Merkel Masters Markets as Euro Austerity Mollifies Investors

German Chancellor Angela Merkel has declared a truce in her campaign to master financial markets.

Merkel, who began the euro crisis seeing politicians and investors locked in a battle for supremacy, is now using markets’ judgments to support her calls for austerity to rescue the single currency. At the same time, she backed off from her demand that bondholders contribute to bailouts.