The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program.
ECB again fails to use flexibility with PEPP
The shares of the euro countries in the government bond holdings purchased by the European Central Bank (ECB) as part of its APP and PEPP purchase programs remained essentially unchanged in October and November. As can be seen from ECB data, the ECB did not make use of the option within the framework of the PEPP in the two months to give preference to bonds from more indebted countries when reinvesting repayment amounts. There were also hardly any changes in the country shares in the APP, the stocks of which are likely to be reduced next year.
Lindner: Karlsruhe emphasizes the exceptional nature of joint debts
Federal Finance Minister Christian Lindner (FDP) announced that individual statements would be examined intensively after the Federal Constitutional Court’s ruling on the EU development fund. The fact that the reconstruction program is compatible with the Basic Law, according to the Karlsruhe saying, is “good news,” said Lindner on the sidelines of the EU finance ministers’ consultations in Brussels. “However, the verdict from Karlsruhe contains a few comments and determinations that we will now analyze with the greatest attention,” he emphasized.
Paris is bidding to host the EU’s new anti-money laundering agency
France has entered the race to host the EU’s new anti-money laundering agency. The French Ministry of Economy and Finance announced on Tuesday that it would propose the capital Paris as a candidate. The selection process has not yet officially started, but Frankfurt am Main, Vienna, Madrid and Vilnius have already publicly expressed their interest in hosting the new authority.
EU countries agree on common rules for artificial intelligence
Ministers responsible for telecommunications in the EU countries have agreed on common rules for the expansion of artificial intelligence (AI) in Europe. The regulation is intended to create legal clarity on the use of AI, the Czech Council Presidency announced on Tuesday. The Czech Republic currently holds the EU Council Presidency. They still have to negotiate the details with the European Parliament.
Scholz confident in the settlement of the EU-US dispute over climate aid
Chancellor Olaf Scholz has expressed optimism that the dispute between the European Union and the United States over the multi-billion American package of anti-inflation measures can be resolved. After the meeting of the heads of state and government of the 27 EU member states and six Western Balkan countries in Albania, Scholz said that he saw the American Inflation Reduction Act (IRA) as mixed.
Scholz: EU aid to Ukraine must be decided quickly
Chancellor Olaf Scholz (SPD) has asked Hungary to approve further EU financial aid to Ukraine. Hungary had previously voted in Brussels against the release of funds of up to 18 billion euros. The release requires the support of all 27 EU member states. According to diplomats, Hungary wants to prevent the other member states from blocking EU aid totaling more than 13 billion euros for Budapest with its blocking stance.
Global air transport industry makes fewer losses than expected
The global aviation industry is expecting lower losses this year than initially expected. Losses of 6.9 billion US dollars are now expected for 2022, the international aviation association Iata said on Tuesday. In the meantime, losses of 9.7 billion dollars had been assumed. For the coming year, the industry is therefore expecting to return to the profit zone of around 4.7 billion dollars.
Chinese President Xi to visit Saudi Arabia on Wednesday
Chinese President Xi Jinping will arrive in Saudi Arabia on Wednesday for a three-day visit. It is Xi’s first visit to the world’s largest oil exporting country since 2016, Saudi Arabian state media reported on Tuesday. A bilateral meeting is planned to be chaired by Saudi Arabia’s King Salman, which will also be attended by Crown Prince and de facto ruler Mohammed bin Salman, the official Saudi Arabian press agency reported.
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(END) Dow Jones Newswires
December 06, 2022 13:00 ET (18:00 GMT)