Senior Economics Correspondent, Germany
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Aug 25, 2015

Rise in German business morale masks China risks ahead

BERLIN/MUNICH (Reuters) – German business morale rose in August, but the exports that drove a second-quarter expansion will falter later this year as China’s slowdown hits Europe’s largest economy, the Ifo economic institute said.

Munich-based Ifo said on Tuesday its business climate index, based on a monthly survey of some 7,000 firms, edged up to 108.3 in August from 108.0 in July. The reading was the strongest since May.

Aug 20, 2015

Germany wants IMF involved in Greek bailout for reform rigour: sources

BERLIN (Reuters) – Germany wants the International Monetary Fund involved in Greece’s new bailout because of the economic rigour it brings more than for any financial help, government sources said on Thursday.

In previous bailouts the IMF has been a tough taskmaster, demanding reforms and actions that Greece’s euro zone partners have not always been keen to push for.

Aug 19, 2015

Germany backs Greek bailout as Tsipras mulls early polls

BERLIN/ATHENS, Aug 19 (Reuters) – Germany’s parliament
approved a third bailout for Greece on Wednesday after Finance
Minister Wolfgang Schaeuble argued the country should get “a new
start”, while in Athens the government agonised over whether to
call a snap election.

The Bundestag’s vote cleared one of the final obstacles to
Greece getting funding so that it can make a 3.2 billion euro
debt repayment to the European Central Bank on Thursday.

Aug 19, 2015

German lawmakers back third Greek bailout

BERLIN (Reuters) – German lawmakers overwhelmingly voted in favor of a third Greek bailout on Wednesday, heeding a call from Finance Minister Wolfgang Schaeuble to give Greece the chance for a new start, despite his own concerns it might not work.

There was a sizeable rebellion in Chancellor Angela Merkel’s own party ranks, however, suggesting she cannot return to parliament to seek aid for Athens again.

Aug 19, 2015

‘Give Greece a chance’, Schaeuble tells lawmakers before vote

BERLIN (Reuters) – German Finance Minister Wolfgang Schaeuble urged lawmakers to back a third bailout for Greece in a vote on Wednesday, saying while there were no guarantees of success, it would be irresponsible not to give Greeks the chance for a new start.

Lawmakers are expected to overwhelmingly support the 86 billion-euro ($95 billion) bailout, even though Chancellor Angela Merkel faces a dangerous rebellion in her own party ranks.

Aug 18, 2015

German parliament seen backing Greek bailout despite rebellion

BERLIN, Aug 19 (Reuters) – German lawmakers are expected to
vote overwhelmingly in favour of Greece’s third bailout on
Wednesday, even though Chancellor Angela Merkel faces a
dangerous rebellion in her own party ranks that suggests she
cannot ask parliament to help Athens again.

A significant minority of Merkel’s conservatives may vote
against the 86 billion-euro ($94.84 billion) bailout, sending
the government a warning that the latest package is its last
chance to keep debt-ridden Greece in the 19-country euro zone.

Aug 18, 2015

In Germany, 60 conservative MPs oppose Merkel course on Greece

BERLIN, Aug 18 (Reuters) – A total of 60 lawmakers in German
Chancellor Angela Merkel’s 311-member conservative bloc voted
against or abstained in a test ballot on Tuesday over a third
bailout plan for Greece before the vote in parliament,
participants told Reuters.

In what was nevertheless an important endorsement for
Merkel, the test ballot showed there may be far fewer rebels in
Wednesday’s vote from her bloc over the 86 billion-euro ($95
billion) package than feared. Bild newspaper had reported that
up to 120 of her deputies would vote against it or abstain.

Aug 18, 2015

German lawmakers debate Greek bailout, Merkel faces rebellion

BERLIN (Reuters) – German lawmakers broke off their holidays on Tuesday to debate Greece’s third bailout plan before approving it, though Chancellor Angela Merkel faces a rebellion in a vote shaping up as her last chance to keep Athens in the euro zone.

Up to a quarter of Merkel’s conservatives could vote against the 86-billion-euro ($95 billion) package, sending the government a clear warning not to return to parliament again to ask for more aid.

Aug 14, 2015

Euro zone economy sputters as China risks loom

BERLIN (Reuters) – Germany enjoyed robust if unspectacular growth in the second quarter while the French economy stagnated, leaving policymakers looking at a fragile euro zone recovery and risks from volatile Chinese markets.

The German economy, Europe’s largest, grew by 0.4 percent on the quarter — a slight acceleration from 0.3 percent in the first three months of the year but below expectations for a 0.5 percent expansion as weak investment acted as a drag.

Aug 14, 2015

German second quarter growth solid but unspectacular as investment drags

BERLIN (Reuters) – German growth accelerated in the second quarter of 2015 but by less than expected, with foreign trade acting as a support and investment braking Europe’s largest economy.

German gross domestic product (GDP) grew 0.4 percent in the quarter between April and June after expanding by 0.3 percent in the first three months of 2015. The consensus forecast for the second quarter in a Reuters poll was for 0.5 percent growth.

    • 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."
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