The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Lindner is pushing for better economic conditions
In view of the decline in German gross domestic product by 0.3 percent in 2023 reported by the Federal Statistical Office, Federal Finance Minister Christian Lindner (FDP) has called for reforms to support investment and employment according to initial calculations. “Our economic foundation is strong, the general conditions are not yet,” said Lindner.
Lindner: There should be no special sacrifice from agriculture, only a fair contribution
In a speech at the large demonstration by farmers and hauliers in Berlin, Federal Finance Minister Christian Lindner (FDP) showed understanding for the farmers’ concerns, but stuck to the planned gradual removal of the subsidy for agricultural diesel. Instead, he held out the prospect of other relief in the tax area and a general discussion about the burden on the industry with bureaucratic requirements. “There should and must be no special sacrifice from agriculture, but only a fair contribution,” said Lindner in his speech in front of the Brandenburg Gate, which was accompanied by loud expressions of discontent.
Mützenich: Ampel wants to work out relief for farmers in the coming weeks
The traffic light factions want to develop a package of measures with relief for agriculture in the coming weeks, but have not signaled any concession to the government’s controversial gradual reduction in agricultural diesel subsidies. SPD parliamentary group leader Rolf Mützenich made this clear after a meeting with his colleagues from the Greens and the FDP as well as with representatives of the farmers’ associations.
Commerzbank: The ECB doesn’t need a big balance sheet
According to the former ECB board member and current Commerzbank supervisory board chairman, the European Central Bank (ECB) needs Jens Weidmann and Commerzbank chief economist Jörg Krämer does not have a great balance sheet. “The ECB should gradually return to a balance sheet that only provides the banking system with the amount of assets it needs to function,” they wrote in a guest commentary for Welt am Sonntag.
Nagel: Too early to discuss ECB interest rate cuts
ECB Council member Joachim Nagel holds discussions about a Interest rate cut by the European Central Bank (ECB) as premature. “Maybe we can wait until the summer break or whatever, but I don’t want to speculate on that,” Nagel told Bloomberg TV on the sidelines of the World Economic Summit in Davos. He thinks it’s too early to discuss it.
Cities affected by Signa’s insolvency are demanding the preservation of jobs
The cities of Berlin, Hamburg, Munich and Frankfurt am Main affected by the Signa Group’s insolvency have called for the focus to be placed on employees as part of the restructuring efforts. Although the bankruptcy is “bitter news”, it also opens up the possibility that the associated Galeria department stores “reorient themselves with new investors and a sustainable strategy,” the cities said in a joint statement on Monday.
In Davos, Habeck is looking for common ways to solve the multiple crises
Federal Economics Minister Robert Habeck (Greens) is traveling to Davos, Switzerland, this Monday for the annual meeting of the World Economic Forum (WEF) and wants to talk to representatives from all over the world about a common approach to overcoming the global crises. Chancellor Olaf Scholz (SPD) is not scheduled to take part this year. “We are facing urgent global challenges,” said Habeck, who is also Vice Chancellor, before his departure.
Climate money will not be paid out until the next election period at the earliest
In the current legislative period, the federal government only wants to make the payment mechanism for climate money ready for use by autumn 2025, but not the payment of climate money itself. The payment mechanism still needs to be developed and, according to Federal Finance Minister Christian Lindner (FDP), should not be ready until 2025. The structure of the climate money will then be discussed, as spokesmen for the Federal Ministry of Finance and the Federal Ministry of Economics explained. Government spokesman Steffen Hebestreit emphasized that the climate money should be paid by 2027 at the latest.
Attacks in the Red Sea: EU fears rising energy prices
EU Economic Commissioner Paolo Gentiloni has warned of a rise in energy prices due to tensions in the Red Sea. He said on Monday on the sidelines of a meeting of finance ministers of the euro countries in Brussels that there could be an impact on energy prices and inflation “in the coming weeks.” The Europeans would have to monitor developments closely.
Authority: US freighter hit by missile off Yemeni coast
A day after a missile attack on a US warship by the Houthis, a US freighter was hit by a missile off the Yemeni coast. The British Maritime Safety Authority (UKMTO) reported on its website that a “ship was hit from above by a missile”, but no further details were given.
US Defense Secretary Austin released from hospital after two weeks
US Secretary of Defense Lloyd Austin has been released from the hospital after two weeks. The 70-year-old, who initially kept his hospital stay secret from both the White House and the US Congress, thanked the medical staff at Walter Reed Military Hospital on Monday for his treatment as a result of cancer. He is now continuing to recover and will initially carry out his duties from home. But he was eager to “return to the Pentagon as quickly as possible,” Austin added.
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(END) Dow Jones Newswires
January 15, 2024 1:00 p.m. ET (18:00 GMT)