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Germany labour market

European politics 16th March 2021

Germany’s Handling Of The Pandemic: A Model Of Incompetence?

Hans-George Betz (Via Fair Observer) | There is an unwritten rule in politics: If you are incompetent, at least you should not be corrupt. It seems nobody ever informed the German Christian Democrats that this was the way of things. How else to explain why Christian Democratic MPs thought it was perfectly fine to take advantage of Germany’s COVID-19 crisis to line their own pockets? In German, we have a word, “Raffzahn,” to refer to somebody who cannot get enough, never satisfied with what they have. In the concrete case, a member of the German Bundestag from the Christian Democratic Union (CDU) pocketed €250,000 ($298,000) in commissions for brokering a deal involving the procurement of FFP2 face masks by the federal and the state governments.

EU enlargement package

European politics 6th March 2021

EU Enlargement – A Moving Target That Is Moving Further Away

Dina Bajramspahic via Macropolis | In 2020, none of the six countries of the Western Balkans has made progress in the process of European integration. It is true that they could have done more, but this still begs the question of whether the process itself “is working” if no one is making progress, and many countries have not been making progress for years, decades even. Bad moves on both sides have led to mutual mistrust, which is reflected in reforms.

Borrell

European politics 18th February 2021

Kremlin And Brussels At Boiling Point

European Views | With EU-Russia relations at rock bottom following the arrest of dissident politician Alexei Navalny, a vicious crackdown on protesters, and the expulsion of several EU diplomats from Russia, imposing sanctions on the country should be a no-brainer for Brussels. Indeed, the Kremlin’s chronic flouting of international rules and norms, particularly as regards human rights, presents a fitting opportunity to put the EU’s newly minted Magnitsky-style sanctions regime to good use for the first time.

Germany

European politics 17th February 2021

The Upcoming Fiscal Debate In Germany

Intermoney | Days ago, Helge Braun, a close associate of Angela Merkel, proposed reforming Germany’s constitutional limit on public debt. This is an issue facing great resistance within key sectors of the CDU/CSU, making it difficult for it to go beyond the status of a mere proposal, but whose mere proposal represents a turning point. This debate will gain momentum after the September elections.

The paradox of the ECB long-term refinancing operations

European politics 16th February 2021

The Rimini Platform

Gilles Moec (AXA Group Chief Economist) | In Rimini in August 2020, Mario Draghi gave a speech which in retrospect could well define his action. Draghi called for a reform of the European economic framework. This will be crucial for Italy, and hence for the fate of the whole monetary union. A structural reform platform primed by public spending will need time to prove itself to the markets. The fiscal surveillance system needs to evolve. As President of the ECB, Draghi did wonders thanks to Angela Merkel’s silent support (her refusal to criticize him for his unorthodox monetary policy). As, potentially, head of government of the Euro area’s third largest economy, he will have to get explicit support for a new framework.

brexitish

European politics 9th February 2021

Brexit: From Brothers To Distant Cousins

CaixaBank Research (Álvaro Leandro | What consequences the agreement for the UK exit from the EU will end up having remains to be seen and will depend on how trade and foreign investment between the UK and Europe evolve, as well as London’s prevalence as an international financial hub. In Europe, the impact will be mixed across the different economies, depending on their trade and financial links with the United Kingdom.

draghi ECB

European politics 3rd February 2021

Super Mario Is Back With The Mission To Turn Italian Crisis Around; But It Won’t Be Easy

Over the weekend, Mario Draghi has managed to obtain a broad majority to form a new coalition government in Italy after winning the support of the Five Star Movement and the ultra-right-wing League. His nomination is a try to turn the country around the virus-induced crisis, since he is a widely respected figure for his important role during the European debt crisis. The yield of the Italian 10-year bond fell last week -11 bps to 0.53% on the expectation of greater political stability in the country (vs. a high of 0.75% this year).

Eurogrupo Europa chuli

European politics 2nd February 2021

Support For Anti-EU Parties Falls During Pandemic

Nick Ottens (Atlantic Sentinel) | If the coronavirus pandemic is giving Europeans doubts about the EU, it isn’t showing up in support for Euroskeptic parties. Germany‘s ruling Christian Democrats are up from 33 to 35-37 percent in the polls. The far-right Alternative for Germany is at 9-10 percent, down from 13 percent in the last election. There is no chance it will end up in government. In Austria, the conservatives have swapped the far-right Freedom Party for the Greens in the ruling coalition. The Freedom Party is polling at 12-16 percent, far below their peak of 26 percent support in 2017. Mark Rutte is on track to win reelection in the Netherlands. The far-right Forum for Democracy, which narrowly bested Rutte’s liberal party in midterm elections in 2019, has imploded. In France…

Merkel Laschet

European politics 19th January 2021

Angela Merkel, A Chancellor Difficult To Replace

Lidia Conde | Over the weekend in Germany, the CDU elected Angela Merkel’s replacement as head of the party. They bet on continuity with the election of the moderate Armin Laschet. For the first time in Germany’s history, the person who occupies the chancellor’s office is leaving voluntarily. And she does so with the respect and recognition of her opponents and successors, both in the CDU and in the government.