The German government is likely to take the line of least resistance over the latest European discord about its policies of budgetary rigor, allowing some extra fiscal leeway for the embattled French and Italian administrations, while at the same time maintaining a longer-term drive for reforms and orthodoxy. Yet, beneath the surface, tensions are building that point to a deep-seated schism among the three principal members of economic and monetary union (EMU), making up two-thirds of the gross domestic product of the euro EURUSD, +0.18% bloc. Angela Merkel, the chancellor, and Wolfgang Schäuble, the finance m ... (full story)