We want to summarize reactions among politicians and German press views. The Eurogroup set up the details of a EUR 10 billion bailout package for Cyprus on Saturday, 16 March. This programme was heavily criticized in Germany, especially due to the tax on deposits below EUR 100 000. Yet, the Cypriot Parliament voted against this measure on Tuesday which is widely perceived as blackmail in Germany. Most commentators insists that Cyprus needs to come up with the agreed EUR 6 billion in order to receive the remaining sum from its European partners. Read more
Bruegel blog
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The Cyprus bailout controversy in German media and politics
22nd March 2013
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A review on Germany’s minimum wage debate
7th March 2013
Unlike many other EU countries, Germany does not have a national minimum wage even though specific industrial sectors have one. The upper chamber of parliament, the Bundesrat, has now proposed a minimum wage of 8.5€. The debate over introducing a general minimum wage has therefore emerged and we want to summarize this debate, in particular German media voices, positions of German political parties as well as statements of economists. Read more
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German views on aid for Cyprus
16th January 2013
After the Cyprus’s application for EU aid in June 2012, the negotiations on the programme are now getting concrete. The discussion in Germany about possible aid that is estimated between EUR 12 and 17.5 billion for the period 2013-2016 is focusing on the Cypriot financial sector which doesn’t enjoy a good reputation. In the German media, Cyprus and its banks are widely seen –rightly or wrongly - as a tax haven and a money-laundering base. Read more
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The countdown for the ESM: press views on Karlsruhe
11th September 2012
On Wednesday 12 September, Germany’s Federal Constitutional Court (FCC) will announce its decision on the European Stability Mechanism (ESM) as well as on the Fiscal Pact. Immediately after the decision Chancellor Angela Merkel will react in the German Bundestag with a government declaration to the FCC’s decision. The decision is eagerly anticipated by German and EU politicians as well as of both German and international press and we review the German press here. Read more
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Is Germany heading towards a referendum?
24th August 2012
The question of the compatibility of the German constitution (officially known as the Basic Law), with further European integration is at the origin of current debates in Germany. The Federal Constitutional Court (FCC) will decide in September on whether the European Stability Mechanism (ESM) exceeds the limits of the Basic Law. Meanwhile, a debate on holding a referendum in Germany on the future of the EU and new EU treaties emerges. This column summarizes the discussion. Read more
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Views on Grexit: a summary of German media
24th July 2012
According to the Spiegel on 22 July the IMF signalled to EU leaders that it would not participate in further support for Greece. Countries like the Netherlands and Finland have made the involvement of the IMF a prerequisite for their aid. This review looks at recent voices in Germany on the so-called Grexit, which appears to become less of a taboo than before. The Süddeutsche Zeitung (SZ) reports on 23 July that the Federal government rejects additional financial aid for Greece. According to government sources it is “inconceivable that Angela Merkel asks once again for permission to the German Bundestag for a third aid package for Greece” as Merkel already struggled to unify her coalition in recent parliamentary decisions on… Read more
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The German Industry and the euro
5th July 2012
There seems to be a division among the representatives of the German industry. While representatives of German family businesses (Familienunternehmen) claim for more regulatory rules and less integration for the eurozone, representatives of the DAX (Deutscher Aktien IndeX) and in particular the Federation of German industry (BDI) generally regrouping export-orientated enterprises defend the common currency and more integration. Nevertheless, claims from the Familienunternehmen are not backed by official statistics on exports activities. Read more
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Germany: What about Eurobonds?
31st May 2012
While the Federal Government is opposed to the idea of Eurobonds, the German Council of Economic Experts recommends the establishment of a European Redemption Pact, under which a country could refinance itself through the European Redemption Fund (ERF) up to the point where the debt refinanced reached the current difference between the debt outstanding and the hypothetical debt that would equate 60% of GDP. There appears to be a swing in the debate on ERF and the opposition seems to increasingly demand this in exchange for support on the fiscal compact. In the official German 2012 Annual Economic Report of the economics ministry both, the federal government and the German Council of Economic Experts reject the idea of Eurobonds. The… Read more
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Germany: what are the implications of the NRW elections?
22nd May 2012
The recent elections in North Rhine-Westphalia (NRW) on 13 May 2012 led to success for the German Social Democratic Party (SPD) and to a defeat for Merkel’s Christian Democrats (CDU). The CDU obtained a mere 26.3 % of the votes, the party’s worst ever result in this state. There is now a clear majority for a red-green government. What does this result imply for the coalition in Berlin, and what changes will the dismissal of Norbert Röttgen, former Minister of Environment, have on the energy turnaround in German? This blog entry summarizes what the national press and blogosphere says about it. Which implications for the coalition? According to the press and blogs, the NRW elections will lead to difficulties in… Read more
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Is Germany bluffing on Greece?
15th May 2012
After the recent elections in Greece, German officials seem to seriously consider a Greek Euro area exit – at least this is what official statements from policymakers indicate. Are these statements serious or is Germany bluffing on Greece? We want to summarize their statements and compare them to what is being said in the German National Press and blogosphere, both of which appear much more skeptical about the possibility of a Greek exit. The German minister of Finance, Wolfgang Schäuble, stated in an interview with the “Rheinische Post” on 11 May 2012 that Europe has the capacities to cope with a Greek Euro area exit. He said that Germany and its partners had learned a lot during the last two… Read more