The most important economic and political news from the Dow Jones Newswires weekend programme.
Villeroy de Galhau: The ECB must raise interest rates significantly in September
ECB Council member Francois Villeroy de Galhau spoke out in favor of a significant increase in key interest rates by the European Central Bank (ECB) in September. At the monetary policy symposium in Jackson Hole, he said the ECB must raise interest rates to neutral levels, which could be done by the end of the year if the ECB hikes rates “significantly” in September, according to a Bloomberg report.
Schnabel: The ECB must take decisive action against inflation
According to ECB Director Isabel Schnabel, the European Central Bank (ECB) must take decisive action to combat the very high inflation. Schnabel told the Jackson Hole monetary policy symposium that when the persistence of inflation is unclear, the central bank must act forcefully, whether the shock is a supply-side or demand-side shock.
RWI boss: If the gas supply stops, Germany will fall into recession in 2023
The President of the RWILeibniz-Institutes, Christoph Schmidt, assumes that Germany will plunge into recession if Russian gas supplies are stopped: “The world would not end without Russian gas, but life would be much harder,” Schmidt told the Rheinische Post. “We would then be threatened with double-digit inflation rates and economic output would probably fall by 3 to 4 percent. In such a case, a real recession would probably be expected for Germany in 2023.”
Employable population will shrink by 3 million people by 2035 – study
According to calculations by the employer-related Institute of German Economics (IW), the employable population has reached its highest level for the time being. From now on, it will decrease continuously, the investigation revealed that the portal t-online reported. The working-age population between the ages of 15 and 64 will shrink from the current 53.1 million to 50.1 million in 2035.
Federal police are missing half a billion euros for the equipment – newspaper
According to a newspaper report, in the run-up to the Bundestag debate on the 2023 budget at the beginning of September, representatives of the federal police and police unions are warning of massive deficits in equipment and staffing. The Federal Police lacked almost half a billion euros for the years 2023 to 2026 in order to be able to procure the equipment considered necessary by the authority, reports Welt am Sonntag, citing internal documents.
Baerbock against extending the lifetime of nuclear power plants
Despite the dramatic increase in energy prices, Foreign Minister Annalena Baerbock (Greens) has again rejected an extension of the service life for the remaining three German nuclear power plants. “I think all the measures that help us get through the winter are right. But I’m not convinced that nuclear power plants will solve our gas problem,” Baerbock told Bild am Sonntag.
Gas storage tanks are apparently filling up faster than planned – Magazin
According to a report, German gas storage facilities are currently filling up faster than planned. “The October storage target of 85 percent should already be reached by the beginning of September,” quoted the magazine Der Spiegel on Sunday from an internal memo from the Federal Ministry of Economics. This makes it more likely that an acute gas shortage can be avoided in winter. “The reservoirs are filling up faster than specified,” said Federal Minister of Economics Habeck to Der Spiegel.
Ukrainian Ambassador invites Saxony’s Prime Minister Kretschmer
The outgoing Ukrainian ambassador to Germany, Andriy Melnyk, has withdrawn an invitation from the CDU politician to his homeland because of statements made by Saxony’s Prime Minister Michael Kretschmer about the Ukraine war. “With your absurd rhetoric about freezing the war, you are playing into Putin’s hands and fueling Russia’s aggression,” Melnyk wrote on Twitter early on Sunday. Therefore, his invitation to Kretschmer to visit Ukraine was “cancelled”.
France and Algeria agree to intensify cooperation
Around 60 years after the end of the Algerian war, the heads of state of France and Algeria, Emmanuel Macron and Abdelmadjid Tebboune, announced a new and “irreversible dynamic” in bilateral relations. In a statement signed at the end of Macron’s visit to Algiers, both sides stressed the beginning of a “new era”.
Serbia and Kosovo sign free movement agreement
After a long dispute, Serbia and Kosovo have agreed on mutual entry regulations. After negotiations with EU mediation, both sides concluded a free movement agreement, as explained by EU foreign policy chief Josep Borrell.
The Czech Republic and Poland will secure Slovakian airspace in the future
After the imminent retirement of Soviet combat aircraft by the Slovakian Air Force, the Czech Republic and Poland will initially secure Slovakia’s airspace. The defense ministers of the three countries signed a corresponding agreement, as the Slovakian Ministry of Defense announced. It comes into effect on September 1st.
France Helps Montenegro Fight Large-Scale Cyber Attack
After the large-scale cyber attack on government agencies in Montenegro, France has responded to the small Balkan state’s request for help. The French government is responding to Montenegro’s request for assistance and is sending a mission from the French Information Systems Security Agency (ANSSI) to help investigate the cyberattack and restore cybersecurity, Assistant Minister for Digital Jean-Noël Barrot said. With.
Hungary approves construction of new nuclear reactors by Russian energy giants
According to the Hungarian government, the Russian energy company Rosatom will start building two new nuclear reactors in the country in the coming weeks. “This is a big step, an important milestone,” said Hungary’s Foreign Minister Peter Szijjarto on the online network Facebook. The project is largely financed by a loan from Russia.
Radioactivity could escape from Zaporizhia nuclear plant after shelling
According to Ukrainian sources, the situation in the Zaporizhia nuclear power plant, which is occupied by Russian troops, remains dangerous. According to the state-owned Ukrainian energy company Energoatom, there is a risk of radioactivity escaping after repeated shelling.
Russia blocks final declaration at UN conference on non-proliferation treaty
At the end of a four-week UN conference to review the Non-Proliferation Treaty, Russia blocked the adoption of a joint final declaration. Despite a month of negotiations and a final meeting that was postponed by several hours, “the conference is unable to reach an agreement,” explained the conference’s chairman, Argentinian Gustavo Zlauvinen.
Stoltenberg: Because of Russia, NATO wants to be more present in the Arctic
In view of possible new threats from Russia, NATO wants to become more active in the Arctic in the future. “NATO must increase its presence in the Arctic,” NATO Secretary General Jens Stoltenberg told Die Welt on Sunday. The defense alliance is “already investing in maritime reconnaissance aircraft to get a clear picture of what’s going on in the far north. But we will continue to increase our efforts.”
Justice Department and FBI reveal reasons for raid on Trump property
Almost three weeks after the sensational search of the ex-president’s private property donald trump the Ministry of Justice has now disclosed the reasons for the action. It published the – partly blacked out – affidavit with which the US Federal Police FBI had justified its actions. According to this, top-secret documents were discovered in several boxes that Trump handed over to the National Archives at the beginning of the year.
US warships cross the Taiwan Strait
Amid ongoing tensions over Taiwan, two US warships crossed the Taiwan Strait on Sunday. This “underlines the commitment of the United States to a free and open Indo-Pacific,” the US Navy said. It was the first time US warships had passed through the strait between mainland China and the island in days of Chinese military maneuvers of historically unprecedented proportions in the waters around Taiwan.
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(END) Dow Jones Newswires
August 28, 2022 11:30 ET (15:30 GMT)