German banks warn Berlin that red tape could dampen spending plans' oomph
FRANKFURT, March 6 (Reuters) - Germany's banks on Thursday warned Berlin that giant spending plans for infrastructure and defence need to be accompanied by overhauls to cut red tape to get their maximum punch.
This week, the parties hoping to form Germany's next government agreed to create a 500-billion-euro infrastructure fund and overhaul borrowing rules, a tectonic spending shift that fuelled hopes of reviving Europe's largest economy.
The optimism has sent German bank shares soaring.
But top German bankers are concerned that the measures could lose their oomph and prove short-lived if the government doesn't also tackle bureaucracy.
"These measures are only justifiable if they are accompanied by far-reaching structural reforms. Otherwise it will remain an expensive flash in the pan," said Heiner Herkenhoff, the head of the Association of German Banks, said in a statement to Reuters.
Christian Ricken, the CEO of the German property lender Aareal, said the spending plans could improve financial conditions for property developers to build apartments to confront the nation's housing shortage.
"But we also need simplifications in terms of regulations and laws so that we can build sensibly again," he said.
Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Metro
an hour ago
- Metro
Man Utd make transfer decision on Victor Osimhen after Viktor Gyokeres blow
Manchester United are given strong consideration to a move for Victor Osimhen with Arsenal taking the lead in the race to sign Viktor Gyokeres. Both United and Arsenal are desperate to sign a new centre forward this summer with Sporting CP star Gyokeres a top target for both clubs. A bitter row between Sporting and the Sweden international has broken out this week, with the player and his representatives convinced the club have broken promises over the fee he will be sold for his summer. Arsenal's sporting director, Andrea Berta, met with Sporting officials to discuss a deal this week with an initial approach worth an €55m (£46.8m) plus a further €10m (£8.5m) in add-ons rejected. An improved offer is expected. While United are still in the picture, Gyokeres' preference is to join the Gunners where Champions League football will be on offer next season. Wake up to find news on your club in your inbox every morning with Metro's Football Newsletter. Sign up to our newsletter and then select your team in the link so we can send you football news tailored to you. Ruben Amorim's side have already missed out on their top striker target with Liam Delap opting for a move to Chelsea – with United's lack of European football next season again a huge factor. With Arsenal leading the race for Gyokeres, United could now reignite their interest in Osimhen, The Sun report. Osimhen is set to return to Napoli after a loan spell in Turkey with Galatasaray where he scored 37 goals in 41 appearances. Talks to join Saudi side Al-Hilal broke down last week with Galatasaray hoping to keep hold of the Nigeria international who would still be keen on a move to the Premier League. Reports in France meanwhile talks have restarted between Osimhen and United. A salary of €12million-a-year has been discussed, according to Foot Mercato, with his parent club Napoli hoping to secure a fee of €75million. But United's failure to win the Europa League could again come back to haunt them. Former Chelsea star John Obi Mikel, Osimhen's countryman who was involved in negotiations to take him to Stamford Bridge last summer, suggests while the striker could consider a move to Old Trafford, playing in the Champions League is a top priority. 'I think so,' Mikel told Metro when asked if a lack of European football could derail United's chances of signing Osimhen. 'As the top striker and player I know he is, yes I think that would be a factor. 'Maybe he would say, 'I will give it a season.' Knowing he is in the squad with a few other signings that Ruben Amorim gets in, the players he wants, it is something Victor might consider. Maybe he would think about sacrificing a season. 'We have to wait and see. But I think we want to see him in the Champions League.' MORE: Arsenal deal for Viktor Gyokeres at risk as Sporting issue threat over transfer fee MORE: Benfica send message to Chelsea over Joao Felix transfer MORE: King's Birthday Honours list: Sir David Beckham knighted and Luke Littler honoured
Scottish Sun
an hour ago
- Scottish Sun
Yobs hurl petrol bombs, fireworks and bottles at cops in FIFTH night of riots as chaos spreads to new town
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MASKED yobs hurled petrol bombs and fireworks at cops for a fifth night in Northern Ireland, in what has been dubbed a "week of shame" for the region. Cops battled another night of violence as thugs continued to cause widespread devastation after the chaos began on Monday. Sign up for Scottish Sun newsletter Sign up 4 A rioter walks past burning flames after chaos in Northern Ireland Credit: Getty 4 Riot police were out in force but were met by a barrage of petrol bombs and fireworks Credit: Getty 4 Riot police officers walk near a fire during the fourth night of unrest following a protest over an alleged sexual assault on a local teenage girl Credit: Reuters The unrest began on Monday in Ballymena over the alleged sexual assault of a girl in the town and the subsequent arrest of two 14-year-old boys. But the focus of the violence and unrest has since shifted to Portadown. One officer was directly in the impact of a petrol bomb that landed behind a line of police vehicles during a sustained standoff with those participating in the unrest yesterday. Fireworks, masonry, and bottles were among other items thrown at riot police deployed in the town. Shortly before midnight cops used a water cannon on the crowd in an effort to disperse those gathered on West Street into other areas. The force used the water cannon again at around 12.30am on Saturday. Incidents have also occurred in other towns - Larne Leisure Centre was set on fire on Wednesday, while a man, woman, and four children escaped an arson attack on a house in Coleraine in the early hours of Friday. Elsewhere on Friday, there were reports of disruption and damage to public property as riot police responded to another protest in the Tullyally area of Londonderry. It came after a senior officer said there would be a "scaled-up" policing presence across Northern Ireland in anticipation of further disorder over the weekend. Assistant Chief Constable Ryan Henderson said the mobilisation, which would include officers sent over from Scotland, was "to reassure our communities and protect our streets". Violence originally erupted on Monday, stemming from an initially peaceful gathering to support a girl and her family after an alleged sexual assault. Sick moment vile yob shouts 'f*** foreigners' while setting family's home on FIRE in 'racist' riot carnage Two 14-year-old boys appeared in court charged with attempted rape on Monday. A third man, 28, was also arrested over the alleged sexual assault. The boys confirmed their names - which cannot be reported - and their ages through a Romanian interpreter at Coleraine Magistrates' Court. But within hours of their court appearance, disorder broke out in Co Antrim. Families in the town of Ballymena have been forced to flee their homes as the riots continue. Crowds set fire to piles of furniture in the middle of the streets, homes were set alight, and multiple cars went up in flames. Harrowing photos from the last two nights show the charred remains of residents' property. Footage showed masked and hooded rioters lobbing petrol bombs, fireworks and bricks at cops trying to calm the unrest on Tuesday. Officers fired baton rounds and water cannon in a desperate bid to keep the mobs at bay. Why the two 14-year-old boys charged with attempted rape can't be named The two teenagers charged with attempted rape appeared at Coleraine Magistrates' Court on Monday. The defendants cannot be named due to their ages. Article 22(2) of the 1998 Order restricts press and media reporting of proceedings in youth courts. It states that, where a child is concerned in any criminal proceedings in a youth court or on appeal from a youth court, no report revealing the name, address or school of any child, including anything likely to lead to the identification of the child, shall be published. Press and media are also restricted from publishing a picture of any child concerned, except where the court or the Department of Justice, if satisfied that it is in the interests of justice to do so, makes an order dispensing with these prohibitions.
Scottish Sun
2 hours ago
- Scottish Sun
Barrage of ‘hundreds' of Iranian missiles lights up Tel Aviv sky & blasts heard in Tehran in huge Middle East escalation
STRIKING BACK Barrage of 'hundreds' of Iranian missiles lights up Tel Aviv sky & blasts heard in Tehran in huge Middle East escalation Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) IRAN overnight launched scores of ballistic missiles targeting Israel as the Ayatollah's vengeance edges the Middle East towards all-out war. At least three Israelis have been killed and dozens injured after ballistic missiles tore through the skies of Tel Aviv and Jerusalem. 7 An explosion as a ballistic missile strikes in Tel Aviv Credit: AP 7 Israeli air defence systems do battle with Iranian missiles in the skies Credit: AP 7 Rescuers outside a missile strike site in Ramat Gan, on the outskirts of Tel Aviv Credit: Reuters At least three rounds of missiles and sporadic drones descended on the civilian population across the country. The strikes managed to severely damage some neighbourhoods in Tel Aviv. Tehran branded them revenge strikes after Israel smoked nuclear facilities across Iran and decapitated the regime's top military leadership. Israel also managed to kill at least two top nuclear scientists who worked to help Iran inch towards producing nuclear weapons. Both sides have warned more is yet to come, with Iran's supreme leader Ayatollah Ali Khamenei vowing to inflict "heavy blows". Israel's Prime Minister Benjamin Netanyahu told Iran that "more is on the way" and warned "the regime does not know what will hit them". The country's defence minister Israel Katz said Iran "crossed red lines after it dared to attack the civilian population" and will now "pay a heavy price for it". Netanyahu also appealed directly to "the proud people of Iran", urging them "stand up and let your voices be heard" as Israel undertakes "one of the greatest military operations in history". But his calls were offset by jubilant scenes on the streets of Tehran, where crowds gathered on Friday night to revel in the regime's show of defiance. Earlier on Friday, Iran's war machine stood in ruins following a ferocious Israeli blitz which killed top generals, destroyed nuclear facilities, and shattered missile bases. Israel, with its unmatched air force, powerful missile defences, and intelligence reach, demonstrated its ability to hit Iran at its core. Iran, while weakened, still commands regional proxy networks like Hezbollah and the Houthis - forces that could be unleashed in asymmetric retaliation. Iran described Israel's multifaceted offensive as a "declaration of war", and said it considers the US to "share full responsibility" - despite the Americans absolving themselves of collaborating in the strikes. Iran's representative to the UN said that 78 people had been killed and more than 320 others injured by the Israeli attacks on Tehran. 7 Israeli Prime Minister appealed to the Iranian people to rise up Credit: AFP 7 The first strikes hit Tehran in the early hours of Friday Credit: AP 7 People pick through rubbled buildings in Nobonyad Square in Tehran following Israeli airstrikes Credit: Getty 7 Stay up to date with the latest on Israel vs Iran with The Sun's live blog below...
