Opel: The Drama That Will Not Die

Thursday, June 10th, 2010

What is to become of General Motors’ European subsidiary? The European auto-market is overcrowded with suppliers, that’s clear; Opel needs a guarantee of money, from someone, in order to stay on its feet financially and be able to compete. Yet the source from which the company thought it could gain the guarantee it needed – the German government – has been growing cool to the idea in light of the many new demands on its money from elsewhere (e.g. Greece). Long-time readers will know that I’ve been covering Opel’s recent travails more-or-less consistently; you can update yourself on the situation from my last blogpost on the subject here.

But now firm decisions are finally being made in this matter by the German authorities – or at least are seeming to be made. For those interested, and with the required German language skills, the ongoing saga can even be followed fairly closely on the @Deutschland_ Twitter-feed. I know: it’s that sort of thing that you are glad to leave for me to do instead, and I’m pleased to oblige. (One caveat: @Deutschland_ only follows material from the German newsmagazine Der Spiegel.) But for now, let’s go “over the jump” to this blogpost’s full article, since a couple of tweets from that @Deutschland_ feed need to make an appearance. (more…)

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German Medical Care Shrinks in Financial Crisis

Monday, May 24th, 2010

The word came in earlier this morning on the @Deutschland_ Twitter-feed that I follow for EuroSavant purposes (it’s only in German):

Studie: Wirtschaftskrise beschleunigt Krankenhaussterben: Schlechte Nachricht für Patienten: Weil Länder und Kommu… http://bit.ly/bRSpH3less than a minute ago via twitterfeed


The tweet refers to an interesting article in Der Spiegel, Economic crisis accelerates dying-out of hospitals, and normally is something I would gladly re-tweet.* But then I realized that, when it comes to news about any European country’s health system, I owe my readers a bit more than that in view of the couple of posts I wrote on that subject in the recent past, especially one on the same German system that astute readers will have perceived as particularly heavy in its irony. (more…)

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Unopinionated Pirates

Tuesday, May 18th, 2010

One key factor affecting the entire ongoing Eurocrisis was known to cognoscenti as “NRW” – short for Nordrhein-Westfalen, the German state whose local elections on May 9 did much to influence both the nature and timing of Bundeskanzlerin Angela Merkel’s response to the grave threat to the euro and even the EU arising from the Greek financial problems. That is well and good, but those same NRW elections at the same time had another rather different significance for a separate voting bloc, one not necessarily so interested in the mere potential for collapse of the common European currency. These citizens are overwhelmingly young and male; they usually converse in Java and C++ as easily as in their native German; and they vote for the German Pirate Party, whose disappointing results in that same ballot saw its share of the overall vote drop to 1.5% from the full 2% share it had enjoyed during last Fall’s nationwide election.

You might recall that this political organization, like all the off-shoots of the original Pirate Party in Sweden, takes for its purpose advocacy mainly for Internet-related issues such as copyright reform, digital civil rights, and the prevention of Internet censorship. Philip Kuhn of Die Welt recently sat down with party leader Jens Seipenbusch for a brief interview in the wake of those poor electoral results. (more…)

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“Typical Germans” in Conspiracy?

Thursday, April 8th, 2010

Writing in the Walloon (i.e. Belgian-French) business newspaper L’Écho, in a piece somewhat sarcastically entitled The euro, our Savior, Marc Lambrechts makes a brief macroeconomic survey of the current European scene and comes up with a couple paradoxes. It looks like everybody is feeling better now about the business conditions, as surveys carried out within the Eurozone among both businessmen and consumers show. But this might be nothing more than spring-fever; Lambrechts prepares us for the shock that first-quarter 2010 economic reports are going to bring, showing a marked slowing-down then (e.g. German GDP drop of 0.4%) caused mainly by the severe winter weather and the sharp drop in auto-sales from the expiry of all those national “cash-for-clunkers” purchase-subsidy schemes.

Surely recovery will come about eventually, although with regard to Europe generally economists at the OECD are not optimistic about that happening until the second half of this year. One way for Germany to expedite that for itself, though (since the Germans earn so much from exports), is to get the euro to fall in value against the other major world-currencies – a process to which nothing has contributed more lately than the continuing confusion in the financial markets over Greece’s fiscal problems, which German obstinacy and tight-fistedness at the EU level has only prolonged. “A curious paradox,” Lambrechts calls this.

UPDATE: Strangely, the performance-vs.-confidence balance seems to be reversed in the US, as per this article from the New York Times.

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€8 Trouble in Paradise

Friday, April 2nd, 2010

Back to Health Care Reform. I know: the battle’s over, the President is now out doing his victory-lap, and even some Republicans think that, now that it passed, it’s here to stay.

But remember, this is above all a weblog with a European bent, so – if it makes you feel better – I can let you know (from an article in Berlin’s Der Tagesspiegel) that a certain turbulence is also currently afflicting that model of social(ist) health care provision, the German Krankenkassen. Those are the non-profit, government-supervised insurance companies that cover the vast majority of Germany’s population and are restricted to basing their premiums solely on the insured’s income. (You’re required to have medical insurance coverage there, of course, with very few exceptions, although if you prefer you can buy it from purely-private, for-profit insurers instead.) As the article reports, the public Krankenkassen are now experiencing extraordinary customer-turnover, often in the hundreds-of-thousands. Why? Because the government authorized them in February to charge those they insure up to €8 (= $10.85) more per month in order to shore up their balance-sheets, and some of them took advantage of that.

That’s right: eight euros per month more! Apparently that’s a deal-breaker for many Germans, who in remarkable numbers have proceeded to resign from the Krankenkassen which implemented the measure (known as the Zusatzbeitrag, or “supplementary contribution”) to go join those which did not. It didn’t help that someone made an elementary mistake about how to implement it, in that they made any interested Krankenkasse have to bill customers directly for the extra amount, rather than just letting it be charged as medical insurance premiums normally are as a wage-deduction collected by employers.

Just a word here, then, to let all interested know that it is not always sweetness & light over where citizens need not worry about medical coverage. (Not that there’s any indication that the firms losing customers are in any danger of going bust – like I say, they are state-supported.)

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Child-Abusers of Another Stripe

Thursday, April 1st, 2010

The tales of mistreated youth at these institutions are continuing to multiply. There was sexual abuse coming from those who were supposed to care for them, to be sure. But far more pervasive was the intimidating atmosphere, often accompanied by violence: heads shoved down toilets; beatings; even confinement for extended periods in cells, like common criminals.

I’m not making any of this up, as I will shortly document, at least for those of you who read German. Yet long-time readers of this weblog – Hi Mom! – will remember my fondness for the “false lead,” where impressions about what a given blogpost is about gained from its opening lines turn out to be wildly off-the-mark. Surely I am describing here the Roman Catholic institutions, run by paedophile priests, whose reputations are now being blackened by accusations leveled against their administrators by former inhabitants? Actually, no; taking as my cue a new article by Alan Posener in Die Welt (Brutal daily life in DDR youth institutions), I am referring to the establishments for problem youths set up and run by the former Communist East Germany. (more…)

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Nukes: Eradicate or Modernize?

Wednesday, March 17th, 2010

Ever hear of the B-61? Sounds like a US warplane, and that’s close but not quite right. Or maybe you’re not interested at all in the B-61, whatever it is – but, to modify the quote attributed to Leon Trotsky, the B-61 could well be very interested in you, at least in the event of nuclear war. For the B-61 is actually the leading thermonuclear bomb in the American arsenal, first designed back in 1963 at the height of the Cold War. And a there was a recent article in Der Spiegel (US Ministry wants to modernize old atomic weapons) about the drive that is now underway on the part of the US Department of Energy (which formally controls all American atomic weapons) and the Department of Defense to spend quite a lot of money to modernize the many B-61s still in stockpile.

Aside from being refreshingly arcane – anybody see any sort of coverage of this at all in the American press? I thought not – how is any of this important? In a couple of ways, actually. First there’s our old friend German Foreign Minister Guido Westerwelle, who explicitly campaigned during the last German nationwide election to have the Americans withdraw all of their nuclear warheads from Germany. It’s even a separate policy-point in the coalition agreement that undergirds the current CDU/CSU/FDP federal government in power in Berlin.

Obviously, though, if the Americans are seriously contemplating going forward with B-61 modernization, including for the many such warheads stored in Germany (the exact number is surely classified), then the German Foreign Minister can yell and demand all he wants, but it will remain painfully apparent that he has no say in the matter. Hey, they’re just devices sitting on German soil, each capable of annihilating a major city – but it’s highly unlikely that even Bundeskanzlerin Angela Merkel herself has any say, either, due to the web of defense agreements governing NATO military installations and US-German relations dating from back when Central Europe was a much more dangerous place.

It’s all something rather alarming to be made aware of, especially if you’re a German citizen, but this still is plainly the main message of this article’s author, Otfried Nassauer, even as he goes on in his article to describe – in what sometimes reads like rather unseemly detail – exactly what the proposed B-61 modernization plans entail. Right now there are five B-61 models, and that’s too unwieldy; those five are to be transformed into just two, namely Model 11 (which already exists and is said to be an atomic “bunker-buster” for tactical use) and Model 12 (brand-new, a multi-use model to take up the roles now covered by all the other models which are to be phased out). Further, in a yet more- explicit sign of the clear intention to keep these weapons in Europe for a long time to come, another aspect of the modernization will involve making sure these bombs are modified so that they can be delivered by the next generation of NATO tactical aircraft, such as the Joint Strike Fighter.

There’s yet another point Nassauer intends to make as well, however. Didn’t President Obama, in his speech to the adoring crowd last April in Prague’s Hradčanské náměstí (Castle Square), speak of his ambition to abolish nuclear weapons entirely? What ever happened to that notion? It’s true that Obama gets the last word in this modernization decision, which he will present in the “Nuclear Posture Review” that his administration is due to deliver to Congress shortly. But – surprise! – no sort of radical move to put aside the proposed modernization entirely is expected. There is too much money at stake, i.e. too many vested interests pushing for it both in DOE and DOD. Indeed, the main point of contention currently is whether the envisioned modernization will end up paving the way for the development of a new generation of nuclear weapons or instead just serve as a substitute for that.

But as for the Germans? Forget ‘em.

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It’s the End of the World As We Know It – And Your Appeal’s Denied!

Thursday, March 11th, 2010

Here’s another obscure blast from the past – the European Organization for Nuclear Research, better-known by its initials (in French) CERN. Do you happen to remember the brief stir of publicity from around two years ago when that institution’s Large Hadron Collider (LHC) was finally built and could start smashing sub-atomic particles into each other along a 27 kilometer-circumference magnetic track? That fleeting bit of excitement (among those who cared, at least) quickly evaporated when the huge thing didn’t work quite right when they first flipped the proverbial switch, and so had to be repaired.

Don’t worry, though, because the scientists finally got the LHC to function properly late last year. Or rather, if you do need something to worry about, consider the possibility out of theoretical physics that has been looming ever since the LHC finally started operations, and which was also certainly known about before the gigantic thing was even built. When it smashes these sub-atomic particles into each other, you see, one by-product is black holes – small black holes, to be sure, but there has always been some possibility of one or more of them getting bigger and basically swallowing up the whole Earth. (more…)

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The Digital Revolution Falters in Germany

Monday, October 19th, 2009

On the old media/new media front, a couple of German on-line sources give us an update on how the landscape is evolving over there.

First there is a brief piece in Der Spiegel about the Frankfurter Allgemeine Zeitung or FAZ. The FAZ’s fortunes are worth tracking because, like the New York Times in the US, it is really Germany’s own “newspaper of record.” (You can even call it the Teutonic “Grey Lady” as well if you like, since it still publishes no illustrations of any kind on its front page, but always has instead two commentary articles over on the right side, with their headlines in the old Gothic script.) Of course, as with the Times it’s also true for the FAZ that it is currently suffering heavily from declining subscriptions and declining advertising revenues, to the point that it expects to suffer a financial loss this calendar-year “in the area of the high single-millions [of euros]” – the precise number will of course depend upon how things turn out over the holiday period rounding out the year. Still – and here’s a contrast with the Times – management has ruled out any lay-offs. Of course, they’ve also had a hiring-freeze in place for a year, and the “no lay-offs” stance is also dependent upon an anticipated upturn in the paper’s fortunes sometime in the second half of next year, so that it will be able to actually turn a profit through 2010. So maybe the difference here with American employment practice is not the German’s being more “compassionate” in holding on to employees, but merely being more deluded about the future. (more…)

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Ding-Dong The Recession Is Dead!

Thursday, August 13th, 2009

Word is from over there on the West side of the pond we call the Atlantic Ocean that your Great Recession is coming to an end, to the point that the Federal Reserve is starting to move “back toward normal policy.” Well, it seems the same is true for Europe’s largest economy, Germany, as we learn today in the Frankfurter Rundschau: new data out from the Statistical Office there show that there was growth of 0.3% in the second quarter, even though 35 analysts surveyed by Reuters had earlier collectively counted on further GDP-shrinkage by about minus 0.3%.

In fact, that Office reports that there were signs that growth actually re-commenced already in this year’s first quarter, although the cumulative total for 2009 does stand now at minus 3.5% (and is still expected by the government and some leading economic institutes to come out at minus 6% for the year). Even better is the year-on-year comparison with 2008′s second quarter, which itself was minus 7.1%. (I’m assuming all these growth/shrinkage percentage figures are normalized to an annual basis.) Increased private and governmental consumption, as well as construction, get the main credit for the upturn – plus the singular fact that German imports have lately contracted even more than their exports, thus sharpening further the world-beating performance of that champion German export-surplus machine.

Still, you don’t have to be too much of a skeptic to ask “So what? What does this new, surprising, but small growth number really mean?” So the (uncredited) FR reporter turned to a handfull of economic analysts from leading banks and think-tanks to get their opinions. Analysts from Commerzbank and Unicredit (an international bank, Italian in origin) are very optimistic, stating for example that “The recession is over, and has reached its end earlier than everyone thought. . . . According to our calculations we will see a V-shaped recovery in the second half of this year.” Call me congenitally gloomy, but I find the remark from Jens-Oliver Niklasch, of the Landesbank Baden-Württemburg, to be rather more enlightening:

The question is, how enduring [this "end-of-recession"] is. Many problems we have not solved, the banking sector just like before is especially reliant upon the State’s debt-shield. As long as it is not clear that the banks’ capital base is robust, we cannot assume that the Crisis is past. Japan is a cautionary example here.

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Baring Their Electoral Assets

Tuesday, August 11th, 2009

busenAs we’ve mentioned before in this space, but in other contexts, there is a German general election due on Sunday, 27 September. To mention yet another context: that happens to be the middle-Sunday of the two weeks of Oktoberfest, so perhaps we can expect reduced electoral turnout among Munich polling-places and/or increased incidents of voting-while-drunk.

Berlin, on the other hand, is already having to deal with a new (yet also very, very old) method of trying to provoke a cleft within the body politic, as you can see from the above illustration, and as Die Tageszeitung columnist Ines Kappert – that’s a woman’s name – complains about in a brief essay entitled Aha, Titten (which I won’t translate for you from the German; I think you can get the sense on your own). Vera Lengsfeld is the lady with the green necklace, which stands in stark contrast to her more-natural adornments, on the right side of this electoral poster from Germany’s CDU, or Christlich Demokratische Union, also the party of Chancellor Angela Merkel, who is the similarly-adorned lady to the left. Lengsfeld posed explicitly for this poster, while Merkel’s picture comes from her appearance last year at the ceremony for the inauguration of the new Oslo (NO) opera house, where her choice of apparel excited considerable comment in the German media. (more…)

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Germany in EU Budget Doghouse Again

Monday, May 4th, 2009

Die Zeit today brings doleful news: Germany has a relapse! What the unnamed journalist (no by-line) is referring to here specifically is what he calls the “Maastricht Criteria,” according to which EU member-states are supposed to keep their government budget deficits to 3% of GDP or less. (That’s OK as a name, but it would be more accurate to call this requirement part of the Stability and Growth Pact that was agreed to as a pre-condition for the establishment of the euro.) Sure enough, the European Commission now calculates (in a report released today) that the German debt this year will amount to a full 3.9% of GDP – and next year even 5.9%! And all this, the Die Zeit article notes, just two years after Germany had managed to get itself out of the Commission’s bad graces (actually, out of a full-scale official EU “penalty process”) for violating this rule!

Well, to offer a quick bit of economic analysis: No sh–, Sherlock! (more…)

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Germany’s Dr. Doom Speaks!

Monday, April 27th, 2009

I hate to be a “downer” here at EuroSavant, but nonetheless feel an obligation (as explained below) to bring up recent alarming pronouncements about Germany’s immediate future made by a prominent economics professor there, Dr. Max Otte (full last name: “Otte van Ullstein”) of the University of Worms. The main coverage I found in Die Welt (Crash-guru demands vacation-ban for Germans, no by-line), although that article references and orients itself around a brief interview Prof. Otte recently gave to Berliner Kurier (The crash-professor prophesies: the crisis will hit us this hard), a Berlin-based tabloid. (more…)

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Škoda Free-Trade Success

Thursday, March 19th, 2009

fabiaNeed a little bit of good recession-related news? Maybe even something with “rejoice” in the title? We get that from the mainstream Czech daily Lidové noviny, reporting on recent Škoda auto sales: Germans fall in love with the Fabia, Škoda rejoices. Yes, Škoda’s Fabia (pictured here) was the second-most-sold automobile in the German market in February, 2009, behind only that perennial favorite the VW Golf. At 9,190 units sold, Fabia sales were triple what they had been only the previous month, while sales of the Octavia also improved enough to push that sister Škoda model (more of a luxury auto, I believe) to 19th place on the auto-sales hit-parade of what is of course a very competitive German market. One important result of all of this is that Škoda has cancelled the plans it had to go to a four-day work-week until the end of June; the five-day work-week (meaning five-day pay for personnel) will stay. (more…)

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Opel Must Die! (For Your Motoring Sins)

Tuesday, March 10th, 2009

opel_400I almost missed it, but here is the article I had been waiting for about the big question now confronting the German government. With Opel allegedly only having about a month’s worth of cash left – should it stay or should it go? We have recently touched upon this affair here, although that previous treatment was shaped around the emergence of an Opel fan club whose members certainly see both a notable past as well as a promising future as perfectly good reasons for the German State to intervene to help see the car company through.

Wolfgang Münchau, of both the Financial Times and Financial Times Deutschland, although evidently German himself, clearly does not class himself among that group of Opel fans. His commentary piece is cheerily entitled Have a good trip into bankruptcy!, and he begins it with the generic tale of what has happened to him at many a rent-a-car stand in Germany: sorry, the friendly lady behind the counter informs him, but we’re all out of our VW, Mercedes, and BMW models for you to choose from, how about that Opel there in the corner? Münchau says that, at such times, he is always sorely tempted to simply rent a bicycle instead.

OK, so it’s evident from the start that Opel can expect no favors from this particular FT/FTD columnist. Unfortunately, the analysis that ensues about why the German government should just stay hands-off and let the firm go meet its demise is precise and mostly incontrovertible. Opel does not embody any sort of key technology that would need to be preserved by keeping the firm alive. (Actually, although Münchau does not bring it up, even if Opel did possess some snazzy proprietal technology, it would inevitably be owned by the parent company, GM. More on this below.) And its closing would not overwhelmingly hit any particular region or industrial sector, he writes. (I have my doubts about the former; Rüsselsheim, a German city in Hesse near Frankfurt and the Rhein and Main rivers where the main Opel factory-complex is housed, would become quite a forlorn place if Opel were to shut its doors.) (more…)

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Germany Most Beloved!

Saturday, February 7th, 2009

Here’s another entry in the series we seem to have fallen into lately of “Countries Tooting Their Own Horns.” We already have learned, from the Danish, that the Danish economy can be a “supermodel” for the rest of the world, and (from the Belgians) that Belgium is the most-globalized country. Now, as a current article in Die Welt puts it, Germany is the most-beloved state in the world!

Ah yes, we know – those cuddly Germans! But wait: looking beyond the headline, what this is really all about is a worldwide poll, undertaken yearly for the BBC World Service by the firm GlobeScan, asking respondents to react to a list of fifteen prominent countries by stating whether, in each case, they feel that country has a positive or a negative influence on world affairs. This year, for the first time, Germany was tops, with 61% positive and only 15% negative. Canada was second (57/14), the UK was third (58/19).

(OK, the UK was third even with a slightly-higher positive rating than Canada; obviously GlobeScan uses some ranking formula that combines the two inputs. The good thing about this poll is that the sample was a rather-large 13,575 people, from among 21 countries. The bad thing is that I can’t find any mention of it on the BBC World Service website or any affiliated BBC webpages.)

And the losers? In tenth place was China, at 39/40 – yes, despite those marvelous Summer Olympics. In eleventh place came the USA, with 43% evaluating its influence on world affairs as negative (40% positive). Keep in mind that this poll was conducted after Barack Obama was elected president last November 4 – but at least that negative rating for the Americans is down from the 48% that it was in last year’s poll. Then Russia at twelfth place (30/42). Israel is at fourteenth place (21/51), but at least the Jewish state beats out Pakistan (17/53).

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Lotto Anti-Recession Policy

Saturday, January 24th, 2009

Here’s a solution for dealing with hard times, from Germany’s Die Zeit: Game of chance: Rush on Lotto-shops – 25 million euros has its attractions. The lede:

The prospect of winning the Lotto-jackpot of 25 million euros has led to a rush on the sales-points in many places in Germany. Lotto-players file through the tobacco-shops and Lotto-shops one-per-second.

The report comes from on-the-scene in Stuttgart, mainly because the last big German Lotto winner – picked up a €4 million prize last 20 December – came from there. To win that €25 million you have to get the seven numbers picked exactly right; if no one does that in four further drawings, then it will be split among all those who pick at least six numbers correctly for the next drawing.

The article also passes along comment from Klaus Sattler, press-spokesman of the Deutscher Lottoblock that runs these lotteries: “It’s a misconception that people in hard times turn increasingly to games of chance.”

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German Stimulus Plan: Too Little, Too Late?

Wednesday, January 14th, 2009

It’s over: they caved. Maybe some of us had been looking forward to a real-world macroeconomic experiment with Germany boldly carrying the banner for that strain of economic opinion – that is still out there, loud and boisterous – according to which massive government spending is the wrong way to counter the current economic crisis. But now, with the €50 billion Konjunkturpaket II it just announced, the German federal government has hopped on the mega-spending bandwagon with everybody else. It seems it’s just too hard, even for Germans, to be prudent and thrifty in front of the voters when you face a general election later in the year.

The FAZ gives a good summary of what is involved – as you would expect from the FAZ: The main points of the Konjunkturpaket: Car turn-in premium, debt-limitation, and rescue-shield – and at its core lies the usual combination of infrastructure investment and tax-cuts, just this time auf deutsch. Most of the infrastructure investment will go into schools; to help the auto industry, people will get a payment of €2,500 if, upon buying a new car, they turn in their old one; and there will be set up to assist small businesses finding it hard these days to get credit a counterpart to that “Soffin” we’ve discussed here so much lately, i.e. the government-run fund for bailing out troubled banks. (more…)

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Germans to Repeat US Banking Mistakes?

Saturday, January 10th, 2009

Ah yes, as I observed in a post a few days ago, when it comes to state funds made available to prop up failing banks, the German bank bailout demand is low. But “low” does not have to mean “non-existent,” and in fact on Thursday the German government made use of the Sonderfonds Finanzmarktstabilisierung (“Special Fund for Financial Market Stabilization,” or Soffin) it had established to provide Commerzbank with €10 billion in exchange for taking up a 25% ownership stake. More precisely, of that €10 billion €1.8 billion actually buys that equity quarter-stake while the remaining €8.2 billion goes to a “silent participation” that gains no voting rights. By the way, at roughly the same time Commerzbank also took advantage of that other facility offered by Soffin – namely State debt guarantees – to bring in another €5 billion in new capital via a guaranteed bond-issue.

If you were to use your imagination to put yourself in the German federal government’s place – say, if you were a German taxpayer in whose name all this money was being spent – you might very well wonder what those civil servants in charge of the Soffin were thinking by accepting in exchange for the lion’s share of that €10 billion amount a mere “silent participation.” After all, it’s clear that insisting on a 100% active participation would have resulted in the purchase of the entire bank, with money to spare. (Do the math: that €1.8 billion bought a 25% interest, yet constituted not even 25% of the €10 total spent.) Instead, the remainder of that money gains for the government the “silent participation” that is in effect a loan, charging 9% interest. (more…)

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German Bank Bailout Demand Low

Monday, January 5th, 2009

It’s a New Year, and now time for us all to head back to work. But I did want to call forth to the light an interesting article of 31 December 2008 from the Frankfurther Allgemeine Zeitung about the experience so far with the structures the German government put in place last fall to prop up its banks (Few banks seek State protection).

FAZ reporter Manfred Schäfers gives an interesting outline of the monetary amounts and structure involved there. First the former: the German government is ready to issue bank-guarantees in the amount of around €400 billion (the exact amount is unclear because Schäfers mentions two different figures even within the confines of this relatively-short article) and is making available an additional €80 billion in outright capital-injections. The program, run out of the federal Finance Ministry, is the Sonderfonds Finanzmarktstabilisierung (meaning “Special Fund for Financial Market Stabilization,” abbreviated as Soffin), headed by a three-person committee of banking worthies that includes Gerhard Stratthaus, former Finance Miniser for the state government of Baden-Württemberg and Schäfers’ main information source. Strangely, the participation on that committee of two other named individuals, who are supposed to be Stratthaus’ colleagues, is still up in the air.

I guess that’s OK, though, because the point of the article is that Soffin’s agenda is not really chock-full. “Up to now we’ve got 15 applications,” Stratthaus reveals, “and most [financial] institutions are interested in the guarantees.” Of those that are seeking a chunk of actual money – i.e. a piece of the €80 million budgeted for capital injections – their requests to this point add up only to less than €15 billion, and other indications point to Commerzbank as responsible for €8.2 billion out of that alone. (more…)

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Obama in Berlin: A Serious German Press Review

Friday, July 25th, 2008

It’s all a bit bizarre: Here at EuroSavant we consider the Economist’s on-site blog Certain Ideas of Europe to be something of a watered-down competitor, in that its (anonymous) writers evidently command a few European languages themselves and take advantage of that often to remark upon noteworthy articles in the European press (really only the French and the German). Yet in its own day-after Obama-Berlin coverage, what else does Certain Ideas of Europe choose to highlight out of reaction to Obama’s Berlin speech from the German Fourth Estate than a breathless piece from the Bild Zeitung (Britons: think The Sun; Americans: maybe The New York Post but – as we’ll see – with a bit greater tolerance for female nudity.) The blog entry is entitled Obama and the ‘BILD girl’. Wow – 27-year-old Bild reporter Judith Bonesky (stifle the puns!) finds herself together in the gym of the Ritz Carlton hotel with HIM! Oh, he’s much taller than she had expected! They exchange some “How are you?”s! Then he goes and starts hefting some impressively-big weights, in such a manly fashion, without breaking a sweat! Naturally, when it’s time for him to go (he’s got a speech to deliver), she grabs her chance for a smugshot with the candidate. (more…)

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The Other Holocaust?

Monday, April 11th, 2005

Germany is an interesting country (among other reasons) because, although it is a liberal democracy, there are still certain things you’re not allowed to be or say. You’re not allowed to be a Communist or Nazi, for example; both these parties are outlawed. You’re not allowed to publish Hitler’s Mein Kampf.

However, there is an important exception where you can at least say whatever you like – if you happen to be a member of parliament (either the houses of the federal parliamant – the Bundestag or Bundesrat or of any of the state parliaments), and you’re speaking either on the floor of that parliament or in one of its committees. In those places, it seems about the worst that can happen in response to something impolitic you might say is that part (or, I guess, all) of your audience may decide to walk out on you.

This happened recently in the parliament of Saxony – a German federal state, or Bundesstaat, in what used to be Communist East Germany, whose capital is Dresden. That is, a number of Saxon lawmakers left the parliamentary assembly last January, in response to some remarks on the floor by Holger Apfel, fraction-leader there for the NPD. The Nationaldemokratische Partei Deutschlands (National Democratic Party of Germany – sorry, you’ll have to find the link to their website yourself if interested) carries the “right-extremist” label, at least from one credible source, and that is Munich’s Süddeutsche Zeitung. That paper recently reported on this incident, which was touched off by Apfel’s characterization of the destruction of Dresden in February, 1945, by allied bombers as a “bomb-holocaust,” and of the Allies as “mass murderers” (No Charges Against NPD-Chief Due to “Bomb-Holocaust”). (more…)

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Barroso Faces the German Press

Saturday, August 21st, 2004

Things are moving along rapidly with José Manuel Barroso and his new European Commission, scheduled to come into office next November 1. As I noted a week ago, Barroso came up with his set of twenty-four portfolio-name pairs two weeks before the deadline he had promised, and yesterday these twenty-four met together in Brussels for a first “getting-to-know-you” session. At the same time, Barroso gave his first interview to the press since being named Commission President last month, which turned out to be a collective interview to reporters from five German newspapers. (Among which Munich’s Süddeutsche Zeitung. Note that this SZ article is not in interview form per se, but instead reports the points Barroso made.) That they happened to be German newspapers was not just a tribute to that country’s position as the Union’s leading population and greatest economic power. (more…)

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Germany! Become More American!

Wednesday, August 4th, 2004

It looks like I’m on something of a German roll here – but maybe that’s OK, since I noticed that articles from the German press tended to get short shrift in EuroSavant recently. (For instance, click the category for Germany to the left and see what’s there for the month of July.) In any case, who could resist a headline like “Germany Must Become More American” (free registration required)? (more…)

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The Warsaw Uprising and Faltering Polish-German Rapprochement

Tuesday, August 3rd, 2004

You might not have heard about this; after all, it has nothing to do with Boston or John Kerry’s nomination, or his speech, or the Republican reaction. But other parts of the world do continue to have their own concerns. Believe it or not, in some cases these still involve the Second World War, for which 2004 contains the sixtieth anniversary of various of its events. In particular, Sunday was the sixtieth anniversary of the beginning of the Warsaw Uprising of 1944 against the Nazi occupation, and German Bundeskanzler Gerhard Schröder paid a visit to Warsaw to participate in the ceremonies. (more…)

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Grinning and Bearing it in Germany

Sunday, July 4th, 2004

We recently reviewed German commentary on how the Dutch economy is going to the dogs. Fair is fair: An analysis of current German economic problems from the Danish newspaper Berlingske Tidende (The Titanic or Germany) goes far to suggest that German comments about the failure of the Dutch “polder model” were an instance of the fabled pot calling the kettle black. (Now, to keep the chain going, I need to find some on-line article – maybe from the French press? – revealing current Danish economic problems.) (more…)

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Germany Considered

Sunday, June 6th, 2004

The anniversary of the D-Day landings as a pretext to take up the Danish newspaper Politiken’s cultural survey of Germany? Especially given that D-Day has never been that big a deal to the German people – just another bloody WWII defeat? Oh, why not – this was after all the first year that the German Bundeskanzler agreed to be present at the commemorative ceremonies, and that supposedly reflects new attitudes among the German people that the D-Day landings actually represented the beginning of the long process of their liberation. So an examination of the German mentality through the ages is warranted. Besides, I’ve been itching to cover the German cultural portrait for some time now. Ultimately, you can just forget about the EU’s other pissant small-fry – Luxembourg, say (Charly Gaul, indeed!), or even Denmark: Germany is the true European colossus, for which there should be a cornucopia of cultural artifacts to choose among (persons; music/song; poems; events!) that should even exceed France’s. One can only hope that the German writer chosen is up to the job. (more…)

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Controversy over the Head-Scarf Ban

Friday, January 23rd, 2004

Wow: the split-up of Ben Affleck and Jennifer Lopez is homepage news even for the Frankfurter Allgemeine Zeitung (“Jennifer Lopez Gives Ben Afflek Walking-Papers), with column titles such as Doch wieder Puffy? (“So It’s Back to Puffy?”). That’s pretty tempting to get into. But it’s not like there isn’t anything else a bit more “legitimate” to discuss – like recent setbacks for the idea of banning the wearing of religious symbolism (primarily the Muslim head-scarf for females), in both France and Germany. (more…)

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It’s Official: France Wins the Budget Deficit Battle

Friday, October 31st, 2003

You know that has to be true when the hardest-liner on the side of making France pay a fine for its flouting of the 3%-of-GDP budget deficit limit, Dutch finance minister Gerrit Zalm, finally throws in the towel. That he is now doing so is clear from an interview published in today’s Het Financiële Dagbald (subscription required). The scheduled meeting next Monday evening of EU finance ministers, long thought to be a setting for confrontation, will now merely be a formality as the lenient stance proposed by EU Economic and Monetary Affairs Commissioner Perdo Solbes is approved. Even though for him personally Monday’s meeting is sure to be, as the article puts it, “a long and unpleasant session,” in the end Zalm himself might even vote to approve Solbes’ proposal, if only to head off even more-lenient treatment of the French that some may use that occasion to advance. (more…)

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An Interim IGC Evaluation: Buy Your Dollars Now!

Tuesday, October 21st, 2003

As varied as the individual details may have been, one theme clearly predominates the preceding accounts on this website, from the French, Dutch, and the Czech press, of the progress of the EU draft Constitution Intergovernmental Conference (IGC) so far. And that is, of course, that there has been virtually none – indeed, that there is even considerable dissatisfaction over the process currently being used to try to gain common agreement on an EU Constitution. (more…)

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