News

Debt brake may be one German export too many

As Berlin presses its eurozone partners to introduce tough German-style deficit rules, first cracks are emerging in the country’s own commitment to the “debt brake” law it holds up as a model for others. Chancellor Angela Merkel is pushing other European countries to enshrine binding rules based on the German legislation in their constitutions as…

After the Great Recession, the Great Regression?

Wages, pensions, unemployment insurance, welfare benefits and collective bargaining are under attack in many areas as governments struggle to reduce debts swollen partly by the cost of rescuing banks during the global financial crisis. The EU, which long trumpeted a European social model with a generous welfare state, social partnership between unions and employers and…

Rein: EU should follow Germany’s lead on reforms

European countries must implement the structural reforms that Germany has already carried out over the last couple of decades to ramp up competitiveness, the European Union’s top economic official said recently. Economics and Monetary Affairs Commissioner Olli Rehn said Germany’s economy entered the crisis on a stronger footing than others within the EU because it…

Egypt has limited war chest to avert financial crisis

Egypt has substantial reserves to avoid an external payments crisis but these could be seriously depleted within weeks if political protests continue, while its banks may struggle to cope with a rush of withdrawals. In the days after the protests erupted, Egyptians and foreign investors transferred hundreds of millions of dollars out of Egypt, currency…

Henderson bags Gartmore, makes $122bn funds firm

Anglo-Australian funds house Henderson is buying troubled British rival Gartmore, to create one of Britain’s largest retail asset managers with £78bn ($122bn) under management. “By bringing across fund managers and integrating the (Gartmore) business onto our own platform we will be able to enhance margins significantly,” Henderson chief executive Andrew Formica said. “Its recent travails…

Renault spy case shows rising economic conflict

From what France calls “economic warfare” as it probes a Chinese link to industrial espionage at Renault to currency confrontation and commodity rivalry, economic conflict is increasingly impacting businesses. President Nicolas Sarkozy’s office has asked French intelligence to probe suspected industrial espionage at the car giant. Renault suspended three executives at the start of January…