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☆ EU fiscal pact ignores green elephant in the room
▼ + stars: | 2023-11-21 | by ( Lisa Jucca | ) www.reuters.com time to read: +8 min

REUTERS/Henry Nicholls Acquire Licensing RightsMILAN, Nov 21 (Reuters Breakingviews) - The European Union’s troubled fiscal pact, once branded as "stupid" by former European Commission President Romano Prodi, has reached its sell-by date. Average EU debt has been consistently above the 60% target. NEW COURSEThe proposed revamp of the fiscal pact, now under discussion, is an improvement. BRAVE NEW DEBT WORLDFor all of Brussels’ reforming zeal, Europe’s future debt rules ignore a giant elephant in the room: climate change. Another option is to remove green investments from the fiscal rules’ deficit calculations.

Persons: Henry Nicholls, Romano Prodi, Christian Lindner, Giorgia Meloni, Breakingviews, Bruno Le Maire, Olaf Scholz’s, Mario Draghi, Francesco Guerrera, Thomas Shum Organizations: Trust, REUTERS, Reuters, European, Reuters Graphics Reuters, European Commission, French Finance, EU, Intel, European Central Bank, Italian, Union, Thomson Locations: Green Park, London, Britain, Maastricht Treaty, Germany, it's, Italy, Greece, Brussels, EU, United States, Spain, Europe

☆ German budget crisis tests limits of its 'debt brake'
▼ + stars: | 2023-11-20 | by ( ) www.reuters.com time to read: +3 min

The ruling has sent budget talks into disarray and sparked calls within Chancellor Olaf Scholz's coalition to suspend a constitutionally enshrined "debt brake" that sets legal limits on borrowing. WHAT IS THE DEBT BRAKE AND WHY WAS IT INTRODUCED? HAS GERMANY SUSPENDED ITS DEBT BRAKE BEFORE? Some analysts say the debt brake is ripe for reform and a more flexible fiscal policy would let governments take on more debt to fund much-needed investments. The government is still weighing options, including suspending the debt brake or curtailing spending.

Persons: Kai Pfaffenbach, Chancellor Olaf Scholz's, Angela Merkel's, Christian Lindner, Carsten Brzeski, Philippa Sigl, Robert Habeck, Riham Alkousaa, Holger Hansen, Matthias Williams, Christina Fincher Organizations: REUTERS, Rights, Finance, Reuters, Thomson Locations: Frankfurt, Germany, GERMANY, Ukraine

The government is considering whether to suspend Germany's constitutionally enshrined debt brake as a way out of the spending crunch, a source told Reuters, while a leading member of Scholz's own party also called for such a move. Habeck said he was not proposing to abolish Germany's constitutionally enshrined debt brake, but added that "it is inflexible". We are now being forced to modernize the economy with fewer public subsidies," he told the Bild am Sonntag newspaper. "Rather, it is the unsound and unconstitutional budget policy of the federal government and the (three-way) coalition. "One possibility could be to suspend the debt brake in 2023 ... but then not in 2024.

Persons: Robert Habeck, Minister Christian Lindner, Chancellor Olaf Scholz's, Germany's, Lindner, Habeck, Sebastian Brehm, Markus Wacket, Christian Kraemer, Matthias Williams, Miranda Murray, Ed Osmond, Paul Simao Organizations: Minister, Reuters, Greens, Free Democrats, CDU, CSU, Thomson Locations: United States

"The Compact with Africa conference aims to send this signal: You can count on Germany as a partner". The 4 billion euros would be channelled into the common EU-Africa Initiative for Green Energy. The European Union had already announced it would deliver it 3.4 billion euros in grants. German trade with Africa was 60 billion euros ($65.4 billion) last year, which is a fraction of its trade with Asia but up 21.7% on 2021. Ivory Coast President Alassane Ouattara said the number of German companies had tripled in five years while Morocco's Prime Minister Aziz Akhannouch said German investment had increased sixfold since 2015.

Persons: Olaf Scholz, Emmanuel Macron, Ursula von der Leyen, Liesa, Scholz, Christian Lindner, Alassane Ouattara, Aziz Akhannouch, Andreas Rinke, Sarah Marsh, Riham Alkousaa, David Gregorio Our Organizations: French, REUTERS, Rights, Africa, Africa Initiative for Green Energy, European Union, " Finance, Ivory, Morocco's, Democratic, Thomson Locations: Africa, Berlin, Germany, Europe, China, West, Russia, Asia, Ivory Coast, Morocco, Tunisia, Egypt, Senegal, Guinea, Ghana, Togo, Benin, Burkina Faso, Rwanda, Democratic Republic of Congo, Ethiopia

☆ Germany's lower house of parliament approves Financing for the Future Act
▼ + stars: | 2023-11-18 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Fabian Bimmer/File Photo Acquire Licensing RightsBERLIN, Nov 17 (Reuters) - Germany's lower house of parliament on Friday passed the Financing for the Future Act, to promote start-ups and improve access to capital markets. In the future, companies will be allowed to go public with a minimum market capitalization of one million euros instead of the previous 1.25 million. According to earlier statements by the government, the law will lead to annual tax revenue losses of almost one billion euros from 2026. The Future of Financing Act increases the tax allowance for employee share ownership to 2,000 euros from 1,440 euros. The package, called the Growth Opportunities Act, provides for tax relief of around 7 billion euros ($7.6 billion) a year from 2024, and a total of over 32 billion euros until 2028.

Persons: Fabian Bimmer, Christian Lindner, Lennard Oehl, Christian Kraemer, Maria Martinez, William Maclean Organizations: REUTERS, Rights, Global, Germany's, SPD, Thomson Locations: Hamburg, Germany, Silicon Valley

☆ Germany approves financial reforms to help its tech industry compete with Silicon Valley
▼ + stars: | 2023-11-17 | by ( Ryan Browne | ) www.cnbc.com time to read: +2 min

BERLIN, GERMANY - NOVEMBER 15: German Finance Minister Christian Lindner gives a statement to the media at the Chancellery following the weekly government cabinet meeting on November 15, 2023 in Berlin, Germany. (Photo by Sean Gallup/Getty Images)Germany on Friday approved a package of key reforms to its capital markets frameworks to help its technology industry compete with Silicon Valley. The reforms, which have been in the works for sometime, had been widely expected. Some of the major changes will be to employee stock options plans, which allow companies to hand a slice of the business to their employees. Index has invested in a number of high-profile German tech startups, including human resources software firm Personio and financial service startup Raisin.

Persons: Christian Lindner, Sean Gallup, Martin Mignot, Mignot Organizations: German Finance, German, Court, Getty, Ventures Locations: BERLIN, GERMANY, Berlin, Germany, Silicon, Europe

☆ Exclusive: German court ruling could hit growth next year - econ ministry source
▼ + stars: | 2023-11-17 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Nov 17 (Reuters) - A German court ruling that forced Berlin to freeze 60 billion euros ($65 billion) in planned green investment spending could have a negative impact on growth in Europe's biggest economy, an economy ministry source told Reuters on Friday. "According to initial rough estimates, a loss of investment funds could cause growth in 2024 to be about half a percentage point lower," the source, who is familiar with the economy ministry's forecasts, said. "So the ruling could have a negative impact on economic growth," the source added. Last month, the economy ministry predicted 1.3% growth for next year. The economy ministry is run by the Greens, who share power with Scholz's Social Democrats (SPD) and the pro-business Free Democrats (FDP).

Persons: Chancellor Olaf Scholz's, Christian Lindner, Andreas Rinke, Miranda Murray, Madeline Chambers, Sabine Wollrab Organizations: Greens, Scholz's Social Democrats, Free Democrats, Thomson Locations: Berlin, Europe's

The economy and finance ministry declined immediate comment. "So the ruling could have a negative impact on economic growth," the source added. Last month, the economy ministry predicted 1.3% growth for next year. Although the Greens want additional spending, the Free Democrats (FDP), which heads the finance ministry, reject additional debt and higher taxes. "There is a clear political decision in favour of Intel and nothing has changed yet," said an economy ministry spokesperson on Friday.

Persons: Liesa, Olaf Scholz's, Christian Lindner, Chancellor Olaf Scholz's, Joerg Kraemer, Robert Habeck, Habeck, Friedrich Merz, Christian Haase, Commerzbank's Kraemer, Maria Martinez, Andreas Rinke, Holger Hansen, Christian Kraemer, Madeline Chambers, Matthias Williams, Clarence Fernandez, Gerry Doyle, David Evans Organizations: REUTERS, Rights, Thursday, Greens, Free Democrats, Transformation, Intel, U.S, Christian Democratic Union, ESF, Economic, Stabilization, Thomson Locations: Berlin, Germany, Europe's

Underscoring the frustration, Economy Minister Robert Habeck, a member of the pro-spending Greens, called the verdict "a huge blow to industrial policy". Speaking to parliament, Habeck warned the court ruling put at risk support for the steel sector, which is counting on subsidies to decarbonise and stay competitive. Finance Minister Christian Lindner meanwhile said it was too early to discuss the consequences of the court ruling. "The steel industry alone can contribute to reducing a third of total industrial emissions - and thus has enormous leverage to save millions of tons of CO2 in the coming years." "The political bottom line is that many coalition disputes will reopen as serious budget constraints kick in.

Persons: Olaf Scholz, Christian Lindner, Robert Habeck, BERLIN, Wednesday's, Chancellor Olaf Scholz, Habeck, Yesenn, DBRS Morningstar, hawkish Lindner, Lindner, Bernhard Osburg, Carsten Brzeski, Eurointelligence, Maria Martinez, Christian Kraemer, Andreas Rinke, Markus Wacket, Tom Kaeckenhoff, Matthias Williams, Alexandra Hudson, Susan Fenton Organizations: Finance, Climate, Economy, Greens, CHANGE, Budget, European Central Bank, Thomson Locations: United States, Berlin, Germany

☆ German Court deals blow to Scholz government with budget ruling
▼ + stars: | 2023-11-15 | by ( ) www.cnbc.com time to read: +1 min

Germany's constitutional court ruled on Wednesday that the government's re-allocation of 60 billion euros ($65 billion) of unused debt from the pandemic era to a climate fund was illegal, dealing a blow to Chancellor Olaf Scholz's coalition. This was done with the Second Supplementary Budget Act 2021, which retroactively amended the Budget Act for 2021. The constitutional court ruled that this act was incompatible with Germany's Basic Law and so was void. In addition, the government changed the accounting principal by which borrowing counted against the budget deficit in the year the borrowing was actually done. "The court ruling has far-reaching consequences for fiscal policy in Germany," said Clemens Fuest, President of the Ifo economic institute.

Persons: Chancellor Olaf Scholz's, Christian Lindner, Clemens Fuest Organizations: Social Democrats, Greens, Free Democrats Locations: Germany

[1/3] FILE PHOTO: German Chancellor Olaf Scholz looks on as he meets NATO's Secretary General Jens Stoltenberg in Berlin, Germany, November 9, 2023. Wednesday's decision by the constitutional court could also set a precedent for fiscal responses to future crises. "FAR-REACHING CONSEQUENCES""The court ruling has far-reaching consequences for fiscal policy in Germany," said Clemens Fuest, President of the Ifo economic institute. This was done with the Second Supplementary Budget Act 2021, which retroactively amended the Budget Act for 2021. The constitutional court ruled that this act was incompatible with Germany's Basic Law and so was void.

Persons: Olaf Scholz, Jens Stoltenberg, Liesa, Chancellor Olaf Scholz's, Christian Lindner, Lindner, Scholz, Robert Habeck, Clemens Fuest, Ralph Solveen, Habeck, Friedrich Merz, Maria Martinez, Christian Kraemer, Ursula Knapp, Matthias Williams, Kirsti Knolle, Madeline Chambers, Susan Fenton, William Maclean, Catherine Evans Organizations: REUTERS, Rights, Finance, Union, Social Democrats, Free Democrats, Christian Democratic Union, Thomson Locations: Berlin, Germany, Ukraine

☆ A top German politician blasted the 4-day workweek, saying no society has ever increased prosperity 'by working less'
▼ + stars: | 2023-11-06 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Christian Lindner, the German finance minister, panned the concept of a four-day workweek. 50 German companies are set to trial a four-day workweek starting February. AdvertisementAdvertisementA top politician in Germany has panned the concept of a four-day workweek for full pay, saying it's a hindrance to prosperity. Just 8% would accept lower wages, while 17% rejected a four-day workweek altogether. Workers, too, felt the benefits of a four-day workweek — about 70% reported lower levels of burnout.

Persons: Christian Lindner, Lindner, —, It's, Hans Organizations: Service, Bloomberg, Free Democratic Party, Böckler, ZDF, Workers Locations: Germany, Switzerland, Europe's

And now Ben Hammou faces another blow as the German government moves to end pandemic-era tax breaks for the hospitality industry. The fiscally hawkish FDP party, which has control of the finance ministry in the three-way ruling coalition, backs letting the tax break expire, calculating that it would cost 3.3 billion euros ($3.5 billion) to keep it going in 2024. Many restaurants operate on tight margins, which makes them quite sensitive to tax increases. In Spain, Italy and France, the VAT on restaurants is at 10%, considerably lower than the expected 19% in Germany from 2024. The question is whether German restaurants are still struggling or have recovered well enough from the pandemic to withstand having the tax break removed, according to Tomas Dvorak, senior economist at Oxford Economics.

Persons: Omar Ben Hammou, Ben Hammou, Christian Lindner, Guido Zoellick, Thijs Geijer, Ingrid Hartges, DEHOGA, Steffen Marx, Tomas Dvorak, Maria Martinez, Christian Kraemer, Tanja Daube, Ulrike Heil, Belen Carreno, Giselda Vagnoni, Thomas Leigh, Matthias Williams, Hugh Lawson Organizations: Restaurant Association, ING, Reuters, Oxford Economics, Thomson Locations: Bavaria, BERLIN, Berlin, Russia, Ukraine, COVID, Spain, Italy, France, Germany, Munich, Madrid, Rome, Paris

☆ German voters send ominous message to Brussels
▼ + stars: | 2023-10-09 | by ( ) www.reuters.com time to read: +2 min

LONDON, Oct 9 (Reuters Breakingviews) - German Chancellor Olaf Scholz’s resounding defeat in key local elections on Sunday will be as traumatic in Brussels as in Berlin. Voters dealt a sharp blow to all three parties in Scholz’s centre-left executive. The victory of conservative opposition party CDU came together with a strong showing of far-right Alternative für Deutschland (AfD), who won 15% of the votes in the populous state of Bavaria and 18% in Hesse. In Berlin, divisions on the pace and cost of the green transition between the Green Party and the liberal FDP, whose leader Christian Lindner is the coalition’s finance minister, have already led to a watering down of a planned boiler ban from 2024. In Brussels, a German government preoccupied with its domestic travails may be unable to rally other member states around the sort of compromise proposals the EU needs to clinch some key deals.

Persons: Olaf Scholz’s, Christian Lindner, Scholz, Pierre Briancon, Sandoz, Lisa Jucca, Oliver Taslic Organizations: Reuters, Voters, Social Democrats, Greens, European Union, Green Party, X, Alstom, Brookfield, Thomson Locations: Brussels, Berlin, Scholz’s, Bavaria, Hesse, Germany, France, EU

☆ Germany risks letting a good crisis go to waste
▼ + stars: | 2023-10-03 | by ( Pierre Briancon | ) www.reuters.com time to read: +8 min

Germany, the European Union’s largest economy and its traditional growth engine, is headed towards a contraction this year. Exports account for more than half of Germany’s GDP, compared to just a third in France and 37% in Italy, according to the World Bank. Germany’s growth potential is estimated at an annual 0.7% over the medium term by the Scope rating agency, about half the euro zone average. Exempting net public investment from the debt brake rule would help to reverse years of underspending. Unless they do, Europe’s leading economy risks letting a good crisis go to waste.

Persons: –, Hubertus Bardt, Germany’s, Carsten Brzeski, Oliver Rakau, Chancellor Olaf Scholz, Christian Lindner’s, Sebastian Dullien, Scholz, Destatis, Francesco Guerrera, Streisand Neto Organizations: Reuters, World Bank, EU, International Monetary Fund, Reuters Graphics Reuters, German Economic Institute, ING, Oxford Economics, BASF, Finance, Christian Democrats, Thomson Locations: Germany, Berlin, France, Italy, China –, Spain, Weimar Republic, China, Ukraine

☆ Germany welcomes China's support for G20 debt restructuring framework
▼ + stars: | 2023-10-01 | by ( ) www.reuters.com time to read: +2 min

German Finance Minister Christian Lindner speaks during a session of the lower house of parliament, Bundestag, at the Reichstag building, in Berlin, Germany September 27, 2023. REUTERS/Liesa Johannssen/File Photo Acquire Licensing RightsBERLIN, Oct 1 (Reuters) - Germany has welcomed a show of support from China for the G20 debt restructuring framework for poorer countries in a joint statement after their financial dialogue in Frankfurt over the weekend. Neither provided further details on the rules for the restructuring plans and the joint statement did not give specifics. "This creates opportunities on both sides for more responsible trade and investment," German Finance Minister Christian Lindner said on Sunday. The meeting took place in Frankfurt, as Germany want to further strengthen this city as an European hub for financial services, the finance minister said.

Persons: Christian Lindner, Liesa, Sunday's, Lindner, ” Lindner, Maria Martinez, Alison Williams Organizations: Bundestag, REUTERS, Rights, Reuters, Thomson Locations: Berlin, Germany, China, Frankfurt, Africa, Asia, Beijing, European

☆ No decision on European Investment Bank presidency expected this week, German finance minister says
▼ + stars: | 2023-09-15 | by ( ) www.reuters.com time to read: +1 min

German Finance Minister Christian Lindner speaks during a plenum session of the lower house of parliament, Bundestag, to present the 2024 budget and financial planning of the Federal Government, in Berlin, Germany September 5, 2023. REUTERS/Annegret Hilse/File Photo Acquire Licensing RightsSANTIAGO DE COMPOSTELA, Sept 15 (Reuters) - German Finance Minister Christian Lindner said at the informal EU finance ministers meeting on Friday that a decision is not expected this week on who will become European Investment Bank (EIB) president. "There are several well-qualified candidates, for example our host today, Nadia Calvino," Lindner said before the meeting of euro zone finance ministers. Lindner said the German government hasn't made a decision yet on which candidate to back, "but we have a clear picture of how the EIB should develop." Lindner said the bank should keep its AAA rating: "Sound banking is essential for us."

Persons: Christian Lindner, Annegret, Nadia Calvino, " Lindner, Lindner, hasn't, Maria Martinez, Miranda Murray Organizations: Bundestag, Federal Government, REUTERS, SANTIAGO DE, German Finance, European Investment Bank, AAA, Thomson Locations: Berlin, Germany, SANTIAGO, SANTIAGO DE COMPOSTELA

The logo of the European Investment Bank is pictured in the city of Luxembourg, Luxembourg, March 25, 2017. Also interested are the politically non-affiliated Italian central banker Daniele Franco, Poland's right-wing former Finance Minister and current EIB Vice President Teresa Czerwinska, and Sweden's socialist former Energy Minister and also current EIB Vice President Thomas Ostros. "We can say we are really spoilt for choice because all the candidates are excellent," German Finance Minister Christian Lindner told reporters on Thursday. The EIB is the lending arm of the EU and is active in 160 countries offering loans, guarantees, equity investments and advisory services. Germany's Deputy Central Bank Governor Claudia Buch and her Spanish counterpart Margarita Delgado are both in the running.

Persons: Eric Vidal, Vincent van Peteghem, Germany's Werner Hoyer, Margrethe Vestager, Nadia Calvino, Daniele Franco, Poland's, Teresa Czerwinska, Thomas Ostros, Christian Lindner, Central Bank Governor Claudia Buch, Margarita Delgado, Buch, Vestager, Emmanuel Macron, Richard Chang Organizations: European Investment Bank, Reuters, Rights, Belgian, Union, European Commission, Finance, Energy, European Central Bank, Germany's, Central Bank Governor, SSM, Thomson Locations: Luxembourg, Rights BRUSSELS, Italian, Spanish, EU, Paris, Spain

☆ Germans question value of working after new welfare increases - survey
▼ + stars: | 2023-09-05 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Michael Dalder/File photo Acquire Licensing RightsBERLIN, Sept 5 (Reuters) - More than half of Germans believe work is not worthwhile after the government's planned increase in welfare payments and child benefits, a survey showed on Tuesday. Welfare payments, dubbed "citizens' money", for more than 5.5 million jobless in Germany will rise to 563 euros ($605.06)from 502 euros per month for single people from next year. They will receive up to 636 euros per month for their first child and another 530 euros for every other child. Germans are divided whether the increase in welfare payments is justified with 45% in favour and 44% against it, the survey of 1005 respondents showed. Finance Minister Christian Lindner said last week in a presentation on the basic child allowance that benefits should not discourage people from working.

Persons: Michael Dalder, it's, pollster INSA, Christian Lindner, Lindner, Riham Alkousaa, Maria Martinez, Alexandra Hudson Organizations: REUTERS, Rights, Bild, Finance, Alexandra Hudson Our, Thomson Locations: Munich, Germany

REUTERS/Lisi Niesner Acquire Licensing RightsMESEBERG, Germany, Aug 29 (Reuters) - Germany's coalition on Tuesday set aside weeks of squabbling to agree to a total of 32 billion euros ($34.63 billion) in corporate tax cuts over four years to boost the flagging economy. "The German economy can do more." The German economy stagnated in the second quarter, showing no sign of recovery from a winter recession and cementing its position as one of the world's weakest major economies. An agreement was reached on Tuesday when the two sides agreed to cut the planned Child Basic Insurance to just over two billion euros. A government document seen by Reuters showed subsidies are set to almost double to 67.1 billion euros next year compared to 2021.

Persons: Olaf Scholz, Lisi Niesner, Finance Minister Christian Lindner, Lisa Paus, Lindner, Forsa, Scholz, Matthias Williams, Christian Kraemer, Thomas Escritt, Tomasz Janowski, Ed Osmond, Barbara Lewis Organizations: Schloss, REUTERS, Reuters, Finance Minister, Greens Family, Insurance, stoke, Thomson Locations: Schloss Meseberg, Gransee, Germany, Berlin

The Ifo institute said on Friday that its business climate index stood at 85.7, down from 87.4 in July. Reuters Graphics"The German economy is not out of the woods yet," Ifo president Clemens Fuest said. The economy then posted zero growth in the second quarter compared to the previous three months, separate data from the statistics office showed on Friday. The Ifo survey showed sentiment among German managers had become more pessimistic across all sectors in August. The Ifo survey chimed with flash PMI data released on Wednesday, which showed that German business activity contracted at the fastest pace for more than three years in August.

Persons: Annegret, Clemens Fuest, Christian Lindner, Klaus Wohlrabe, Claus Niegsch, Niegsch, Andrew Kenningham, Carsten Brzeski, Maria Martinez, Friederike Heine, Mark Potter, John Stonestreet Organizations: REUTERS, Reuters, . Finance, DZ Bank, Reuters Graphics, Capital Economics, Thomson Locations: Berlin, Germany, BERLIN, Europe

☆ Factbox: European countries imposing windfall taxes on banks
▼ + stars: | 2023-08-08 | by ( ) www.reuters.com time to read: +4 min

But he and Finance Minister Bruno Le Maire have ruled out the possibility of a windfall tax. HUNGARYHungary's government has tweaked windfall taxes imposed on key sectors of the economy in a decree published in June, saying banks can reduce their 2024 windfall tax payments by up to 50% if they increase their Hungarian government bond purchases. ITALYItaly approved on Aug. 8 a one-off 40% tax on profits banks reap from higher interest rates and it plans to use the proceeds to help mortgage holders. LITHUANIALithuania's parliament approved in May a windfall tax on the banking industry's net interest income for 2023 and 2024 following a sharp rise in European Central Bank interest rates. It is expected to raise 6 billion Swedish crowns a year.

Persons: Ralph Orlowski, Emmanuel Macron, Bruno Le Maire, Christian Lindner, Alessandro Parodi, Matteo Allievi, Olivier Sorgho, Silvia Aloisi, Tom Sims, Holger Hansen, Marta Frąckowiak, Alexander Smith Organizations: Germany's Deutsche Bank, REUTERS, Finance, HUNGARY Hungary's, European Central Bank, Swedish Government, Thomson Locations: Frankfurt, Germany, Italy, CZECH REPUBLIC, Czech, France, GERMANY, HUNGARY, ITALY Italy, LITHUANIA, SPAIN Spain, SWEDEN, Britain

☆ EU has to come clean on costs of green transition
▼ + stars: | 2023-07-18 | by ( Pierre Briancon | ) www.reuters.com time to read: +8 min

European Union governments have agreed on the strategy, but they tend to paper over the short-term economic costs of the green transition. French economist Jean Pisani-Ferry has compared the impact of the green transition to an economic shock equivalent to the sharp spikes in oil prices in the 1970s. But unlike previous shocks triggered by geopolitical instability or trade wars, the green transition has been initiated and managed by governments, and largely financed by them. Germany looks like the country most able to afford the green transition, but its over-emphasis on regulation on environmental matters is running into fierce opposition. On Sunday Paolo Gentiloni, the EU economy commissioner, told the Financial Times that Europe will have to fund its own industrial green transition.

Persons: Jean Pisani, won’t, Pisani, Selma Mahfouz, Paolo Gentiloni, Bruno Le Maire, Christian Lindner, Keir Starmer, –, Francesco Guerrera, Oliver Taslic Organizations: Reuters, Union, Reuters Graphics Reuters, International Energy Agency, Ferry, Social Democrats, Greens, Opposition, Financial Times, French Finance, German, Labour Party, Twitter, Southern, European Commission, Deal, Zero, Thomson Locations: Europe, France, Italy, Germany, EU, Paris, Southern Europe, Spain, Greece

☆ German coalition at odds over fighter jet sale to Saudi Arabia, Welt am Sonntag reports
▼ + stars: | 2023-07-01 | by ( ) www.reuters.com time to read: +1 min

BERLIN, July 1(Reuters) - Germany's coalition government is at odds over whether to bow to British pressure and approve the production of Eurofighter Typhoon fighter jets for Saudi Arabia, the newspaper Welt Am Sonntag reported on Saturday, citing anonymous sources. A third of the components for the jets come from Germany, industry sources told Reuters at the time. Since the rapprochement of Saudi Arabia and Iran, which could end their proxy war in Yemen, the British have argued that Germany cannot block the export of Eurofighter jets to third parties. A spokesperson for the Chancellery declined to comment to Welt am Sonntag. Reporting by Sabine Siebold; Writing by Victoria Waldersee; Editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Chancellor Olaf Scholz, Christian Lindner, Jamal Khashoggi, Angela Merkel, Sabine Siebold, Victoria Waldersee, Jonathan Oatis Organizations: Eurofighter Typhoon, BAE Systems, Reuters, Social Democrats, Finance, Greens, SPD, Eurofighter, Welt, Thomson Locations: BERLIN, Saudi Arabia, Riyadh, Yemen, Saudi, Germany, United States, France, Britain, Iran

☆ Intel near deal on 9.9 bln euro German government subsidy, Handelsblatt says
▼ + stars: | 2023-06-15 | by ( ) www.reuters.com time to read: +1 min

June 15 (Reuters) - Intel (INTC.O) and the German government are close to an agreement for the chipmaker to receive 9.9 billion euros ($10.83 billion) in subsidies, up from a previously agreed 6.8 billion, Handelsblatt reported on Thursday, citing government sources. Final negotiations will take place this weekend, the newspaper reported, with Intel Chief Executive Pat Geisinger and government representatives to sign an agreement in Berlin on Monday. Intel and the economy ministry were not immediately available for comment outside working hours. The additional funds are to come from a budget under the responsibility of the economy minister, who campaigned heavily for the extra subsidies in the face of resistance from Finance Minister Christian Lindner, according to Handelsblatt. Intel, which announced last year it had picked the central German city of Magdeburg for a new chip-making complex, had raised its demand for subsidies to around 10 billion euros citing higher energy and construction costs.

Persons: Handelsblatt, Pat Geisinger, Christian Lindner, Victoria Waldersee, Barbara Lewis Organizations: Intel, Finance, Thomson Locations: Berlin, German, Magdeburg

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