“The ECJ ruled in December 2018 that the PSPP is legal. Therefore, it is clear for us that we can and have to continue our monetary policy in line with our mandate to make sure that in the medium term we are getting back to our inflation aim of below, but close to, 2 per […]
Germany
Interview with Isabel Schnabel, Member of the Executive Board of the ECB, and the FT (ECB)
Interview with Philip R. Lane, Member of the Executive Board of the ECB (El País)
“The speed at which the economy bounces back will then hinge on whether consumers are more reluctant to consume and businesses hold back on investment. From today’s perspective, it looks in any case unlikely that economic activity will return to its pre-crisis level before 2021, if not later.” – Luis Doncel
Supervisory Board and Management Board should be completely renewed – Der Spiegel
“KPMG said that certain Wirecard sales, cash holdings and customers could not be verified. And that after five months of investigation. In our opinion, this also means that Ernst & Young, as a long-time auditor, did not properly check the balance sheets. How can anyone – be it shareholders, creditors, regulators or customers – still trust this company? […]
German companies in the dock over dividend plans (FT)
“VW, BMW, Daimler, Continental and Adidas criticised for considering payouts while relying on state funds.” – by Joe Miller, Olaf Storbeck and Guy Chazan
Italy’s future is in German hands
“As coronavirus cuts a swath of economic destruction across Europe, pushing the already-strained budgets of southern countries to the brink, calls are getting louder for the eurozone to intervene by issuing debt backed by all members.” – by Silvia Borrelli and Matthew Karnitschnig
Investing in Europe in 2020 – The Year Ahead
An overview of some European key themes and political risks for 2020
2020 brings with it the 10th year of recovery since the global financial crisis. Equity markets continue to break records, ample credit is available, yet the bullish performance appears cosmetic at times and investing in Europe in 2020 is fraught with political risks. The US deficit doubled from $385bn to $779bn last year, the UK […]
U.S. Concedes Defeat on Gas Pipeline It Sees as Russian Threat (Bloomberg)
“The U.S. conceded it won’t be able to stop completion of the controversial Nord Stream 2 natural gas pipeline from Russia to Germany, acknowledging the failure of a years-long effort to head of a perceived threat to European security.” – by Jennifer Jacobs, Nick Wadhams and Lars Paulsson
Congress, Nord Stream II, and Ukraine (The Brookings Institute)
“It will prove difficult for Congress to make Europe cut its dependence on Russian gas.” – by Steven Pifer
Unstoppable Nord Stream-2 (New Europe)
“The Nord Stream-2 pipeline, which late last month obtained a permit to construct its planned pipeline system in the Danish Exclusive Economic Zone (EEZ) southeast of Bornholm, is now ready to complete the final stretch of the Gazprom-led project that will transport Russian gas from Russia to Germany, despite efforts from the United States and […]
German banks start merger talks to create €260bn giant (FT)
“Deal between Helaba and Deka could spark future consolidation.”- by Olaf Storbeck