Real estate market in Europe Construction is not booming everywhere

Status: 16.06.2021 2:01 p.m.

Construction is one of the boom industries in Germany even during the crisis. But what about in other European countries? Our correspondents report that the situation there is only partially comparable.

Poland: increasing demand, increasing prices

By Jan Pallokat, ARD studio Warsaw Anyone in Poland who thought that the corona pandemic would slow down the construction industry, which has been booming in the country for years, was caught on the wrong foot at the beginning of the year. Housing construction in particular is buzzing even more; In the first quarter, developers in major cities sold 40 percent more than in the previous year and three percent more than in the previous record year of 2017. And because the supply of modern living space still lags behind demand in the country, the sales prices achieved are also rising steadily: on average by almost eight percent for new buildings and six and a half percent for used residential property. The rising prices for building materials and an increasing shortage of staff also play a role here. Because construction workers are scarce, market experts are now warning that construction sites could be paralyzed in rows during the high season in summer. The downside of the building boom: home ownership is often unaffordable for young families. Already today, 43 percent of under 35-year-olds in Poland lived with their parents, the Eurostat statistics office recently reported. This puts Poland in the top group in the EU when it comes to “Hotel Mama” and is on a similar level to Italy.

Spain: no construction boom in sight

By Reinhard Spiegelhauer, ARD studio Madrid Construction boom and Spain – wasn’t there something? Yes, Spain has actually experienced an absolutely ludicrous construction boom – but that was 20 years ago. In the nineties and noughties, the number of planned apartments practically doubled from year to year – up to the highest level in 2006 with almost 900,000 apartments. Then came the big bang: the real estate bubble burst, banks had to be bailed out, Spain rushed past bankruptcy, hundreds of thousands could no longer service their real estate loans, apartments were evicted. The market then recovered very slowly. But still, roads, lamps and park benches built in boom times are rotting in many development areas. In 2019, the year before the corona pandemic, the foundation stones were laid for a good 100,000 apartments. Since then, however, the sector has largely been paralyzed again. Unemployment fell again after peaking at around 25 percent after the euro crisis, but it again reached 15 percent during the pandemic. For young adults it is more than 30 percent. According to experience from the times of the real estate bubble, far stricter criteria now apply to the granting of loans. All of this is currently preventing any kind of construction boom in Spain.

Switzerland: mainly redevelopment and densification

By Dietrich Karl Mäurer, ARD studio Zurich Instead of a “construction boom”, the umbrella association of the Swiss construction industry, Building Switzerland, speaks of “continuously good work”. A large part of the orders are so-called consolidations and energy-efficient building renovations. But not least because of the low interest rates, large investors like to invest in construction projects such as new building complexes with rental apartments. The demand is good, although there are vacancies in some rural regions. Housing is still in short supply in cities. This is also because net immigration has recently risen again; During the pandemic, many foreigners who actually wanted to leave the country after a certain period of time in Switzerland preferred to stay – mainly because of the comparatively difficult labor market conditions in their home countries. The construction industry accounts for ten percent of Switzerland’s economic output and employs around half a million skilled workers. According to a recent economic survey, the situation in the construction industry is stable. However, the limited availability of building materials and preliminary products could become a problem. Incidentally, real estate prices in Switzerland have risen faster than they have been in eight years.

European market China is significantly reducing investments

Status: 16.06.2021 12:53 p.m.

China invested less in the European market in 2020 than it has for ten years. Great Britain was particularly hard hit. It’s not just the corona pandemic to blame. China significantly reduced its direct investment in the European market last year. According to a joint report by the American Rhodium Group and Merics in Berlin, direct investments by the People’s Republic in the EU and Great Britain amounted to around 6.5 billion euros in 2020. Compared to the previous year, a decrease of 45 percent. That is the lowest level in ten years.

June 16, 2021

Great minus for Great Britain

In the past year, even 77 percent less Chinese direct investment flowed into Great Britain. Even so, the UK remains one of the top three destinations for China’s investments in Europe – alongside France and Germany at the top. The three most important areas for Chinese investors were infrastructure, information and communication technology and electronics. Poland, promoted by a major acquisition, was a major new recipient last year.

01/14/2021

Stricter controls on Chinese purchases

However, many Chinese purchases are now being scrutinized more closely by the EU member states than in the past. Several planned takeovers did not materialize. In Germany, for example, the Federal Ministry of Economics stopped the planned sale of the radar specialist IMST from North Rhine-Westphalia to a Chinese company with links to the military. Several EU countries, including Italy, France, Poland and Hungary, had tightened their inspection mechanisms for direct investments from third countries last year. Investments continued to decline in the current year, according to the report. The reasons are the pandemic, high hurdles for capital outflows from China and tighter controls in the EU.

10/01/2019

Sanctions dispute exacerbates tensions

In addition, the tense relations between China and the EU are likely to play a role. That’s the way it is Investment protection agreements agreed in December between the EU and the People’s Republic is currently on hold and ratification by the European Parliament seems to be moving further and further into the distance. Another point of contention remains the human rights violations in China: In March, the EU Sanctions imposed on Chinese politicians and an organization for the first time in 30 years . The EU accuses China of violating human rights by suppressing the Uyghur Muslim minority in the Xinjiang region. As a result of the European punitive measures, China also reacted shortly thereafter with sanctions against European institutions and several EU politicians . With information from Ruth Kirchner, ARD Studio Beijing, currently Berlin

Economic recovery Is Germany’s upswing lagging behind?

Status: 11.06.2021 6:09 p.m.

The corona numbers are falling, economic life is normalizing and the economy is picking up again. Germany seems to be lagging behind its neighbors. Is it really like that? From Lothar Gries, tagesschau.de The British economy grew by 27.6 percent in April compared to the same month last year – a record as the National Statistics Office (ONS) announced. The strong growth figures reflect the economic recovery in the wake of the gradual opening of the economy, which crashed in spring 2020 after the start of the pandemic and the following protective measures. Projected over the year, the British central bank now expects an increase in gross domestic product (GDP) of 7.25 percent. That would be the highest growth rate since 1941. Other European countries such as France are also assuming a strong economic recovery of 5.5 to 5.7 percent for the current year. The Spanish government even expects an increase of 6.5 percent. In fact, in the opinion of most economists, the prospects for economic growth in the euro area have brightened significantly in view of the falling number of corona infections and the global economic recovery. According to the latest information, the European Central Bank (ECB) is therefore assuming an increase in GDP in the euro area of ​​4.6 percent this year.

06/11/2021

Germany far behind in terms of growth

After a strong upward trend, things should go up in the USA, which is still the largest economy in the world. There, the Federal Reserve (Fed) is expecting an increase in economic output of 6.5 percent with a view to the advanced vaccination campaign and the prospect of an economic stimulus package. In China, Germany’s most important trading partner, the economy is likely to grow by as much as 8.5 percent this year. And Germany? Lies far behind in one of the farthest places. The Bundesbank currently expects GDP growth of 3.7 percent for 2021. Federal Minister of Economics Peter Altmaier is even more optimistic. “Thanks to extensive government aid of almost 300 billion euros, the German economy survived the worst of the coronavirus crisis. This year, growth of three and a half to four percent would be possible,” said the minister.

05/12/2021

So is the recovery of the domestic economy lagging behind that of its most important trading partners? The economists of the Organization for Economic Cooperation and Development (OECD) give a differentiated answer. It is true that the economy in countries that quickly vaccinate their population against Covid-19 and that contain the infection rate through effective measures is recovering faster than elsewhere.

Already in the summer pre-crisis level

In South Korea and the United States, for example, per capita income is likely to have reached pre-pandemic levels by the end of this month. In large parts of Europe, however, this will only be the case after three years, in Mexico and South Africa it may take five years or more, the OECD fears. Seen in this way, Germany is in a much better position than when looking at the bare growth figures. The Bundesbank estimates that economic output could reach pre-crisis levels again this summer. The economists of the OECD expect that this will not be the case until the end of the year.

background 05/31/2021

Nevertheless, the recovery in Germany would still be faster than in Italy, France or Spain. In these countries, GDP per capita is unlikely to be above the level of the end of 2019 until the middle of next year, according to the forecast of the OECD. It looks particularly bleak for Spain, whose economy will not be above pre-crisis levels again until the summer of 2023. The experts predict that Great Britain will not return to pre-crisis levels until the middle of next year.

Fatal dependence on tourism

This shows the great dependence of these states on the service sector and especially on tourism. In Spain, for example, this industry slumped by 48.4 percent last year, in Italy by 35.1 percent, in Greece even by 55.4 percent, while in Germany it fell by almost 15 percent. Accordingly, GDP fell less sharply in Germany last year than in most of the neighboring countries. This is also due to the comparatively higher share of industry in the overall economy and its unchanged strong exports to China. “How strong the economic recovery will be in each country depends on the level of government support for businesses and vulnerable workers, the degree of dependence on certain industries such as tourism, and health and vaccination policies,” said a May report Study by the OECD. Despite the global economic recovery, global income is likely to be around three trillion dollars lower than before the pandemic by the end of 2022, the OECD estimates. This roughly corresponds to the performance of the French economy.

Infringement Procedure How EU law is enforced

As of: 06/09/2021 4:21 p.m.

In order to enforce the law of the European Union in the EU states, there is the infringement procedure. It can lead to heavy fines. By Christoph Kehlbach, ARD legal editors The law of the European Union is to be implemented in the EU member states. There is a formal procedure to enforce this: the infringement procedure. In extreme cases, the European Court of Justice can impose very considerable penalties as a means of pressure.

Reason: breach of obligation under the EU treaties

As a rule, infringement proceedings are initiated by the EU Commission. And then when it comes to the conclusion that a member state of the European Union is not complying with EU law. This is where the EU Commission’s designation as the “guardian of the EU treaties” comes from. Specifically, it can mean that the respective state does not transpose an EU directive into national law. Such directives regulate, for example, EU-wide consumer protection. All member states are obliged to implement them. Or that a state enacts laws that run counter to an obligation under the EU treaties. For example, because they impermissibly restrict the free movement of goods and services. The commission then first contacts the state directly. If that doesn’t help, she can ultimately bring the case to the European Court of Justice (ECJ).

As a rule, the EU Commission initiates infringement proceedings. Image: picture alliance / dpa / XinHua It is also possible that it is not the Commission but another EU country that initiates infringement proceedings. However, he must first contact the Commission. Only if this remains inactive can this state take legal action directly at the ECJ. That happens very rarely. A prominent example of such an exceptional case was the dispute over the car toll planned by the federal government for cars that are not registered in Germany: Austria saw this as discrimination and became active after the EU Commission had not acted. Ultimately, this is how the toll came before the ECJ. This overturned her in a spectacular decision in the summer of 2019 : The court came to the judgment that the toll discriminates against citizens and companies from other EU countries and thus restricts the freedom of goods and services.

Three-step process

In the vast majority of cases, however, it is the commission itself that takes action on its own initiative. The “normal” procedure is clearly regulated: If the EU Commission sees a violation, it demands one first step write to the state concerned to comment. The country must then respond within a specified period. Usually this period is two months. Now it is at least conceivable that Brussels will be persuaded by this response letter, i.e. that it will understand that there is no violation of EU law. Then the process ends at this point. However, if the Commission comes to the conclusion after an answer that there is indeed a violation of EU law, then it gives in one second step issued an official statement. In this, the Commission justifies its view and calls on the state to ensure that the situation that is contrary to EU law is ended. Within a further period (again it is usually two months) the state must then provide information about what it has done for this purpose. If the state does not meet its duty within this period, or does so insufficiently, the commission may in a third step bring the case to the European Court of Justice (ECJ). The judges in Luxembourg then give a judgment on the matter. Such a judgment against Germany there was, for example, the beginning of June 2021 : It was about the years Exceeding limit values ​​for nitrogen dioxide . If the ECJ is right to the Commission, i.e. if, as in this case, there has been a violation of the EU treaties, the state concerned must then take action to remedy this situation. Or prove that the illegal situation has already been eliminated.

In infringement proceedings, the European Court of Justice decides whether EU law has been violated – and can ultimately even impose high fines. Image: picture alliance / dpa

Financial sanctions possible after judgment

If a state still does not meet its obligations after such a ruling by the ECJ, the EU Commission can appeal to the ECJ again. This second court case is about financial sanctions. At the proposal of the Commission, the ECJ can then set a regular penalty payment against the state, or levy a lump sum – or combine both. The longer a state allows a violation of the EU treaties to persist, the more expensive it becomes. For example, due to data protection violations, lump-sum payments in the double-digit million range do occur – often combined with a daily penalty rate of tens of thousands of euros. Such penalties are always only the very last step.

Particularly delicate situation

The infringement procedure regarding the ECB judgment from Karlsruhe is particularly tricky: Because this is not simply a matter of Germany failing to transpose an EU legal norm into national law or failing to achieve certain benchmarks. Rather, the subject of the specific infringement proceedings is for the first time a judgment by the highest German court. To be more precise: A judgment in which the Federal Constitutional Court found that the European Central Bank (ECB) and also the ECJ have exceeded their competences . Ultimately, if the proceedings are not terminated beforehand, a curious situation could arise: the ECJ could decide whether a ruling by the Federal Constitutional Court, which certifies that the ECJ has made a massive error, violates EU law.

EU authority More Piracy in the pandemic

As of: June 8th, 2021 9:10 a.m.

Counterfeit clothing, electronics, cosmetics: According to the EU, product piracy has increased during the pandemic. Recently, counterfeits have been causing problems, especially in the medical field. From Oliver Neuroth, ARD studio Madrid The pandemic has created a huge new market, says Paul Maier, director of the European Observatory on Intellectual Property Infringements. The market for personal corona protective equipment: masks, rapid tests, disinfectants. “We were in a situation in which the industry was not immediately able to create these products in the volume that was necessary for the market. The counterfeiters are incredibly fast.” Just a few days after the lack of good protective masks became apparent last spring, there were tons of offers from China. However, these products, which at first glance appeared to be suitable, turned out to be unusable shortly afterwards because they did not comply with European guidelines. “These people are not the kind of ‘easy criminals’ who are not very dangerous. They belong to the very worst. That also explains why these people were able to react so quickly and in such an organized manner,” says Maier.

Plagiarism worth 120 billion euros

The most common counterfeits include electronics, clothing, toys and cosmetics. In the past year, plagiarism made up almost seven percent of all imports into the EU; it involves goods worth more than 120 billion euros. A good three quarters of the counterfeits came from China. The pandemic also made it easier for product pirates to use their distribution channels, says Maier from the EU Intellectual Property Office. Online retail has been booming for more than a year, with fewer people shopping in stores. “When you hold a fake in your hand, you usually notice straight away: ‘That can’t be the quality I know!’ You don’t see that on the Internet because the counterfeit sellers use the real photographs, “explains Maier. The original product is shown, but a plagiarism is then sent.

Every third person had doubts about the authenticity of a product

Every third consumer in Europe had, according to one study of the EU Office for Intellectual Property when shopping online, doubts whether it is an original or a fake. One in ten says that they have accidentally bought a plagiarism. The expert of the EU authority recommends consumers to buy online only in “Trusted Shops” if possible. And to check that the website has an “https” address, which is considered more secure than the classic “http” pages. Maier also advises buying drugs only from licensed internet pharmacies and never from other sites. Because the network is full of counterfeit medicines. Ingestion can be dangerous. “There is nothing easier to imitate than a pill. You can squeeze it yourself – what is in it, of course, is important. And no consumer can see that.” Counterfeit drugs either contained no active ingredient at all, an incorrectly dosed or even toxic substance.

“Endless Fight”

Finding out who is responsible for plagiarism is extremely difficult, says the expert. “It’s probably a never-ending fight. But you have to fight it.” The EU wants to take more decisive action against product piracy. A few days ago, the Council of Ministers made the fight against organized crime a priority for the next few years. Above all, it is about Internet crime, which also includes counterfeit products.

From Constantin Röse, ARD stock exchange studio Five years: That’s how long EU and British diplomats have been fighting for Brexit. With the Vote in the European Parliament the agreement is now closed – but with a clear warning from Commission President Ursula von der Leyen that this agreement has “teeth”. That sounds more like a threat than restarting relationships.

Northern Ireland contentious issue

So is the ongoing EU-UK dispute going on? No, says Jörg Krämer, Commerzbank’s chief economist: “We’ve seen the big brawl a long time ago. But there are still open issues.” For example the situation in Northern Ireland: The EU complains about violations of the UK against the exit agreement. This actually guarantees open borders between the British province and the EU member Ireland. However, the UK doesn’t like this. However, Krämer considers it unlikely that the EU will react to this with punitive tariffs. “I do not believe that this conflict will escalate to such an extent that the European Union will introduce tariffs on the movement of goods,” says the economist, because: “The European Union would cut its own flesh.” If you look at the total exports of the EU to Great Britain, they did not decrease in January.

Bureaucratic hurdles deter companies

The picture is very different in the case of German-British trade relations. German exports to Great Britain collapsed by 30 percent in January compared to the previous year. The mood in German companies is correspondingly bad. Customs formalities in particular are a thorn in their side for companies that want to export goods to the island, explains Carsten Brzeski, chief economist at ING Bank. “You were in part surprised by all these bureaucratic hurdles that have now been built up by the fact that Great Britain is no longer a member of the European internal market.” This leads to higher costs and more bureaucracy, according to Brzeski, and that scares some companies off. According to a survey by the British Chamber for Commerce in Germany and the consulting firm KPMG, 17 percent decided to stop foreign trade with Great Britain completely because it is no longer worthwhile for them.

Still many questions unanswered

In this divorce, however, it also becomes clear that many issues are still unresolved: What is the future of deep-sea fishing? Or how do the EU and Great Britain deal with financial services? Economist Brzeski does not yet believe in a quick relaxation between the mainland and the island. “In the coming months – probably also in the course of this entire year and also next year – we will see the negative consequences of Brexit rather than being able to talk about new opportunities here.” If anyone sees opportunities, it is the Brexit hardliners. You like to refer to the strong economic forecasts. According to this, economic growth in Great Britain is expected to be around six percent this year, in Germany, for example, only around 3.5 percent. The British economy owes this primarily to the vaccination success in the country – and by no means to Brexit. You will only really be able to see the consequences of this after the pandemic.

From Moritz Pompl, ARD studio Rome The fact that the Italian parliament, i.e. the Senate and Chamber of Deputies, would approve the reconstruction plan was more a matter of form. Even so, there was still a lot to be discussed in Rome. “The fact that parliament receives the updated version just a few hours before the discussion is frankly a bit unacceptable,” complained Nicola Fratoianni of the left-wing party alliance Liberi e Uguali. And Francesco Lollobrigida from the right-wing national party Fratelli d’Italia also criticized: “One plan, 336 printed pages. And Parliament couldn’t even read it properly!” Prime Minister Mario Draghi, on the other hand, thanked the parliamentarians for their valuable work over the past few months. And thus rejected the opposition’s criticism that parliament was not sufficiently involved.

Italy receives more money than other EU countries

The headline above the ambitious plan could be: Italy should become more progressive, greener and fairer. It amounts to a government program, not only for these governments, but also for future governments. In the next five years, the country should get back on its feet – with a financial injection of almost 250 billion euros, of which around 190 billion from the pot of the European development fund “Next Generation EU” . Italy gets more than any other EU country. However, said Draghi, the economic and social damage caused by the corona crisis is particularly great here:

The pandemic has hit us more than our European neighbors. We have now reached almost 120,000 Covid deaths. Then there are those who have not even been registered. The gross domestic product fell by 8.9 percent last year. And unemployment has increased, especially among young people and women.

The birth rate is set to rise again

It is precisely women and young people who play a central role in the reconstruction plan: a total of around 50 billion euros is to flow into projects that ensure more social justice. It’s about 230,000 new daycare places and more all-day schools. For better education, universities of excellence are planned across Italy and more scholarships. In order to relieve women, the elderly and people with disabilities should be better cared for. Women who want to start a business should be supported through a special program. According to Draghi, the measures should help ensure that more children are born again:

We have one of the lowest birth rates in Europe. A woman has an average of 1.3 children with us. In Europe the average is 1.6. We have to enable our young people to have families. And for this they need three basic conditions: a good welfare state, an apartment and a safe job.

Southern Italy should particularly benefit

In the relatively poor south of Italy in particular, one is struggling with the problem that many young people have emigrated. 40 percent of the development funds should therefore go to the south – for example to relocate research institutes, modernize ports and create express train connections. This should make the south more interesting for foreign investors. 70 billion euros alone, and thus the largest item, are earmarked for the “ecological restructuring” of Italy, ie for solar and hydrogen projects, charging stations for e-cars or emission-free bus fleets. Draghi already has parts of the industry on board for this, such as the energy company Enel or the Stellantis auto consortium, to which Fiat also belongs. With the help of the companies, Italy wants to set up its own battery research. This is particularly important for the Italians because they are particularly exposed to the risks of climate change, said Draghi.

Draghi wants to pay off mountain of debt

The government also wants to invest a lot of money in digitization and innovation. What sounds a bit bulky means, for example, that more than eight million households and thousands of schools should get fast internet. In doing so, the country wants to become more modern and competitive. In addition, the health care system is to be improved after the experience of the corona pandemic – with more small hospitals and medical centers away from the big cities. Italy hopes the program will give a boost to growth. It also wants to pay off the debts, which have grown to 160 percent of the gross domestic product. The program must be submitted to the EU Commission by April 30th. If they approve it, the first tranche could flow by the summer.

From Moritz Pompl, ARD studio Rome The fact that the Italian parliament, i.e. the Senate and Chamber of Deputies, would approve the reconstruction plan was more a matter of form. Even so, there was still a lot to be discussed in Rome. “The fact that parliament receives the updated version just a few hours before the discussion is frankly a bit unacceptable,” complained Nicola Fratoianni of the left-wing party alliance Liberi e Uguali. And Francesco Lollobrigida from the right-wing national party Fratelli d’Italia also criticized: “One plan, 336 printed pages. And Parliament couldn’t even read it properly!” Prime Minister Mario Draghi, on the other hand, thanked the parliamentarians for their valuable work over the past few months. And thus rejected the opposition’s criticism that parliament was not sufficiently involved.

Italy receives more money than other EU countries

The headline above the ambitious plan could be: Italy should become more progressive, greener and fairer. It amounts to a government program, not only for these governments, but also for future governments. In the next five years, the country should get back on its feet – with a financial injection of almost 250 billion euros, of which around 190 billion from the pot of the European development fund “Next Generation EU” . Italy gets more than any other EU country. However, said Draghi, the economic and social damage caused by the corona crisis is particularly great here:

The pandemic has hit us more than our European neighbors. We have now reached almost 120,000 Covid deaths. Then there are those who have not even been registered. The gross domestic product fell by 8.9 percent last year. And unemployment has increased, especially among young people and women.

The birth rate is set to rise again

It is precisely women and young people who play a central role in the reconstruction plan: a total of around 50 billion euros is to flow into projects that ensure more social justice. It’s about 230,000 new daycare places and more all-day schools. For better education, universities of excellence are planned across Italy and more scholarships. In order to relieve women, the elderly and people with disabilities should be better cared for. Women who want to start a business should be supported through a special program. According to Draghi, the measures should help ensure that more children are born again:

We have one of the lowest birth rates in Europe. A woman has an average of 1.3 children with us. In Europe the average is 1.6. We have to enable our young people to have families. And for this they need three basic conditions: a good welfare state, an apartment and a safe job.

Southern Italy should particularly benefit

In the relatively poor south of Italy in particular, one is struggling with the problem that many young people have emigrated. 40 percent of the development funds should therefore go to the south – for example to relocate research institutes, modernize ports and create express train connections. This should make the south more interesting for foreign investors. 70 billion euros alone, and thus the largest item, are earmarked for the “ecological restructuring” of Italy, ie for solar and hydrogen projects, charging stations for e-cars or emission-free bus fleets. Draghi already has parts of the industry on board for this, such as the energy company Enel or the Stellantis auto consortium, to which Fiat also belongs. With the help of the companies, Italy wants to set up its own battery research. This is particularly important for the Italians because they are particularly exposed to the risks of climate change, said Draghi.

Draghi wants to pay off mountain of debt

The government also wants to invest a lot of money in digitization and innovation. What sounds a bit bulky means, for example, that more than eight million households and thousands of schools should get fast internet. In doing so, the country wants to become more modern and competitive. In addition, the health care system is to be improved after the experience of the corona pandemic – with more small hospitals and medical centers away from the big cities. Italy hopes the program will give a boost to growth. It also wants to pay off the debts, which have grown to 160 percent of the gross domestic product. The program must be submitted to the EU Commission by April 30th. If they approve it, the first tranche could flow by the summer.

The European Union’s Corona Reconstruction Fund has a total volume of 750 billion euros. With the help of the money, the member states should lead their respective economies out of the coronavirus valley and at the same time provide impetus for important future investments and reform measures. The federal government expects EU subsidies of 25.6 billion euros (net without VAT). The gross expenditures mentioned in the federal budget are then a total of almost 28 billion euros. The Federal Cabinet approved Finance Minister Olaf Scholz’s plan of what exactly should be financed. Around 90 percent of the money is to be invested in climate protection and digitization.

Greens: Not new, just financed differently

“Climate protection is the greatest challenge of our time,” said Scholz at a joint press conference with France’s Finance Minister Bruno Le Maire. Around 11.5 billion euros are therefore earmarked for climate-friendly mobility, hydrogen and building modernization. More than 14 billion euros are expected to flow into the digital transformation. These investments should in turn have a positive effect on overall economic output and employment. The Greens criticized that Germany is now financing measures that are already planned – just differently. In addition, hardly any money flows into structural reforms. 80 percent of the measures in the development plan are already part of the German economic stimulus program, said Green European politician Sven Giegold. They are therefore not spending more on climate protection or digitization.

EU members commit to implementation

The construction aid agreed in summer 2020 is intended to help the 27 EU countries get back on their feet after the pandemic. Part of the money is available as grants and part as a loan. For the first time, the EU Commission is allowed to take on large amounts of debt for the 750 billion package. The largest sums are earmarked for Italy and Spain, which were particularly hard hit by the pandemic. Each individual state has to ratify the program and apply to the EU Commission for the specific use of the money in a development plan. EU Commission chief Ursula von der Leyen announced a detailed examination of whether the plans of the EU states meet the common high standards. “We know exactly where we want to go,” said von der Leyen. The goal is a greener, more digital and more crisis-proof Europe.

Money should flow in before the end of summer

Scholz wants to present Germany’s plan to the EU Commission this week – as do France, Spain and Italy. Italy, which is receiving more than 190 billion euros, wants to invest the money in high-speed trains, organic agriculture and judicial reform, among other things. Prime Minister Mario Draghi said it was about building the “Italy of tomorrow”. France’s Finance Minister Le Maire complained that the EU had lost too much time since the agreement on the reconstruction fund in July last year. China’s economy is already growing again and the US is booming. The EU must stay in the race. The EU Commission must therefore examine the national development plans as quickly as possible so that they can be approved by July at the latest. The money could then flow in before the end of summer.

From Stephan Ueberbach, ARD studio Brussels It doesn’t happen very often: the European Parliament thanked Michel Barnier, who led the Brexit negotiations on behalf of the EU, with a standing ovation. With today’s decision, a tough and often nerve-wracking struggle comes to an end after more than four years. The divorce between Great Britain and the European Union is thus perfect. Yet Europeans and British have much more in common than what separates them, said Barnier at the meeting.

Trouble over British breach of contract

The majority of parliamentarians also still consider Brexit to be a serious mistake. And the anger over Boris Johnson’s administration runs deep. It has unilaterally suspended the agreed goods controls between Great Britain and Northern Ireland. From the EU perspective, this is a clear breach of the withdrawal agreement that Johnson negotiated and signed personally. “British diplomacy used to be a symbol of credibility for me,” emphasized Manfred Weber, leader of the European Christian Democrats. “But when we see how Boris Johnson behaves in Northern Ireland, the message is: ‘What do I care about my signature!’ This is the new Great Britain that we have by our side as a partner. ”

“This contract has real teeth”

The trade and partnership agreement expressly provides for sanctions in the event of violations. For example, in the dispute over goods controls, the EU could impose punitive tariffs on certain products from Great Britain. Commission President Ursula von der Leyen wants to do that too, if necessary. “This treaty has real teeth,” she said, thereby also soliciting parliamentary approval. “This agreement protects European citizens and their rights, it protects European interests and the internal market and it maintains the high standards of labor rights, environmental protection, tax transparency and state aid,” said von der Leyen.

MPs are campaigning for approval

The vast majority of MPs see it that way too. The Austrian social democrat Andreas Schieder said:

This post-Brexit agreement is a strong foundation to mitigate the negative effects of Brexit for employees, for the environment and also for the economy. And it’s not the end, it’s a beginning too.

Consent or “no deal”

Despite all the criticism of the British government – in the late evening vote, the parliamentarians will grudgingly clear the way for the agreement as things stand – because the alternative would be a “no deal”, an unregulated chaos Brexit when the agreed transition period ends of the month expires. This is one of the reasons why the Luxembourgish Christian Democrat Christoph Hansen calls on his colleagues to agree to the trade and partnership agreement. It is the “only sensible decision” for citizens and businesses.

The competition authorities of the European Union have imposed a fine of around 48 million euros on Deutsche Bahn. The background is violations of European antitrust law, as announced by the EU Commission. In addition to Deutsche Bahn, the Austrian Federal Railways (ÖBB) and the Société Nationale des Chemins de fer belges (SNCB) are also affected. “The companies were involved in a cartel in which the division of customers was concerned,” announced the EU Commission. The companies had admitted their participation in the cartel. Specifically, it was about freight traffic on certain railway corridors.

Agreements between three railway companies

The Commission’s investigation showed that the three companies illegally exchanged customer inquiries and provided each other with higher price offers. There were corresponding agreements between 2008 and 2014. Deutsche Bahn emphasized that the customers had not suffered any economic disadvantages. According to the Commission, the Austrians were completely waived their fine of 37 million euros under the leniency program. Deutsche Bahn and SNCB also benefited from discounts because of their cooperation with the competition authorities in the investigation. The SNCB, for example, would have to pay a fine of 270,000 euros in the end.

The federal government is facing an agreement with the EU on rail aid

The negotiations with Brussels over billions in federal aid for the railways seem to be about to reach an agreement: According to a letter from the federal government’s rail commissioner, Enak Ferlemann, the negotiations between Germany and the EU Commission are on the home straight. The letter from Ferlemann to members of the Bundestag says that one is in constructive talks with the commission about a building block system for both the railway company and the industry as a whole. According to this, a core element is that the fees for track use are almost completely waived for all railway companies. This should apply retrospectively from March 2020 to the end of 2021. In addition, the federal government can step in for the failed dividend of the Deutsche Bahn of 650 million euros this year and possibly also next year, which would have flowed back to the network subsidiary of the state company together with federal funds. There could also be disaster aid for the group during the pandemic.

Objections of the EU Commission

Actually, the Bund had the ailing Deutsche Bahn in the Corona crisis an equity injection of five billion euros has been promised. However, this encountered resistance from competitors and the EU Commission. Therefore, according to Ferlemann’s letter, the entire sector should benefit from aid. In freight transport, for example, Deutsche Bahn only has a market share of less than 50 percent, in local transport of around 70 percent. For the state company, this could mean support, according to estimates from industry circles, of up to four billion euros, since the infrastructure with the network is in the hands of the company.

The environmental protection organization WWF has denounced the European Union as the world’s second largest forest destroyer. A total of 16 percent of global tropical deforestation in connection with international trade was accounted for by the EU, explains the WWF in a new report. First place in the “world rankings of forest destroyers” is taken by China with 24 percent of global tropical forest destruction. India is in third place with nine percent, ahead of the USA with seven percent. The study is based on the information reported on satellite images and the study of trade flows. Between 2005 and 2017, Germany imported by far the most tropical wood within the EU, as the report says. On average, 43,700 hectares of forest would be destroyed for German imports every year.

“Forests are our life insurance”

The WWF called on the German government and the EU Commission to ensure better and binding environmental and social standards in international trade relations. As a first step, the federal government must lobby the EU Commission for a strong EU law for deforestation-free supply chains. “The era of the destruction of nature must end, because natural ecosystems such as forests are our life insurance,” explained Christiane Scholl from WWF. Voluntary declarations of intent from governments and companies to make supply chains free of deforestation have only stopped the destruction of nature in individual cases.

Soy, palm oil and beef are particularly responsible for deforestation

In addition to forests, the EU law must also protect other ecosystems. Otherwise, the destruction of nature would only shift from the forest to other ecosystems such as wetlands, grasslands and savannahs. However, these are just as important for the climate, biodiversity and the livelihood of local people as tropical forests Most of the tropical forests destroyed in the study period from 2005 to 2017 were imports of soy, palm oil and beef, followed by wood products, cocoa and coffee. In Brazil, Indonesia and Paraguay, EU consumption destroyed most of the forest area. As a result of imported deforestation, the EU indirectly caused 116 million tonnes of CO2 emissions in 2017. That corresponds to more than a quarter of EU emissions from agriculture in the same year.