Economic forecasting restrictions during a pandemic coronavirus

Economic forecasting restrictions during a pandemic coronavirus

Germany’s economy has gone into artificial hibernation to stop the spread of the coronavirus. Initial forecasts suggest this will be expensive but opinions about the extent vary widely. In an interview, the head of the German Institute for Economic Research (DIW), Marcel Fratzscher, explains the limitations of economic forecasts. If there is one thing that can be said with certainty about the coronavirus pandemic, it is that not much is certain. From the point of view of the economy, this is fatal. Entrepreneurs do not know at the moment how…

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German trade unionist: more active participation of workers helps during the crisis

German trade unionist: more active participation of workers helps during the crisis

The coronavirus pandemic has caused a rapid transformation of the workplace at a time when digitalisation and the Green Deal were beginning to restructure entire industries. In an interview with EURACTIV, trade unionist Karin Erhard describes how companies should go forward in these uncertain times and how a strong system of codetermination can help chart the way. Karin Erhard is a member of the executive board for the German trade union IG BCE, which represents workers in a variety of sectors including mining, chemical, coal and pharmaceutical industries, and has…

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Authorities urge bankers to adjust bonuses in response to pandemic

Authorities urge bankers to adjust bonuses in response to pandemic

Banking authorities are calling on European lenders to cut their bonuses for this year in order to reflect the impact of the coronavirus and dedicate more resources to the real economy. The European Banking Authority issued a statement late on Tuesday (31 March) recommending that banks review their remuneration policies.  The EU’s banking regulator told national authorities to ask for adjustments to strengthen their financial situation as the region prepares to suffer a severe recession.  “Remuneration and, in particular, its variable portion, should be set at a conservative level,” the…

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Strengthening the EU’s solidarity with the European response to the corona crisis

Strengthening the EU’s solidarity with the European response to the corona crisis

The number of people infected with the coronavirus is increasing daily across Europe. The top political priority must be to take targeted measures to slow down infections, in order to protect high-risk groups and avoid overburdening health systems, write Anna Cavazzini and Petra de Sutter. Anna Cavazzini and Petra de Sutter are MEPs for the Greens Group. Petra de Sutter is the chair of the Committee on Internal Market and Consumer Protection. With solidarity between member states and a functioning internal market, we can guarantee that people are provided with…

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US exports to the EU grow 6% more and still three times higher than to China

US exports to the EU grow 6% more and still three times higher than to China

The export of US goods to the EU totalled $337 billion in 2019, an increase of 6% on the previous year, according to the Transatlantic Economy 2020 report, published on Thursday (26 March). At the same time, that figure was three times higher than the total of goods exported from the United States to China. The Transatlantic Economy report is an annual survey focused on trade and investment between the US and Europe. The 2020 edition was published on Wednesday (26 March) by Daniel S. Hamilton and Joseph P. Quinlan…

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Emergency response: rationale for a holistic plan for economic recovery

Emergency response: rationale for a holistic plan for economic recovery

Climate change, biodiversity loss and deforestation are contributing drivers behind pandemics. Like COVID-19, these cross-cutting challenges do not observe national borders and can be managed only through collective action, write Sandrine Dixson-Declève and Johan Rockström. Sandrine Dixson-Declève is co-president of The Club of Rome and co-founder of The Planetary Emergency Partnership. Johan Rockström is professor and director at The Potsdam Institute for Climate Impact Research and co-founder of The Planetary Emergency Partnership. The following is an open letter they are sending to EU heads of states and governments, as well…

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Against the backdrop of the COVID-19 recession, U.S. aircraft rates are taking effect.

Against the backdrop of the COVID-19 recession, U.S. aircraft rates are taking effect.

The Trump administration enacted its planned duty rate increase for aircraft imported from the EU on Wednesday (18 March), amid the continuing spread of COVID-19 and fears of a subsequent recession. These measures will increase the rate from 10 to 15%, particularly impacting Airbus. With Europe’s airlines already reeling from cancelled flights and the US COVID-19 travel ban, the White House dealt another blow to the European air travel industry as duty increases on EU aircraft came into effect at midnight. This came despite recent pleas from US airlines to…

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Fearing coronavirus recession, France weighs nationalization

Fearing coronavirus recession, France weighs nationalization

France’s finance minister said Tuesday (17 March) that he was willing to nationalise large companies to protect them from bankruptcy, while warning that the country faces recession this year as the coronavirus epidemic sinks the economy. Bruno Le Maire announced a €45 billion aid package to help businesses and employees cope with the escalating health crisis. “I will not hesitate to use any means at my disposal to protect large French enterprises,” the minister said during a conference call with journalists. “This can be through capital injections or stake purchases….

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Meat sector must adapt to climate change or crash, new analysis warns

Meat sector must adapt to climate change or crash, new analysis warns

A new climate scenario model on the meat sector shows that the industry stands to lose billions in the event of the scenario of a 2°C warmer world by 2050. The model, published on Thursday (12 March) by FAIRR, a global network of investors addressing environmental, social and governance issues in protein supply chains, aims to help investors understand the financial implications of climate change on the sector. It found that the impacts of climate change and rapid growth of alternative proteins could put “billions of dollars” at risk for…

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Commission promises to ensure that companies survive after coronavirus

Commission promises to ensure that companies survive after coronavirus

The European Commission is “extremely mobilised” to ensure that big companies and SMEs survive the economic impact of coronavirus, the Commissioner for Industry Thierry Breton said on Monday (9 March). The spread of coronavirus across Europe has forced public authorities to take drastic measures, including a complete lockdown in Italy or the closure of schools in Madrid and other parts of Spain.  Markets plunged in Europe and elsewhere, as EU leaders were expected to hold a teleconference on 10 March to discuss what actions could be taken to combat the…

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