Senior Economics Correspondent, Germany
Paul's Feed
Jul 30, 2015

Euro zone’s inflation-less recovery gains traction

BERLIN, July 30 (Reuters) – Confidence in the euro zone
economy hit a four-year high in July and the European Central
Bank said recovery is picking up, supported by loose monetary
policy aimed at countering persistently low inflation.

Spain’s economy was a case in point, with data on Thursday
showing it growing at the fastest pace since before the
financial crisis. Weak German price pressures, however, showed
the threat of deflation has not disappeared with the rising
economic tide.

Jul 18, 2015

German lawmakers back Greek bailout talks despite rebellion

BERLIN (Reuters) – German lawmakers gave their go ahead on Friday for the euro zone to negotiate a third bailout for Greece, heeding a warning from Chancellor Angela Merkel that the alternative to a deal with Athens was chaos.

The Bundestag lower house of parliament, whose backing is essential for the talks to start, decisively approved the move by 439 votes to 119, with 40 abstentions. But almost a fifth of Merkel’s conservatives voted ‘no’ in a blow to the chancellor.

Jul 17, 2015

German lawmakers back Greek bailout despite rebellion; Tsipras sacks dissenters

BERLIN (Reuters) – German lawmakers gave their go-ahead on Friday for the euro zone to negotiate a third bailout for Greece, but a warning from Chancellor Angela Merkel that the alternative was chaos failed to prevent a hefty rebellion in her own party.

The Bundestag, the lower house of parliament, whose backing was essential for the talks to start, decisively approved the move by 439 votes to 119, but almost a fifth of Merkel’s conservatives voted ‘No’.

Jul 17, 2015

Back Greek talks or face chaos, Merkel tells German lawmakers

BERLIN (Reuters) – Chancellor Angela Merkel called on German lawmakers on Friday to back negotiations for a third Greek bailout, saying the alternative was chaos and that suggestions Athens might leave the euro temporarily wouldn’t work.

Merkel was addressing parliament, which is expected to give its clear backing for the euro zone to start talks on the new aid programme, even though Finance Minister Wolfgang Schaeuble has questioned whether it will succeed.

Jul 17, 2015

German parliament set to back talks on new Greek bailout

BERLIN, July 17 (Reuters) – German lawmakers are expected to
give the government their clear backing on Friday to start
negotiations on a third bailout programme for Greece, despite
Finance Minister Wolfgang Schaeuble questioning whether it will
succeed.

Lawmakers from Chancellor Angela Merkel’s conservatives and
her junior coalition partners, the Social Democrats, already
voted overwhelmingly in favour of the euro zone opening talks
with Athens in test ballots held on Thursday.

Jul 12, 2015

Luxembourg warns Germany a Grexit would be catastrophic

BERLIN (Reuters) – Luxembourg warned Germany on Sunday of a “catastrophe for Europe” if it pushed for Greece to leave the euro zone as the idea of a temporary exit gained traction with some of Chancellor Angela Merkel’s conservatives.

Luxembourg Foreign Minister Jean Asselborn’s comments came after Germany argued that Greece could take a five-year “time-out” from the euro zone and have some of its debts written off if Athens fails to improve proposals it has made for a bailout.

Jul 9, 2015

Legal grey areas give scope for Greek debt relief if Europe wants it

BERLIN, July 9 (Reuters) – German Chancellor Angela Merkel
has ruled out a “classic haircut” on Europe’s loans to Greece,
but European law leaves sufficient wiggle room to work out other
forms of debt restructuring if the political will is there.

Merkel is trapped between fierce domestic opposition to
going soft on Athens, and growing international pressure to
grant Greece debt restructuring if it delivers convincing
reforms in a deal to keep the country in the euro zone.

Jul 6, 2015

German line hardens after Greeks reject bailout terms

BERLIN, July 6 (Reuters) – The German government signalled a
tough line towards Greece on Monday, saying it saw no basis for
new bailout negotiations and insisting it was up to Athens to
move swiftly if it wanted to preserve its place in the euro
zone.

With opinion towards Greece hardening in Germany’s ruling
coalition following the landslide rejection of European bailout
terms in a Sunday referendum, the government indirectly raised
the prospect of a Greek exit from the currency bloc.

Jul 6, 2015

German line hardens after Greek referendum ‘No’

BERLIN (Reuters) – The German government signalled a tough line towards Greece on Monday, saying it saw no basis for new bailout negotiations and insisting it was up to Athens to move swiftly if it wanted to preserve its place in the euro zone.

With opinion towards Greece hardening in Germany’s ruling coalition following the landslide rejection of European bailout terms in a Sunday referendum, Chancellor Angela Merkel’s spokesman indirectly raised the prospect of a Greek exit from the currency bloc.

Jun 18, 2015

Merkel says Greek deal still possible if Athens shows the will

BERLIN/ATHENS, June 18 (Reuters) – German Chancellor Angela
Merkel said on Thursday a deal between Greece and its creditors
was still possible if Athens showed the necessary will, amid
mounting pessimism that the austerity-hit country might crash
out of the euro zone.

Neither side has shown any sign of yielding, with creditors
insisting it is up to Greece to make concessions to secure a
cash-for-reforms deal so the government can honour looming debt
repayments and avoid a potentially disastrous default.

    • About Paul

      "I lead our economic news file from Berlin, where we report on the performance of the German economy – Europe’s largest – and economic policy: everything from financial regulation to dealing with the euro zone debt crisis. I previously reported on political and economic news from Paris and on earlier assignments worked in Frankfurt, Vienna and London."
    • Follow Paul