Latest news with #ChristianKraemer
Yahoo
21-05-2025
- Business
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Bundesbank's Nagel sees progress on tariffs but work to be done
By Christian Kraemer BANFF, Alberta (Reuters) -There has been progress towards a solution on a damaging tariff dispute with the United States but there are more hurdles to overcome, the Bundesbank's President Joachim Nagel told German television on Wednesday from the G7 meeting in Canada. Speaking to the ARD broadcaster, European Central Bank policymaker Nagel said the United States was showing better understanding of Europe's point of view and that there was acknowledgement on both sides that trade conflicts have no winners. Finance ministers from the Group of Seven industrial democracies are meeting in the mountain resort town of Banff, Alberta, against the backdrop of a global trade dispute after President Donald Trump unleashed sweeping tariffs. "My impression here is that we are beginning to come closer together on certain issues, to better understand each other, but there are still some hurdles to overcome. So, there is still a lot of work to be done," Nagel said. "I also believe that the U.S. side now understands some things better, and I am a little more confident than I perhaps was a few days ago," he added. The German Council of Economic Experts had earlier cut its forecast for Europe's largest economy, expecting it to stagnate this year during a "pronounced phase of weakness." Nagel said the projection was not a surprise, given the damaging uncertainty of the tariffs. He said first-quarter growth could be better than expected but saw growth worsening in the second quarter as the effects of the tariff dispute are felt. He looked forward to stronger growth of 1% or more in 2026, depending on how quickly the government implemented planned fiscal measures. In a separate interview with German broadcaster ZDF, Nagel said U.S. Treasury Secretary Scott Bessent had been constructive. Nagel said he did not see a split in the G7 group into six countries against the United States. "It's a G7." (Writing by Matthias WilliamsEditing by Rod Nickel) Sign in to access your portfolio
Yahoo
21-05-2025
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German finance minister and US treasury secretary Bessent met bilaterally, source says
By Christian Kraemer BANFF, Canada (Reuters) -German Finance Minister Lars Klingbeil met United States Treasury Secretary Scott Bessent on Wednesday for a bilateral conversation on the sidelines of the G7 finance ministers' consultations in Canada, a German source in G7 circles told Reuters. Both agreed to meet again in Washington, with Bessent inviting Klingbeil. The conversation was a private, open, and constructive exchange and lasted longer than planned, the source told Reuters. Klingbeil emphasized the importance of close transatlantic relations, especially in light of current geopolitical and economic challenges, the German source said. Ongoing trade disputes with the U.S. should be resolved as quickly as possible for the benefit of all, Klingbeil said on Tuesday, ahead of meeting his counterparts from other Group of Seven countries. In his conversation with his U.S. counterpart, Klingbeil also emphasized that the G7 must remain steadfastly on the side of Ukraine.
Yahoo
20-05-2025
- Business
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Trade disputes should be resolved as quickly as possible, Germany says ahead of G7
By Christian Kraemer BERLIN (Reuters) -Ongoing trade disputes with the United States should be resolved as quickly as possible for the benefit of all, German Finance Minister Lars Klingbeil said on Tuesday, ahead of meeting his counterparts from other Group of Seven countries. "Tariffs and uncertainties are a burden on our economy and therefore also on job security," Klingbeil said in Berlin before leaving for a G7 finance ministers meeting in Banff, Canada. The Trump administration has imposed a 25% tariff on U.S. imports of steel, aluminium and cars, as well as a baseline 10% tariff on almost all countries, with additional "reciprocal" tariffs - making for a combined 20% in the EU's case - lined up if negotiations during a 90-day pause fail. Germany and the European Union want to find an agreement with Washington, but the clock is ticking. "At the same time, as the largest single market in the world, we are determined to defend our interests," Klingbeil said of the EU. He welcomed the opportunity of meeting his G7 colleagues in person after he took office two weeks ago, noting that strengthening international cooperation was more important than ever in view of global upheavals. "We must send a crystal-clear signal that the G7 will continue to stand firmly by Ukraine's side," Klingbeil said, adding that the group was doing everything it could to secure a fair and lasting peace. Another topic in G7 meetings will be the reconstruction of Ukraine after "the terrible destruction caused by Russian President Vladimir Putin's war", and especially how private investment can be mobilised, Klingbeil said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
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Germany pushes ahead with budget preparations while seeking savings, document shows
By Christian Kraemer BERLIN (Reuters) -Germany's new finance minister has begun intensive preparations for the 2025 and 2026 budgets, with savings sought despite the government giving itself fiscal room by creating a new infrastructure fund, a document seen by Reuters on Monday showed. After former chancellor Olaf Scholz's coalition collapsed in November, the last government ran out of time to pass the 2025 budget. Germany has instead been operating on a provisional budget since the start of the year. In the planned official budget, however, new finance minister Lars Klingbeil will be looking for savings. "As finance minister, I will push for every ministry to come up with savings," Klingbeil told Redaktionsnetzwerk Deutschland on Sunday. Germany in March approved plans for a massive spending surge, including a 500 billion euro ($570 billion) fund for infrastructure and exemptions from debt rules for defence spending. Even with this, "leaning back ... is not an option," Klingbeil said. Germany is facing two important challenges according to the document seen by Reuters. The first one is security. "Our security is more threatened today than at any time since the end of the Cold War. The greatest threat comes from Russia," finance ministry state secretary Steffen Meyer said in the document. The second challenge is ongoing economic weakness, with Europe's largest economy failing to grow for two consecutive years and the government forecasting stagnation this year. The document sets the three priorities of the new finance ministry: investments for modernizing Germany, structural reforms to enhance competitiveness and ease the burden on the public and on business, and budget consolidation. "Now is the moment to quickly raise the potential of the German economy and go back to a higher and sustainable growth path," Meyer said. According to the document, the draft budget for 2025 will be approved by cabinet on June 25, the first discussion in parliament will take place in July and the budget committee will finalise the details in September, when it should also be approved by lawmakers. In parallel, the first draft of the 2026 budget should be approved on July 30. It is to be discussed in parliament in September, then approved in the lower house of parliament in November and the upper house in December, following the usual schedule. ($1 = 0.8874 euros)
Yahoo
08-04-2025
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German economic institutes cut forecast for 2025 to 0.1% growth, sources say
By Rene Wagner and Christian Kraemer BERLIN (Reuters) - German economic institutes have cut their forecast for this year to 0.1% growth from the 0.8% growth expected in September, two sources told Reuters on Tuesday, adding that the revision does not include yet the latest tariffs announced by the United States. Germany was the only G7 economy that failed to grow for the last two years. The tariffs announced by President Donald Trump will deal a major blow to Europe's biggest economy, possibly putting it on track for a third year of recession for the first time in history. For 2026, the institutes forecast economic growth of just above 1.0%, the sources said, without giving an exact number. The previous forecast for next year was 1.3%. After the February election, the conservatives led by Chancellor-in-waiting Friedrich Merz and the Social Democrats, who are negotiating to form a government, announced a 500 billion euro ($544 billion) fund for infrastructure and sweeping changes to borrowing rules to bolster defence and revive growth. The fiscal package improves the economic outlook for 2026 and 2027. The new forecasts factor in U.S. tariffs of 25% on EU aluminium, steel and cars, but not the tariff increases of 20% on other goods announced last Wednesday, the sources told Reuters. The forecasts will be officially published on Thursday. The economy ministry incorporates the combined estimates from the institutes into its own predictions. Sign in to access your portfolio
