The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Scholz wants cooperation with China and no economic decoupling
Federal Chancellor Olaf Scholz (SPD) considers a joint approach with China to be important in view of the current challenges in climate protection and the global situation. After a meeting with China’s Prime Minister Li Qiang, Scholz rejected economic decoupling from China. But he called on China to exert stronger influence on Russia so that Moscow ends the war of aggression against Ukraine.
Germany, China sign MoU to set up climate dialogue
The governments of Germany and China have signed a Memorandum of Understanding (MoU) on establishing a dialogue and cooperation mechanism on climate change and green transformation. After the German-Chinese intergovernmental consultations in Berlin, Federal Minister of Economics Robert Habeck and China’s Chairman of the National Development and Reform Commission, Zheng Shanjie, signed a corresponding declaration.
Habeck: Wants to keep the industrial base with the industrial electricity price
Federal Economics Minister Robert Habeck (Greens) has once again campaigned for the introduction of a state-subsidized industrial electricity price for energy-intensive industries. This time-limited cheaper electricity should ensure that the energy-intensive companies stay here at the site. Because the experiences of the past few years have shown that it is important to keep know-how and technology in Germany, according to the minister.
EU wants to reduce economic risks from China
With a new strategy, the European Commission wants to reduce economic and geopolitical risks from China. Commission President Ursula von der Leyen made it clear on Tuesday in Brussels that militarily usable “high-tech” from Europe should not be allowed to reach Russia via China.
German government makes further concessions to Intel – Zeitung
According to a media report, the federal government has promised the American technology group Intel more aid for the construction of a chip factory in Magdeburg than previously known. As the Süddeutsche Zeitung reports, the Chancellery has not only promised 9.9 billion euros in subsidies for the project, which is now expected to cost a total of 33 billion euros. Rather, the government also wants to help Intel to keep the electricity costs for ongoing operations as low as possible.
Company pension schemes may be set aside for a period before retirement
The company pension scheme may be based on the income and the amount of work in the last few years before retirement. This serves the legitimate purpose of maintaining the standard of living that was last developed, as the Federal Labor Court (BAG) in Erfurt decided on Tuesday.
Traffic light plan for super depreciation is on the brink – Magazine
According to a magazine report, the relief for companies through super write-offs promised by Finance Minister Christian Lindner (FDP) is on the brink. Due to the tense budget situation and the deadlocked negotiations on the 2024 federal budget, their implementation will be difficult, wrote Capital.
Stark-Watzinger sees Germany as an industrial nation at a crossroads
Federal Research Minister Bettina Stark-Watzinger (FDP) emphasized the importance of a strong economy and called for more speed for innovations in Germany.
Lindner rejects NRW demand for the assumption of old municipal debts
Federal Finance Minister Christian Lindner (FDP) has sharply criticized the plans of the state of North Rhine-Westphalia for the state and the federal government to take over the billions in municipal old debts. “The NRW model does not meet the expectations of the federal government,” Lindner told the Rheinische Post.
VÖB economists: German GDP will not shrink in 3Q
According to economists from public banks, the German economy will shrink in the current year, but probably not in the third quarter. Economists Jürgen Michels (BayernLB), Michael Klawitter (Dekabank), Birgit Henseler (DZ Bank), Ulf Krauss (Helaba), Jens Oliver Niklasch (LBBW) and Christian Lips (NordLB) expect gross domestic product (GDP) to decline in 2023. by 0.1 to 0.6 percent. However, an increase of between 0.0 and 0.5 percent is expected for the third quarter.
Wintergerst elected successor to Bitkom President Berg
Ralf Wintergerst has been elected the new president of the digital association Bitkom. He succeeds Achim Berg, who has served the maximum three terms of office according to the articles of incorporation. In the next two years, Wintergerst will speak for the more than 2,200 members of Bitkom with their more than two million employees in Germany.
ECB/Simkus: Higher inflation possible due to labor market and energy prices
According to ECB Governing Council member Gediminas Simkus, inflation in the euro area could be higher than recently forecast due to a strong labor market and a new energy price shock. “Inflation rose very quickly and labor markets reacted with a delay,” the governor of the Central Bank of Lithuania told a Market News International event. The labor market is a lagging indicator.
EU countries approve controversial nature conservation requirements
EU countries have cleared the way for stricter nature conservation regulations. The majority of the environment ministers in Luxembourg approved a planned regulation on the “renaturation” of heavily used areas and marine areas, as the Swedish Presidency announced on Twitter.
Von der Leyen proposes new billions in aid for Ukraine
EU Commission President Ursula von der Leyen has proposed new billions in aid for Ukraine. She called on the member states in Brussels to approve a “financial reserve” of 50 billion euros for the next four years. This means that the EU can adjust its financial support for the government in Kiev depending on developments, said the German head of the commission.
Qatar signs another long-term gas supply deal with China
Qatar has signed another long-term gas supply agreement with a Chinese state-owned energy company. “Qatar will supply 4 million tons of natural gas from the North Field East Expansion Project to China annually for a period of 27 years,” Energy Minister Saad Sharida Al-Kaabi said at the signing ceremony in Doha. The buyer is the China National Petroleum Corporation (CNPC).
Biden son pleads guilty to tax and gun violations
The son of US President Joe Biden has pleaded guilty to tax and gun violations. Hunter Biden admitted to two counts of tax evasion as part of an agreement with prosecutors, according to a court document released Tuesday.
Judge schedules trial of Trump over documents affair to begin in August
The trial of the former US President donald trump in the document affair should begin in August. The responsible federal judge Aileen Cannon put in an order on Tuesday August 14 as the start of the trial. The prosecution and defense have until July 24 to submit procedural motions. The trial is to take place in the city of Fort Pierce, north of Miami, in the state of Florida.
+++ economic data +++
US/Housing Starts May +21.7% to 1.631mn (FORECAST: -0.8%)
US/Building Permits May +5.2% to 1.491mn annual rate
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(END) Dow Jones Newswires
June 20, 2023 13:00 ET (17:00 GMT)