Peripheral austerity hurts German exports
German exports provided the government with proof that the country’s economy isn’t immune to the crisis affecting the economies in the south of Europe.
Germany
Klaus Hafemann: “Spanish debt interests are 3% of GDP, much lower than in 1996”
Klaus Hafemann, director of the Cologne Institute for Economic Research: “Almost no German likes the idea that the ECB could expand its monetary-policy mandate to actively finance states. But sometimes you have to do things you do not like.”
The Euro won’t break up, yet Europe might collapse
MADRID | Will European leaders ever jointly move forward? The more the global economy slows down and recession looms too over core euro zone countries, the farther Europe finds itself from agreeing in letting the central bank do its work.
What Herr Rösler said to Madrid, Rome: consolidate budgets or else
Philipp Rösler, vice chancellor and federal minister of economics and technology of Germany, used Tuesday in London some of the toughest language in defence of further austerity for the euro zone.
One third of top German banks’ Tier 1 capital vulnerable to euro peripheral crisis
Although German banks’ regulatory capitalisation hardly makes news, the latest report on the industry by risk qualification agency Moody’s points at high leverage and exposures worth noting down.
Germany’s GDP set to fall in the second half of the year
City of Madrid analysts have checked figures of the German ZEW index and its evolutions regarding actual GDP changes. They expect the engine of this core euro zone economy to go into negative territory during the coming months.
Ask Germany why: growth failure turns Euro zone instable
Germany isn’t just refusing to play the paymaster’s role, it effectively is barring the way towards a banking and a true economic union for the euro zone. The upcoming summit could be one more missed chance to fix the common currency area.
German growth model will turn country into “Europe’s sick man” again, Barclays warns
Barclays analyst A. Vigil alerts of the many weaknesses of Germany’s economy behind its current standing as ‘Europe’s savior’.
Germany’s boom is wreaking the country
FRANKFURT | Public pensions will be cut down by 2 percent, leaving many retired workers with less than €600 a month. That is under the minimum wages deemed sufficient in the country. Shocked? Don’t be. Look behind the picture of a wealthy Germany.
European banks flee Greece
José Luis Marco, CAPITAL MADRID | Although Spanish banks have little direct exposure in Greece, the country over which hangs the euro zone exclusion threat, something different happens with several European banks: they have a direct interest in the Hellenic country both with their branches in the country and with the assumption of Greek sovereign debt. Some of the biggest banks are partners or shareholders of several Spanish banks. Banco…