The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program.
Habeck: The countries must prepare for the EU embargo against Russia
According to Federal Economics Minister Robert Habeck (Greens), thorough preparations for a lembargo against Russia are necessary so that the European Union can decide on such an import ban because of the Russian war of aggression in Ukraine. Germany has reduced its dependence on Russian oil and can therefore support the embargo. Other countries would also have to go this route beforehand.
Lindner: lembargo for Germany physically and economically viable
Federal Finance Minister Christian Lindner (FDP) considers a waiver of Russian oil deliveries to be manageable. The federal government is “at this point in time open to talking about a lembargo, because a lembargo would be physically and economically viable for Germany, at least now,” said Lindner at a press conference in Berlin. “Now it remains to be seen what the opinion-forming process is like at the European level.” The position of the federal government is unchanged, to become independent of Russian energy imports. In relation to individual areas, however, the schedule is differentiated.
Scholz calls on Putin again to end the war against Ukraine
Chancellor Olaf Scholz has again called on President Vladimir Putin to end the Russian war of aggression in Ukraine. After talks with Indian Prime Minister Narendra Modi, Scholz stated that moving borders with military force was unacceptable. According to Modi, there can be no winner in the war and only dialogue will lead to a solution. However, Modi did not specifically assign blame for the war and did not explicitly criticize Russia.
Germany and India are moving closer together on climate protection and the economy
Germany and India have agreed on closer cooperation in the areas of climate protection, economy and development cooperation. Federal Minister of Economics Robert Habeck hopes that cooperation on green hydrogen will provide impetus for the economy and Germany’s planned move away from fossil fuels. Before that, Chancellor Olaf Scholz and several federal ministers met the Indian Prime Minister Narendra Modi and his cabinet colleagues for government consultations in Berlin.
Scholz: Make 10 billion available for partnerships with India
Federal Chancellor Olaf Scholz (SPD) emphasized India’s outstanding importance as an important partner for Germany. The federal government will therefore make 10 billion euros available to India in the coming years. According to Prime Minister Narendra Modi, these funds will go to India’s green growth plans by 2030.
CDU and CSU want to realign security policy
At a joint meeting of the presidency, the CDU and CSU proposed a new security architecture which, among other things, would envisage the establishment of a national security council and also take labor market policy issues into account. CDU leader Friedrich Merz said at a press conference that, among other things, it was proposed that “just after the presidential elections in France and in view of the international situation” Germany and France make a new attempt at joint foreign and security policy cooperation.
Diplomats: EU may propose oil embargo against Russia by the end of the year
The EU Commission is likely to propose that EU member countries stop buying Russian crude by the end of 2022, according to two senior diplomats. The proposals, due to be distributed on Tuesday to EU member states as part of a sixth package of sanctions against Moscow for invading Ukraine, will likely give Slovakia and Hungary additional time to implement the embargo given their particularly high reliance on Russian oil .
BMF: Companies are not allowed to write off Russia losses
According to a report by Wirtschaftswoche, German corporations that lose billions of euros in receivables and equity investments in Russia and Ukraine due to the war of aggression and sanctions are not allowed to write off the losses under German tax law. Losses at subsidiaries in Russia and Ukraine “would not have an income-reducing effect when determining the corporation tax of the domestic (parent) company,” the Federal Ministry of Finance said at the request of the newspaper. As an explanation, the ministry points out that, conversely, profits from the sale of a Russian or Ukrainian holding were also ignored.
ADAC: Fuel prices still above last year’s prices despite slight relaxation in April
Despite a slight easing in fuel prices in April, motorists still have to pay significantly more at the pump than in previous years. A liter of Super E10 cost an average of 1.97 euros in April, 9.9 cents less than in March, according to the ADAC. The diesel price fell by 11.6 cents to 2.024 euros per liter on a monthly average.
Nationwide warning strike week started in social and educational services
With a strike by social workers, a nationwide warning strike week in the field of social and educational services started on Monday. According to the Verdi trade union, employees in youth welfare offices, youth centers, social services and advice centers took part across the board.
New round of negotiations in collective bargaining dispute for doctors at municipal hospitals
The Marburger Bund trade union and the employer side have started a new round of negotiations in the collective bargaining dispute over doctors working in municipal hospitals. The Marburger Bund announced in Berlin that it was scheduled for “at least two full days”. He demanded “real willingness to negotiate and the will to reach an agreement” from the other side.
Customs accounts for 45 percent of federal tax revenue
In 2021, customs collected around 141 billion euros in tax revenue for the federal budget and thus around 45 percent of the federal tax revenue. This emerges from the annual balance sheet of customs, as Federal Minister of Finance Christian Lindner (FDP) announced at the annual customs press conference in Berlin. In 2020 it was around 128.5 billion in tax revenue. According to the information, consumption taxes had the largest share of revenue in 2021 at 62.6 billion euros.
Lauterbach appoints commission on hospital care
Federal Health Minister Karl Lauterbach (SPD) has appointed a government commission to reform hospital care. The committee is made up of 15 experts from nursing and medicine, economics, law and a coordinator linked to the department, as announced by the Federal Ministry of Health.
Faeser: Working intensively to strengthen Germany’s cyber security
According to Interior Minister Nancy Faeser (SPD), because of the Ukraine war, Germany’s cyber security needs to be further strengthened. “We are working very hard on that,” said Faeser after a visit to the Federal Office for the Protection of the Constitution. Espionage, cyber attacks and disinformation campaigns “are very, very important to us”. There, forces would have to be bundled.
ISM US manufacturing index falls in April
US industrial activity grew at a slower pace in April than before. The purchasing managers’ index for manufacturing calculated by the Institute for Supply Management (ISM) fell to 55.4 (previous month: 57.1). However, economists polled by Dow Jones Newswires had forecast a rise to 57.8. The mood barometer is thus above the 50 mark, from which point it signals growth.
S&P Global: Activity in US industrials shows recovery in April
US manufacturing activity growth accelerated in April month-on-month. The purchasing managers’ index compiled by S&P Global (formerly IHS Markit) in this sector rose to 59.2 from 58.8 points. Economists had expected a confirmation of the 59.7 points reported in the first publication. Above 50 points, the economic barometer signals growth, below 50 a shrinking economy.
First Lady Jill Biden travels to Romania and Slovakia
US First Lady Jill Biden plans to travel to Romania and Slovakia this week to meet Ukrainian refugees. The wife of US President Joe Biden will visit Romania on Friday and Saturday, her bro announced in the White House. She will meet US soldiers stationed there, diplomats and Romanian government officials, as well as representatives of aid organizations and teachers who teach Ukrainian refugee children.
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(END) Dow Jones Newswires
May 02, 2022 13:00 ET (17:00 GMT)