Germany

Welteke 'relaxed' on asset bubbles

Ernst Welteke, president of the Bundesbank, said on Sunday 7 March that he was "relaxed" on the issue of asset bubbles, a growing concern among central bankers in the wake of strong equity market gains over the last year.

IMF's Koehler named candidate for presidency

Horst Koehler, managing director of the IMF, is to become the candidate of the opposition parties for president of Germany. If he is elected by parliament in a vote on May 23, he will leave his IMF post a year before his term runs out.

Schroeder urges ECB consider rate cut

German Chancellor Gerhard Schroeder said on Wednesday 25 February that the European Central Bank should "most intensively" consider cutting interest rates to halt the euro's appreciation against the dollar.

Welteke: Strong euro 'an asset' and outlook good

Ernst Welteke told an audience in Frankfurt that the strong euro is allowing the ECB to keep interest rates low. The Bundesbank chief also said the economic prospects for the eurozone and Germany "are rather good" and urged Britain to join the euro.

Strong euro does not require rate cut - Buba

According to Hermann Remsperger, the Bundesbank's chief economist, the ECB does not need to cut eurozone interest rates to stimulate domestic demand. The ECB's rate-setting Governing Council is due to meet on Thursday 5 February.

Trichet says no need to change growth pact

In a speech on 'Economic reform in Europe' given on 26 January, Jean-Claude Trichet of the ECB said the ECB does not see any need for changes to the eurozone's rules on budget deficits, which he described as "appropriate".

Germany reports growth at 0.25%

The Bundesbank said on Monday 19 January in its January monthly report that Germany grew by just 0.25 percent in the fourth quarter of 2003 compared with the third quarter.

Eurozone inflation rate falls in December

The annual inflation rate for the 12-nation eurozone fell to 2.1 per cent in December from 2.2 per cent the previous month, according to an initial estimate by Eurostat data agency released on Monday 5 January.

Dollar fall to hit central bank profits

The strength of the euro against the dollar is proving a double-edged sword for Europe's central bankers. The decline in the value of the dollar against the euro is likely to eat into the earnings of the central banks of Germany, Austria and the…

Brussels stands by legal threat over pact row

Gerassimos Thomas, spokesman for EU monetary affairs commissioner Pedro Solbes, has said according to AFP that the European Commission's position has not changed on the ECOFIN decision to postpone any sanctions against Germany and France for breaking the…

Jurgen Stark on ECOFIN Council decision

In a statement following the ECOFIN Council's decision on the stability and growth pact, Bundesbank Vice President Jurgen Stark said the "decision of the ECOFIN Council threatens to break the political consensus of the Maastricht Treaty, which is also…

Stark: currency union leading to political union?

In a speech on 'Ten years of Maastricht - Currency union leading to political union?' given on 2 December, Jurgen Stark of the Deutsche Bundesbank said further damaging the pact would expose the policy regime of monetary union to a very severe endurance…

Germany works to reduce budget deficit

The German government forecast on Wednesday 3 December that its budget deficit will drop back to 2.5 percent in 2005, according to a report by Associated Press. But it reaffirmed Hans Eichel's position that Germany isn't prepared to implement extra…

Buba warns of tensions between ECB, politicians

Deputy chief of the Bundesbank, Juergen Stark, warned on Tuesday 2 December that the stability and growth pact dispute could lead to increased tensions between politicians and the European Central Bank, according to a report by EU Business. "Further…

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