Latest news with #Europe-US
Bloomberg
07-04-2025
- Business
- Bloomberg
The Freight Recession Isn't Going Anywhere Now
There's an old saying that all goods eventually get carried by a truck. Don't forget that those goods also likely were hauled by ships and trains and stored in a warehouse. With that in mind, look to the logistics industry for some of the first clues of how the economy and the business world will deal with the new reality of a protectionist US that President Donald Trump has set in motion. Although the reaction in the stock market to Trump's bid to upend global trade by implementing historically high tariffs has been swift and extremely negative, it will take some time for the impacts to take hold on how goods and production capacity are shuffled around the world. Expect the Asia-US and Europe-US shipping routes to suffer a drop in demand, while Latin America, which mostly dodged the heftiest tariffs, enjoys an increase. A decline in freight demand that portends weak consumer spending and even recession will exacerbate the glut of shipping and trucking capacity that has hung over the industry since the height of the pandemic.
Local Germany
14-03-2025
- Business
- Local Germany
BREAKING: German parties reach deal over huge spending plan
Merz told reporters that the deal was "a clear message to our partners and friends but also to the enemies of our freedom: we are able to defend ourselves", adding: "Germany is back". The plan jointly put forward by Merz's centre-right CDU and the centre-left Social Democrats (SPD), who are currently in coalition talks, would see defence spending exempted from the country's constitutionally enshrined debt brake when it exceeds one percent of GDP. Fraying Europe-US ties under President Donald Trump and his pivot away from supporting Ukraine have fuelled calls for Germany, long dependent on the US security umbrella, to quickly ramp up military funding amid signs of increasing Russian aggression. The government-in-waiting also plans to set up a €500 billion special fund for infrastructure spending. Friday's deal follows several days of often acrimonious debate during which the Greens had threatened to withhold their support, citing insufficient action on the environment in the spending plan. The Green party's votes are needed to reach the two-thirds majority in parliament required to modify the debt brake. A vote on the plans is due on Tuesday. Merz -- whose conservatives came first in February elections -- said that after talks with the Greens it had been agreed that €100 billion of the infrastructure fund would be dedicated to climate protection measures. 'Alarming situation' On Thursday Merz had urged a quick agreement on the issue during a fiery parliamentary debate. When it came to the armed forces in particular, "any further delay" in boosting spending "would be irresponsible", he said. "In view of the alarming security situation in Europe in every respect and the growing economic challenges in our country, far-reaching decisions... cannot be postponed any longer," Merz told lawmakers. Stressing that action needed to be taken quickly, SPD parliamentary leader Lars Klingbeil told MPs: "When history knocks at our door, then we must open it -- we don't know if we will have a second chance." The incoming government is keen to get the spending plans approved before the newly elected parliament convenes at the end of this month. In the new chamber the far-right Alternative for Germany (AfD) and the far-left Die Linke, who both oppose the plans, would have the numbers necessary to block them. Both parties have filed legal challenges against the spending plans at the constitutional court, arguing there will be insufficient time for consultations.
Local Germany
13-03-2025
- Business
- Local Germany
Germany's Merz urges MPs to back spending bonanza in fiery debate
Merz's conservatives and the centre-left Social Democrats (SPD) -- in talks to form a coalition after February's general election -- unveiled the plans for vast extra outlays last week, and are now racing to push them through the current legislature. "In view of the alarming security situation in Europe in every respect and the growing economic challenges in our country, far-reaching decisions... cannot be postponed any longer," Merz told lawmakers at the start of the debate. When it came to the armed forces in particular, "any further delay" in boosting spending "would be irresponsible", he said. "We must now take action to significantly increase our defence capabilities, and we must do so quickly." Fraying Europe-US ties under President Donald Trump have fuelled calls for Germany, long dependent on the US security umbrella, to quickly boost military funding, while infrastructure spending is seen as a route to pull Europe's top economy out of stagnation. Merz's plans envisage exempting defence spending from the country's strict debt rules when it exceeds one percent of GDP and setting up a €500 billion fund for infrastructure investments. While the plans have won praise from German allies abroad, who grew weary of inaction under outgoing Chancellor Olaf Scholz, Merz faces a desperate scramble to push them through parliament. 'History is knocking' As the measures involve a change to the constitutionally enshrined "debt brake", which limits government borrowing, they require a two-thirds majority in parliament. This means that Merz's CDU/CSU bloc and SPD want to get them passed before a new parliament convenes later this month in which far-right and far-left parties, who have expressed scepticism about extra defence spending, will be in a position to block the measures. Stressing that action needed to be taken quickly, SPD parliamentary leader Lars Klingbeil told MPs: "When history knocks at our door, then we must open it -- we don't know if we will have a second chance". But there are hurdles ahead, particularly after the Greens -- whose votes are needed to reach the two-thirds mark -- threatened to torpedo the plans, complaining they were rushed and did not do enough for climate protection. Green lawmaker Irene Mihalic criticised the attempt to force through major changes to the constitution "with the old majorities" in parliament, rather than waiting for the new parliament to convene. Such a manoeuvre "shows complete ignorance of the reality in our country and of this parliament, and I fear it damages trust in politics as a whole," she said during the debate. Legal challenges Parliament is convening for two special sessions to debate the measures, on Thursday and also next Tuesday -- when a vote on the proposals is also to take place. Merz's plans also face another threat with both the far-right Alternative for Germany (AfD) -- which came second in the election -- and the far-left Die Linke party having filed legal challenges at the constitutional court, arguing there will be insufficient time for consultations. Chairman of the Germany's Social Democratic Party (SPD) Lars Klingbeil comes back to the plenary during a debate at the Bundestag (lower house of parliament) in Berlin on March 13th, 2025. Photo: Tobias Schwarz / AFP If Merz fails to get his plans through, observers fear he would lose momentum and his future government could face the same paralysis that beset Scholz's ill-fated, three-party coalition, whose November collapse precipitated last month's election. The pressure has only increased on him in recent weeks as Trump has become increasingly hostile towards Ukraine and made overtures to Russia. Still, the incoming government would have options to boost spending if the current parliament fails to pass the plans next week, analysts said. Merz's conservative bloc and the SPD are also due to begin full-fledged negotiations on forming a coalition Thursday after concluding exploratory talks at the weekend. The fate of the spending plans could have a bearing on these talks, noted Der Spiegel news outlet. A failure to push them through parliament "would possibly also put an end to the coalition negotiations", it said. By Jastinder Khera with Sam Reeves in Frankfurt
Yahoo
13-03-2025
- Business
- Yahoo
Germany's Merz urges MPs to back spending bonanza in fiery debate
Germany's likely next leader Friedrich Merz said Thursday urgent action was needed to boost the country's under-resourced military and ailing economy, as he defended plans for a spending bonanza during a fiery parliamentary debate. Merz's conservatives and the centre-left Social Democrats (SPD) -- in talks to form a coalition after February's general election -- unveiled the plans for vast extra outlays last week, and are now racing to push them through the current legislature. "In view of the alarming security situation in Europe in every respect and the growing economic challenges in our country, far-reaching decisions... cannot be postponed any longer," Merz told lawmakers at the start of the debate. When it came to the armed forces in particular, "any further delay" in boosting spending "would be irresponsible", he said. "We must now take action to significantly increase our defence capabilities, and we must do so quickly." Fraying Europe-US ties under President Donald Trump have fuelled calls for Germany, long dependent on the US security umbrella, to quickly boost military funding, while infrastructure spending is seen as a route to pull Europe's top economy out of stagnation. Merz's plans envisage exempting defence spending from the country's strict debt rules when it exceeds one percent of GDP and setting up a 500-billion-euro ($545-billion) fund for infrastructure investments. While the plans have won praise from German allies abroad, who grew weary of inaction under outgoing Chancellor Olaf Scholz, Merz faces a desperate scramble to push them through parliament. - 'History is knocking' - As the measures involve a change to the constitutionally enshrined "debt brake", which limits government borrowing, they require a two-thirds majority in parliament. This means that Merz's CDU/CSU bloc and SPD want to get them passed before a new parliament convenes later this month in which far-right and far-left parties, who have expressed scepticism about extra defence spending, will be in a position to block the measures. Stressing that action needed to be taken quickly, SPD parliamentary leader Lars Klingbeil told MPs: "When history knocks at our door, then we must open it -- we don't know if we will have a second chance". But there are hurdles ahead, particularly after the Greens -- whose votes are needed to reach the two-thirds mark -- threatened to torpedo the plans, complaining they were rushed and did not do enough for climate protection. Green lawmaker Irene Mihalic criticised the attempt to force through major changes to the constitution "with the old majorities" in parliament, rather than waiting for the new parliament to convene. Such a manoeuvre "shows complete ignorance of the reality in our country and of this parliament, and I fear it damages trust in politics as a whole," she said during the debate. - Legal challenges - Parliament is convening for two special sessions to debate the measures, on Thursday and also next Tuesday -- when a vote on the proposals is also to take place. Merz's plans also face another threat with both the far-right Alternative for Germany (AfD) -- which came second in the election -- and the far-left Die Linke party having filed legal challenges at the constitutional court, arguing there will be insufficient time for consultations. If Merz fails to get his plans through, observers fear he would lose momentum and his future government could face the same paralysis that beset Scholz's ill-fated, three-party coalition, whose November collapse precipitated last month's election. The pressure has only increased on him in recent weeks as Trump has become increasingly hostile towards Ukraine and made overtures to Russia. Still, the incoming government would have options to boost spending if the current parliament fails to pass the plans next week, analysts said. Once Merz becomes chancellor -- likely in late April -- he could suspend the debt brake by invoking an emergency, as the previous government did during the pandemic, although this would only be a stopgap. Merz's conservative bloc and the SPD are also due to begin full-fledged negotiations on forming a coalition Thursday after concluding exploratory talks at the weekend. The fate of the spending plans could have a bearing on these talks, noted Der Spiegel news outlet. A failure to push them through parliament "would possibly also put an end to the coalition negotiations", it said. sr/jsk/lth
Local Germany
13-03-2025
- Business
- Local Germany
German MPs to begin debating Merz's spending plans
Merz unveiled the plans last week, vowing his centre-right CDU/CSU bloc and the centre-left SPD would quickly push them through before the end of the current legislature. The two parties are currently in talks to form a coalition after February's elections. Fraying Europe-US ties under President Donald Trump have fuelled calls for Germany to quickly boost military funding and reduce its dependency on the US security umbrella, while infrastructure spending is seen as a route to pull Europe's top economy out of stagnation. Vowing to do "whatever it takes", Merz has proposed exempting defence spending from the country's strict debt rules when it exceeds one percent of GDP and setting up a €500 billion fund for infrastructure investments. While the plans have won praise from German allies abroad, who grew weary of inaction under outgoing Chancellor Olaf Scholz, Merz faces a desperate scramble to push them through parliament. As the measures involve a change to the constitutionally enshrined "debt brake", which limits government borrowing, they require a two-thirds majority in parliament. This means that the CDU/CSU and SPD want to get them passed before a new parliament convenes later this month in which far-right and far-left parties, who have expressed scepticism about extra defence spending, will be in a position to block the measures. Greens unhappy Debates begin in the Bundestag on Thursday, with a vote on the proposals due on Tuesday next week. But Merz's task got trickier after the Green party, whose votes are needed to reach the two-thirds mark, threatened to torpedo the plans. Although the Greens were in favour of a reform of the "debt brake", the changes proposed by Merz were not the ones needed, Green leader in the Bundestag, Katharina Dröge, told reporters on Monday. Merz and his partners from the SPD were creating a "treasure chest" to fund their political priorities, including tax cuts, Dröge said. Greens MPs Katharina Dröge, Britta Haßelmann, Franziska Brantner and Felix Banaszak leave a press conference before the start of the parliamentary group meeting in the Bundestag. Photo: picture alliance/dpa | Michael Kappeler "Whoever wants our approval for more investment must also show that it is really about more investment in climate protection, more investment in the economy in this country." The CDU has sought to appease the Greens, saying their concerns are "completely legitimate", and the two sides have been holding talks this week. Merz's plans also face another threat with both the far-right Alternative for Germany (AfD) party and the far-left Die Linke party having filed legal challenges at the constitutional court, arguing there will be insufficient time for consultations. The AfD won its best ever showing at last month's election, coming second with almost 21 percent of the vote, while Die Linke are set to enter the next parliament after a surprisingly good result. Calls for swift action If Merz fails to get his plans through, observers fear he would lose momentum and his future government could face the same paralysis that beset Scholz's ill-fated, three-party coalition, whose November collapse precipitated last month's vote. The pressure has only increased on Merz in recent weeks as Trump has become increasingly hostile towards Ukraine and made overtures to Russia. The incoming government would still have options to boost spending if the current parliament fails to pass the plans next week, analysts said. Once Merz becomes chancellor -- which could be in late April -- he could suspend the debt brake by invoking an emergency, as the previous government did during the pandemic, according to Berenberg bank economist Holger Schmieding. While it would only be a stopgap, "it would give a new German government time to temporarily raise defence and infrastructure spending while trying to garner a two-thirds majority for a permanent change to the debt brake," he said.
