The expenses are to be financed through new taxes – for example for digital corporations or on an annual income of over 150,000 euros.
The expenses are to be financed through new taxes – for example for digital corporations or on an annual income of over 150,000 euros.
It fell to 16.4 percent – the rate was lower than it has been since the fourth quarter of 2008. Nevertheless, despite the restructuring program of the conservative government of Mariano Rajoy, Spain’s national debt reached an estimated record level of more than 1.1 trillion euros in 2017 – and thus scratching the 100 percent mark of GDP. However, the EU only allows a quota of a maximum of 60 percent. “Spain will probably only reach the 60 percent mark 20 years later,” calculated the Spanish media. The prospects for the entire euro zone are, at least at first glance, better than they have been for a long time. The EU Commission is expecting GDP growth of 2.2 percent in the 19 countries in the currency area in 2017 and 2.1 percent in 2018. The eurozone could thus achieve the strongest economic growth in a good decade. At the same time, the debt ratio – i.e. the ratio of national debt to GDP – is expected to fall to 89.3 percent in 2017 and 87.2 percent in 2018, but the EU Commission estimates that the recovery is not yet on firm footing.
According to the Brussels authority, accompanying measures, such as the ECB, are still necessary for economic growth. From the point of view of ECB President Mario Draghi, the euro area is still dependent on cheap money from the central bank because a sustained rise in inflation is not within reach. In October, the monetary authorities decided to take the first cautious step to get out of the ultra-loose monetary policy: The ECB extended its securities purchases, which were particularly controversial in Germany, until the end of September 2018, but halved the volume from January to 30 billion euros per month. The key interest rate in the euro area will remain at a record low of zero percent at least until the end of the huge purchase program, which keeps loans and investments cheap, but puts a heavy burden on savers.
Italy is also of particular concern: the country has the highest debt ratio in the EU after Greece at around 130 percent, and there are many bad loans on the banks’ balance sheets. If the eurozone heavyweight should seriously fluctuate, the ESM, which in the past largely shouldered the euro bailout programs, would in all likelihood be overwhelmed. Against this background, the reform debate on economic and monetary union should become clear in the coming months gain momentum. One of the biggest controversies is the introduction of a common security system for bank deposits. Germany is blocking itself because the banks in this country fear that in case of doubt they will be liable for institutions in other countries that have got into trouble. Experts argue, however, that just distributing liability risks on European shoulders would contribute to more security in coming crises.buy a biology papers
For Commission Vice President Valdis Dombrovskis, the situation is clear: “We shouldn’t wait for the next crisis.” Almost 17 percent. (Photo: picture alliance / dpa) Spend more money and at the same time reduce the deficit: After Italy, Spain is also making efforts to try to square the circle. Economics Minister Calvino explains why. And how Madrid wants to finance it. Spain’s Economics Minister Nadia Calvino wants to spend more money to tackle the growing social inequality in Spain. “If we want to maintain our social market economy and avoid the populists gaining popularity, we have to make sure that everyone benefits from the economic growth,” said the Minister who was EU budget watchdog in Brussels until the summer, the “Handelsblatt” .Nadia Calvi no (Photo: picture alliance / dpa) Calvino did not name specific figures. But she justified her plan by saying that Spain’s economy has grown at rates of over three percent in recent years. Nevertheless, 30 percent of the population is at risk of poverty. “I am very much in favor of austerity,” said the minister, who was previously the right-hand man of Budget Commissioner Günther Oettinger in the European Commission.
But: “The economy and finances are only sustainable if a country is also socially stable.” Spain is currently not. As Minister of Economic Affairs, Calvino has raised Spain’s deficit targets for 2018 and 2019. As she told the newspaper, the structural deficit should nevertheless decrease. The expenses are to be financed through new taxes – for example for digital corporations or on an annual income of over 150,000 euros. Environmental taxes are also said to bring additional money into the coffers, but the minister sees no rush in the planned sale of the state-owned financial institution Bankia. During the financial crisis, several ailing savings banks were merged into Bankia.
Madrid originally wanted to sell the shares by 2019. Now Calvino made it clear: “We will only do this when the price is right.” Bankia is now well positioned and professionally managed. “We are of the opinion that it is worth more than its current price on the stock exchange.” Bankia currently has a market capitalization of around € 10.4 billion, and the Madrid push comes at a time when Italy’s spending spree is causing a sensation in Brussels. In order to finance expensive campaign promises for taxpayers and pensioners, the populist government coalition of Lega and Five Stars wants to take on new debts amounting to 2.4 percent of economic output in the coming year. This would increase Italy’s two trillion euro mountain of debt again.
It already accounts for more than 130 percent of economic output, which is only surpassed by Greece in the eurozone. Spain’s national debt is almost 100 percent of GDP and Germany’s value is around 64 percent. The kingdom ranks sixth among the largest euro debtors. The boom years now seem to be over. Weaker export figures recently pushed economic growth down to 2.5 percent – it is the lowest level since the end of 2014, and the Spanish central bank is also assuming that growth will slow this year.
In 2017, the Spanish GDP increased by around 3 percent. Source: ntv.de, ddi / rts “Does the election victory of left leader Alexis Tsipras in Greece mean the end of austerity policies in Europe? (Photo: picture alliance / dpa) Syriza- Boss Alexis Tsipras won the election in Athens. Europe is about to change course. Because not only in Greece, also in other countries, the opponents of austerity are now feeling their chance. Alexis Tsipras was already confident of victory, not a single vote was counted: “The vicious circle of austerity policies is over,” said the leader of the Syriza movement at the polling station on Sunday. Now it is clear: his leftist alliance has clearly won the election. After almost six years of mass unemployment and pension cuts, the people in Greece want a radical change of course.
Alexis Tsipras becomes Greece’s new Prime Minister. He faces tough negotiations with EU donors. But his choice could become a signal.
Europe is facing a shift to the left. After Tsipras’ victory, opponents of savings in other countries also see their chance. If Tsipras prevails, it could mean the end of the austerity policy not only in Athens, but in all of Europe. “Certainly Greece is not alone, there are other countries in the EU that are calling for a change of course,” writes the Italian Daily newspaper “Corriere della Sera”. “It is a warning sign: extremists could also be successful elsewhere in Europe,” fears the conservative “Lidove noviny” from Prague. The idea is causing headaches in Brussels, with CDU MEP Elmar Brok warning against making too big a concession. “There cannot be a haircut now, because if there are no reforms there, you would have as much debt in three or four years”.
EU Commissioner Günther Oettinger has also rejected a haircut. Tsipras wants the euro countries Athens to simply cancel most of its debts so that the country can get back on its feet. The repayment of the remaining debts should then be postponed until Greece grows sufficiently again. This is what Greece and the Western Allies did with Germany in 1953.
The haircut at the London conference was the prerequisite for the German economic miracle. Based on the historical model after the Second World War, Tsipras now wants to convene a “European Debt Conference”. It should resolve a haircut not only for Greece, but all bankrupt countries in the euro zone. Tsipras and the Syriza movement cleverly sell the end of austerity in Greece as a European policy change.
Because this makes it easier to mobilize support for the haircut in Athens. “Syriza is no longer just a hope for Greece. It is the expectation of a change of course for all of Europe,” wrote Tsipras before the election in the “Huffington Post”. He should also start from the European Investment Bank: It should finance a public spending program. With a “New Deal” for Europe, Tsipras wants to get the continent’s stagnant economy going again. The very name, which is reminiscent of the plan with which US President Franklin Roosevelt led the USA out of the Great Depression in the 1930s, shows the claim.
Tsipras sees himself as the leader of a left renaissance across the continent, and support is forming outside Greece. “I think it is right to talk about debt reduction, of course again against conditions,” said the Green finance expert Gerhard Schick. Perhaps this should be done “in the European context” and not just for Greece. “There is the idea of a European debt conference.” According to the Irish Times, Ireland’s Finance Minister Michael Noonan is also said to have expressed broad support for a European debt conference around two weeks ago. Not only the Greek, but also the Irish, Spanish and Portuguese debts can be settled there, it was said. In Spain, the Podemos movement is also calling for a haircut for the bankrupt eurozone countries. And could soon take power like Syriza.
Local elections are held in May and a new parliament will be elected in Spain in autumn. With 25 percent, Podemos is currently the second strongest force in the polls and is almost on a par with the leading socialists. Podemos leader Pablo Iglesias is one of Spain’s most popular politicians. When his party voted him boss at the end of the year, Alexis Tsipras traveled to Madrid. Perhaps both of them will soon see each other again as heads of government. Source: ntv.de “Test passed: The new Spanish Left Party brings at least 100,000 people onto the streets of Madrid.
They are demonstrating peacefully for a change in policy – along the lines of Greece: at least 100,000 supporters of the Spanish left-wing party Podemos took to the streets in Madrid to protest against austerity. “Yes, it is possible!” Shouted the demonstrators at the “March for Change” in the center of the Spanish capital. The left-wing populist party, which was founded only a year ago, wants to imitate the success of Syriza in Greece in the parliamentary elections in November and conquer the government. People are demonstrating against the government’s austerity measures. (Photo: dpa) Demonstrators carried banners with slogans such as “General basic income” and “Ticktack, Ticktack, the hour of change is here”. “Many people agree that we need change. It is enough with the stealing and with the corrupt taking everything and nothing we can do about it,” said the 23-year-old unemployed teacher Dori Sanchez, who was responsible for the demonstration from Manovar Had traveled to Madrid in southeastern Spain, and according to Podemos, 260 buses were hired to bring the trailers to Madrid from all over the country. Hundreds of residents volunteered to host protesters for the night. Podemos leader Pablo Iglesias advocates a drastic change of course in Spanish politics.
During the election campaign in Greece, the 36-year-old political science lecturer supported Greek Syriza chairman Alexis Tsipras. Podemos is now in the lead in some polls for the November parliamentary election ahead of Prime Minister Mariano Rajoy’s ruling Conservative People’s Party and the opposition Socialist Party. Rajoy warned the Spaniards strongly against playing “Russian roulette” by voting for Podemos, which promises them “the stars from the sky” but cannot keep its promises. Source: ntv.de, vpe / AFP “Deutsche Bank already has to pay a fine of 150 million dollars for her dealings with Epstein. (Photo: dpa) The anger surrounding Jeffrey Epstein does not end for Deutsche Bank, which is said to have robbed its investors of their money because of lucrative business relationships with the deceased sex offender.
The injured parties are now apparently filing a class action lawsuit, which threatens Deutsche Bank with further legal trouble because of its dealings with the US entrepreneur Jeffrey Epstein, who has since died for sex crimes. US law firm Pomerantz claims it has filed a class action lawsuit on behalf of allegedly aggrieved investors in a New Jersey court, seeking redress for price losses allegedly incurred as a result of violating US securities laws. As usual in the US with its bustling lawsuit industry, Pomerantz is now using a press release and public campaign to attract investors who will join the potential collection procedure. The New York financial regulator recently fined Deutsche Bank $ 150 million for substantial Violations of the rules, including in connection with her business relationships with Epstein. The agency accused the bank of doing business with Epstein instead of preventing dubious payments, despite his known criminal history. A spokesman for Deutsche Bank did not want to comment on the lawsuit, citing the ongoing proceedings. After the punishment, the company had already shown remorse and declared: “It was a mistake to accept Jeffrey Epstein as a customer in 2013”.
The bank learned from it. Whether the lawsuit will lead to anything remains to be seen. Such procedures are relatively common in the USA, they often fizzle out or are settled with comparisons at some point. Source: ntv.de, lri / dpa “France is currently the biggest problem child in the euro zone.