Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

German Union Settles

WOLFSBURG, Germany -- Chancellor Gerhard Schr?der welcomed a moderate pay deal struck by Germany's biggest trade union in a key state Tuesday.

The surprise deal between the powerful IG Metall union and engineering employers in North Rhine-Westphalia helped allay inflation fears in Europe and perked up the euro. It averted the threat of strikes and was expected to set a nationwide pattern.

Under the 24-month deal workers will get a 3 percent pay rise from May 1, 2000 and 2.1 percent from May 1, 2001.