EU-DIGEST

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The original plan for the 2010 budget foresaw 85.8 billion euros in net debt, but assumed economic growth of just 1.2 percent, and higher jobless numbers. The budget that passed calculated 1.4 percent growth and fewer jobless. Altogether, Berlin has set its sights on spending 319.5 billion euros in 2010, with 28.3 billion of it going to new investment.

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The gains sent the yield to within 2 basis points of its lowest in five months. The ECB will keep offering banks unlimited funds at a fixed rate for maturities of seven days and one month until at least Oct. 12. President Jean-Claude Trichet said the recovery from the worst recession since World War II is “likely to remain uneven.” The ECB cut the main refinancing rate to 1 percent in May.

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Lufthansa and regional divisions are dropping 1,200 flights of the 1,800 services scheduled daily during the strike, said Stefanie Stotz, a spokeswoman for the carrier in Frankfurt. The Vereinigung Cockpit labor union is staging the walkout through Feb. 25.

For more; Lufthansa Halts 67% of Flights as Four-Day Pilot Strike Starts

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Herve Morin told journalists that the positions of the seven countries — Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey — and Airbus parent company EADS appear to be converging. "As it stands today we have the perspective in our minds to reach an agreement by the end of the week," he said.

The advanced and ultra sophisticated four-engine turboprop is seen as occupying an important niche market between the Lockheed Martin C-130J Hercules, which carries only half the payload, and Boeing's C-17 Globemaster III, which is larger, costlier, and less tactically versatile. Once in full production this aircraft is expected to become a top seller for Airbus.

Labels: A400 military transport aircraft, Aircraft Industry, Belgium, Britain, EU, France, Germany, Luxembourgh, Spain, Turkey

France and Germany will unveil a raft of proposals on Thursday to revive their flagging partnership and add momentum to the European Union now the Lisbon treaty has come into force.

The so-called Franco-German Agenda 2020 consists of 80 “concrete ideas” for collaboration, including closer co-ordination of economic planning and financial regulation, joint research programmes and bilingual kindergartens. But it stops short of tackling contentious issues in bilateral relations such as co-operation between the members of the eurozone and joint financing for big industrial projects.

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Germany has raised its 2010 growth forecast to 1.4 per cent from a previous estimate of 1.2 per cent, the economy Ministry said on today, boosting hopes that recovery in Europe's largest economy is gathering pace.

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If you were not aware, in Internet Explorer there is a current security problem that allows a webpage to maliciously inject code onto the machine running the browser. This bug was used by “Operation Aurora,” which hacked Google and other companies in recent days.

In a statement, the BSI (German Federal Office for Information Security) recommends that until a full patch is released for this “zero day” flaw, that Internet Explorer is not safe, even if users run IE in protected mode.

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The satellite network is meant to challenge the dominance of the US-built Global Positioning System (GPS) which is widely used in navigation devices. The EU aims to have the network up in space by 2013.

The EU has struggled to secure financing for the project, originally put at 3.4 billion euros (5.4 billion dollars), and has had to tap unused funds from the bloc's massive agricultural budget.

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German officials denied Monday that they were trying to outbid other European nations in offering money to General Motors Co. to save local jobs.
GM's European executives are meeting with ministers from Germany, Britain, Belgium, Spain and Poland as well as European Union commissioners in Brussels to discuss how the company plans to cut capacity by 20 to 25 percent -- and likely shed thousands of jobs. Germany's deputy economy minister Jochen Homann said Germany "will not participate in a subsidy race" as other countries hint that they are willing to help the company pay the costs of restructuring the Adam Opel GmbH and Vauxhall units.

Labels: Automotive Industry, Economy, EU, Germany, GM, Opel

Angela Merkel

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Germany will push for a quick and binding deal on greenhouse gas emission reductions to fight climate change, Chancellor Angela Merkel said Tuesday. "We will make very clear that we still advocate for very ambitious goals for Copenhagen," Merkel said in a televised press conference ahead of the coalition government's two-day closed-door meeting. "We must do everything in our power to quickly achieve a binding agreement. Even if we don't succeed with this in Copenhagen, this must not be postponed indefinitely." Her comments come ahead of next month's U.N. climate summit in Copenhagen and after heads of government from the Asia-Pacific Economic Cooperation forum Sunday abandoned specific goals on battling climate change and accepted the U.N. talks won't agree on binding targets for cutting greenhouse gases.

Labels: Angela Merkel, Copenhagen meeting, EU, Germany, Greenhouse warming

The small German town of Ruesselheim has not been happy with General Motors. Since GM's announcement that it would restructure German subsidiary Opel itself, rather than sell it off, Ruesselheim has been home to angry protesters calling GM's behavior "totally unacceptable" and "the ugly face of turbo-capitalism." In a move that may appease some of that anger, a GM spokesman announced Saturday it will move its European headquarters from the Swiss capital Zurich to Ruesselheim, Opel's current home. All but the headquarters of the Chevrolet brand will be included in the transfer, which should be completed before the end of the year, the spokesman said.

Labels: Automotive Industry, EU, Germany, GM, Opel

Germany's Council of Economic Advisers on Friday criticized the new government's plan to cut taxes, saying policymakers should explain how they will fund the cuts and provide a more detailed plan to exit stimulus measures already put in place. The report was a rebuke to an agreement by German Chancellor Angela Merkel's Christian Democratic Union and its new coalition partner, the Free Democratic Party, to implement 24 billion euros ($37.2 billion) worth of tax cuts over the next four years. Long known as the "five wise men," though it now includes one woman, the government-appointed council's annual report said the coalition plan "lacks a comprehensive exit strategy." "Comprehensive steps to reduce structural deficits are missing. Instead, the new government proposes a mix of tax cuts and spending measures," the council said. "The agreement is silent on how to manage the balancing act between fiscal consolidation, tax reduction and public investment.

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A senior German government official told General Motors Co. executives Wednesday that the U.S. automaker will have to cover the cost of restructuring its troubled German carmaker Adam Opel GmbH. Economy Minister Rainer Bruederle said he reiterated the position outlined by Chancellor Angela Merkel at a meeting in Berlin with Nick Reilly, GM's head of international operations, and John Smith, the chief negotiator in the Opel bid talks. Merkel told the lower house of Parliament on Tuesday that GM would have to rely on its own resources to restructure Opel. Mrs.Merkel said: "This solution can only work if GM takes over the lion's share of the restructuring costs, which also means that it has to pay back the bridging loan."

Note EU-Digest: If GM management continues dragging their feet and keeps coming back on its word, the next step should be for Germany to consider nationalizing Opel and continue with the original plan whereby Opel would be sold to Canadian and Russian interests to guarantee continued operations of Opel and German jobs.

Labels: Automotive Industry, EU, Germany, GM, Opel, US

Angela Merkel and Nicolas Sarkozy - propelling the EU into a new dimension

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The leaders of France and Germany have held a joint ceremony commemorating the end of World War One for the first time since the end of the conflict 91 years ago. Angela Merkel, the German chancellor, laid a wreath with Nicolas Sarkozy, the French president, at the Tomb of the Unknown Soldier in Paris on Wednesday. "French-German friendship is sealed with blood," Sarkozy said at the Armistice Day ceremony, which marks the end of fighting in France on November 11, 1918.

"This small flame is also ... the flame of hope," he said as the two leaders re-lit the flame above the tomb.

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A decade after the euro replaced the deutsche mark, Germany’s export-driven recovery is undermining European Central Bank President Jean-Claude Trichet’s efforts to slow the currency’s record rise. The euro’s “pain threshold is associated with new record highs, so we would need to go above $1.60,” Goldman Sachs’ Stolper said. “Demand for German goods depends a lot more on global growth and investment patterns than on the strength of the euro.” Rising debt loads for the region’s countries may cause the euro to depreciate once growth takes hold, said Otmar Issing, the ECB’s former chief economist. The zone’s budget deficit will swell to a record 6.9 percent of GDP next year, from 6.4 percent in 2009, with all 16 countries breaching European Monetary Union limits as they pump cash into their economies, the European Commission forecast Nov. 3. Spain, Greece and Ireland will have shortfalls of 10 percent or more this year and next, it said.

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Tomorrow night, at the climax of the biggest official party seen in Europe, with Angela Merkel, the German chancellor, hosting Gordon Brown, Hillary Clinton, the US secretary of state, Nicolas Sarkozy, the French president, and Dmitry Medvedev, the Russian president — to name but a few — the slabs will crash into one another like dominos, representing the chain of events that 20 years ago brought the cold war to an end. The first “domino” will be pushed over, fittingly enough, by Lech Walesa and Miklos Nemeth, the veteran Polish and Hungarian anti-communist campaigners. They will be joined by two other main actors in the drama of 1989: the former Soviet president Mikhail Gorbachev and Hans-Dietrich Genscher, the then West German foreign minister.

The officially organized street party is costing EURO 5.15m (US$7.56m) and kicks off with a Daniel Barenboim-led concert at the Brandenburg Gate, followed by Bon Jovi performing their single We Weren’t Born to Follow and an extravagant firework display as the thousand dominos fall. All of Germany is celebrating what the newspaper Die Welt yesterday called “the unexpected joy” that hit the country on a cold night in November 1989 when popular unrest, democracy protests, and a series of misjudged measures and misunderstandings caused the Berlin Wall to fall.

In today’s difficult climate, nobody in Germany is claiming reunification came without economic pain, but with Germany having already climbed out of recession, one newspaper editorial could claim yesterday that “if we are not the happiest nation on earth, at least we are a happy nation”.

Labels: Anniversary, Berlin Wall, Bon Jovi, Daniel Barenboim, EU, Germany

The directors of General Motors met for dinner last Monday in advance of an eagerly anticipated board meeting the following day. It was a chance for them to get to know one another. There wasn’t much time for chit-chat. New or not, the board had to make a historic decision — whether to cut GM’s ties with Europe, and its claim to be a global car company, by selling Opel and Vauxhall. Henderson made no firm recommendation. After all, the board had approved the deal in principle and was expected to give the green light. Except it didn’t. Immediately after the meeting, GM announced that it would keep Opel / Vauxhall, saying the business was now judged vital to product and technology development strategy. The decision provoked fury in Germany, where the Magna plan had been supported because it promised fewer job losses. Henderson had to call Angela Merkel, the German chancellor, with the news — she was in Washington to see President Barack Obama.

The workforce of Opel in Germany, some 25,000, took to the streets within 48 hours. “The strikes beginning in Germany will be repeated across Europe,” said Klaus Franz, head of the Opel works council in Germany. “The next move from General Motors will be to blackmail the governments and employees of Europe to finance their unworkable plans for restructuring Opel.” Others joined the attack. “This behaviour of General Motors shows the ugly face of unbridled capitalism,” said Jürgen Rüttgers, governor of North Rhine Westphalia and a leading figure in the German government. The Opel factory at Bochum, in his state, is high on the list of possible closures with the loss of 5,000 jobs. Germany’s bestselling newspaper, Bild Zeitung, described GM as “bullshitters”.

Note EU-Digest: Why doesn't the German Government nationalize Opel?TGm should not be able to get away with this.

Labels: Economy, EU, Germany, Opel

During a speech today to a joint session of Congress German Chancellor Angela Merkel marked the upcoming 20th anniversary of the fall of the Berlin Wall by urging world leaders to embrace globalization. She said countries should not wall themselves off from each other. In her speech which was punctuated by standing ovations, she also stressed Germany’s ongoing commitment to Afghanistan and said Iran must be prevented from obtaining nuclear weapons. In an emotional plea for action to reduce global warming she was met with an eerie silence from most Republicans, while Democrats stood and applauded. "We all know we have no time to lose," Merkel said, arguing that at Copenhagen "the world will look to us, to the Europeans and to the Americans" for leadership on setting binding reductions of greenhouse gases. It's a matter "in the interest of our children and grandchildren and in the interest of sustainable development all over the world," she said.

Labels: Angela Merkel, EU, Germany, Globalwarming, US, US Congress

A survey in June found the GDR to have its highest approval rating since unification: 57 per cent of people agreed with the statement that the GDR was “more good than bad”, and a majority of schoolchildren were under the illusion that it had a legitimate, democratically elected government. As Faulkner has it, so beautifully: “The past is never dead. It’s not even past.” Nothing in contemporary Germany could be truer.

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German Chancellor Angela Merkel will make a rare address to both houses of the US Congress on Tuesday. She is only the second German chancellor to be accorded the honour, after Konrad Adenauer in 1957. Her speech is expected to focus on climate change, transatlantic ties and the downfall of Communism in Europe.

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Germany the Europe's biggest economy is growing better then expected

Germany's stronger-than-expected economic performance is helping to bolster EU economic confidence. Germany, Europe's biggest economy, is expected to lead the EU recovery. German investor confidence rose to the highest level in more than three years after the economic recovery gathered strength and stocks surged.

German business confidence rose to its highest level in more than a year adding to signs of recovery in Europe's biggest economy a key survey released Friday showed. Confidence index climbed from 91.3 in September to 91.9 points in October to record its seventh successive monthly increase.

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Germany to send back US nuclear weapons

Incoming German Foreign Minister Guido Westerwelle has said Berlin will seek the withdrawal of US nuclear weapons based in Germany in support of Washington's fervor for a world free of nuclear arms. "We will take President Obama at his word and enter talks with our allies so that the last of the nuclear weapons still stationed in Germany, relics of the Cold War, can finally be removed," Deutsche Welle (DW) network quoted Westerwelle as saying. Westerwelle made the comments Sunday at a meeting of his business-friendly FDP party — which became a partner of reelected Chancellor Angela Merkel's new coalition government after reaching an agreement with Merkel's Conservatives.

"Germany must be free of nuclear weapons," he said, adding that he would personally make efforts towards that purpose.

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Business confidence soars to record high

A key survey published on Friday showed that German business confidence rose to a 13-month high in October, brightening the economic outlook in Europe's largest economy.

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Cabinet members in new German government

German Chancellor Angela Merkel's conservatives and the Free Democrats (FDP) have agreed on the following list of cabinet members, sources involved in coalition talks told Reuters on Friday. Here are brief profiles of the ministers, which come from the three parties in the incoming centre-right government -- the Merkel's Christian Democratic Union (CDU), the Bavarian Christian Social Union (CSU) and business-friendly FDP.

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Deutsche Bank Agrees to Buy ABN Assets From Dutch - by Martijn van der Starre and Aaron Kirchfeld

Deutsche Bank AG, Germany’s biggest lender, agreed to buy some ABN Amro Holding NV assets that the Netherlands must sell to satisfy European Union regulators. The assets are the same as those it agreed to buy from Fortis in July 2008, Frankfurt-based Deutsche Bank said in a statement on its Web site today. Negotiations on final terms and conditions continue, the lender said. Deutsch Bank agreed in 2008 to purchase ABN Amro’s commercial-banking operations from Fortis, the insurer that sold its banking divisions later that year to avert a collapse. The 709 million-euro ($1.06 billion) deal was scrapped after the Dutch government bailed out part of Fortis, including the stake in ABN Amro it bought in 2007.

Labels: Banking Industry, EU, Germany, Netherlands

Concern in Germany as safety of swine flu vaccines questioned - by Derek Scally

Germany's swine flu vaccination program has been hit by public health concerns over the vaccines being used – one of which has been ordered by the Irish Government. Germany’s 16 federal states have spent a reported €600 million buying 50 million doses of the Pandemrix vaccine, produced by GlaxoSmithKline (GSK). This new vaccine, one of two to be offered by Irish doctors, is the subject of controversy in Germany because it contains a “booster” substance known as an “adjuvant”. This allows less virus material to be used per dose and, according to GSK, boosts the immune system’s response to the jab.

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German industrial conglomerate Siemens acquires Israel's Solel Solar Systems for $418 million

German industrial conglomerate Siemens AG said Thursday it had acquired Israeli solar power company Solel Solar Systems Ltd for about US $418 million. Munich-based Siemens said the aquisition meant it could strengthen its market position in solar thermal power plants. Solel, based in Beit Shemesh, Israel, is a leading supplier of solar receivers, key components in power plants that use the sun's energy to heat fluid that in turn powers generators.

"After the rapid and highly successful expansion of our wind power business, we now want to continue this success story in the solar sector," Peter Loescher, Siemens chief executive said in a statement.

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Czech Cabinet in emergency session to force President Klaus to sign Lisbon treaty - by David Charter

The Czech Cabinet meets in emergency session today to consider how to persuade their stubborn President to sign the Lisbon treaty — under intense pressure from Paris and Berlin to complete the ratification as soon as possible.If the the Czech Government opposes President Klaus then it may have to resort to a form of impeachment or strip him of his treaty-signing powers so as to complete ratification. Barely disguising the anger felt in European capitals, Fredrik Reinfeldt, the Prime Minister of Sweden, which holds the EU’s rotating presidency, told a signing ceremony by Poland that Czech assent was eagerly awaited. He added: “We do not need more delays.”

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Germany moves right; big economic shift unlikely

Angela Merkel won a mandate to govern Europe's biggest economy with a new, pro-business coalition partner — but burdensome government debt from the financial crisis may put limits on proposals to cut taxes. Voters ended the conservative Merkel's unwieldy right-left "grand coalition" in Sunday's election and gave her a comfortable center-right majority — thanks to a strong performance by the business-oriented Free Democrats.Merkel now has a partner that fought for hefty income tax cuts in a bid to spur economic growth and would like to loosen laws protecting workers from dismissal. The Free Democrats also share her opposition to a national minimum wage and her desire to extend the life of some of Germany's nuclear power plants. The change was well received by German business.n the campaign, Merkel advocated only modest middle-income tax relief, a proposal well short of the overhaul the Free Democrats want — with big cuts to both top and bottom income tax rates. Germans' skepticism toward capitalism has grown over recent years, and "this makes a general shift in economic policy quite unlikely.

Labels: Elections, EU, Germany

Welcome to the New Germany - by Claus Christian Malzahn

Chancellor Angela Merkel has probably saved her chancellorship -- but the price that her conservatives will have to pay for it is high. The election result for the center-right Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), is lower than in 2005. Nevertheless, she can form a coalition government with the business-friendly Free Democratic Party because support for the FDP has increased in a way that until recently pollsters would scarcely have thought possible. However, the interior architecture of the new Merkel-led alliance will be fundamentally different from "black-yellow" coalitions -- the name is inspired by the parties' official colors -- of the past. In the governments of former Chancellor Helmut Kohl, it was always clear who was calling the shots, because the Christian Democrats had four or five times as many seats as their liberal junior partner. That has now changed -- perhaps forever.

In the new constellation, Merkel will hardly be able to keep the promise that she made shortly before the election, namely that in a CDU/CSU-FDP coalition she would soften any demands by the pro-free market FDP that were too radical. Given the fat majority that the Christian Democrats and the FDP have in Germany's upper legislative chamber, the Bundesrat, it looks like Merkel will be able to have a smooth ride in terms of governing -- but whether the weakened Christian Democrats will be able to set the course seems doubtful. FDP leader Guido Westerwelle will be taking the initiative in the future government. The big question is whether he can do something with the support that the voters have given him.

Labels: Angela Merkel, Elections, EU, Germany

Berlin Parliament - photo Adaja Morren

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Germany nears final ratification of Lisbon Treaty - by Honor Mahony

Germany's president Horst Koehler on Wednesday (23 September) signed newly-drafted national laws enabling the country to adopt the EU's Lisbon Treaty, making final ratification of the document at the end of the week a formality. The laws will be published in Germany's official law register on Thursday and Mr Koehler is expected to sign the ratification document on Friday.Chancellor Angela Merkel welcomed the step as a great success, reports Spiegel Online. "I put a great deal of effort into this Lisbon Treaty and it is a good end to the German presidency of the EU that we held some time ago'" she said referring to the efforts Berlin made to revive the institutional negotiations in the EU after a planned EU constitution was rejected by France and the Netherlands in 2005.

Labels: EU, Germany, Lisbon Treaty

Priorities Are Clear as Mud in Germany - by John Vinocur

Germany’s year of recession and its current election campaign, which could have been a windfall period for refashioning its international perspectives, have instead left a jumbled, even discomforting picture of the country’s priorities as a potential leader in Europe and a significant voice in the world. Once, those priorities were unwavering: unselfish engagement in the European Union to the point where it was synonymous with German identity and self-interest, and a commitment to a relationship with the United States that provided the notion of a trans-Atlantic security community with substance and reliability.

But Germany’s intra-European solidarity is no longer a reflex or a self-imposed duty. An Atlantic partnership with the United States, which Mrs. Merkel was supposed to revive to the status of an affair of the heart? It has returned neither to enthusiasm or full confidence — in part because of Germany’s increasingly ambiguous relations with Russia, and regardless of Germans’ appreciation of President Barack Obama in public opinion polls.

Labels: Atlantic Partnership, Elections, EU, Germany

France and Germany declare war on bankers' bonuses - by Phillip Inman

France and Germany are squaring up for a fight with Britain and the US over bankers' bonuses after President Nicolas Sarkozy and the German chancellor, Angela Merkel, agreed a hardline stance before the G20 finance ministers' meeting this weekend. France and Germany will seek widespread agreement for proposals that will limit bonus payments and the risks taken by banks. The proposals are aimed at preventing a repeat of the financial crisis. The French administration plans to ban banks from winning government contracts if they fail to agree to limits on bonuses, while bonuses must be deferred for at least four years under rules being considered by Merkel's cabinet.

However, the Obama administration is expected to say tomorrow that it wants the summit to focus on getting the world economy back on its feet and promoting financial stability. Note EU-Digest: Unfortunately the Obama administration, which faces an uphill struggle to pass healthcare reforms through congress does not seem to have the courage to oppose the risky bonus culture on Wall Street or the powerful financial industry.

Labels: Banking Industry, EU, France, G20, Germany

Germany takes charge of UN coastal fleet in Lebanon

Germany has taken charge of the UN maritime task force (MTF) deployed off the coast of Lebanon following the Israel-Lebanon war in 2006, WAM news agency reported. The naval force has been deployed at the request of the Lebanese government to secure the country’s territorial waters, according to the report Monday. “The MTF has also contributed safe environment for commercial ships travelling to and from Lebanon,” Force Commander Major-General Claudio Graziano said at the handover ceremony from Italy to Germany.

Thirteen countries have contributed to MTF. These are: Belgium, Bulgaria, Denmark, France, Germany, Greece, Indonesia, Italy, the Netherlands, Norway, Spain, Sweden and Turkey.

Labels: EU, Germany, Lebanon

Germany, France target bank "excesses" for G20 meet

The leaders of Germany and France took aim at the banking sector on Monday, pledging to check banks' power and push for limits on bonus payments at a Group of 20 summit next month. Chancellor Angela Merkel said bonus payments to bankers were "rightly driving a lot of people crazy" and that she and French President Nicolas Sarkozy wanted the G20 summit in Pittsburgh on September 24-25 to make progress on financial regulation. "No bank may become so big that it could get into a position where it could blackmail governments," Merkel told a joint news conference with Sarkozy in Berlin.

Germany and France regard financial market excesses as being the root cause of the global economic downturn and want tighter regulations to prevent a repeat of the biggest financial crisis since World War Two.

Note EU-Digest: They are absolutely right.

Labels: Banking Industry, EU, Financial Regulation, France, Germany

German court ruling calls into question the entire European project post Lisbon- by Struan Stevenson

A landmark legal ruling in Germany has sent the EU integration project into complete disarray. The German Constitutional Court examined the Lisbon Treaty – the successor to the infamous EU Constitution – and ruled the sovereignty of a member state (in this case Germany), must always take precedence over diktats from Brussels. The Constitutional Court in Karlsruhe effectively declared itself the highest supervisory body in conflicts between Germany and the EU, thus explicitly placing itself above the authority of the European Court of Justice. As Der Spiegel reported: "Thi s borders on a declaration of war on the European Court, which sees itself as the only authority capable of ruling on the validity and applicability of EU law." The German judges went further by ruling the German Parliament had been wrong in passing an "accompanying law" to the Lisbon Treaty, which determined the rights of the German parliament to participate in European legislation.

Labels: EU, Germany, Lisbon Treaty

Germany seeks leadership in electric cars

Germany lawmakers on Wednesday (19 August) approved a plan to put a million electric cars on German roads by 2020, in a bid to become the worlds top market for electric vehicles.As part of the plan, the government will spend €500 million to develop battery technology and build a network of charging stations across Germany. The government's goal is thereby to place Germany at the cutting edge of innovation amid tough international competition. According to EurActiv Germany, automotive analysts acknowledge that Germany is behind the pace in the "green-car" race, with countries as diverse as China, Japan and the US investing heavily in electric and other alternative techologies. This week, the Japanese manufacturer Nissan unveiled its all-electric Leaf, scheduled for mass-production in 2012, and other big car-makers including Daimler, Mitsubishi and General Motors have models ready for production. In Europe, many countries have already introduced schemes, often more ambitious than the German one, to create markets for electric vehicles.

Labels: Electric Car, EU, Germany

Opel workers plan to pressure General Motors Co. into accepting an offer to sell a majority stake to a group led by Canada’s Magna International Inc., a labor representative on the unit’s supervisory board said. “The parent needs to understand that there’s no going back,” Armin Schild, an official with the IG Metall union, said today in an e-mail. “Neither the continuation of the waiting game aimed at the unit’s insolvency nor a return to ‘un-independence’ will be accepted without opposition.” GM’s advisers are recommending that the board consider spurning a German-government backed sale of Opel in order to retain a bigger presence in Europe and Russia, a person familiar with the discussions said. The advisers suggest GM seek aid from other European countries to retain ownership of the division as an alternative to surrendering control, the person said. GM’s new board, dominated by members appointed after the Obama administration forced the company into bankruptcy, is questioning the decision made by previous directors to give up control of Opel.

Labels: EU, Germany, Nile Virus, Opel, Refugees, Social Alcohol Consumption

Eurofighter contract signed in Germany

Germany, Spain, Italy and Britain, have decided to split the order for the third tranche of production of the Eurofighter into two parts for budgetary reasons. The contract, worth about eight billion euros ($11.2 billion), for 112 of the 236 planes in the third tranche, was signed at the Eurofighter consortium headquarters near Munich by Britain, Germany, Italy and Spain. The Eurofighter Typhoon, a multi-purpose combat aircraft, has been developed by a consortium of European aerospace companies - BAE Systems of Britain, the Italian company Alenia/Finmeccanica and EADS, which represents the industrial interests of both Spain and Germany.

Labels: Aircraft Industry, EU, Euro Fighter, Germany

German Blast GM For Delaying Opel Deal

German Economy Minister Karl-Theodor zu Guttenberg said he believed a deal was still possible and that talks would continue, but there were angry words from around the country where the carmaker has plants employing some 25,000. Juergen Ruettgers, premier of North Rhine-Westphalia, Germany's most populous state and home to the Bochum works, issued a statement saying the delay was "intolerable." "The United States government now shares responsibility for finding a way past GM's leadership weakness and helping us finally to reach a sustainable decision," he said. The German government, which is barely a month away from a federal election, has offered financial backing for Magna's bid because it believes it would be the best option to save jobs. Roland Koch, conservative state premier of Hesse, where Opel is based, said he was "extremely annoyed," by Friday's outcome. "All the relevant questions have been resolved between GM and Magna," he said. "There's absolutely no justification for this postponement."

Labels: EU, Germany, GM, Opel

Europe's biggest video games fair kicks off in Germany

Europe's biggest video games fair, Gamescom, opened its doors in the western German city of Cologne on Thursday, with over 420 exhibitors from 30 countries showing off their wares. The four-day show is expected to draw some 200,000 visitors and features the global premieres of new versions of blockbusters like "Pro Evolution Soccer (PES) 10", "Fifa 10" and "Guitar Hero 5." The fair follows data last week showing Germany overtaking Britain as Europe's biggest gaming market after the recession sparked a 20-percent slump in sales in the British market.

Labels: EU, Gaming, Germany

Germany becomes Europe's largest games market

Germany becomes Europe's largest games market - by Luke Gutridge

According to the latest reports, Germany has just become Europe's biggest purchaser of videogame wares, when country to country sales were compared by Chart Track. GI.biz report that UK games sales dropped 20 percent in the first half of 2009, with Germany moving up a place in the rankings. French and Spanish game sales also decreased, although sales were actually up in Sweden, Holland and Portugal. Wii Fit is apparently Europe's biggest release so far this year.

Labels: EU, Germany

EUROPEAN PIRATE PARTY MOVEMENT- Swedish Pirate Party MEP Christian Engström: ‘Europe stronger than US’ - by Waldemar Ingdahl

"The Swedish pirate party program claims three things: to strive to reform laws regarding copyright and patents, strengthening the right to internet and daily privacy and increasing the transparency of government administration. The pirate party gained one seat in the 736-strong European parliament after winning 7.1% of the Swedish vote in June 2009, coming fifth after the social democrats, greens, liberals and the moderate party. It would acquire another if the Lisbon treaty is ratified; the EU aims to see that in force by 2010. 26 EU countries have ratified the treaty, except for Ireland, who are due to hold a referendum due on 2 October. On 25 June, Christian Engström joined the green bloc, a move to avoid being marginalized in the EP. But the pirate party, now the third largest party in Sweden, is a representative of a set of ideas of its own; is it setting sail towards further success or facing its first gust of ideological high seas?"

Engström was an open source software developer and entrepreneur in the first wave of Swedish internet expansion in the nineties. He was a volunteer activist for the foundation for a free information infrastructure (FFII). Between 2004 and 2005 he lobbied in the European parliament in a dispute over the software patents directive. The struggle was a great success for Engström as the parliament rejected the directive in its second reading. The success of the free software movement, in combination with a continuing increase in the conflict between internet pirates and the record industry, gave the impulse for a new set of ideas. The ground was particularly favorable in Sweden.

According to the Pirate Party, intellectual property laws written pre-internet are just out of date. Today the entire Internet is based on copying stuff. Each time you load a web page, your computer is, in fact, copying a set of files from another computer. You could argue that digital copying is so seamless that nearly everyone could become a "pirate" by virtue of the technology. At least, that's what pirate parties across Europe are saying – and they’re in many countries. You can find them in Spain, Portugal, Italy, France, Netherlands, Denmark, Germany, Finland, Sweden, Ukraine, Russia, Austria and Switzerland. There's also the Czech Pirate Party and the Estonian Pirate Party. Both were founded last month. And now there’s one in Switzerland. The pirate parties are calling for shorter copyright terms, the elimination of patents and broader online privacy rights. So far, the European Pirate Parties don’t have much political power, but last month, a German member of Parliament left the Social Democrats and joined the Pirate Party. And the Swedish Pirate Party did well enough in the recent European Union parliamentary elections to secure one of the country’s seats.

Please click on this link if you are interested to start a Pirate Party in your own country.

Labels: Elections, EU, Germany, Pirate Party, Politics, Sweden

Germany: Revenge of the Netizens: Online Activists Take On Germany's Political Mainstream - by Marcel Rosenbach and Hilmar Schmundt

As Germany heads into national elections, established political parties are trying to appeal to Web-savvy voters using Facebook and Twitter. But their Internet policies are alienating bloggers and activists, who are using the medium to protest against the political mainstream. To anyone who visits the sites of political lobbyists in the German blogosphere, sites like netzpolitik.org or odem.org, it is clear that Internet activists are on the warpath against the established parties, a group which for many now includes the traditionally anti-establishment Greens. "They'll soon be wishing we were apolitical," one of their slogans reads. Another novel aspect of this year's campaign is that the party strategists at campaign headquarters are starting to take Internet users, long ridiculed as nerds, seriously. When strategists at SPD headquarters in Berlin, for example, embarked on a large-scale effort to incorporate Facebook and Twitter into their campaign, they were horrified by the reactions they encountered, which ranged from malice to open rejection and sheer hate.

Netizens are primarily young and well-educated. Many are, due to their blogs and Twitter presence, influencers and trendsetters, with some star bloggers even being opinion leaders within their medium. All government initiatives like data retention by telecommunications companies, online monitoring of the computers of suspected criminals by the authorities and biometric identification cards are nothing short of assaults on their much-valued freedoms.

Labels: EU, Germany, Pirate Party

EU - Recession kills homeowners in Germany

A 75 year old man and his 67 year old wife blew up their home and themselves with explosives in the small South German town of Inzell, after they could not meet monthly mortgage payments and the bank foreclosed on their property. The explosion and the fire which followed completely destroyed the property.

Labels: EU, foreclosure, Germany, recession

Food retailing: German Rewe sells out to French E.Leclerc

Food Retail: German Rewe sells out to French E.Leclerc

German supermarket network Rewe, which controls the Billa brand, decided to withdraw from its operations in Poland. The company will sell its 25 stores to French E.Leclerc, which already has 20 supermarkets in Poland. Billa employs almost 1,600 people across the country and generates annual revenues amounting to euro 100 million. "I am very happy that E.Leclerc has strengthened its position in Poland by making this purchase, and it will reach the relevant critical mass on the Polish market in order to compete effectively," said Alain Caparros, the head of the Rewe group.

Labels: EU, Food Retailing, France, Germany, Poland

'Muhammad Knows Nothing About Football': Muslims Angered by Verse in German Soccer Club Song

The verse "Muhammad Was a Prophet Who Knows Nothing About Football" in the official song of German soccer club Schalke 04 has sparked more than 100 complaints from Muslims. The club says it's looking into the matter. German Bundesliga soccer club Schalke 04 has received more than 100 complaints from Muslims about its club song which contains the verse: "Muhammad was a Prophet who knows nothing about football."

The song with the title "White and Blue, How I Love You" has been around for decades but only recently came to the attention of Turkish media which said it insults the Prophet.

Labels: EU, Germany, Islam, Schalke 04, Sports, Turkey

Study shows equivalent of 25 baths a day per person water use in Germany

A study just released by the German branch of the environmental organization World Wide Fund for Nature (WWF) says that people living in Germany use nearly 160 billion cubic meters (42.2 trillion gallons) of water each year. However, not quite half of that, about 79.5 billion cubic meters, is water that is not consumed directly, but "virtually", i.e. in the production of agricultural and industrial goods the country imports. While direct consumption of water has decreased significantly to 124 liters per person per day in Germany, the indirect consumption now stands at around 5.288 liters per person per day, according to the study. That's the amount one person would use to take 25 baths in a single day.

Labels: EU, Germany, Water Consumption

Berlin calls for higher bids for GM Europe - by Sarah Arnott

Both suitors in the running for GM Europe will have to up their bids to win the support of the German government, economy minister Karl-Theodor zu Guttenberg said yesterday. A GM board meeting in the US this week is a key step in the battle for the group’s European arm, which includes Opel in Germany and Vauxhall in the UK. The parent company is understood to prefer the offer from RHJ International, a private equity group, to that from preferred bidder, Canadian car parts maker Magna, backed by Russia’s state-owned Sberbank. After its initial lead, the Magna deal has struggled because of disagreements over intellectual property issues and plans to seel into the Russian market. But German states and federal government - which will stump up cash to lubricate the deal and have a strong voice in the talks – lean towards Magna’s plan as less likely to cost local jobs.

Labels: Automotive Industry, EU, Germany, Opel

Germany - Russia: The New Ostpolitik

They're Europe's odd couple. At a time when much of the continent is scrambling to find strategies to contain, avoid, and punish a resurgent Russia, Germany is pushing ahead with the most important and surprising post–Cold War alliance in Europe. Once titanic enemies, Germany and Russia are embracing a slew of big business deals that aim for everything from a joint resurgence in the world's nuclear-energy market to taking over a big chunk of GM's European empire. German technology will upgrade Russia's vast railroad network—and while much of Europe seeks to free itself of energy dependence on Russia, Germany's E.On is buying up Russian gas fields.

The stream of agreements reflects the depth of what has become Europe's most powerful new partnership. Based on a history of close ties, a decade long surge in trade and investment, and massive German imports of Russian natural gas, Germany has become not only Russia's most important trading partner, but its principal advocate in the West. Germany has vetoed an EU-wide energy market that would reduce Europe's dependency on Russian supplies, and stayed cool on U.S. plans for missile defense. Mikhail Margelov, chairman of the foreign-affairs committee in the upper house of Russia's Parliament, says Germany was Russia's "biggest helper" in its successful attempt to block the eastward expansion of NATO.

Note EU-Digest: Like the relationship between France and Germany, the relationship between Russia and Germany is pivotal for the stability, prosperity and peace in the EU and will strengthen all partners equally on the worlds political and economic stage.

Labels: EU, France, Germany, Russia

More people are leaving Germany than arriving

The number of immigrants was almost constant compared to the year before at 682,000, but the number of emigrants rose by 100,000 to 738,000. Most of the immigrants came from EU countries, with 119,000 Poles forming by far the largest group. Only Turkey, with 26,200 immigrants, remains a substantial source of immigration from outside the EU. Quite a few (108,000) were Germans coming back, mostly from Poland and the USA.

Meanwhile, the numbers of Germans and foreigners leaving the country continues to rise; altogether 56,000 more people left than arrived. The Statistical Office in Wiesbaden admits that its figures for departures are not perfect this year, because of administrative changes in local registration offices which have led to some people being taken off the registers who should not have been on them in the first place. But it says that it's quite clear that, while the number of foreigners arriving is still greater than the number of those leaving (+11,000), the sum for German movements is seriously negative (-66,000).

Labels: EU, Germany

Volkswagen has set the stage to buy out Porsche, ready to acquire the renowned sports-car company in two stages beginning this week. The price tag: $11.28 billion. The reported deal would require the deposing of Wendelin Wiedeking, Porsche CEO since 1993, who is said to be negotiating a severance package of more than $140 million. Wiedeking, who opposes the VW merger proposal, denies that any such deal is pending. Wiedeking is largely credited with turning Porsche from a struggling, nearly bankrupt automaker into a highly profitable automotive powerhouse, but he also is blamed for Porsche amassing a mountain of debt last year as it attempted an ill-advised takeover of VW.

Labels: Automotive Industry, EU, Germany, Porsche, VW

The German government is worried that the current shortage of bank credit plaguing industry will worsen later this year and is considering tackling the problem by forcibly taking stakes in banks, similar to the policy adopted by authorities in the United States and Britain, a German newspaper reported on Monday.The plan envisages the government forcing banks to take state aid and to part-nationalize them in return.

At present small businesses as well as large corporations say they are having problems securing bank loans. The banks have tightened their lending because they have had to make risk provisions to cover remaining toxic assets in their balance sheets, because an increasing number of companies cannot repay their loans in the current economic downturn, and because new international balance sheet rules are forcing banks to put back more equity capital to cover their loans. The government has argued that it's time banks boosted their lending because several of them have taken billions of euros in government aid.

Labels: Banking Industry, Credit Crunch, EU, Germany

Rhine 'n' dine: Feasting on sights and delicious food while cruising the storied rivers of Europe - by Fran Golden

"Ladies and gentlemen, what would a river cruise be without an accordion?" the emcee asked in a thick German accent. We were on a river ship cruising the scenic Danube - actually more greenish than the "Blue" of Strauss' famous waltz - traveling from Germany to Hungary. Earlier, there had been knock wurst, pretzels and potent beer served on deck, where the views included vineyards. And that's the great thing about river cruising in Europe - the chance to taste local culture and get a closeup view of inland sights, all from the comfort of a floating hotel. River ships carry as many as 300 passengers, and often fewer than 200. And while this is a casual way to travel, you are in no way roughing it - some ships even have flat-screen TVs in the cabins. Food and accommodations, entertainment (like the accordion player) and sometimes tours, too, are included in the cruise fare, adding up to an easy and economical way to see Europe. You visit several places and only have to unpack once. Cruises are offered on the major rivers of Europe, which all tend to be calm and deliver a taste of river life among the sights - kids swimming, people fishing, boats and barges passing by with freight and passengers. This year there are some great deals, with week-long river cruises available from under $1,500 per person. The lowest prices are in fall and spring.

Labels: EU, Germany, Tourism

Merkel meets Medvedev for talks on trade and human rights - by Neil King

German Chancellor Angela Merkel met Russian President Dmitry Medvedev on Thursday for talks dominated by their countries' growing economic ties. The two leaders also addressed the touchy topic of human rights.The two governments also signed a slew of economic partnership deals, including a 500-million-euro ($357 million) credit agreement. The agreements included a joint declaration on energy cooperation and an agreement between Russian Railways and Siemens to establish a joint venture to produce locomotives. In addition, Frankfurt airport operator Fraport is to participate in the expansion of the airport in St Petersburg. The two leaders did not comment on news reports that Russian oil giant Gazprom is interested in a takeover of bankrupt German shipyards in the northern cities of Wismar and Rostock.

Labels: EU, Germany, Investment and Trade, Russia

Netherlands: Germany and France jeopardize pact - by Robert Wielaard

The Netherlands charged Tuesday that France and Germany are running their economies so differently that they are threatening the rules that underpin the stability of the euro. Dutch Finance Minister Wouter Bos said France and Germany "are sending different signals about how they regard the necessity to put public finances in order." He told reporters that it was "worrisome" that neither Berlin not Paris will acknowledge publicly that they are taking vastly different paths to return their slumping economies to growth. That, he added, was eroding confidence in the euro budget rules that require governments to contain debt within certain limits. While the German government has advocated limiting debt and bringing government spending back in line, French President Nicolas Sarkozy has said "he sees no reason to commit himself in that sense" and plans to allow the deficit widen to stoke growth, Bos said. "That kind of nonintervention can have devastating effects" on the euro stability rules at a time when most of the 16 euro-zone nations have budget gaps far exceeding the limit of 3 percent of gross national product, he said.While the German government has advocated limiting debt and bringing government spending back in line, French President Nicolas Sarkozy has said "he sees no reason to commit himself in that sense" and plans to allow the deficit widen to stoke growth, Bos said.

"That kind of nonintervention can have devastating effects" on the euro stability rules at a time when most of the 16 euro-zone nations have budget gaps far exceeding the limit of 3 percent of gross national product, he said.

Labels: Economy, EU, euro, France, Germany, Netherlands, Sarkozy, Wouter Bos

Beijing (AFP)BAIC plans Opel plant in China, Europe job cuts

BAIC plans Opel plant in China, Europe job cuts

Chinese auto maker BAIC, which is offering 922 million dollars for a majority stake in Opel, plans to build a plant in China and cut jobs in Europe if its bid succeeds, a report said. In a non-binding offer submitted last week for the German-based unit of General Motors, BAIC proposed to spend two billion dollars on what would become Opel's first factory in China, according to the Financial Times. The plant would come online in 2012 and make Opel models specifically geared towards the China market. In addition, BAIC would use Opel's German plants to export to China, the London-based newspaper said.

The Chinese auto maker also planned to shut down General Motors' Antwerp plant in Belgium and cut Opel's workforce across Europe, the report said, citing unnamed sources close to the matter.

Labels: Automotive Industry, China, EU, Germany, Opel

German Economy Minister says Opel deal still hangs in balance - by Sarabjit Heera

According to the German newspaper Westdeutsche Allgemeine Zeitung (WAZ), the Economy Minister of the country has said that the decision pertaining to finalizing a bid for the German carmaker Opel still hangs in balance. Going by a Monday statement in the paper, Karl-Theodor zu Guttenberg has said: “I acknowledge Magna's ambitious goal, wanting to sign a contract by mid July. However, there still seem to be some unanswered questions.” Guttenberg added that as per the phase at present, “everyone is free to place offers.” Guttenberg’s comments apparently cam in response to a statement by the General Motors’ Europe President Carl-Peter Forster, who informed another German newspaper that, very soon, he expects selling Opel to the Canadian auto parts supplier Magna.

Labels: Automotive Industry, EU, Germany, Opel

Anti-Terror Action Plan: Germany Heightens Security Ahead of September Election

Germany is planning to implement a massive anti-terrorism action plan ahead of September's general election to thwart any possible attacks.Intelligence agencies believe that al-Qaida is planning to hit German targets abroad and possibly at home in the run up to the Sept. 27 vote that will pave the way for the next chancellor in revenge for the Germany's military mission in Afghanistan and to put pressure on Berlin to withdraw its forces.

The German Federal Criminal Police Office (BKA) and the Office for the Protection of the Constitution, the domestic intelligence agency, have devised an anti-terror plan similar to the one used during the World Cup in 2006. It envisages intensifying the country's anti-terrorism measures aimed at detecting any possible attacks as early as possible.

Labels: Elections, EU, Germany, Terrorism

Boxing: Will Heavyweight Bombs Be Bursting In Germany? - by Frank Lotierzo

With the heavyweight division taking a public beating more fiercely than any fighter in it is capable of administering to another, what's the best scenario that can result from this weekend's Eddie Chambers versus Alexander Dimitrenko WBO title elimination bout? It's hard not to hear and get caught up in the chatter eliciting how boxing is on it's last breath and will soon be eclipsed by MMA. Statements like that make for good copy, but that's about it. The fact is both sports are thriving, as evidenced by the interest surrounding who Manny Pacquiao will next fight and the upcoming UFC 100 clash between heavyweights Brock Lesner and Frank Mir.

Labels: Boxing, EU, Germany

Merkel and Obama don't always see eye to eye - by Howard LaFranchi

A year ago, presidential candidate Barack Obama received a rapturous welcome in Berlin. German Chancellor Angela Merkel is not likely to receive a similar reception when she comes to Washington to meet with President Obama Friday. Chancellor Merkel – like Obama, a cool academic by training – continues to make digs at the US over the international economic crisis, and with Germany refusing either to send a substantial number of new troops to Afghanistan or to take any of Guantánamo's detainees, the stage seems set for polite disagreement.

Labels: Angela Merkel, Barack Obama, EU, Germany

German consortium to bring green energy to Europe

A consortium of German blue chip companies is to raise funds for a massive photovoltaic project in North Africa that will provide Europe with green energy.Energy companies RWE and Eon as well as Siemens, Deutsche Bank, and reinsurer Munich Re are to meet on 13 July to draw up an agreement on the project. Desertec would see solar power plants built in North Africa in order to harness green energy that could be transported back to Europe. According to the Desertec foundation, around 20 m2 of desert would be enough to meet the individual power demand of one human being day and night, CO2 free. If successful the project could see Europe powered by solar energy within a decade.

Labels: EU, Germany, Solar Energy

Maine trade mission planned to Spain, Germany

Maine Gov. John Baldacci is planning a trade mission to Spain and Germany that will focus on renewable energy technologies. The governor announced Tuesday that he and Maine business leaders will travel to a major European wind power trade show in Spain as well as to Spain's capital and to Bremen, Germany. Maine International Trade Center President Janine Bisaillon-Cary said Spain and Germany were chosen because they are home to energy companies that have made investments in Maine and the surrounding region. The trip will run from Sept. 19-26.

Labels: Alternative Energy, EU, Germany, Maine

A new balance of power emerges - by Peter S. Rashish

The European Parliament elections suggest that a power shift is under way in the European Union. A new triumvirate consisting of Germany, France, and Poland may be emerging; a triumvirate that will keep Berlin in the lead, increase central and eastern Europe's clout and also offer Paris the opportunity to play the role of honest broker. Those forming the US's developing strategy for transatlantic engagement should take note. It is clear that the incumbent parties in Germany, France and especially Poland, all of whom are members of the centre-right European People's Party, were the big winners. German Chancellor Angela Merkel's CDU-CSU won 42 seats, while French President Nicolas Sarkozy's UMP took 29 seats. In both countries, the left-of-centre opposition suffered defeats of historic proportions. But the most impressive victory was scored by Civic Platform, the party of Polish Prime Minister Donald Tusk, which garnered 44% of the vote and 25 seats. Poland – one of the central and eastern European countries best weathering the economic crisis – is going to try to make its voice heard.

While US President Barack Obama has now made two visits to Europe since his inauguration and the tone of transatlantic relations has improved, it appears that his administration's strategy for engagement with the European Union is still evolving. In two policy areas that would benefit from close US-EU co-operation – energy security and the post-crisis economic agenda – Washington should build in an approach that takes account of this emerging EU balance of power.

Labels: Air France, Balance of Power, EU, Germany, Poland

Germany’s Inflation Rate Declined to Zero in May - by Francis Robinson

Germany’s inflation rate fell to zero in May for the first time in at least 13 years on lower energy costs and weakening demand. Consumer prices, calculated using a harmonized European Union method, were unchanged from a year earlier after increasing 0.8 percent in April, the Federal Statistics Office in Wiesbaden said today. The May figure, revised from an initial estimate of minus 0.1 percent, is the lowest inflation reading since harmonized data were first compiled in 1996.

A 46 percent decline in crude oil prices over the past year is pushing down inflation at the same time as companies cut prices to tackle the deepest recession since World War II. The European Central Bank has downplayed the chance of deflation in Europe, with President Jean-Claude Trichet saying inflation will only temporarily move into negative territory this year. Germany’s inflation rate fell to zero in May for the first time in at least 13 years on lower energy costs and weakening demand.

Labels: Economy, EU, Germany

Germany’s Merkel Wins EU Vote Seen as National Election Test - by Brian Parkin

German Chancellor Angela Merkel’s Christian Democrats beat the Social Democrats in European Parliament elections yesterday with less than four months to go before a national vote, preliminary final results showed. The Christian Democratic Union and their Bavarian Christian Social Union sister party got 37.9 percent, according to results reported by Deutsche Presse-Agentur. The Social Democratic Party with chancellor candidate Foreign Minister Frank-Walter Steinmeier got 20.8 percent.

“It’s a very successful election for Merkel,” Jan Techau, an analyst at the Berlin-based German Council on Foreign Relations, said in an interview. “It’s a pretty strong signal that German voters prefer the center-right parties because people expect them to be more competent on the economy.” Merkel’s preferred coalition partner, the pro-business Free Democrats, won 11 percent. This would mean that Merkel would be close to majority for a CDU/CSU-FDP alliance if today’s balloting had been for a national vote.

Note EU-Digest: With Sarkozy and Merkel winning big in these European elections, Europe's political dream team is alive and well and that is positive for Europe.

Labels: EU, EU Parliament, European Elections, Germany

Obama meets Merkel in Germany

Relations between Merkel and Obama are said to be strained, but Ulrich Wilhelm, a spokesman for Merkel, insisted that since their co-operation during the Nato conference in April, the two leaders have built a strong working relationship. The two leaders are expected to discuss thorny issues such as Germany's commitment to the war in Afghanistan and possibly Berlin's reluctance to take inmates from the US military prison in Guantanamo Bay.Following his visit to Germany, Obama will travel to France for talks with Nicolas Sarkozy, the French president. On Saturday, he will join Sarkozy on the Normandy beaches to mark the 65th anniversary of the D-Day landings.

Labels: Angela Merkel, Barack Obama, EU, Germany

Germany's Merkel criticizes central banks' approach in financial crisis

German Chancellor Angela Merkel has voiced skepticism about leading central banks' approach to tackling the economic crisis, suggesting that they may be storing up more trouble for the years ahead. Merkel's comments come as the European Central Bank has faced criticism from some analysts for not being as aggressive as either the U.S. Federal Reserve or the Bank of England, both in cutting interest rates and in promoting measures such as bond purchases to boost the money supply.

Merkel appeared to defend the ECB's more conservative instincts and raise questions about the Fed and Bank of England actions. "The independence of the European Central Bank must be preserved and the things that the other central banks are doing now must be reversed," Merkel said in a speech Tuesday, the text of which was posted on the government Web site. "I view with great skepticism the powers that the Fed has, for example, and how, in the European area, the Bank of England has developed its own little lines," she said, adding that the ECB "also bowed somewhat to international pressure" with its decision to buy bonds. "We must together return to an independent central bank policy and to a policy of good sense," Merkel said. "Otherwise, in 10 years we will again be standing at exactly this point."

Note EU-Digest: Mrs. Merkel is absolutely right. Even Thomas Jefferson one of the founders of the United States said: "If the American people allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children wake up homeless on the continent their fathers conquered"

Labels: Angela Merkel, Banking Industry, EU, Germany, World Economy

Conservative Party in Germany Gives Up on Anti-Turkey Stance - by Judy Dempsey

As citizens across Europe prepare to vote this week for a new European Parliament, Chancellor Angela Merkel’s conservative bloc has abandoned its attempt to create a wedge issue out of Turkey’s potential entry into the European Union. The change in approach is an acknowledgement by conservatives that they have more to gain by appealing to Germany’s 690,000 Turkish voters than by alienating them with blunt talk about the political and cultural differences separating Turkey and the rest of the E.U.

The conservatives view the parliamentary balloting, which starts on Thursday, as a barometer for the federal elections in September and realize that they need every vote they can get if Mrs. Merkel is to be re-elected. Though Mrs. Merkel spoke out against Turkey’s E.U. ambitions as recently as last month, the bloc has since refrained from making Turkey’s entry, or E.U. enlargement in general, a major issue in the campaign.

Labels: Elections, EU, EU Parliament, Germany

Germany Set to Deepen Ties to Russia With Opel Sale - by Leon Mangasarian

Chancellor Angela Merkel’s government picked on May 30 a partnership led by Magna International Inc., a Canadian auto- parts supplier, with Russia’s biggest bank, OAO Sberbank, and Russian carmaker OAO GAZ as the sole bidder for Opel, the European division of GM, the U.S. automaker that will file for bankruptcy today. “This will fuel suspicion in east Europe over Germany and Russia and why the biggest economy in Europe has tied up with strange Russian tycoons to please the Kremlin,” said Fredrik Erixon, director of the Brussels-based European Centre for International Political Economy. “Germany is playing off the Poles and the Baltic states against Russia.” Germany is Russia’s biggest trade partner, a relationship underpinned by rising German gas and oil imports. Annual German trade with Russia increased five-fold to 68.2 billion euros ($96.2 billion) last year since 2000. With 6,000 German companies operating in Russia, business leaders in Berlin view the global recession as a speed-bump, with manufacturers set to win contracts as Russia diversifies from energy and rebuilds transport and health care.

Labels: EU, Germany, Opel, Russia

Germany picks Magna to save Opel

Germany has agreed a deal with Magna International, a Canadian car parts maker, to take over Opel, part of the European wing of US carmaker GM. German Finance Minister Peer Steinbrueck told journalists outside the chancellery shortly after 0200 local time on Saturday morning that a deal had been agreed. The German government is expected to provide an immediate loan facility of 1.5bn euros ($2.1bn, £1.3bn). The Magna deal should protect Opel if GM files for bankruptcy protection in the US on Monday, as is expected. The Canadian company has said it will put more than 500m euros ($700m; £435m) into Opel, which employs more than 25,000 people in Germany.Before the announcement of the deal, Magna said it planned to cut 2,500 jobs in Germany, about 10% of Opel's workforce in that country. Italy's Fiat, a former potential bidder, had said it would cut 10,000 jobs. GM operations in Europe will now be placed under the care of a trustee to shield them from the parent company's filing for bankruptcy protection in the US. By doing this the Germans have ringfenced Opel from the mother company and this has been achieved.

On Friday, a court in Sweden granted Saab, GM's other European business, an extension to its protection from creditors. The Swedish car maker first sought protection in February. It now has until 20 August to line up a new owner and to restructure its business. Saab is being sold off by GM separately.

Labels: EU, General Motors, Germany, Opel