Gernot's Feed
May 28, 2015

G7 finance chiefs discuss growth risks, urge deal on Greece

DRESDEN, Germany (Reuters) – Finance chiefs from the Group of Seven economic powers met on Thursday to discuss how to revive a faltering global recovery, with the United States leaning on Europe to reach a deal to avert a Greek bankruptcy.

The threat of a Greek default, rising oil prices and bond market turmoil are fuelling investor nervousness about an unwinding of the global economic recovery. A slowdown in China — not present at the talks in Dresden, Germany — is adding to the concern.

May 21, 2015

Germany’s Schaeuble welcomes rise in German Bund yields

BERLIN (Reuters) – German Finance Minister Wolfgang Schaeuble told Reuters that the recent rise in the yields of long-term German government debt was a move in the right direction and boded well for life insurers.

Last week, Germany’s 10-year borrowing costs rose at a debt auction for the first time since January 2014.

May 21, 2015

Greek optimism about imminent deal not justified: Schaeuble

BERLIN (Reuters) – German Finance Minister Wolfgang Schaeuble told Reuters the Greek government’s optimism about clinching a cash-for-reforms deal with its lenders in days was not backed up by negotiations and he could not rule out Greece becoming insolvent.

Greek Prime Minister Alexis Tsipras’s leftist government hopes a deal with foreign lenders is imminent, with Finance Minister Yanis Varoufakis saying on Monday that an agreement could be reached within a week.

Apr 15, 2015

Germans downbeat on chances of Greek deal next week

NEW YORK/ATHENS (Reuters) – Germany’s finance minister said on Wednesday there was no prospect of the euro zone reaching a deal with Athens next week on economic reforms that would unlock bailout funds, potentially leaving Greece perilously short of money.

Both the Greek government and its creditors have expressed the need for an agreement, at least in outline, to be reached when euro zone finance ministers meet in the Latvian capital Riga on April 24.

Apr 13, 2015

Germany needs to significantly increase investment: experts

BERLIN (Reuters) – Germany is not investing anywhere near enough and its public and private sector must boost spending to ensure Europe’s largest economy continues to grow and create jobs, a panel of experts said on Monday.

Marcel Fratzscher, head of the Berlin-based DIW economic institute, said the 21-member panel convened by Economy Minister Sigmar Gabriel to come up with a range of investment options had concluded that Germany was suffering from very weak investment.

Apr 7, 2015

Germany dismisses Greek demand for billions in WW2 reparations

BERLIN (Reuters) – Germany’s economy minister branded Greece’s demand for 278.7 billion euros (203.6 billion pounds) in reparations from World War Two as “stupid” on Tuesday, while the German opposition said Berlin should repay a forced loan dating from the Nazi occupation.

Greek Deputy Finance Minister Dimitris Mardas made the demand on Monday, seizing on an emotional issue in a country where many blame Germany, their biggest creditor, for the tough austerity measures and record high unemployment connected with two international bailouts totaling 240 billion euros.

Feb 10, 2015

Bundesbank’s Weidmann urges Greece to make ‘credible’ reform effort

ISTANBUL (Reuters) – The chief of Germany’s Bundesbank pressed Greece on Tuesday to make a credible effort to get back on its feet with tighter public finances and economic reforms, showing no willingness to bend in a standoff with Athens.

In an interview with Reuters, Jens Weidmann gave no quarter in the confrontation between Greece and its euro zone partners, in which Athens is seeking an end to its international bailout program and the tough austerity terms attached.

Feb 9, 2015

Euro zone, Greece face off as markets take fright

ATHENS/ISTANBUL (Reuters) – Greece and its euro zone partners engaged in brinkmanship on Monday, with leftist Prime Minister Alexis Tsipras insisting his country would not extend its reform-linked bailout and Germany saying it would get no more money without such a program.

European Commission President Jean-Claude Juncker warned Greeks not to expect the euro zone to bow to Tsipras’ demands in a growing confrontation which spooked financial markets and prompted U.S. and Canadian pleas for calm and compromise.

Feb 9, 2015

EU warns Greece: don’t assume euro zone will accept your demands

ATHENS/ISTANBUL (Reuters) – Greece and its euro zone partners engaged in brinkmanship on Monday, with leftist Prime Minister Alexis Tsipras insisting his country would not extend its reform-linked bailout and Germany saying it would get no more money without such a program.

European Commission President Jean-Claude Juncker warned Greeks not to expect the euro zone to bow to Tsipras’ demands in a growing confrontation which spooked financial markets and prompted U.S. and Canadian pleas for calm and compromise.

Feb 2, 2015

Schaeuble worried German support for euro is waning

BERLIN (Reuters) – German public support for the euro is dwindling worryingly due to the Greek crisis and the European Central Bank’s decision to buy a trillion euros of government bonds, Finance Minister Wolfgang Schaeuble told Reuters on Monday.

“You have to see the danger, there’s no question about that,” the veteran conservative said at the Reuters Euro Zone Summit, when asked if renewed Greek turmoil and the debate about low interest rates were starting to turn Germans against the single currency.