|
Disasters in Japan pushed the currency crisis out of the headlines. But the latest reforms don’t go far enough – By Daniela Weingärtner
In late March, 27 European governments agreed on reforms to the
eurozone common currency that most observers described as “historic.”
Yet, macabre though it may sound, the disasters in Japan and the
structural crisis in the United States have done more to stabilize the
euro than announcements of structural reforms, a permanent rescue fund
for eurozone states facing bankruptcy, or tougher sanctions for
governments that borrow excessively. Investors are putting more of their
money into euros because the dollar and yen are, for the time being,
even riskier. The Unicredit economist Alexander Koch calls the European
currency “the one-eyed man among the blind.”
Germany’s chancellor,
embattled on the domestic front, was hoping for more success in Europe.
Things are not looking good for Angela Merkel’s government in foreign
policy and the nuclear power issue, so she badly needed to score on the
euro reform. At the end of the two-day summit, Merkel was at pains to
portray the outcome as a sign of growing European integration and
solidarity and a victory for Germany’s negotiators. The key question,
according to the chancellor, was: “What actually happens when
restructuring is carried out in a region with the same currency?”
|
|
Read more...
|
|
|
 As domestic markets stagnate, the European defense industry is banking on emerging ones such as India. This Eurofighter went on display at the Aero India 2009 exhibition. Germany’s abstention on the UN Libya resolution is bad for the European defense industry – By Jens Flottau
Germany’s defense industry has grown used to bad news over the past
few years. Public budgets stagnate at best, if they are not sustaining
deep cuts. Procurement is slowing down, key programs are put on hold or
are shelved. Uncertainty is the paramount business sentiment.
The
details of the reform of Germany’s armed forces, the Bundeswehr, are
still not known and have been further delayed following the resignation
of Karl-Theodor zu Guttenberg as defense minister. His successor Thomas
de Maizière has said he wants to gain a deeper understanding of the
issues before making decisions.
|
|
Read more...
|
|
|
Russia signs up Germany’s BASF to help with a controversial pipeline project – but the EU has other plans – By Markus Balser, Sibylle Haas und Frank Nienhuysen
When BASF boss Jürgen Hambrecht and Gazprom CEO Alexey Miller met in
Vladimir Putin’s estate at Novo-Ogaryovo in western Moscow on March 19,
it was suddenly clear who had been pulling the strings to make the
mega-deal happen. As the two executives signed a memorandum of
understanding to build the South Stream gas pipeline, the Russian prime
minister stood behind them, watching closely.
Invited
photographers captured the moment, stage managed to demonstrate Moscow’s
power to the rest of the world. Building the controversial supply route
will further solidify the Kremlin’s hold over Europe’s energy supplies.
And now, Russia will have German help. BASF has agreed to take a
15 percent stake in the consortium to build, deploy and operate the
pipeline through the Black Sea. For Putin it was a policy breakthrough.
South Stream will help Russia – already Europe’s biggest gas provider –
pump even more gas westward. It was also a victory against powerful
adversaries. The European Union favors another project that would
compete directly with South Stream: the 3,300-kilometer Nabucco
pipeline, a joint venture by German utility RWE and the Austrian OMV
group, would pump gas directly from Central Asia – along a parallel
route bypassing Russia. Opening this alternative supply route is meant
as an answer to Europe’s growing dependence on Russia.
|
|
Read more...
|
|
At Germany’s smallest bank, only locals can open an account – By Annette Jensen
Peter Breiter is wearing sneakers and a baggy sweatshirt. From his
desk, the bank manager of the village of Gammesfeld in Baden-Württemberg
can look out through an unbarred window onto a muckheap. The cashier’s
office in the back holds an old-fashioned safe; coins and bank notes are
lying in an open register on a wooden cabinet. No security glass
separates the customers from the staff.
In a few minutes the smallest bank in Germany will open its doors, as
it does every Wednesday for one and a half hours – or longer, if need
be. The 500 inhabitants of Gammesfeld and the surrounding communities
can also deposit or withdraw money on two evenings per week.
|
|
Read more...
|
|
|
