Markus Kerber, magaging director of the Federation of German Industries (BDI), want to see German and European industries taking leadership to resolve the Euro crisis. As banks and governments are locked into their own problems, European industrial leaders should take the helm and try to stimulate growth with significant investments.
Leading German CEOs appeal to the German Parliament that the United Nations Convention Against Corruption (UNCAC) should get brought into effect as soon as possible. Germany is one of the few countries not having ratified the agreement. Two other are Syria and Saudi-Arabia.
On Wednesday Germany again sold 2 year-Bunds at negative yields. The yield was at 0.06%. This was the lowest value ever. The yield was at 0.06%. This was the lowest value ever. At the moment these are perceived to be a safe haven in the bond market amid ongoing uncertainties in Spain and Italy.
In an unusually bold statement, the German Savings Bank Association (DSGV) expressed deep concerns about a banking union in Europe. The concept was based on "completely false assumptions" and was aimed only at bailing out banks using the money of German savers. Georg Fahrenschon, president of the DSGV, instead wants national regulators to be closely overseen by the ECB. He also wants the European Banking Authority (EBA) to be shut down altogether.
German Chancellor Angela Merkel is not willing to move ahead quickly with allowing direct aid for European banks from either EFSF or ESM. Instead, she confirmed that every state will have to guarantee for its banks. This will lead to higher deficits in states where banks need to apply for money from the bailout funds.
Germany, already one of the most desired countries for refuges may face a tough challenge in financing additional social benefits for people seeking for asylum. The Constitutional Court ruled that the benefits refugees are entitled now are far too low, forcing the German government to draft a new law with significantly higher payments to be financed by the taxpayer.
Guido Huelsmann, professor for economics at the University of Angers, France, is convinced that the Euro will lose greatly on his value through and this will finally lead to the break-up of the common currency in the Euro zone.
In an analysis, Citi concludes that the current legal framework for the ESM does not offer special protection for taxpayers as suggested to the German parliament ahead of last week's vote. The subordination clause would trigger the CDS, why such a protection is legally not possible without blowing up the system. German politics finds itself under scrutiny over not telling parliament the truth.
Italian Prime Minister Mario Monti will step down as finance minister and the current deputy minister Vittorio Grilli will take his place, the government said today. The new finance minister is an expert in privatisation and former Credit Suisse banker.
The German constitutional court did not come up with a ruling over the question whether the European Stability Mechanism (ESM) conflicts with the German constitution. The hearing held in Karlsruhe showed the judges being overwhelmed by the complexity of legal challenges created by hasty decisions by leaders from the Euro zone.
Peter Keitel, president of the German Industry Association (BDI) expects the Euro to be here to stay. He sees significantly more benefits that downside for the common currency, outlining the particular advantages German exporters have trough the monetray union.