BERLIN | By Alberto Lozano | The German economy has gone from growing at 0.8% q-o-q earlier this year to being on the verge of recession as a result of the geopolitical situation, especially after the sanctions against Russia. Only now in December the country seems to recover its confidence. However, an expected GDP growth of around 1% in 2015 continues to be insufficient to spur growth in the Eurozone.
BERLIN | By Alberto Lozano | The different measures implemented in Europe in order to boost growth through increased monetary action, investment and structural reforms have replaced austerity as the new dominant dogma. While Angela Merkel is adapting to the new situation, Bundesbank president Jens Weidmann disagrees with more budget flexibility and a possible QE by the ECB in 2015. (Cartoon: Horsch / La Repubblica).
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.
BERLIN | By Alberto Lozano | The Eurozone cannot afford another recession, hence the international and European institutional pressure to force Germany to speed up its economic growth. However, the German economy has grown by only 0.1% in 3Q and, according to the experts, it seems unlikely that it will accelerate in the coming quarters.
BERLIN | By Alberto Lozano | Millions of Germans are celebrating in Berlin the 25th anniversary of the Wall’s fall this weekend. A crucial period during which Germany transformed itself from a divided, uncompetitive country considered “the sick man of Europe” to Europe’s economic locomotive.
BERLIN | By Alberto Lozano | While European media focus their attention on low inflation across Europe, concerns about the budgets of France and Italy, as well as the need for investment in Germany, more than 50 countries are about to take a crucial step in the fight against tax avoidance: the signing of the Multilateral Competent Authority Agreement on implementing a new international standard in the automatic exchange of information (AEOI).
BERLIN | By Alberto Lozano | Considering current low interest rates, ageing infrastructure in Germany, the slowdown of the economy and the threat of a new recession in the Eurozone, does it make sense that the German government is prioritizing a balanced budget for 2015?
BERLIN | By Alberto Lozano| This November, the European Central Bank will assume its new banking supervisory responsibilities. Firstly, on 26th October the ECB will publish results of comprehensive assessments that will determine the financial health of 120 banks in the Eurozone. These tests cover approximately 85% of total bank assets. But what about the remaining 3,532 small banks of the euro area?
BERLIN | By Alberto Lozano | The debate continues. Paris demands more flexibility, more time and investments in Germany. Berlin says investment will be strengthened, but France cannot cheat and must start with the reforms.
BERLIN | By Alberto Lozano | After Q1’s strong growth, numbers show that the German economy has slowed down during 2Q’s first two months, as Bundesbank reported this week. Both the industrial sector and the construction have fallen compared with the 1Q. However, it seems that Europe’s economic powerhouse will recover its strength in the coming months.