Germany’s economic outlook

The German Council of Economic Experts – an academic body which advises the German Government and the Parliament on economic policy issues has published last week its Annual Report 2009/2010. The related Press Release can be downloaded from here.

5 replies on “Germany’s economic outlook”

“The recovery is weak and yet not selfsustaining and risks are still tilted to the downside. In particular, impaired credit markets may constrain the recovery process and rising unemployment will act as a drain on consumption.”

Not very comforting words.

“Such a “Consolidation Pact” would also facilitate the ECB’s task of phasing
out its stimulus measures.”

Better get all that NAMA money spent soon.

“This requires devising a robust regime to restructure and, if necessary, close systemic financial institutions.”

Bye Bye Anglo Irish Bank.

@ Greg
Have you seen Anglo’s plans to “sell off” up to €1 billion of investment properties to the Green Property group.

Bruton said, it would be “very disturbing” if there was “any hint of a sweetheart deal”. Yes, richard I fully concur, it would be very disturbing indeed but not very surprising!

True to form, Anglo has refused to discuss it’s terms citing “commercial confidentiality”. It also failed to generate a bidding contest for the deal. If someone was selling your house you would like to see the campaign they put together to justify their commissions. Here is a billion being shifted off Anglo’s books which we own and we get no explanations.

It seems that Green was the only company that Anglo entered into serious negotiations with. Why? By “privatizing” these transactions they have hidden the scale of writedowns. Why? Shades of nama here I think!

Glad to see Germany is not coming out of recession because when it does interest rates go up! Game over! I would love to know how they are going to agree an exit strategy. To be fair to the Germans at least they have broached the subject in the US Bernanke refuses to even mention it.

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