Donato Ndongo-Bidyogo | Tanzania also wants reparations from Germany for the atrocities carried out between 1905 and 1907. “Other countries have been compensated for war crimes. Why not us?, said MP Cosato Chumi. Berlin acknowledges the genocide but it doesn’t want to pay reparations and it is trying to agree some formal apology with Windhoek (Namibia). Ruprecht Polenz, the German negotiator says genocide does not imply reparations, only political and moral redress. In Dodoma (Tanzania), the German Foreign Minister Heiko Maas proposed “forms of mutual support” other than “compensation.” Given the concern of other former empires and the necessary paradigm shift in Euro-African relations, Merkel is in two minds about opening this Pandora’s box.
Banca March | German Finance Minister Olaf Scholz is considering temporarily lifting the suspension of the country’s debt limit in what would be a major change in the fiscal policy of Europe’s leading econom.
The world has changed a lot because China has changed a lot. China’s share of global GDP has risen from a negligible 2% in 1990 to 15.9%. Meanwhile, the other powers have fallen in that period: Japan, from 14 to 5.8%; Europe, from 35% to 21.9%; and the USA, from 27% to 23.9%, according to Weltbank data. So hundreds of thousands of jobs in Germany are now dependent on China. And all over the world, because China today accounts for 1/3 of world growth.
Gilles Moëc (Axa Investments Manager)| Those who like to see their glass half full probably took comfort in the fact that in Germany the manufacturing Purchasing Managers Index rebounded by 0.2 pp in October relative to September, but this was again short of expectations and the absolute level remains very concerning.
Recently there’s again been talk of a two-speed Europe. During the mini-summit two weeks ago, Merkel, Hollande, Italy, Rajoy, gave the green light to this latest spin. The Spanish PM has said the country would be at the nucleus of this.
After the restructuring Santander carried out in Spain in 2016, the bank could be planning to improve efficiency in other countries, including Germany. Although the project is in an initial phase, it would obtain cost savings of about 15%.
Spain can’t imitate Germany in a context in which Europe is a closed zone where countries export to each other. And Spain is unlikely to become another Germany because the Spanish production model is still based on low productivity.
“In principal, the euro is a good idea. The aim is to create a big economic space without any monetary barriers, like the US. But a common space implies that member states are prepared to take each other into consideration as far as their economic, financial and wage policies are concerned,” says Peter Bofinger, one of the five ‘wise men’ who make up the German Council of Economic Experts.
Spanish midcap CAF has won a €51.3 million contract in Germany to supply 9 three-car light rail vehicles for the Schönbuchbahn and their maintenance over 19 years, with the option to request up to an additional 19 trains. The contract will strengthen CAF’s position and reputation in a key strategic market niche.
I can tell you that the most eminent economists in Spain have continued to be wrong-footed since before the crisis. They are still clamouring for debt reduction, for a return to austerity, when what is slowly killing Europe is precisely that, the austerity spreading from Germany.