The most important economic and political news from the Dow Jones Newswires weekend programme.
Nagel: Further ECB interest rate hikes necessary – 2-digit inflation possible
According to ECB Council member Joachim Nagel, the European Central Bank (ECB) must continue to raise interest rates. In an interview with the Rheinische Post, however, the President of the Bundesbank did not want to commit himself to the size of the next rate hike, which is expected for September. According to Nagel, inflation in Germany could reach double-digit rates in the fall, with a recession possible next winter.
Survey: Record dissatisfaction with Chancellor Scholz and the traffic light coalition
Chancellor Olaf Scholz (SPD) and his traffic light coalition have fallen to their lowest popularity ratings since taking office in December. According to a survey by the opinion research institute Insa for the Bild am Sonntag, 62 percent of people in Germany are dissatisfied with Scholz’s work – more than ever before. Only 25 percent rate Scholz positively.
Scholz defends the procedure for arms deliveries to Ukraine
Chancellor Olaf Scholz (SPD) has once again defended his approach to arms deliveries to Ukraine against criticism. “Germany supplies a lot of weapons” and is “in the meantime in the process of supplying the most modern and efficient equipment,” said Scholz on Sunday in a public discussion on the occasion of the federal government’s open day. But it is also about “ensuring that there is no escalation of the war”.
Lindner: Defining “outlines” of the relief package in September
According to Federal Minister of Finance Christian Lindner, the federal government should define the cornerstones of the new measures to relieve private households and companies financially next month. “By September we should have the outlines of the relief package,” he told Focus Online. The relief proposals should be available in time for parliamentary deliberations on the 2023 budget. When the 2023 budget is drawn up, the federal government must know what other projects there are.
Greens and SPD are pushing for targeted relief for low-income people
In the coalition’s internal struggle for a new relief package, politicians from the Greens and SPD are pushing for targeted measures to benefit low-income households. “Let me say: They are the first to go,” said Federal Minister for Family Affairs Lisa Paus (Greens) on Deutschlandfunk. Lower Saxony’s Prime Minister Stephan Weil (SPD) also urged “specific support measures”.
Left Party wants 1,500 euros “winter money” for everyone because of inflation
The Left Party is demanding direct relief for all Germans because of the high prices, especially for energy. “A winter allowance for all private households would be right: 1,500 euros and 600 euros for each additional household member,” said Dietmar Bartsch, leader of the Left Party, to the Rheinische Post. Pensioners and students would also benefit from this, “who generally do not have a bed of roses”.
Politicians from the SPD and Union call for the end of advance payment for flight tickets
In view of frequent flight cancellations, politicians from the SPD and CDU/CSU are calling for an end to the prepayment principle when buying flight tickets. The state of Lower Saxony is planning an initiative in the Bundesrat. “We want to significantly improve consumer protection for travelers,” said State Transport Minister Bernd Althusmann (CDU) to the Handelsblatt. The Federal Council should therefore discuss the initiative on September 16th.
Savings banks: Due to high prices, there is often no scope for savings
Savings Bank President Helmut Schleweis has warned of the consequences of high inflation for a large part of the population. The formation of savings is hardly possible under these conditions, Schleweis told the world on Sunday. Bundesbank President Joachim Nagel expressed the expectation that the inflation rate could rise to 10 percent after the end of the tank discount and the nine-euro ticket.
ARD directors withdraw trust from the current RBB leadership
In the affair surrounding the recalled RBB director Patricia Schlesinger, the ARD leadership withdrew its trust from the station’s current management. “We, the directors of ARD, no longer have confidence that the station’s management will be able to process the various incidents quickly enough,” said ARD chairman Tom Buhrow on Saturday in Cologne. The journalists’ representation of the RBB demanded the resignation of the management.
Greece is no longer under EU financial supervision
After twelve years, Greece is no longer under the financial supervision of the EU since Saturday. This is the end of a painful period for Greece that has led to economic stagnation and a division in society, Prime Minister Kyriakos Mitsotakis said in Athens. He now promised his compatriots a new beginning “full of growth, unity and prosperity”.
Media reports: Japan wants to increase defense spending and upgrade missiles
Due to the growing regional threat from China, Japan is considering deploying more than 1,000 long-range missiles in the south of the country. The island state wants to increase the range of its previous anti-ship missiles from 100 kilometers to 1000 kilometers, as reported by the Japanese newspaper Yomiuri Shimbun. With the new range, the missiles could therefore reach both Chinese coastal areas and North Korea.
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(END) Dow Jones Newswires
August 21, 2022 12:00 PM ET (16:00 GMT)