The Neuer Markt stock exchange Another instance where German investors, though justifiably considered to be conservative, were enticed into risk-taking was the Neuer Markt stock exchange with dozens of IPOs and the promise of high profits. The market capitalisation of the Neuer Markt grew from a few billion euros atRead More →
European politics are rather far-fetching Overall, the proposals on European politics are rather far-fetching but at the same time inconsistent. While the coalition strives for a Europe of competitiveness and investment it calls for a common framework for minimum wages and basis national security benefits as well as minimum corporateRead More →
Proposal for the next Multi Annual Framework 2021-2027 The EU Commission has already announced that its proposal for the next Multi Annual Framework 2021-2027 will likely exhaust the legal ceiling for the EU budget of 1.2% of EU-GNI (compared to currently 1% of GNI). With the UK leaving the EU,Read More →
Spend more money on Europe Preparedness to spend more money on Europe Beyond that, the coalition parties are explicitly prepared to spent more money on Europe. To a certain extent this is stating the obvious given the need for partial compensation of Brexit related revenue losses (UK being the secondRead More →
Bad investments in East Germany Although bad investments in East Germany did not leave any macroeconomic turmoil in their wake they are firmly fixed in the memory of the German real estate sector. This experience may also explain the reluctance to invest and low levels of borrowing in the currentRead More →
broader Banking Union Implementing broader Banking Union remains a long term commitment Banking union does not appear in the chapter even though it forms a major pillar in efforts to make the EA more resilient. At the most recent EcoFin meeting, the German caretaker finance minister Peter Altmaier (CDU) adoptedRead More →
Anchoring in the union law Would anchoring in the union law imply that the EU Commission takes the decisions on granting loans to member states and secure conditionality? Or would it rather mean that the director of the ESM/EMF will be accountable to the EP – comparable to the arrangementsRead More →
Transformation of the European Stability Mechanism (ESM) The coalition parties call for a transformation of the European Stability Mechanism (ESM) into a European Monetary Fund (EMF). They state the preference that this body should be subject to parliamentary control and included into Union law which reflects the proposal put forwardRead More →
Underfunding of German companies There is no doubt that Germany’s considerable aversion to debt has far- reaching consequences. In particular, some critics point to the underfunding of German companies, an accusation that appears justified by international standards. However, more aggressive levels of borrowing by companies and households might only provideRead More →
Wording in the coalition treaty However, the wording in the coalition treaty together with the allocation of the Foreign Office and the Finance Ministry to the SPD can be seen as an indication of some change of minds. While (euro) crisis management has dominated the last years, not least underRead More →
Designed using Magazine Hoot. Powered by WordPress.