't get anywhere with populist attacks against Europe," said SPD leader Sigmar Gabriel, celebrating his center-left party's sixth win in seven regional votes this year.

"It shows the voters are smarter than the FDP campaign strategists and that you can't win an election by campaigning against Europe. The FDP tried that and failed."

EUROSCEPTIC MESSAGE FAILS

The CDU won 23.3 percent, up slightly from 21.3 percent in 2006 but well below the 40 percent the party used to win in Berlin in the 1980s and 1990s. The Greens won 17.6 percent, up from 13.1 percent in 2006, and the Left party fell to 11.7 percent from 13.4 percent.

The SPD and Greens have pledged support for boosting the euro zone bailout fund for countries like Greece in a crucial vote in parliament vote on September 29, when Merkel may face a revolt from more eurosceptic members of her coalition.

Greens leader Cem Oezdemir said the FDP had "tried to turn this election into an anti-European plebiscite" after its party leader, Economy Minister Philipp Roesler, said it should not be taboo to debate an "orderly" Greek debt default.

"Losing the election with 2 percent is a dramatic setback for the FDP and I hope they draw the right lessons," Oezdemir said. "Anti-European populism has no support in Europe and in Germany, thank goodness, and that's good news for our country."

The Pirate Party, running on a campaign for reform of copyright and better privacy in the Internet age, came out of nowhere to win a stunning 9.0 percent.

The SPD, in opposition at the national level since 2009, hopes their re-election in Berlin will help build up momentum to oust Merkel in the next federal election in 2013 -- or possibly sooner, if her government were to collapse.

"We're not the successors to the FDP," said Gabriel, when asked if the SPD would be ready to replace the FDP if the government were to fail before 2013.

The SPD has ousted or helped defeat the CDU in Hamburg and Baden-Wuerttemberg this year and remained in power elsewhere.

The CDU has lost six of seven regional votes this year, holding onto power only in the eastern state of Saxony-Anhalt. The fresh loss in Berlin will add to Merkel's woes before a Bundestag vote on September 29 to give the European Financial Stability Fund (EFSF) more powers.

Merkel did not make any comments on the Berlin election. But senior CDU lieutenants tried to put a positive spin on the result, noting that it was slightly improved from 2006.

Peter Altmaier, conservative parliamentary floor leader, said the CDU's gains had helped prevent a renewal of the SPD-Left coalition that has ruled in Berlin under Wowereit for the last 10 years.

"This is solid backing ... for Angela Merkel's policies," Altmaier said, adding that Merkel has spoken out unambiguously in favor of euro zone rescue measures.

"Merkel has made it very clear in recent weeks that the CDU stands by its pro European profile and vocation," Altmaier said. "We link stability with European consciousness and that has been honoured by the voters. Some euro skeptic posters were put up in Berlin at the last moment but they had no impact."

(Reporting by Erik Kirschbaum, Stephen Brown, Alexandra Hudson and Natalia Drozdiak)

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