Merkel Changes Tone as She Hints at Euro-Area Investment Needs
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German Chancellor Angela Merkel indicated she is ready to make a grand bargain with France and Italy by allowing them some leeway in meeting deficit-reduction targets in exchange for measures to make their economies more competitive.
At the end of a two-day European Union summit in Brussels, Merkel echoed comments made by European Central Bank President Mario Draghi in August that countries needed to match the ECB’s loosened monetary policy by themselves taking action to boost domestic demand.