Budget Pact Is Reached By Germans
Germany's political leaders reached a "solidarity pact" over the weekend, seeking to resolve questions of how to divide the huge financial burden of rebuilding eastern Germany. But the agreement's most immediate effect may be to open the way for the Bundesbank to lower interest rates to try to bolster the flagging economy. Many analysts expect two important rates to be lowered on Thursday at a meeting of the policy council of the Bundesbank, Germany's powerful central bank.