Germany

Labor unions are now willing to talk turkey about moderating wage demands. Franz Steinkhler, leader of Germany's powerful 3.6 million strong ig Metall labor group, recently agreed to negotiate a multiyear government-management-labor deal that Chancellor Helmut Kohl wants to put in place. It's a bold attempt to reforge Germany's postwar social consensus, torn asunder by the financial and political stresses of unification.

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