Search

Germany to Raise Carbon Price to €40 in 2024, €50 in 2025 (Updates with detail on carbon price, Lindner comments starting in third paragraph) ©2023 Bloomberg L.P. To help reach its goal of climate neutrality by 2045, Germany introduced the carbon price in 2021 at €25 per ton and raised it the following year to €30. [Extracted from the article]

The decision on the carbon price ends weeks of wrangling between senior officials in Chancellor Olaf Scholz's ruling coalition. Germany to Raise Carbon Price to €40 in 2024, €50 in 2025 (Bloomberg) -- Germany will lift the cost of carbon dioxide pollution rights for the housing and transportation sectors to €40 per ton in 2024 and to €50 per ton in 2025, according to people familiar with the matter. [Extracted from the article]

"It's quite clear that the growth outlook will have to be revised downwards", Ifo President Clemens Fuest told Bloomberg TV on Wednesday. Germany's economic recovery is coming under threat from a persistent global supply squeeze and rising Covid-19 infection numbers. [Extracted from the article]

The four-page document, dated Oct. 11, urges the EU avoid a piecemeal approach if and when talks with the U.K. get under way. Germany is sticking to the sequencing of Brexit talks agreed by all other 27 EU members, and "adequate progress" on first-phase issues is still needed before talks can start on the new relationship, he said. [Extracted from the article]

Germany may run into a shortage of critical medical equipment and hospital capacity even though the country has done relatively well in combating the coronavirus so far, scientists and politicians warned Sunday. "We can't rule out we'll have more patients in need of ventilators than equipment", Lothar Wieler, president of the public health group, Robert Koch Institute, told German newspaper Frankfurter Allgemeine Sonntagszeitung. [Extracted from the article]

Germany is launching a program to provide up to €4 billion in funding to help heavy industrial producers transition to green technologies. The program, called "climate protection contracts," will compensate companies in sectors like steel, cement, and glass for the additional expenses of using clean technologies. Germany aims to reduce carbon emissions by two-thirds by 2030 and achieve climate neutrality by 2045. The European Union has approved the funding plans, which aim to remove around 350 million tons of CO2 from sectors such as steel, cement, paper, and glass. [Extracted from the article]

In addition to the windfall profits, electricity subsidies will be financed by Germany's €200 billion ($197 billion) Economic and Stabilization Fund, which was created to mitigate the impact from the Covid-19 pandemic. (Bloomberg) -- The German government plans to collect windfall profits from electricity companies despite legal uncertainties about the proposal, according to a government paper seen by Bloomberg. [Extracted from the article]

Russian gas could account for as little as 30% of imports by the end of the year, down from more than half currently, while the aim is to reduce oil imports almost to nothing by then, the magazine quoted the paper as saying. (Bloomberg) -- Germany is aiming to halve imports of Russian oil by mid-year while rapidly reducing its dependency on the nation's gas and coal, Der Spiegel magazine reported, citing an Economy Ministry paper. [Extracted from the article]

Bundesbank reopens its exhibit after six-year renovation To contact the reporter on this story:Alessandro Speciale in Frankfurt at aspeciale@bloomberg.netTo contact the editors responsible for this story:Paul Gordon at pgordon6@bloomberg.netJeff Black. [Extracted from the article]

"We have just lowered our growth forecast for Germany to 0%", BDI President Siegfried Russwurm told the paper. (Bloomberg) -- Germany's economy will probably stagnate this year, according to the BDI Federation of German Industries, which told Frankfurter Allgemeine Sonntagszeitung that it cut its outlook. [Extracted from the article]

Esken said an AI tool could prove biased against women seeking jobs as IT specialists, for example, or against young men applying for credit checks, she said. (Bloomberg) -- Germany's Social Democrat Leader Saskia Esken called for a closer examination of the discrimination inherent within data sets used to train artificial intelligence models. [Extracted from the article]

German rail passengers are facing six more days of strikes as the Gewerkschaft Deutscher Lokomotivführer (GDL) union continues its dispute with state-owned rail operator Deutsche Bahn AG over pay and working hours. The GDL rejected a third offer from Deutsche Bahn and called on freight-train drivers to halt work from Tuesday evening, and passenger-train drivers to strike from Wednesday morning until January 29. The extended strike is causing concerns for companies in sectors such as chemicals, steel, automotive, paper, and timber, and could result in losses of up to €1 billion ($1.1 billion). [Extracted from the article]

The fund is a key part of a wider revamp of the nation's natural resource strategy, according to a government paper seen by Bloomberg. (Bloomberg) -- Germany is considering setting up a state-backed fund to help the country secure and diversify supplies of raw materials as Russia's invasion of Ukraine sparks a global scramble for resource security. [Extracted from the article]

Germany is planning to tighten its rules on biomass production by reducing the use of unsustainable crops and promoting the utilization of animal dung and organic waste. The government aims to increase the utilization of animal manure for biogas production from one-third to two-thirds by 2030. While biomass is a major renewable energy source in Germany and the EU, it has faced criticism due to concerns about deforestation and biodiversity loss. Shifting towards waste and residual materials instead of energy crops could address some of these concerns, but it may pose challenges for the existing biogas industry. The availability of organic waste may also be uncertain due to expected declines in meat consumption and livestock herds. The German government has not provided official comments on the draft strategy. [Extracted from the article]

Shrinking Debt Germany's debt to GDP ratio is seen at 72.25% of GDP at the end of this year, down from an April prediction of 74.5%, and is expected to drop to 67.25% of GDP by 2025, the paper added. Germany expects growth this year to be significantly weaker than predicted, as the lingering effects of the pandemic and a supply squeeze hinder a revival of Europe's biggest economy. [Extracted from the article]

Germany is lobbying the European Commission to set stricter climate protection targets for the region's car and aviation industries, according to Frankfurter Allgemeine Sonntagszeitung. In a position paper sent to the European Union executive, the government urged "ambitious fleet limits" for emissions from new cars in Europe by 2030, the newspaper reported. [Extracted from the article]

(Bloomberg) -- Germany is planning to recommend the use of AstraZeneca's Covid-19 vaccine only for women and men older than 60, after new data emerged on potential side effects from the shots. The country's vaccination commission has drafted a decision paper that recommends the vaccine only for older people but leaves open the possibility for the use of it for younger people at a doctor's discretion, according to a person familiar with the draft document. [Extracted from the article]

A group of 17 finance ministries, led by Germany and the U.K., voiced concerns immediately about the time needed to convert the EU rules into national law. In the paper, Germany seeks a nine-month transition period for nations to adapt the EU rules into national law, starting from whenever the regulations are made final. [Extracted from the article]

(Bloomberg) -- German factory orders unexpectedly jumped the most in three years in June, a sign that Europe's largest economy is stabilizing. Demand rose by 7% from May, defying all economist projections for a drop. The industry has been suffering from poor demand in China, the world's No. 2 economy, which is itself losing momentum. [Extracted from the article]

German Chancellor Angela Merkel's government may try to tame growing opposition to onshore wind developments by offering cash sweeteners to local councils and consumers. The proposed cash bonus for councils aims to "boost local acceptance" of wind power and will be embedded in a bill that may be passed before the summer recess, according to the paper. [Extracted from the article]

Goldman Sachs has put off the German launch of its consumer bank Marcus until next year because of the delay in Brexit and cost constraints, the Financial Times reported on Sunday, citing two people familiar with the situation. Goldman declined to comment to the FT, but U.K. Marcus head Des McDaid told the paper the launch in the U.K had been successful and Marcus is focusing on expanding there before branching out into other countries. [Extracted from the article]

Germany and the U.K. rejected efforts to soften the European Union's implementation of global bank-failure rules intended to prevent taxpayer-funded bailouts. Germany and the U.K. said the EU should make TLAC mandatory only for the biggest banks -- those on the FSB's list of the 30 most systemically important firms. [Extracted from the article]

Germany Seeks Power Price Cut in €30 Billion Aid to Industry To compare, small and medium-sized firms in Germany pay around 27 cents per kilowatt-hour, according to recent data from energy lobby group BDEW. (Bloomberg) -- Germany is weighing a reduced power price of 6 cents per kilowatt-hour or less for some energy-intensive industries to ease costs after last year's crisis shook the manufacturing-heavy economy. [Extracted from the article]

(Bloomberg) -- Germany is weighing a reduced power price of 6 cents per kilowatt-hour or less for certain energy-intensive industries to help ease costs after last year's crisis shook the manufacturing-heavy economy. To compare, small and medium-sized firms in Germany currently pay around 27 cents per kilowatt-hour, according to recent data from energy lobby group BDEW. Germany Seeks Power Price Cut in €30 Billion Aid to Industry. [Extracted from the article]

(Bloomberg) -- Germany is weighing a reduced power price of 6 cents per kilowatt-hour for certain energy-intensive industries to ease the burden on them after last year's crisis shook the manufacturing-heavy economy. By comparison, small and medium-sized firms in Germany currently pay around 27 cents per kilowatt-hour, according to recent data from energy lobby group BDEW. Germany Seeks Power Price Cut in €30 Billion Aid to Industry. [Extracted from the article]

(Bloomberg) -- The German government is giving antitrust authorities more power to crack down on price-gouging firms after gas-station operators and oil firms were accused of failing to pass on subsidies meant to help drivers hit by spiraling costs following Russia's war in Ukraine. Under the new rules, the antitrust authority will be able to impose measures if it determines that competition in an industry has been disturbed - rather than prove that a company has abused its dominant position. [Extracted from the article]

President Joe Biden's IRA offers subsidies and tax credits to the tune of $370 billion for the production of electric vehicles, sustainable aviation fuel and renewable energy. (Bloomberg) -- Germany is planning to introduce tax credits for solar, wind and grid investments in response the US Inflation Reduction Act. [Extracted from the article]

(Bloomberg) -- Chancellor Angela Merkel and regional leaders are poised to agree on a broad extension of Germany's lockdown measures until March 28 while allowing a partial easing of some restrictions, according to draft proposals seen by Bloomberg. Both have backed proposals to move away from a reliance on using the seven-day incidence rate to manage Germany's pandemic and focus on ramping up testing. [Extracted from the article]

(Bloomberg) -- German Chancellor Olaf Scholz's government pushed ahead with efforts to shield critical infrastructure against foreign threats and improve the crisis resilience of Europe's largest economy after Russia's invasion of Ukraine. European policy makers focused on the exposure and protection of critical infrastructure after blasts in September severed the Nord Stream 1 and 2 gas pipelines linking Russia with Germany. [Extracted from the article]

(Bloomberg) -- Germany will fail to meet a NATO guideline of spending 2% of gross domestic product on its military next year and again from 2026 onwards, according to an analysis quoted in local media on Monday. Defense Minister Christine Lambrecht recently revised the target to 2% of GDP "on average in the next five years", potentially angering Germany's allies who have long complained the government in Berlin isn't pulling its weight militarily. [Extracted from the article]

(Bloomberg) -- Germany is preparing to strike back against the U.S. if President Donald Trump follows through on his threat to kill off the Nord Stream 2 gas pipeline with additional sanctions. Trump has also reiterated his intention to cut the number of U.S. troops in Germany and renewed a threat to hit the German auto industry with a new set of levies. [Extracted from the article]

(Bloomberg) -- France and Germany are pushing for the European Union to boost its joint defense capabilities, adding to signs that the pandemic-induced crisis could lead the bloc to deeper integration. EU foreign-policy chief Josep Borrell on Monday drew attention to transatlantic divisions while saying the bloc remained keen on working with the U.S. "We maybe don't agree on everything, but our commitment to transatlantic cooperation is as strong as ever", Borrell told reporters in Brussels after he and foreign ministers from the 27-nation EU held a video conference with U.S. Secretary of State Michael Pompeo. The push has also been mired in tensions, as EU nations often struggle to reach the required unanimity on foreign policy issues, while many are wary of strains with the U.S.-dominated North Atlantic Treaty Organization, which has been the bedrock of European security. [Extracted from the article]

(Bloomberg) -- France and Germany are pushing for the European Union to boost its joint defense capabilities, adding to signs that the pandemic-induced crisis could lead the bloc to deeper integration. The push has also been mired in tensions, as EU nations often struggle to reach the required unanimity on foreign policy issues, while many are wary of strains with the U.S.-dominated North Atlantic Treaty Organization, which has been the bedrock of European security. "The outcome of the latest force generation conference a few days ago was disappointing", EU foreign policy chief Josep Borrell said in a letter to defense ministers ahead of Tuesday's video conference, which was also obtained by Bloomberg. [Extracted from the article]

(Bloomberg) -- In late March, a Berlin judge told the people in his packed courtroom that it could take just 15 minutes for a single person with the coronavirus to infect them all. The sight of a cameras recording judges and screens showing lawyers attending from afar is rare in German courtrooms, even though rules have allowed video hearings since 2013. [Extracted from the article]

The article informs that Germany, France and Poland are pushing plans to facilitate big mergers in the European Union, after the bloc shot down an intended tie-up this year between Siemens AG and Alstom SA to create a European champion to compete with China, as of July 2019. It reports that the bloc requested the European Commission should introduce "more flexibility" and "take into account competition at a global level" when it analyzes mergers.

(Bloomberg) -- A gas turbine for the operation of Gazprom PJSC's Nord Stream 1 pipeline that's the main route of gas transport from Russia to Germany is held up in transit after maintenance in Canada, the latest twist in an ongoing spat between the two countries. Reuters reported earlier Thursday that the turbine was held up in transit in Cologne after returning from Canada and that Moscow had so far not provided documents needed to import it into Russia, including details on where exactly to deliver it and via which customs station. [Extracted from the article]

German officials are working on a plan to deploy 2,000 Turkish workers employed by Binsat Holding A.S., a group that operates Istanbul airport, according to a spokeswoman from Germany's ADV airport association. (Bloomberg) -- The German government is stepping up efforts to ease the chaos at airports brought on by staffing shortages, with Transport Minister Volker Wissing initiating the hiring of foreign workers to help travelers through the busy summer season. [Extracted from the article]

(Bloomberg Opinion) -- German Left Hates Its Big Jobs Achievement: Leonid Bershidsky Germany's Hartz reforms of the early 2000s, often lauded as an exemplary fix to a sclerotic labor market, are now in danger from a leftward shift in the party that instituted them at great political cost. The Social Democratic Party (SPD), whose leadership no longer wants anything to do with longtime party head Schroeder, would now like to scrap the so-called Hartz IV system of long-term unemployment insurance. [Extracted from the article]

Germany has launched a program to provide up to €4 billion ($4.4 billion) in funding to help heavy industrial producers transition to green technologies. The program, called "climate protection contracts," will compensate companies in sectors like steel, cement, and glass for using cleaner technologies compared to conventional processes. The government aims to slash carbon emissions by two-thirds by 2030 and achieve climate neutrality by 2045. The program also aims to incentivize the development of new technologies and infrastructure. The government plans to hold additional auctions in the future. [Extracted from the article]

German banks are facing a slow-motion property crash that poses a greater threat to them than the US commercial real estate market. While Germany has avoided rapid market corrections like those seen in the US, experts argue that this is due to accounting practices that shield lenders and investors from immediate losses. German banks have a higher exposure to commercial real estate than their European peers and have extended loans more aggressively. As property owners are forced to sell, smaller and mid-sized lenders are burdened, and some senior officials at the European Central Bank believe Germany will be a special focus as they examine commercial real estate risks. [Extracted from the article]

German lawmakers are set to approve legislation decriminalizing personal use of cannabis this week, with the law expected to take effect on April 1. The legislation would allow adults to possess up to 25 grams of cannabis, grow a maximum of three plants for personal use, and cultivate the drug as part of nonprofit cannabis clubs limited to 500 members. The move is seen as the first step towards broader marijuana legalization in Germany, although it has faced opposition from some lawmakers who argue it will harm young people's health and increase the burden on police. The government, however, believes the law will help curb the black market, tackle drug-related crime, and protect against contaminated products. [Extracted from the article]

Brexit stance outlined in leaked government position paper Germany wants the European Union to be prepared to grant U.K. financial companies transitional access to the EU if the Brexit process drags on, according to a government strategy document. [Extracted from the article]

Germany is backing a package of climate measures the European Union will propose on July 14, including reforms of the carbon market and a border levy to impose CO2 costs on imported goods, Reuters reported, citing a government document. The plan is facing pushback from some EU governments and lawmakers, who fear it could hike household fuel bills, Reuters said. [Extracted from the article]

Germany's ruling coalition has reached an agreement to reinstate restrictions on new borrowing next year, following a recent court ruling that struck down a critical funding tool. The agreement includes measures such as cuts to climate investment and fossil-fuel subsidies, an increase in the carbon price, and a strategy to sell assets. However, the agreement is provisional and lacks specific details. The new budget plan will need to be approved by lawmakers and is not expected to be finalized by the end of the year. Chancellor Olaf Scholz emphasized that the government will continue to prioritize climate transition, social cohesion, and support for Ukraine's defense, but acknowledged the need for budget cuts and savings. The government will reassess funds for Ukraine and may lift the borrowing restrictions in 2024 if necessary. The court ruling has sparked calls for an overhaul of Germany's borrowing rules to support investments in a more sustainable and technologically advanced economy. German industry groups have expressed relief at the resolution of the budget standoff, but have criticized certain decisions, such as the abolition of subsidies for grid fees. [Extracted from the article]