Germany

Interviews 15th February 2022

“Politics Would Have To Intervene Whenever The Market Transfers Wealth Creation Out Of Europe In A Disproportionate Way”

Lidia Conde | Sebastian Dullien is Director of the IMK Düsseldorf. Q: Germans have spent 200 billion euros less since the beginning of the epidemic. Will all this money flow into consumption? A: Not all of it, but a considerable part will be spent. Studies conducted by our institute show that Germans are not only planning to buy new consumer durables such as cars, furniture or houses, but also to…

European economy 2nd February 2022

ifo Institute: Supply Problems Easing in German Retail

Supply problems in German retail have eased considerably. In January, 57.1 percent of retailers complained that they will not receive all the goods they ordered. In December, the figure was 81.6 percent. This is the finding of an ifo Institute survey. “With the end of the Christmas season, the pressure has abated somewhat,” says Klaus Wohlrabe, Head of Surveys at ifo. “Nevertheless, many retailers can’t fulfill every customer request because…

European economy 25th November 2021

New German Government To Put 400,000 Homes On The Market Each Year

Two months after the elections, the “traffic light” coalition – formed by social democrats, ecologists and liberals – has reached an agreement to govern the country, with Olaf Scholz, Merkel’s former finance minister, as chancellor. The agreement leaves seven ministries to the SPD, including defence and housing, as well as the power to appoint the next president of the Bundesbank. This post could go to Isabel Schnabel, currently on the…

European economy 26th October 2021

All Signs Point To A Stagnation Of The German Economy In Q4’21

Both the IFO German business climate indices for October and the Bundesbank’s latest monthly bulletin point to a stagnation of the German economy in Q4 2021. Germany’s business climate index, compiled by the IFO institute, declined in October to 97.7 points from 100.4 points in the previous month, and below the 98.0 points expected by analysts. After four consecutive months of decline, the index was at its lowest level in…

Interviews 14th October 2021

“I Hope That The New German Government’s Climate Change Plan Is Realistic”

Lidia Conde (Francfort) | Herman Simon, founder of Simon-Kucher & Partners, is best known for his 30 books, translated into 26 languages. His works on pricing and price management have become classics in the academic world. According to Manager Magazin, he is the world’s foremost pricing expert. Q: There will probably be a red-green cabinet supported by the Liberals. What do you expect from the new government “in the Chinese…

European economy 10th October 2021

The EU After The German Elections: More Realpolitik?

European Views | The way the EU appears on the world stage, where it all too often seems weak, uncoordinated and overly moralising in its approach to world affairs. Germany’s long-time chancellor Merkel has played a key role in this. Throughout 16 years, Berlin has helped transform the EU into an ineffective paper tiger that styles itself as a superpower, yet that is frequently proving unable to deal effectively with hard geopolitical questions – from securing its borders to dealing with China. What is really needed is a new approach to EU foreign policy, especially at a time when German voters’ interest in foreign policy and EU affairs is at its lowest in years.

European economy 30th September 2021

Berlin Votes In Favour Of “Housing Municipalisation”

Citizens in Germany’s capital, Berlin, voted at the weekend to approve an initiative that would require the expropriation of 240,000 homes from large owners, i.e. companies with more than 3,000 flats. The non-binding referendum on the “municipalisation of housing” resulted in 57 per cent in favour of the measure and 38 per cent against. In an attempt to give tenants back the security that their homes will remain in the low-cost segment, the Berlin city council, through the municipal companies Degewo, Howoge and Berlinovo, recently agreed to buy 14,750 flats from Vonovia and Deutsche Wohnwen.

Today’s German election is likely to be one of the most open contests in decades

Relevant News Item 26th September 2021

Germany After Merkel: What’s Next?

Azad Zangana (Schroders) | Today’s is a major milestone election for Germany, and many will be keeping a close eye on the outcome. In any case, though we should see the results soon, negotiations to form the next coalition are likely to take several months given the potential wide range of combinations on offer. The new chancellor may not be inaugurated before 2022.

European politics 21st September 2021

German Election Guide

Nick Ottens (Atlantic Sentinel) | Germans elect a new Bundestag on Sunday, which will elect Angela Merkel’s successor. It is the first time since 1983 that a sitting chancellor isn’t seeking reelection. If the polls are right, Merkel’s center-right Christian Democrats will lose power to the center-left Social Democrats for the first time since 2005. Here is everything you need to know. Bottom lines The Social Democrats (SPD) are projected…

European economy 4th September 2021

Germany At The End Of The Merkel Era: The Next Coalition To Inherit An Economy Not Fully Recovered

Bruno Cavalier (ODDO BHF) | In a few weeks’ time, Angela Merkel will cease to be Chancellor, a position she has held since 2005. Polls show that the three main contenders to succeed her are tied. Despite Germany’s good performance in the first Covid-19 wave, successive waves of contagions brought new restrictions in early 2021, delaying the recovery. Also, Germany clearly suffers from its overexposure to the automotive industry, which is 25 points below normal.

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