German economy

TTIP recurso3TC

TTIP: Germany’s got the upper hand

BERLIN | By Alberto Lozano | The Transatlantic Trade and Investment Partnership (TTIP) is being negotiated between the European Commission and the United States in Brussels. Once again, Germany, as Europe’s economic and political powerhouse, could have the last word on its contents and approval. 

HE Dr Wolfgang Schäuble 6257468800

Is growing by 0.1% normal, Mr Schäuble?

MADRID | The Corner | Berlin is sticking to a rigid budgetary policy, prioritizing a 2015 balanced budget instead of growth. And hard liners aren’t just willing to make any move. As German Finance Minister Wolfgang Schäuble defended on Tuesday during a budget debate in Parliament:  “We are not in a recession. We are not in an economic crisis,” Schäuble said, “Our economy is almost working at normal capacity.” Germany narrowly avoided a recession in the third quarter, growing by 0.1 percent, thanks to a sharp rise in private consumption (0.7 percent quarter-on-quarter, the biggest rise in three years) that compensated the lack of investment.


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Germany is already being paid for borrowing

MADRID | By Bankinter analysts | Bundesbank’s monthly bulletin points that the German economy might slow down in the 2Q14, but that it would be reactivated in the 3Q14 thanks to the construction industry and the improvement of the confidence amongst households. Thus, the central bank raised its forecast for 2014 from 1.7% to 1.9%. In this context, Germany sold €1,511 million in 6-month bills with a negative interest rate: -0.0015%. Last May, the same bills were sold at +0.1089%, so we may conclude that the ECB’s negative deposit rate also helps the German debt.