Airline in crisis Lufthansa wants to get rid of state influence

Status: 15.06.2021 9.45 a.m.

The largest German airline wants to raise additional money on the capital market for its realignment. In doing so, the group is trying to reduce the federal government’s ability to influence as quickly as possible. Lufthansa has initiated its planned capital increase. According to a mandatory announcement yesterday evening, the aviation group mandated four banks to implement the measure. However, according to the announcement “The Management Board and the Supervisory Board have not yet made a decision on the scope and timing of a possible capital increase”. Companies raise capital by issuing additional shares; the shares of the existing shareholders are thus diluted. The company is now implementing the approval of the shareholders received at the general meeting in May. The airline is allowed to raise up to 5.5 billion euros in fresh capital on the capital market. According to media reports, the management initially only wants to mobilize around three billion euros in order to push ahead with the restructuring of the company.

Exclusive 06/01/2021

Billion dollar rescue package

Lufthansa also wants to reduce the influence of the state through the capital increase. Lufthansa was in dire straits due to the Corona crisis and had to be supported by Germany and its other locations with a financial framework of nine billion euros. Germany accounted for a total of 6.8 billion euros of the state rescue package for Lufthansa. However, the airline group only made use of around two billion euros of the guaranteed funds. Half of this has already been repaid with the money from new bonds, so that Lufthansa currently owes the state around one billion euros. A capital increase of three billion euros would enable the company to repay this amount earlier than previously planned. The state would then soon have to sell its block of shares, for which it paid around 300 million euros.

Group wants to drastically reduce costs

With the withdrawal of the state participation, Lufthansa would have more leeway again. Because in return for state aid, the company has to adhere to various conditions: for example, a ban on paying dividends to shareholders or distributing interest to bond owners. Bonus payments to managers are also not yet possible. So far, the plan was not to pay off the state aid until 2023. Even drastic cost savings are probably easier to implement without government influence. According to earlier information, Lufthansa wants to reduce the number of employees in Germany by another 10,000 to 100,000. To this end, Lufthansa wants to lower tariff standards, encourage employees to leave the company voluntarily, but also issue redundancies for operational reasons. The unions had already made concessions in the Corona crisis, but recently accused Lufthansa of evading tariffs.

The approval of the state fund is still pending

The federal government’s economic stabilization fund (WSF), which has a 20 percent stake in Lufthansa, is expected to participate in the capital increase – but without spending additional taxpayers’ money on it. The WSF still has to approve the plan, said Lufthansa. The Corona financial aid fund wants to participate in the capital increase with a so-called “Operation Blanche”. A shareholder sells part of his subscription rights for the new shares in order to exercise the remaining subscription rights with the proceeds. No additional tax revenue is required for this transaction. The MDAX company also announced a new profit target for 2024 in the evening. By then, experts estimate that aviation should return to pre-crisis levels. The adjusted operating margin, i.e. the ratio of operating profit to sales, should then reach at least eight percent, and the return on investment should be at least ten percent.

Transparency International Germans concerned about economic influence

Status: 15.06.2021 09:26 a.m.

Many EU citizens perceive corruption as a major problem – this is evident from the current corruption barometer from Transparency International. Germany too has to do significantly more. From Philipp Eckstein, ARD capital studio Corruption: a problem across the European Union. The perception of the citizens is correspondingly critical. This is how the statements of the corruption barometer from Transparency International can be summarized. Between October and December 2020, more than 40,000 people were interviewed by telephone for the representative survey in the EU. Around a third of them said that they believe that corruption has increased in their country in the past year. The increase in Cyprus was particularly strong at 65 percent.

Corruption scandal in Cyprus

Last year, journalists there discovered that politicians had sold passports to criminals from abroad – probably for a fee. That is one reason why the perception of corruption in Cyprus has deteriorated so significantly, according to Transparency International. Almost two thirds of the EU citizens questioned said in the survey that corruption was a major problem in their government. There are clear differences within the EU.

Big differences between countries

While in Denmark and Finland only twelve and 16 percent perceive a corruption problem in their government, in Bulgaria it is 90 percent and in Croatia even 92 percent. Of the 4800 or so respondents in Germany, 34 percent said corruption was a problem in the federal government. Overall, according to the study, trust in government and politics in Germany is relatively high compared to many other European countries.

03/11/2021

Nevertheless: “We still have a problem with corruption,” says Hartmut Bäumer, Chairman of Transparency Germany. 62 percent of those questioned would say: “The government is essentially controlled in its decisions by large financial interests.” So it follows financially strong interest groups and not the interests of the general public. In addition, more than 38 percent have the perception that the federal government is doing too little against corruption. Taken together, “these are numbers that are really worrying,” said Bäumer, “because they feed those who are critical of the state and our liberal democracy anyway. And that is, so to speak, the breeding ground for everything that changes from lateral thinkers or right or left radicalism developed from. ”

Stricter requirements for lobby registers

The federal government urgently needs to do more to combat corruption and, above all, to ensure more transparency, according to Transparency International, for example through stricter rules for the lobby register. The anti-corruption organization is also calling for corporate criminal law to be introduced. Such measures can regain lost trust.

01/28/2021

This seems to be urgently needed, especially in the business sector. According to the survey, one in three respondents in Germany believe that all or most of the business leaders are involved in corruption. More than half believe companies use money or relationships to get public contracts.

Criticism of China’s economic project Headwind on the “New Silk Road”

Status: 06/11/2021 12:58 p.m.

China is expanding its influence worldwide, and the “New Silk Road” is intended to further strengthen the country. But the criticism of the project is growing. At the G7 meeting, the Australian head of government wants to report on his experiences. From Steffen Wurzel, ARD studio Shanghai Ding Laisong from the customs authority of the Chinese port city of Ningbo was satisfied at the beginning of the week: Trade with the states of the so-called “New Silk Road” had increased by 30 percent, he said on the Chinese state television broadcaster CCTV. In the case of trade with the particularly committed Silk Road countries in Central and East Asia, the plus is even 50 percent.

Sri Lanka regrets cooperation

China’s state and party leadership continues to sell its controversial strategy and trade project “New Silk Road” within the People’s Republic as a great success. In numerous partner countries, however, the initial enthusiasm for the project has given way to sober insight. China’s state and party leadership has nothing to give away with the Silk Road. On the contrary: in many cases, the Silk Road partner countries have borrowed considerably – with Chinese state banks. This sometimes creates considerable dependencies. One example is the Hambantota port project in Sri Lanka. According to media reports, the expensive Silk Road port project has hardly brought the island state anything economically. Sri Lanka’s Foreign Minister Dinesh Gunawardena now openly speaks of a mistake in leasing the port on the southern tip of the country to China for 99 years.

One billion euros in debt for Montenegro

In Europe, too, it is now becoming clear what the Silk Road critics have been calling a debt trap for years: the Balkan state of Montenegro, for example, had borrowed around one billion euros in China for the construction of a nearly 180-kilometer-long motorway. The autobahn is far from finished. But now the repayment is due – and the EU accession candidate lacks the money. The mood has also changed in large industrialized countries: In Italy, Prime Minister Mario Draghi put the Silk Road cooperation with China on hold, and the government in Canberra has also completed two projects in Australia. Only smaller, more symbolic projects were affected, but China’s communist leadership reacted angrily. She described Australia’s decision as “unreasonable and provocative”.

Australia accuses China of “extortionate behavior”

It is becoming clear that the communist leadership sees itself increasingly on the defensive in the Silk Road project, officially known as “Yi Dai Yi Lu”. Australian Prime Minister Scott Morrison complained at an economic conference in Perth “blackmailing behavior” by states like China. “Where compulsive acts have no consequences, there is little incentive to restrain,” said Morrison. Australia’s prime minister called for the sanctioning mechanisms of the World Trade Organization to be strengthened. Because if blackmailing behavior has no consequences, there is no reason for the corresponding states to hold back.

The G7 summit in Cornwall The heads of state and government of the seven leading industrialized countries (G7) will meet from June 11th to 13th in Cornwall, southwest England. For the first time in two years, they will meet again in person in the afternoon. In addition to climate change, the conference will also focus on trade issues and investments as well as the fight against the corona pandemic. In addition, the meeting will focus on the positioning towards Russia and China.
The G7 group includes the USA, Germany, Great Britain, Canada, France, Italy and Japan. Like-minded democratic states such as South Korea, South Africa, Australia and India are invited to the summit as guests. After the government in Canberra demanded a complete clarification of the origin of the Covid 19 pandemic around a year ago, Australia was de facto covered with an economic war by China’s leadership. The Australian Prime Minister Scott Morrison wants to share this experience with the G7 countries. He will be a guest at the summit in England.

Increasing influence How China is entering Europe’s ports

Status: 10.06.2021 12:33 p.m.

Piraeus, Rotterdam, Antwerp and soon possibly also Hamburg – China has its own terminals in 14 European ports or holds shares in port operators. Critics warn of the consequences of the urge to expand. From Lothar Gries, tagesschau.de The listed Hamburg port operator HHLA is currently negotiating with the Chinese state shipping company Cosco about a possible participation in one of its container terminals – with the telling name of Tollerort. HHLA recently announced that a legally binding agreement has not yet been reached. However, the publication of such a release indicates that the talks are on the home stretch. Trade with China is by far the most important business for the third largest European seaport. Ships of the Chinese shipping company Cosco have been calling at Hamburg for almost 40 years. Two years ago, China’s Vice President Wang Qishan also visited the Tollerort terminal. With its four berths on a quay wall a good kilometer long, 14 container cranes and a five-track rail connection, Tollerort is one of a total of four container terminals in the Port of Hamburg and the second largest at HHLA.

Important loophole

According to experts, by entering Hamburg, China would close the largest gap in its maritime Silk Road. Even more: through a partnership with HHLA, Cosco could also get privileged access to the Italian Adriatic port of Trieste. The Hamburg port operator had taken over the majority in a new terminal there last year – with the express approval of the government in Rome, which wanted to block the way for the Chinese who were also interested. Because a majority stake by Cosco in the largest container terminal in Trieste would have been tantamount to a sell-out from the perspective of the Italians. Now the Chinese could still gain access to Trieste via Hamburg. That would be a decisive move in Beijing’s expansion strategy, since Trieste is the northernmost port in the Mediterranean and therefore particularly important for Central and Eastern Europe. HHLA is also involved in terminals in the Ukraine and Estonia.

“Loss of Sovereignty”

Cosco and its sister company China Merchant already have their own terminals in a total of 14 European ports – or at least shares in the port operators. All the major seaports on the continent are included, from Rotterdam and Antwerp to Le Havre, Bilbao, Genoa, Valencia and Marseille. According to calculations by US experts, more than two thirds of the 50 largest container terminals in the world are already controlled by the Chinese or at least supported by holdings. “Europe has thus lost some of its sovereignty,” complained the former French Prime Minister and China expert, Jean-Pierre Raffarin. The sell-off began in 2016 when Greece, which was practically bankrupt at the time, was forced by the troika made up of the monetary fund, the EU and the ECB to privatize the port of Piraeus. The Chinese were happy to take it and were given complete control of the strategically located port for a bargain price of 280 million euros. Today Piraeus is number four in Europe, behind Rotterdam, Antwerp and Hamburg. The port is the end point of the maritime Silk Road, from China across the Indian Ocean to the Red Sea. Beijing also controls its entrance for onward travel through the Suez Canal, with a naval base in Djibouti on the Horn of Africa.

Silk Road project – anything but a marketing gimmick

The example of Greece shows the political effects of China’s increasing influence in some countries, says Günther Oettinger, the former EU Commissioner and Prime Minister of Baden-Württemberg. “Before the European Union imposed symbolic sanctions on China in March, Greece liked the role of delaying and watering down resolutions against China. A rogue who thinks evil”, said the CDU politician in a guest article for the “Tagesspiegel” “. China’s expansion can no longer be stopped. “We cannot blame the Chinese for being smart. We can only blame ourselves for being so stupid,” said French President Emmanuel Macron, referring to China’s strategy, which is an increasingly large one in Europe’s economy Role to play. In fact, the EU countries watched China’s shopping spree for a long time with takeovers of technology companies such as the German robot manufacturer Kuka. “When China’s leadership launched the ‘New Silk Road’ project in 2013, many in Europe believed it was a marketing gag,” said Günther Oettinger. President Xi Jinping was very serious, as can be seen from the trade network that has now been established. In Europe, China prefers to help those states, such as Greece or Hungary, that are poorer than Western Europeans. These countries are to be tied closely to themselves by investing billions in infrastructure in order to create a “China-friendly Europe”, as a high-ranking EU diplomat of the “world” said.

No concerns from Berlin

The most recent decision by the EU Parliament, which Suspend discussions on the investment agreement reached with China at the end of last year . Among other things, it was supposed to regulate the access of European companies to the Chinese market, but met with growing opposition in the European Union. Critics complained that the agreement did not set any limits to China’s expansionist urge. This is unlikely to prevent the Chinese from entering the Tollerort container port in Hamburg. The negotiations are after NDR- Information well advanced and coordinated with the federal government. There are no concerns from the Chancellery, the Ministry of Economics and Transport, or the Foreign Office.

Halston’s designs are often minimalist, monochrome, made of soft, thin materials such as chiffon and silk. Photo: Corbis, AP. With the Netflix film Halston just released about the life of the extremely influential American designer of the 1970s, fashion icon Roy Halston is once again attracting a lot of attention. His imprint on fashion is still largely felt on the runways: luxurious tailoring, soft fabrics that accentuate the natural curves of the body, slim lines and an eye for color. perfect. In honor of the famous fashionista, we scoured the Fall-Winter 2021 runways to discover that — like disco — the influence of avant-garde designer Halston never dies. Christian Siriano Halston SS84. Photo: Getty Christian Siriano FW21. Photo: Courtesy of Christian Siriano Michael Kors Halston, circa 1973. Photo: Getty Michael Kors FW21. Photo: Courtesy of Michael Kors Carolina Herrera Halston, circa 1989. Photo: Getty Carolina Herrera FW21. Photo: Courtesy of Carolina Herrera Thakoon Anjelica Huston in Halston, circa 1972. Photo: Getty Thakoon FW21. Photo: Courtesy of Thakoon Naeem Khan Halston, circa 1976. Photo: Getty Naeem Khan FW21. Photo: Courtesy of Naeem Khan Supriya Lele Halston, circa 1975. Photo: Getty Supriya Lele FW21. Photo: Supriya Lele Michael Kors Halston, circa 1989. Photo: Getty Michael Kors FW21. Photo: Courtesy of Michael Kors According to asiatatler

In the current overall framework of Sino-US relations, what are the special features of climate change cooperation issues? Shanghai once again played the role of a “bridge” at an important moment in Sino-US relations. What are the considerations for this arrangement? Almost at the same time Kerry arrived in Shanghai, a so-called “unofficial delegation” led by the former US Senate arrived in Taipei. The United States has recently played the “Taiwan card” frequently. What does it mean?

Reading Zhengguan exclusively connected with Renmin University of China EU “Jean Monnet” Chair Professor Wang Yiwei, Director of the Institute of International Affairs for interpretation.

Interest groups influence Biden government’s climate policy

Political View: Kerry is the first senior official of the Biden administration to visit China. What is the background and significance of this arrangement? In the overall framework of Sino-US relations, what is the weight of climate change cooperation issues?

Wang Yiwei: China and the United States account for more than 40% of global carbon emissions, and tackling climate change requires the two countries and other countries in the world to work together. Biden will host a climate summit next week, after the US government has officially issued an invitation to China.

Regarding Kerry’s trip to Shanghai, although some Republicans reacted fiercely, the White House has made it clear that the United States will engage with China at all levels, and that the US-China relationship is not confrontation but competition. I think that Kerry came to Shanghai to promote some substantive cooperation. Behind the Biden administration is the support of emerging industry interest groups represented by clean energy companies. This is an important foundation for the United States to seek cooperation with China in climate policy.

Looking back at history, climate change cooperation is a bright spot in Sino-US relations during the Obama administration. At that time, Biden, the vice president, and Kerry, the secretary of state, were both promoters of relevant policies. Relevant interest groups and environmental protection organizations have played an important role in the formulation of the Obama administration’s climate change and energy policies. Today, these groups still play similar roles and exert influence on the Biden administration. U.S. emerging industry interest groups represented by clean energy companies hope that the Biden administration can urge China to take more actions in terms of carbon emission reduction.

On the other hand, climate change is a very malleable topic, involving the construction of the future international structure, especially the game of financial international structure and rule-making. Now, the United States has revealed its intention to build a carbon emission dollar system and wants to link the dollar with carbon emission data. At the same time, the EU is building a carbon emissions trading system to promote the development of the carbon emissions trading market. There are similar considerations behind this.

Responding to climate change, China, the United States and Europe have broad space for cooperation

Political View: Not long ago, at the Sino-US high-level strategic dialogue held in Anchorage, although China and the United States had differences on some issues, both sides agreed to strengthen dialogue and cooperation in the field of climate change, and the two sides will establish a Sino-US climate Joint Working Group on Change. In the context of facing differences in some areas, why did China and the United States take the lead in reaching a consensus on strengthening dialogue and cooperation in the field of climate change?

Wang Yiwei: Since the Biden administration came to power, climate change cooperation has been generally regarded as an area that can be expected in Sino-US interaction. It should be said that there is a certain inevitability and rationality in this. The promotion of climate cooperation between China and the United States on the right track conforms to the interests and expectations of the world.

In my opinion, there are roughly two dimensions that influence the direction of the international pattern in the 21st century. One is climate change and new energy development, and the other is digitalization and intelligence. Both involve the transformation of human production mode, lifestyle and thinking mode. For developed economies such as the United States and Europe, achieving carbon emission reduction is mainly to seek breakthroughs in transportation and lifestyle; for China, carbon emission reduction is from production and lifestyle, transportation, housing and other fields. Apply force directionally. China is not only the “world factory”, but also the world’s largest consumer market. Climate change is a common problem facing the world. China, the United States and Europe have joined hands to address this challenge. They are highly complementary and help avoid disputes caused by homogeneous competition among all parties.

The China-France-Germany Leaders’ Climate Video Summit will be held soon, and the China-EU Investment Agreement will also include new energy development and climate change cooperation as an important content. These are all manifestations of China’s active international cooperation in the climate field. In fact, in the field of climate change, China, the United States and Europe have extensive common interests and room for cooperation. In the next step, the key is to do a good job in carbon reduction, carbon neutralization and related time nodes and procedures, as well as the connection of the rules behind.

In comparison, international cooperation in the digital field faces some practical problems and differences due to factors such as data sovereignty and privacy protection. Of course, the development of a new energy industry will also involve the processing of massive amounts of data, and the response to climate change itself also requires digital assistance. All parties should not only strengthen cooperation, but also play games with each other in the formulation of international rules, especially safety standards.

The Biden administration’s China policy has not yet been finalized

Political View: Recently, the Biden administration has started to play the “Taiwan Card” frequently. According to media reports, on the afternoon of the 14th, former U.S. Senator Chris Dodd led a so-called “unofficial delegation” and arrived in Taipei with two former U.S. Deputy Secretary of State. What do you think about this?

Wang Yiwei: At present, the Biden administration’s China policy has not yet been fully finalized, and it is still in a transitional period. But what has become apparent is that the new administration has inherited the strategy of blocking and squeezing China in the high-tech sector during the Trump era. It is actually an attempt to obstruct China’s high-end development momentum in the global industrial chain, supply chain, and value chain. This is a core issue of the Sino-US game. Whether it’s frequently making a big fuss on the Taiwan issue or forming the US-Japan-India-Australia alliance, it is because the US wants to reshape the global industrial chain and supply chain and suppress and restrict the Chinese economy, especially the high-tech industrial chain and supply chain.

Just earlier this month, U.S. Senator Menendez and others threw out the “Strategic Competition Act of 2021”, requiring the Biden administration to adopt a comprehensive “strategic competition” policy with China. On the 14th, the U.S. Senate Foreign Affairs Committee discussed and voted on the “Strategic Competition Act of 2021.” The various actions of the United States are precisely to hinder the development of China’s high-tech industries.

Political View: At the end of July 2019, the twelfth round of China-US high-level economic and trade consultations was held in Shanghai. After a lapse of 20 months, China’s special envoy for climate change affairs Xie Zhenhua and Kerry held talks in Shanghai. Shanghai once again played the role of a “bridge” between the two sides at an important moment in Sino-US relations.

Wang Yiwei: In his first foreign policy speech in February this year, Biden proposed that US diplomacy will be “middle-class diplomacy.” And Shanghai can be regarded as a pronoun for the rise of the middle class.

In addition, Shanghai has historically served as a bridge and link between China and the United States. On February 28, 1972, China and the United States issued the “Joint Communiqué” in Shanghai, ending the two-year isolation between the two countries and opening a new chapter in Sino-US relations. In 2009, the then-U.S. President Obama made Shanghai the first stop of his visit to China.

The location of the China-US meeting in Shanghai is hoped to eliminate political ideological interference, which to some extent shows the sincerity of the two sides in climate change cooperation.