Berlin — German Chancellor Angela Merkel defused a feud with her Bavarian allies over migration, ending a standoff that threatened to upend her government. The euro rose after Merkel and Horst Seehofer, the interior minister and Bavarian party leader who had threatened to resign, unveiled the deal late Monday after more than four hours of last-ditch talks in Berlin. The accord halts a slide towards a historic breakup of the two-party bloc that has governed Germany for most of the postwar period. But it is not necessarily the end of the matter, obsercers say. "This provides a break, but it’s not the end of the infighting," said Carsten Nickel, an analyst at Teneo Intelligence in London. The conflict’s political driving forces, including a state election in Bavaria in October, "will remain with us for months to come", he said. "After a tough struggle and some difficult days, we’ve found a really good compromise," Merkel, who heads the Christian Democratic Union, told reporters. Seehof...
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