BERLIN (Reuters) – The German government will nearly halve its forecast for growth next year to about one percent, coalition sources said on Wednesday, underscoring fears about a significant slowdown in Europe’s biggest economy due partly to the debt crisis.
The government is due to announce its latest estimates for growth on Thursday.
Coalition sources told Reuters that Economy Minister Philipp Roesler would revise his previous forecast of 1.8 percent growth for next year to about one percent and that he would cut his 2011 forecast to 2.9 percent from three percent.
PARIS (Reuters) – The world’s leading economies kept the pressure firmly on Europe to sort out its debt crisis on Saturday with the sense of urgency to be reflected in a communique at the end of a G20 finance chiefs’ meeting.
The make or break moment in the two-year-old crisis that has spread far beyond starting point Greece could come at a summit of EU leaders on October 23. Germany and France have promised to set out a plan to halt the contagion, protect Europe’s banks and the wider world economy.
BERLIN (Reuters) – A minister in Angela Merkel’s conservative party propelled Germany into a debate about guarantees on bailout payments to Greece, backing a demand from Finland for collateral, but Berlin distanced itself from her comments.
Labour Minister Ursula von der Leyen, also a deputy president of the chancellor’s Christian Democrats (CDU), told German TV on Tuesday that future bailouts should only be made against guarantees.
BERLIN (Reuters) – Germany is starting to look for domestic private investors to buy part of Daimler’s (DAIGn.DE: Quote, Profile, Research, Stock Buzz) stake in EADS (EAD.PA: Quote, Profile, Research, Stock Buzz) and keep German influence at the European aerospace group, ruling coalition sources said on Tuesday.
“The starting shot has been fired,” one source close to the matter told Reuters. Other sources in conservative Chancellor Angela Merkel’s coalition confirmed this, saying that a systematic search would get underway in the coming weeks.
BERLIN, Aug 16 (Reuters) – Germany is starting to look for
private investors to buy part of Daimler’s (DAIGn.DE: Quote, Profile, Research) stake in
European aerospace group EADS (EAD.PA: Quote, Profile, Research), sources in the ruling
coalition told Reuters on Tuesday.
“The starting shot has been fired,” one source close to the
matter told Reuters. Other sources in Chancellor Angela Merkel’s
coalition confirmed this, saying that a systematic search would
get underway in the coming weeks.
BERLIN, Aug 15 (Reuters) – Two leading German business
groups came out in support of joint euro zone bonds on Monday,
raising pressure on Chancellor Angela Merkel to consider bolder
crisis steps a day ahead of a meeting with the French president.
The groups’ position, contrasting with that of Berlin and
Paris which have no immediate plans to discuss the idea, also
clashes with another German trade group and some economists who
said they too oppose so-called ‘euro bonds’.
BERLIN (Reuters) – One of Germany’s leading economic associations came out in favor of joint euro zone bond issuance on Monday, raising pressure on Chancellor Angela Merkel to consider bolder crisis steps ahead of a meeting with the French president.
Until now, the idea of so-called “Eurobonds” has been fiercely opposed by Berlin, which is fearful such a step would push up German borrowing costs and reduce incentives for weaker euro zone members like Greece to reform their economies.
BERLIN (Reuters) – Germany’s economy minister will meet on Wednesday with around 20 German business groups to discuss how to boost investment in the Greek economy, the ministry said on Monday.
Euro zone leaders agreed last week to offer Greece debt relief through a new rescue package of easier loan terms and to launch a “Marshall Plan” to revive the ailing Greek economy.
BERLIN/BRUSSELS (Reuters) – The European Central Bank (ECB) is willing to let Greece slip into temporary default as part of a crisis response that would involve a bond buyback but no new tax on banks, EU sources said on Thursday.
German Chancellor Angela Merkel and French President Nicolas Sarkozy crafted a common position on a second Greek bailout in late night talks in Berlin with ECB President Jean-Claude Trichet, sources in both governments said.
BERLIN/BRUSSELS (Reuters) – Germany and France have ruled out a bank tax after reaching a common position on a second bailout of Greece to prevent the country’s debt crisis spreading through Europe, EU sources said on Thursday.
The accord came after seven hours of talks late into Wednesday night between German Chancellor Angela Merkel and French President Nicolas Sarkozy in Berlin, sources in both governments said.