WEEKEND REVIEW Economy, Politics / 18. and June 19, 2022

WEEKEND REVIEW DJ Gospodarka, Polityka / 18. and June 19, 2022

Top economic and political news from the Dow Jones Newswires weekend program.

Habeck kündigt Maßnahmen zur Senkung des Gasverbrauchs an 

Federal Economy Minister Robert Habeck announced new, concrete measures to reduce gas consumption in Germany. “We will reduce gas consumption in the electricity and industrial sectors and force our warehouses to be full,” said Habeck on Sunday in Berlin. In the case of electricity production, “coal-fired power plants would have to be operated more widely”.

FDP will Fracking zur Förderung deutscher Gasreserven ermöglichen 

The FDP is openly in favor of lifting the far-reaching fracking ban in order to promote Germany’s gas reserves. Since 2017, the exploitation of gas deposits in shale and coal seams has been prohibited in Germany because it is considered a threat to, inter alia, for groundwater. There are also repeated warnings about earthquakes caused by fracking. The Professional Association of German Earth Scientists (BDG) has now spoken in favor of ‘considering’ fracking in Germany. Germany may even in the medium term become independent of the import of natural gas.

Koalitionsstreit um Haushalt 2023 spitzt sich zu 

The dispute in the traffic light coalition over the budget for 2023 is coming to an end. Federal Finance Minister Christian Lindner (FDP) once again insisted in the Welt am Sonntag on adherence to the debt brake and, for example, questioned state subsidies for electric cars. “In times of crisis, austerity is a bad tool,” said budget expert Green Sven-Christian Kindler.

Lindner erwartet bis zu 30 Milliarden Euro Zinskosten für 2023 

Federal Finance Minister Christian Lindner (FDP) expects to see a significant increase in the state interest costs next year. “We paid a good four billion euros in interest last year,” Lindner told Welt am Sonntag. “It cannot be ruled out that next year it will be as much as EUR 30 billion.” Rising interest rates are “a signal for a reversal,” said Lindner. “We are at a turning point not only in security policy, but also in economic policy.”

Bitcoin fällt unter 20.000 USD 

Bitcoin fell below $ 20,000 on Saturday. One trading platform showed a price of $ 19,029, down another 8 percent. Back in November, the cryptocurrency reached its all-time high of $ 68,924.78.

Fed-Gouverneur Waller will weiteren großen Zinsschritt im Juli 

US Federal Reserve Governor Christopher Waller has already spearheaded another 75bp rate hike at its upcoming meeting in July. The condition is the further development of the economy in line with its expectations.

Großbritannien vor größtem Bahnstreik seit 30 Jahren 

The UK will face its worst rail strike in 30 years after the collapse of collective bargaining. The freight union RMT said weeks of talks with infrastructure company Network Rail, rail companies and the London Underground ended with no “viable solution”. RMT General Secretary Mike Lynch announced nationwide strikes for next Tuesday, Thursday and Saturday.

Unternehmensgründungen auf Rekordtief 

According to press reports, interest in starting a company in Germany has dropped to a record low. Especially in classic start-up sectors such as catering and retail, fewer and fewer people are choosing to become self-employed. Consequently, the number of potential founders who obtained information about the start-up of a business through personal discussions with the Chambers of Commerce and Industry (IHK) fell by ten percent to 159,682. This is the lowest level since the start of the statistics in 2002. In the case of IHK consultations for start-ups, most of which are based on a formulated business concept, the decrease was as high as 13%.

Zukunftsfonds: 10 Bio nötig statt 10 Mrd - für Innovationen 

The federal government’s “fund of the future” launched in 2021 to finance start-ups must grow from ten billion to ten trillion euros over the next 20-30 years, federal government chief innovator Rafael Laguna said. Only in this way can Germany master the energy transition, mitigate the effects of war, and prevent it from further lagging behind in terms of innovation.

Contact the author: konjunktur.de@dowjones.com

DJG / DJN / AFP / hru

(END) Dow Jones Newswires

June 19, 2022 11:30 ET (3:30 PM GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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