The conservative members of Angela Merkel’s Christian Democratic Party (CDU) do not understand that she does not want to put a limit on the number of refugees. And now even her coalition partner in Berlin, the Social Democrats, criticise her for underestimating the scale of the challenge. So to what extent will Merkel be able to impose her ideas? Who can replace her? Is it a viable proposition to integrate all asylum seekers who arrive in Europe?
Peter Lundgreen via Caixin | On October 14, the German government lowered its GDP growth forecast for this year from 1.8 percent to 1.7 percent. Despite this, the economic minister, Sigmar Gabriel, expressed his expectation of higher economic growth next year.
James Alexander via Historinhas | Almost alone among economic commentators we do actually look at Nominal GDP data as it is released. Full Euro Area NGDP data for third quarter 2015 was released this week alongside the 2nd estimate of Real GDP. We have already posted here and here on the good news as three of the “big 4” Euro Area countries, making up 75% of the Euro Area economy, had seen accelerating NGDP. The not so good news is that the little countries saw less acceleration.
What future is there for Europe if each country understands the European destiny in its own way? The aim is to stabilise the euro. But each country has a different solution for achieving that. And at the centre of all the debates is Germany. Whatever it does, it upsets the apple cart.
Michael Clauss via Caixin | Both countries want to solve the world’s crises, continue to innovate and develop sustainable economies – all reasons for optimism in the relationship.
Investors seem to be leaving aside the so-called safe haven of German bonds, the European benchmark
The German economy continues sound but turbulence coming from emerging markets could impact sharply on Germany’s export-led growth.
Germany’s central bank calls for more supervision of the adjustments and reforms in Greece, while the IMF casts doubts over the sustainability of Greek debt.
The benefits tend to be larger than the expenses, even if Greece does not repay any of its debts.
ZEW Indicator of Economic Sentiment for Germany decreases by 4.7 points compared to the previous month.