Germany supports the Commission's proposal on the application of sanctions against states - members of the European Union, unable to hold back their debts and budget deficits within the statutory limits. This statement was made by German Finance Minister Wolfgang Schäuble in a letter to his colleagues from EU countries. The main task of such measures - impact on states that fail to control costs and thereby jeopardize the EU as a whole. According to Schäuble, the "strong motivation" to keeping debt and deficits within the permissible limits must take a central place in the economic management of the EU.
The European Commission officially announced its proposals on this matter on September 29. These initiatives are designed to prevent future crises, debt, similar to the Greek, when the fiscal problems of one EU member state questioned the very existence of the single European currency.
According to Eurostat, in 2009 the average budget deficit of the euro area has increased from 2% to 6.3% of GDP, while the norms of the Maastricht Treaty, this figure should not exceed 3% of GDP. Ireland's budget deficit for the year has doubled and now stands at 14,3% in the next UK - 11,5%. The norm of public debt is formally limited to the level of 60% of GDP. However, the debts of some member countries exceed this figure almost doubled. The volume of public debt in Italy is 115.8% of GDP, slightly less than in Greece - 115.1%, the Belgian debt has grown over the year to 96,7% of GDP.
Showing posts with label Germany. Show all posts
Showing posts with label Germany. Show all posts
9/28/10
9/27/10
Berlin allowed to provide Hypo Real Estate more government guarantees up to 40 billion euros
The European Commission has previously allowed the German government to provide investment bank Hypo Real Estate additional government guarantees worth 40 billion euros. The Commission considered that such a measure is consistent with the requirements of the EU. In addition, Brussels authorized the deployment of "toxic" securities Hypo Real Estate worth about 191 billion euros in the so-called "bad bank", reports Deutsche Welle referring to the German media. Earlier, Hypo Real Estate received from the state guarantee for 103.5 billion euros, as well as the capital of $ 7.7 billion
Meanwhile it is reported that European Commission's decision is not final. Currently, experts continue to test the concept of restructuring of Hypo Real Estate. EU Commissioner Joaquin Almunia competition is skeptical about the chances of the bank's rescue. "I still have doubts about the viability of the bank in the long run," - said the Commissioner.
Recall, Hypo Real Estate was among the seven banks that do not cope with the stress tests by the European Committee for Banking Regulation (CEBS). The audit analyzed the financial prospects of companies in the context of global economic turmoil.
Meanwhile it is reported that European Commission's decision is not final. Currently, experts continue to test the concept of restructuring of Hypo Real Estate. EU Commissioner Joaquin Almunia competition is skeptical about the chances of the bank's rescue. "I still have doubts about the viability of the bank in the long run," - said the Commissioner.
Recall, Hypo Real Estate was among the seven banks that do not cope with the stress tests by the European Committee for Banking Regulation (CEBS). The audit analyzed the financial prospects of companies in the context of global economic turmoil.
9/25/10
Stock exchanges of the USA have opened growth on corporate news and статданных from Germany
The American stock markets show growth at opening of the auctions against статданных on economy of Germany and positive corporate news from the USA, the data of stock exchanges testifies.
Index DJIA at the auctions in New York as of 18:15 has grown Moscow time on 1,53 % and has constituted 10 825,14 points. The index of wide market S&P 500 has risen on 1,68 % — to 1 143,61. The index of hi-tech companies Nasdaq has added 1,59 % and has constituted 2 364,04.
On Friday it became known about unexpected growth of an index of a business climate in the largest economy of Europe — Germany. In August it has risen on 0,1 percentage points — to 106,8 against 106,7 points month before. Analysts predicted decrease in an index to 106,4.
Have pleased participants of the auctions and the message from the American manufacturer of sports goods Nike. The company Net profit in I quarter 2010-2011 which has come to the end on August, 31st, has grown on 9 % — to 559 million dollars.
At the same time the left macroeconomic data in the USA has appeared worse forecasts of analysts that renders restraining influence on growth of indexes. So, on Friday it became known that the volume of orders for consumer durables in the USA in August in comparison with July was reduced to 1,3 % — to 191,2 млрд dollars. Analysts expected reduction of an indicator by 1 %.
Besides, the sales volume of new houses in the USA in August, 2010 in comparison with July hasn't changed and has constituted 288 thousand Analytics assumed that the indicator of sales of new houses will increase to 295 thousand
Index DJIA at the auctions in New York as of 18:15 has grown Moscow time on 1,53 % and has constituted 10 825,14 points. The index of wide market S&P 500 has risen on 1,68 % — to 1 143,61. The index of hi-tech companies Nasdaq has added 1,59 % and has constituted 2 364,04.
On Friday it became known about unexpected growth of an index of a business climate in the largest economy of Europe — Germany. In August it has risen on 0,1 percentage points — to 106,8 against 106,7 points month before. Analysts predicted decrease in an index to 106,4.
Have pleased participants of the auctions and the message from the American manufacturer of sports goods Nike. The company Net profit in I quarter 2010-2011 which has come to the end on August, 31st, has grown on 9 % — to 559 million dollars.
At the same time the left macroeconomic data in the USA has appeared worse forecasts of analysts that renders restraining influence on growth of indexes. So, on Friday it became known that the volume of orders for consumer durables in the USA in August in comparison with July was reduced to 1,3 % — to 191,2 млрд dollars. Analysts expected reduction of an indicator by 1 %.
Besides, the sales volume of new houses in the USA in August, 2010 in comparison with July hasn't changed and has constituted 288 thousand Analytics assumed that the indicator of sales of new houses will increase to 295 thousand
9/16/10
Merkel: Germany will demand at the EU summit tough sanctions against states - violators of budgetary discipline
Germany will demand at the EU summit as tough sanctions against states - the EU budget discipline violators. According to ITAR-Tass said today Chancellor Angela Merkel's arrival at the EU summit.
"Germany will support the most severe sanctions", - she said.
At the last EU summit in June, just after the peak of the financial crisis, the euro area, community leaders agreed on the need to agree on a clear set of measures that would compel states to comply with EU fiscal discipline. At the same time to the present moment a compromise is not found.
On the negotiating table only two real proposals. The first of them developed by Germany and the deprivation of offending the right to vote in the EU Council to rectify the situation. This option, however, met stiff resistance of the majority of the community. The second option - the proposal of the task force to develop measures of fiscal discipline under the direction of EU president Herman van Rompuy providing funding cuts of the violator from the funds of the EU. A serious drawback of this project is that it puts the state community at a disadvantage because the amounts of their European subsidies varies significantly.
Basic economic document community - Stability and Growth Pact - set limit budget deficits of EU countries at 3% of GDP, but this rule is violated everywhere. Original record was set in 2009, when the global financial crisis, these norms are violated 20 of the 27 EU states.
Compliance with the Stability and Growth Pact today is based solely on the goodwill of EU member states. There is only so-called "procedure to eliminate violations, which initiates EU Commission, however, it is solely in the preparation of perspective plan of action for 6-18 months to rectify the situation and has no real sanctions that can be applied to the country of the offender.
"Germany will support the most severe sanctions", - she said.
At the last EU summit in June, just after the peak of the financial crisis, the euro area, community leaders agreed on the need to agree on a clear set of measures that would compel states to comply with EU fiscal discipline. At the same time to the present moment a compromise is not found.
On the negotiating table only two real proposals. The first of them developed by Germany and the deprivation of offending the right to vote in the EU Council to rectify the situation. This option, however, met stiff resistance of the majority of the community. The second option - the proposal of the task force to develop measures of fiscal discipline under the direction of EU president Herman van Rompuy providing funding cuts of the violator from the funds of the EU. A serious drawback of this project is that it puts the state community at a disadvantage because the amounts of their European subsidies varies significantly.
Basic economic document community - Stability and Growth Pact - set limit budget deficits of EU countries at 3% of GDP, but this rule is violated everywhere. Original record was set in 2009, when the global financial crisis, these norms are violated 20 of the 27 EU states.
Compliance with the Stability and Growth Pact today is based solely on the goodwill of EU member states. There is only so-called "procedure to eliminate violations, which initiates EU Commission, however, it is solely in the preparation of perspective plan of action for 6-18 months to rectify the situation and has no real sanctions that can be applied to the country of the offender.
9/15/10
Merkel: Germany's economy is again on the rise
Two years after the start of the global economic and financial crisis in Germany again, there is an economic upturn. This was announced on Wednesday in the Bundestag during the debate on the state budget of Germany in 2011 Chancellor Angela Merkel, stressing that "we have reason to feel confident."
"We showed what we can do", - said the head of government of Germany, adding that "we have passed most of the way." According to her, ITAR-TASS, experts suggest that this year economic growth in Germany will exceed 3%.
But most important, says Merkel, is to improve the situation on the labor market. Unemployment dropped to a level below 3 million people, reaching pre-crisis point. Five years ago in Germany were unemployed almost 5 million citizens, reminded Merkel, calling this development "success of Christian-liberal government coalition" of CDU / CSU and FDP.
The Chancellor praised the economic decisions taken by the Government of Germany recently. According to her, they led to the fact that "we are now the locomotive of economic growth in Europe. The coming period will be in Germany "in the autumn of important decisions," Merkel has promised.
"We showed what we can do", - said the head of government of Germany, adding that "we have passed most of the way." According to her, ITAR-TASS, experts suggest that this year economic growth in Germany will exceed 3%.
But most important, says Merkel, is to improve the situation on the labor market. Unemployment dropped to a level below 3 million people, reaching pre-crisis point. Five years ago in Germany were unemployed almost 5 million citizens, reminded Merkel, calling this development "success of Christian-liberal government coalition" of CDU / CSU and FDP.
The Chancellor praised the economic decisions taken by the Government of Germany recently. According to her, they led to the fact that "we are now the locomotive of economic growth in Europe. The coming period will be in Germany "in the autumn of important decisions," Merkel has promised.
9/14/10
Deutsche Bank increases capital He needs money for acquisitions Postbank
The leader of the banking sector in Germany Deutsche Bank (DB) is preparing the biggest difference in their recent history of increasing equity. As a result of the additional issue of its shares of the bank intends to bail out 9 billion euros. The money will be directed to the full redemption of securities Postbank. As a result, the number of private clients DB should double.
According to information received Handelsbank of the financial community, the head of Deutsche Bank Josef Ackermann and his chief financial officer Stefan Krause complete now negotiating with investment banks, and now may be known which of them will be the organizer of the forthcoming in the coming weeks additional issue. Issue of new shares for sale will allow Postbank DB closer to his goal - to reduce dependence on the volatility-prone areas of investment banking. And if in 2013 or even earlier, Mr. Ackermann will relinquish its seat successor, then give him a stable financial structure, based on its investment banking business and private clients.
The expansion of the local market has already begun DB, absorbing previously Berliner Bank, Norisbank and Bank Sal. Oppenheim, as well as gaining nearly 30% stake in Postbank. Incidentally, if the DB will be the sole owner of Postbank (DB has an option to acquire all the securities of the bank), it would mean that the current number of its private customers (14 million) increase immediately doubled.
However, as recently noted chief financial officer Stefan Krause, DB, deal with the Postbank «not so easy. When in 2008, Josef Ackermann bought a stake in Postbank at this bank owned the entire e-mail group Deutsche Post, capital adequacy ratio of the subject transaction was very low and amounted to 7,3%. No wonder that in the course of this summer, the European Regulators stress tests assessing Postbank were worse than any other German bank.
Now, if DB really intends to fully acquire Postbank, something other than 3 billion euros to buy itself it needs to raise at least another 5 billion euros - in order to maintain its capital adequacy ratio at 10% or higher. Besides, we should not forget that on the balance Postbank lurking still illiquid assets of almost 6 billion euros. In this regard, Thomas Shtegner of investment bank Macquarie believes that in order to buy Postbank not worsen the capital adequacy ratio DB, it should be 9.6 billion euros.
Experts believe that Messrs. Ackermann and Krause decided to act now because they want ahead of other banks, which will inevitably rush to the money market in order to meet more stringent requirements on the amount of equity under the new rules of Basel III ». From the comments in this regard the official representative of Deutsche Bank abstained. Meanwhile it became known that an increase in capital planning and the second largest bank of Germany - Commerzbank, but the timing of the additional issue he had not yet determined.
According to information received Handelsbank of the financial community, the head of Deutsche Bank Josef Ackermann and his chief financial officer Stefan Krause complete now negotiating with investment banks, and now may be known which of them will be the organizer of the forthcoming in the coming weeks additional issue. Issue of new shares for sale will allow Postbank DB closer to his goal - to reduce dependence on the volatility-prone areas of investment banking. And if in 2013 or even earlier, Mr. Ackermann will relinquish its seat successor, then give him a stable financial structure, based on its investment banking business and private clients.
The expansion of the local market has already begun DB, absorbing previously Berliner Bank, Norisbank and Bank Sal. Oppenheim, as well as gaining nearly 30% stake in Postbank. Incidentally, if the DB will be the sole owner of Postbank (DB has an option to acquire all the securities of the bank), it would mean that the current number of its private customers (14 million) increase immediately doubled.
However, as recently noted chief financial officer Stefan Krause, DB, deal with the Postbank «not so easy. When in 2008, Josef Ackermann bought a stake in Postbank at this bank owned the entire e-mail group Deutsche Post, capital adequacy ratio of the subject transaction was very low and amounted to 7,3%. No wonder that in the course of this summer, the European Regulators stress tests assessing Postbank were worse than any other German bank.
Now, if DB really intends to fully acquire Postbank, something other than 3 billion euros to buy itself it needs to raise at least another 5 billion euros - in order to maintain its capital adequacy ratio at 10% or higher. Besides, we should not forget that on the balance Postbank lurking still illiquid assets of almost 6 billion euros. In this regard, Thomas Shtegner of investment bank Macquarie believes that in order to buy Postbank not worsen the capital adequacy ratio DB, it should be 9.6 billion euros.
Experts believe that Messrs. Ackermann and Krause decided to act now because they want ahead of other banks, which will inevitably rush to the money market in order to meet more stringent requirements on the amount of equity under the new rules of Basel III ». From the comments in this regard the official representative of Deutsche Bank abstained. Meanwhile it became known that an increase in capital planning and the second largest bank of Germany - Commerzbank, but the timing of the additional issue he had not yet determined.
Ministry of Finance of Germany: the threat of a new credit crisis, there
His Government welcomed the new capital requirements set by the leadership of the international financial institutions on Sunday, and while he does not think that the new requirements will worsen the situation with the lending in the country. Told a representative of the Ministry of Finance of Germany Michael Hoffert.
"We do not see any threat to the credit crisis in connection with these rules," - he said. Finance Minister Wolfgang Schäuble does not think that these rules will be an excessive burden for German banks, including savings and cooperative banks, he added.
These rules are an important element of international efforts aimed at preventing a new financial crisis, said Hoffert. "We expect that this will become a landmark in the coming years", - he said.
On Sunday, leaders of international financial institutions have agreed to significantly increase the amount of capital that banks must reserve for potential losses, and they gave banks several years to adapt to the new rules.
"We do not see any threat to the credit crisis in connection with these rules," - he said. Finance Minister Wolfgang Schäuble does not think that these rules will be an excessive burden for German banks, including savings and cooperative banks, he added.
These rules are an important element of international efforts aimed at preventing a new financial crisis, said Hoffert. "We expect that this will become a landmark in the coming years", - he said.
On Sunday, leaders of international financial institutions have agreed to significantly increase the amount of capital that banks must reserve for potential losses, and they gave banks several years to adapt to the new rules.
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