It looks like Corbyn’s list of friends keeps getting shorter as Jezza is disinvited from a left-wing conference in Berlin over his position on Israel/Gaza. The German Rosa Luxemburg Foundation, a socialist think tank connected with the hard-left Die Linke party, is organising an event this week on European politics populated mainly by Die Linke politicians. Corbyn’s invitation to speak has been withdrawn after the hosts at iconic Volksbühne Theatre intervened, saying: “Due to Jeremy Corbyn’s current stance on the Middle East conflict, we have decided not to offer him a public audience at the Volksbühne“. How things change, Jezza will have to stay away from his old East Berlin stalking ground…
The European Commission has cut its growth forecast for the Eurozone this year, after admitting the sclerotic German economy is “significantly weaker” than previously thought – they expect it to shrink by 0.4% this year – and its “big deterioration” will be a drag anchor on Europe. Output across the Eurozone is now predicted to rise by 0.8% this year, with an earlier projection expecting 1.1% growth. Next year’s growth outlook was cut to 1.3%…
The growth forecasts for the top 6 European economies are:
Germany have at least announced a €32 billion tax-cutting growth plan to fix this. No such luck on our own shores: Jeremy Hunt has just told Bloomberg he doesn’t have much headroom in the Autumn Statement…
The German coalition government has agreed to a massive corporation tax cut worth €32 billion over four years in a bid to revive its flagging economy, with Chancellor Olaf Scholz declaring yesterday that the package – part of the new “Growth Opportunities Law” – will provide the necessary “big boost” to get the country on a path to growth. When even a left-of-centre led coalition of Social Democrats, Greens and the liberal Free Democrats are coming up with a growth plan based on tax cuts it emphasises the anti-growth nature of Rishi’s corporate tax hikes.
Germany was forecast to be the worst-performing leading economy this year. So far, it has seen no growth in the three months to June, and shrank in the two previous quarters. After a few weeks of inter-party squabbling, the coalition has finally realised how to fix it. Hint: it wasn’t through more inflationary spending. Finance Minister Christian Lindner instead pushed for tax cuts to “improve Germany’s competitiveness” and “give new impulses for growth“. Is His Majesty’s Treasury paying attention?
Banking giant JP Morgan is planning to switch out the lights in its Frankfurt HQ for the last time and shift its workforce to London amid blackout fears across Germany this winter. With Putin turning off the gas taps to Europe, spooked executives are drawing up emergency measures to set up shop in Britain should Germany go dark over Christmas. The same JP Morgan that shifted billions in assets out of London right after Brexit. Welcome back.
Even if they ultimately decide to stay in Frankfurt, they’re also considering bringing in diesel generators just to keep the phones working without mains power for several days. Although they’re obviously still insisting this is all just contingency planning:
“It would take a perfect storm of a complete shutdown of Russian gas supply, no reduction of gas use at all and little alternative sourcing for gas before it would have real impact on our business.”
Hopefully no cold, dark nights in Brrr-lin this winter…
In 2009, nuclear power supplied 25% of Germany’s electricity. As a result of the December 2021 election, which produced an Olaf Scholz-led traffic light coalition of the SPD, FDP, and Greens, the federal government announced they would shut down the last three functioning modern nuclear power plants this year. Yet in a belated outburst of rationality, the German government has decided to keep them open – for now. The Green Party, which has delivered Germany into reliance on the kindness of Vladimir Putin, is reluctantly going along with the “temporary” policy reversal.
With energy prices rising almost exponentially, German industrial production was suffering badly. Business logic was always likely to prevail over politics. Whatever German industry wants, German industry tends to get…
Germany is now facing a “gas crisis” and is on the brink of ration supplies after Moscow cut its gas exports through the Nord Stream 1 pipeline by 60%. Speaking this morning, German Economic Minister Robert Habeck declared “gas is a scarce commodity” in the country, and warned that energy prices were about to shoot up even higher following Putin’s decision to turn off the taps “as a weapon against Germany“. Germans have already been advised to conserve as much energy as possible, with Habeck warning “every kilowatt hour helps in this situation”…
Now Berlin has raised the alarm by moving to the second stage of its national gas emergency plan, meaning some coal-fired power plants will be restarted and the government will tighten its monitoring of the energy market. Stage three results in full-on rationing. Habeck claimed rationing “shouldn’t happen“, although he “couldn’t rule it out“. Who’d have thought being Europe’s biggest buyer of cheap Russian gas would cause so many problems?