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France and Germany face EU fines over budget deficits (and more on the economic gloom)
Hoover's Online ^ | April 07 2003 | Sunday Business

Posted on 04/07/2003 3:11:47 PM PDT by knighthawk

THERE was widespread coverage in the French press of a leaked European Commission document which will initiate the excessive deficit procedure against France for its high budget deficit. France's deficit was 3.% in 2002 and is projected to reach 3.7% in 2003 - breaching the 3% limit two years in a row. This should lead to large fines. There was also a report in the German paper, Borsen Zeitung, which has seen a copy of another commission document saying the German deficit will be more than 3% in 2003, after surging over the limit in 2002. That will mean more fines.

More gloom on Germany

ECONOMIC and banking experts are increasingly gloomy about prospects for the German economy, according to a poll in Handelsblatt. The average growth projection for 2003 is 0.7%, down 0.2% from the last poll in January. The prospects for the job market are equally poor. Ralph Solveen from Commerzbank said: "We will see no improvement on the labour market side."

Large rise in insolvencies

LE Figaro obtained a copy of a report by research group D&B, describing 2002 as an annus horribilis for business insolvencies in Europe: 167,000 firms went bust in 2002, a rise of 9%. The head of research at D&B described it as "a very poor figure... we are back at the level of 1997". Insolvencies rose by almost 80% in Portugal and things were little better in Germany.

Germany loses on venture capital

GERMANY offered an extremely bad investment climate for international investors, according to Handelsblatt, which quoted a report from the European Private Equity and Venture Capital Association (ECVA). According to the report, only Austria offers worse conditions for financial investment. Didier Guenoc, director of research for ECVA, said: "Foreign investors are hesitating to invest money in Germany principally because of tax disadvantages." Holger Frommann, head of the German company BVK, said: "It was a surprise to find that we were the worst in Europe."

Unions talk tough on reform plans

GERHARD Schroder's plans to reform the German labour market, among other things by limiting the time unemployed people can receive benefit, are running into heavy resistance from the powerful union movement in Germany. The DGB and IG Metall, the huge metalworkers' union, have called for "massive protests and action". IG Metall boss Klaus Zwickel told FT Deutschland: "We must make sure that over 100,000 people all over Germany give the clear signal to their elected representatives: yes to reform, no to social security cuts." The head of the employers' federation, Dieter Hundt, warned of "dire developments" in the economy if the reform plans did not go through.

French jobless figures rise again

THERE was widespread coverage of the latest French jobless figures. Unemployment in February rose by 19,200 people, taking it to 2.34m. This represents a rise of 5.7% in a year. Using the internationally comparable ILO measure of the rate of unemployment, France now has a rate of 9.2% Meanwhile, in Bild Zeitung, German employers' federation president Dieter Hundt warned unemployment in Germany could reach 5m at the beginning of next year.

Germany losing out on investment

DIE Welt ran a lengthy front-page piece on Germany losing investment to eastern European countries due to its labour laws and non-wage labour costs. The paper cited Peugeot/Citroen deciding to base a factory in Slovakia rather than Germany, which would have created 3,500 jobs.

Botched jobon EU bugs

THE story of the listening devices planted in the European Council building in Brussels has taken a new turn. Le Figaro says the people who planted the devices may never be identified because of a bungled investigation. They were alerted that something was up and disappeared without trace.


TOPICS: Germany; News/Current Events
KEYWORDS: budgetdeficits; economicgloom; eu; europe; fines; france; germany; portugal

1 posted on 04/07/2003 3:11:47 PM PDT by knighthawk
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To: MizSterious; rebdov; Nix 2; green lantern; BeOSUser; Brad's Gramma; dreadme; Turk2; Squantos; ...
Europe-list

If people want on or off this list, please let me know.

2 posted on 04/07/2003 3:12:23 PM PDT by knighthawk
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To: knighthawk
How about that socialist utopia...

Poor people here, poor people there.. a failing economy and no action to do much about it.So much of the working peoples money going towards taxes.

The EU everyone, eat some fines!

Sounds like..what the Dems want. Dasshole take note of this and reconsider your idealism, that is, as soon as you're done feeling up Hillary Clinton.

Cheese.(DU cancelled my membership! Those mean twits!)

3 posted on 04/07/2003 3:17:55 PM PDT by AmericanCheeseFood
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To: knighthawk
Please, add me to the Europe ping list.

Thanks,

ScaniaBoy
4 posted on 04/07/2003 3:18:38 PM PDT by ScaniaBoy
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To: knighthawk

5 posted on 04/07/2003 3:21:17 PM PDT by Porterville (Screw the grammar, full posting ahead.)
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To: ScaniaBoy
I added you. (And Scania like the Swedish truck builder?)
6 posted on 04/07/2003 3:21:57 PM PDT by knighthawk
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To: AmericanCheeseFood
They cancelled your membership? How rude. What did you do? (BTW, was this your first time thrown off?)
7 posted on 04/07/2003 3:24:20 PM PDT by knighthawk
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To: knighthawk
Yes.

Scania as in Scandinavia or the english name for Skåne, the southernmost county in Sweden.

Cheers
8 posted on 04/07/2003 3:29:43 PM PDT by ScaniaBoy
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To: knighthawk
France's deficit was 3.% in 2002 and is projected to reach 3.7% in 2003

As the American and Iraqi money quits flowing to France, I am sure these figures will get worse.

I am sure Chiraq has his pockets full of dirty Iraqi money, so no problem for him though.

9 posted on 04/07/2003 3:43:10 PM PDT by RJL
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To: knighthawk
I love it when socialism implodes.

It always does.

With help from unions, of course.
10 posted on 04/07/2003 4:06:00 PM PDT by MonroeDNA ("Jessica Lynch! We are United States soldiersand we're here to protect you and take you home.")
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To: knighthawk
Pass the popcorn while we watch France & Germany implode economically!
11 posted on 04/07/2003 4:51:25 PM PDT by NYTexan (back to the bunker...)
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To: knighthawk
thanks for the ping. I've been gone a week and just catching up... Any idea why Austria is worst country in Europe for investment?
12 posted on 04/13/2003 6:31:29 PM PDT by RobFromGa (Real Americans Support our Troops 100%)
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