DJ PRESSPIEGEL / INTEREST RATES, ECONOMY, CAPITAL MARKETS, SECTORS
Business-related topics from the media, compiled by Dow Jones Newswires.
Mobility subsidies – In the fight against rising energy prices, the federal government is said to be planning to subsidize mobility that can be used in all modes of transportation. According to research by Business Insider, the idea of a mobility allowance from the Greens and a mobility bonus at the suggestion of SPD is currently on the table of a secret negotiating group of nine. The tank opponent, which the FDP still defends, may not have been ruled out yet. (Business Insiders)
Tank Discount – Prominent economists have criticized a planned tank discount by Federal Finance Minister Christian Lindner (FDP) to relieve drivers of higher fuel prices. “Relief should not be done with a watering can, but in a targeted way. That’s why I think the tank discount is not the right tool,” Clemens Fuest, president of the Munich Ifo Institute, told the Rheinische Post. Economist Veronica Grimm also explained: “The debate about tank discounts is completely outdated. We have to ease low and middle incomes. Tank discounts ease more than high income earners, because they own more cars and drive longer distances. It’s not the time to serve his customers.” (Rheinische Post)
Energy prices – Climate economist Otmar Edenhofer has warned that high energy prices could jeopardize the long-term acceptance of climate policy. “The idea should not take root: our society cannot afford higher energy prices,” Edenhofer said in an interview with the Frankfurter Allgemeine newspaper. “This would be a serious shock that would paralyze us in carbon dioxide pricing and thus in climate policy for years.” Zeitung (FAZ)
Skills shortage – the age structure of the population in Germany is becoming an increasing problem in the labor market. Almost every fourth employee (22.8 percent) is currently over 55 years old. This means that 7.3 million people are expected to retire in the next 10 years. More than two million men and women are retiring from occupations where there is already a shortage of skilled workers. This is the result of a representative study conducted by the Competence Center for Insurance of Skilled Workers (Kofa) at the German Economic Institute (IW) on behalf of the Federal Ministry for Economics, and available to the newspapers of the Funke Media Group. (Funk Media Group)
KFW Renovation Funding – The KfW Program to Promote Energy Efficient Building Renovation, which was suspended at the beginning of the year and only restarted in February, is in such high demand that the federal government will have to provide additional funds. According to information from the German editorial network, the budget committee of the German Bundestag approved 4.7 billion euros at its meeting on Tuesday. Without the new money, the financial pool available so far would have run out and funding had to be suspended for the second time this year. (RND)
Energy Partnership – The US state of North Dakota, a major location in the US oil and gas industry, has proposed an energy partnership for the federal government. The North Dakota Department of Commerce sent a strategy paper to the German Embassy in Washington on March 7. In it, the state government describes a win-win situation: “North Dakota must find buyers for clean natural gas and hydrogen. European allies have indicated that they should phase out Russian oil and gas,” according to the document available to Handelsblatt. Once buyers are found in Europe, “North Dakota can work with the energy industry and major companies to increase production and ship energy products.” (Handelsblatt)
Ukraine crisis – The Federal Ministry of Economy plans to help the economy in the short term in response to the Ukraine war. An ongoing loan program from the state development bank KfW will be opened for this purpose, Handelsblatt has learned from consortium circles. This is the European Recovery Program (ERP). So far, the program has provided loans of up to 100 million euros to companies affected by the pandemic. It remains unclear whether the ERP criteria for the Ukraine crisis will be retained. (Handelsblatt)
BUNDESBANK – New German Bundesbank President Joachim Nagel expects the war in Ukraine and sanctions to have a major economic impact. “Now we are painfully aware of our dependence on Russian raw materials,” he told Handelsblatt. Business and politics now want to reduce this dependency. However, it does not currently see any stagflation, i.e. the scenario of higher inflation and economic weakness. He believes that the ECB’s decision not to commit to raising interest rates for the time being is correct. (Handelsblatt)
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(end) Dow Jones Newswires
March 17, 2022, 02:15 EST (06:15 GMT)
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