Monthly Archives: October 2005

German Exports Continue To Rise

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German exports, long the mainstay of the national economy, rose for a third month in four in August according to data released today from the Federal Statistical Office. The year on year increase of 13.4% is partly a reflection of the way the recent drop in the value of the euro has helped boost demand.

“According to provisional data of the Federal Statistical Office, Germany exported commodities to the value of EUR 63.4 billion and imported commodities to the value of EUR 51.9 billion in August 2005. German exports of August 2005 thus were 13.4% and imports 15.3% above the respective August 2004 levels. Upon calendar and seasonal adjustment, exports increased by 3.5% and imports by 6.0% compared with July 2005.

The foreign trade balance showed a surplus of EUR 11.6 billion in August 2005. In August 2004, the foreign trade balance showed a surplus of EUR 11.0 billion. Upon calendar and seasonal adjustment, the foreign trade balance showed a surplus of EUR 12.7 billion in August 2005.”

While exports power ahead the continuing weaknesses in domestic consumer demand and investment are to be seen in the fact that German industrial production fell 1.6 percent in August while factory orders fell 3.7 percent.

R&D: China To Overtake The EU?

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Is China about to drive smartly past the EU and establish itself as a global R&D powerhouse? Somehow I doubt this, but nonetheless it seems to be the view of Janez Potocnik, EU commissioner for research, who is quoted by the FT as saying: The Chinese trend is extremely clear. If the trend continues, they [China] will catch us up in 2009 or 2010. The conditions for R&D in some emerging markets like China are improving and it is obvious that they [European companies] are transferring some of their investments there.

Really I don’t think that even Potocnik believes what he is saying. He is simply drawing attention to the fact that the EU needs to wake up and get it’s R&D act together:

“At present growth rates, the EU’s public and private spending on R&D is set to rise from 1.93 per cent of GDP in 2003 to 2.2 per cent in 2010, well short of the 3 per cent target agreed by EU heads of government as part of the 2002 Lisbon strategy.

R&D investment in China was 1.31 per cent of GDP in 2003 but is rising at a double-digit rate.”

Wow, was I wrong

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It’s just three weeks since I wrote this entry about the prospects for EU expansion in the Western Balkans. And in that short time, several of my predictions have been proven wrong.

— Croatia’s has been allowed to start negotiations for candidacy.

— Serbia has been allowed to start negotiations for a Stabilization and Association Pact.

— And, most unexpectedly of all, Bosnia has also been allowed to start SAA negotiations.

I titled that entry “Slowed or Stalled?” It turns out the answer was, “Neither! Damn the torpedoes, and full speed ahead!”
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Merkel is in?

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FT says a deal will be reached shortly, and Merkel will be chancellor. Schröder is out.

Ms Merkel’s expected victory in the battle for the chancellorship is likely to be announced on Monday, following a meeting on Sunday evening in Berlin between Mr Schröder and Ms Merkel, according to the SPD politicians, who spoke on condition of anonymity. The two leaders met on Thursday evening for four hours to agree the framework of a SPD-CDU grand coalition, but refused on Friday to disclose details. The talks also include SPD leader Franz Müntefering, and Bavarian premier Edmund Stoiber.

Officials close to Mr Schröder said the chancellor would not become vice chancellor and foreign minister in the coalition, despite pressure from within the SPD for him do so.

The SPD may be given an equal number of cabinet posts as the CDU and be offered first choice of ministries to control, the MP said. SPD officials said these could include the foreign, economics and family ministries.

In addition, the CDU is almost certain to give the SPD assurances – even ahead of lengthy coalition talks expected to start next week – that it will drop key elements of its more radical economic reform agenda, such as changes to job protection and collective bargaining rules.

Problems. And Games.

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Unfortunately, following our recent move to a different hosting provider, some Euros in the Fistful are still experiencing technical difficulties when trying to post. We’re trying to solve the problem as soon as possible.

Meanwhile, other people are experiencing problems as well. The “K-question”, the question who will become the next Chancellor, and presumably the amjor stumbling block on the way to true coalition negotiations between the CDU and the SPD, is still as close to a solution as it was when the polls closed on September 18. Both parties are still hoping the other one will blink first.
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The Atlanta Newspaper

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Reading the Atlanta Journal-Constitution has the occasional benefit beyond keeping me informed of the ups and downs of my favorite baseball team (they’re tied 1-1 with Houston in the first round of the playoffs). Atlanta is the home of the US Centers for Disease Control. And folks there have recreated the 1918 influenza virus in an effort to understand precisely why it was so deadly.
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H5N1

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Like catastrophic flooding in New Orleans, an influenza pandemic is not a matter of if, but a matter of when and how bad. Fortunately, John M. Barry has written books about both. Until the definitive story of Katrina is told, Rising Tide, Barry’s book on the 1927 Mississippi River flooding that left some parts of the Delta a 100-mile-wide swathe of water, will stand as the classic work on power and high water and the Crescent City.

The inevitability of floods in New Orleans is a matter of geography; the inevitability of a flu pandemic is a matter of genetics. The natural reservoir for influenza viruses is in birds.
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Two for the price of – what?

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Hi folks,

It’s Brussels Gonzo, back again – this time as a full member of the team (thank you, David and colleagues). And since my first entry as a guest blogger dealt with Croatia’s membership application, and a later one described the unedifying scenes in the European parliament after their talks failed to start in March, it seems appropriate that my first entry as a regular FoE-er should talk about the linkage between yesterday’s two crucial decisions to start membership talks with Croatia and Turkey. (I hope this doesn’t too much repeat Tobias on the same subject yesterday.)
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Luxembourg compromise.

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Something is happening. Although not in Berlin, apparently. The SPD’s steering committe has not (yet officially) accepted what appeared to be an offer from Mr Schröder to pursue coalition strategies that would not include him. Since the SPD’s chairman, Franz Müntefering, explained later that the party’s goal were still a government led by Gerhard Scröder as Chancellor, Mr Schröder’s statement could also be interpreted as tactical move aimed at forcing Angela Merkel to do the same, hoping that the CDU’s more intense internal rivalry might cause her to have to live up to her proposal. Either way, much ado about nothing in Germany today – Meanwhile, in Luxembourg…
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Is something happening?

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As we have been able to witness with unfortunate regularity lately, not every election helps move politics forward. Fortunately, some still do.

While Sunday’s regional election in the Austrian state of Steiermark, which was widely expected to be the decisive reason behind the Austrian government’s determination that the treaty opening EU accession talks with Turkey – which were supposed to start with a (now postponed) signing ceremonyat 5pm CET today – explicitly include the option of a non-standard membership or so-called privileged partnership, did not help to overcome the impasse, the by-election in Dresden seems to have shifted the balance of power in the race for the German Chancellory to the extent that Chancellor Schröder told RTL television – before attending a meeting of the SPD’s steering committee this afternoon – that (my translation, German from Spiegel Online) –

“… this is not about me. It’s about my party’s entitlement to lead, and only the party leadership can decide about it. I will accept whichever decision will be made. I don’t want to impede the development of the reform process which I have started or the formation of a stable government for Germany.”

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