PARIS | Guest post by Francesco Saraceno | Germany has been sitting on the shoulders of the rest of the world economy, and since 2010 it has been followed by the rest of the eurozone that is globally running trade surpluses. I have already said many times that this is a bad (and dangerous) strategy.
BERLIN | By Alberto Lozano | German IFO index has shown today that business climate continues to worsen. The German Business Sentiment registered its fourth consecutive decline after falling 1.7 points from the previous month to 106.3 points, representing its worst reading since July 2013 decline. “The German economy continues to lose steam”, indicates Hans-Werner Sinn, president of the IFO Institute. “The outlook for the coming months also deteriorated noticeably.”
MADRID | By Carlos Díaz Güell | Spain’s GDP growth in 1Q14 (0.4% on a quarterly basis and 0.5% year on year) was backed by an increase in the national demand (1%), which was boosted by an atypical upturn of the public consumption. Meanwhile, the external sector moved away from the upward trend that had been following in the last few years which was affecting growth.
LISBON | By António Costa at Diário Económico via Presseurop | The European Commission has opened a “thorough investigation” into Germany’s export surpluses, which stand accused of damaging the Eurozone’s balance. However, working towards banking union would be wiser, writes Diario Economico’s director.
MADRID | By Carlos Díaz Guell | A factor to bear in mind is that in the most successful exporting sectors, foreign investment punches high and has become vital to the economy and the Spain brand.
MADRID | This new project reinforces the global strategy of the company, with a backlog at the first quarter end of this year amounting to €4.87 billion, with more than 85% exports.
MADRID | By Luis Alcaide | Having now the evidence of how Spain is successfully expanding its exports, the IMF should be able to tell what are competitive businesses from the onerous legacy of over-privileged labour practices that take place in some institutions.
MADRID | By Julia Pastor | Unlike Spain, where the external sector is supporting the economy, Italian exports fell by 1.9% in 1Q13, its worst register from 1Q09. The country’s GDP dropped by 0.6%, and April’s industrial production by 0.3%.
Angela Merkel refuses to levy tariffs of 47% on Chinese solar panel imports because she fears damaging China-Germany relations and being shut out of its market. However, in Ray Kwong’s view, Berlin is too dependent on China’s economic engine, which could crack anytime due to territorial conflicts, too-rapid expansion of credit, lax environmental oversight, widening discontent among the population and many other legitimate problems.
MADRID | By Alfredo Pastor, for lavanguardia.com | The main surprise about Spain is the size and speed of our external adjustment. Fiscal adjustment and the good behaviour of exports are also two positive surprises. Citizen solidarity helps counteract the grave effects of the crisis.