Germany

Imagine you are the boss of a multinational company with a long-planned meeting with an authoritarian leader of a vital trading partner. Then just before the scheduled get-together, he decides to invade one of his neighbours. What do you do?

That, roughly, was the position of Joe Kaeser, chief executive of Germany’s Siemens, as he decided to go through with a meeting with Vladimir Putin this week at the Russian president’s nineteenth century country residence on the outskirts of Moscow. Read more

♦ Many Iranians see basij– the ideologically-driven volunteer forces of the Revolutionary Guards – as stick-wielding thugs, but they show a softer side as they sip cappuccino and discuss art at Café Kerase.

♦ Although demographic and other factors are against the US Republicans, the Grand Old Party is seeing a strange revival.

♦ It’s not a good time for Japan to put its tax rates up, which is why the government is allowing retailers to act like they haven’t.

♦ Much has changed in Sarajevo since the day in 1914 when Austrian Archduke Franz Ferdinand was shot, providing the spark that lit the flames of the first world war, yet much has remained the same.

♦ The Egyptian army’s gift of land for homes has prompted speculation over a closely guarded secret: the size of the army’s stake in the economy.

♦ A property boom across Germany‘s biggest cities has been dubbed a betongold – literally concrete gold – rush. Read more

Here is an addendum to our post on Friday on what might come next for trade sanctions on Russia. I spent part of the weekend playing with the data on MIT’s brilliant Observatory of Economic Complexity. It is a fabulous place for visualisations of trade data. The underlying data are a few years out of date. But the overall trend still holds true and so these interactive charts on Russia seem worth sharing given the current debate. Read more

Gideon Rachman

As the Americans and Europeans struggle to craft a common response to the escalating crisis over Ukraine, it is vital that they work closely together. That makes it particularly unfortunate that relations between the US and Germany are in very poor repair – much worse than is commonly realised. Read more

(EPA)

Do last week’s German constitutional court ruling lambasting – but failing to overturn – the ECB’s crisis-fighting bond-buying programme and Matteo Renzi’s ousting of Italy’s prime minister Enrico Letta have anything in common?

In the view of many ECB critics, particularly in Berlin, the two are not only related, but one may have caused the other. Read more

By Gideon Rachman
Germany has surrendered and the euro is saved. That seems to be the markets’ interpretation of last week’s ruling by the German constitutional court on the European Central Bank’s “whatever it takes” policy to save the single currency. The judges’ ruling essentially boiled down to this: “We don’t like what the ECB is doing. We think it illegal. But only the European Court of Justice can strike it down.”

Tony Barber

German Constitutional Court (Matthias Hangst/Getty Images)

We don’t like what the European Central Bank is doing – but if someone is going to drop a nuclear bomb on the eurozone, it won’t be us. This seems to be the main message in today’s judgment from Germany’s constitutional court on the ECB’s Outright Monetary Transactions programme.

The OMT is an initiative aimed at saving the eurozone with large-scale ECB purchases of the bonds of governments vulnerable on financial markets, in return for a commitment to deep-seated economic reforms. Germany’s Bundesbank and much of the German public have never warmed to the OMT – even though the programme has never actually been used and, some experts think, never will be.

So the German court’s judgment will come as a relief to Mario Draghi, the ECB president, and all those who hold that the OMT, unveiled in August and September 2012, is the single most important reason why Europe’s monetary union no longer appears in mortal danger. But mixed with this relief will be a feeling that the German court’s judgement is not entirely helpful – and that some of its arguments are not particularly well-founded. Read more

(Getty)

News that François Hollande had a meeting recently with Peter Hartz, architect of Germany’s labour market reforms of a decade ago, has caused a frisson in Paris where all the talk (apart from that about his love life) is about the president’s public embrace of social democratic reforms with a distinctly German flavour.

The Elysée Palace denied reports that Mr Hartz, who led former chancellor Gerhard Schröder’s landmark reform programme, was acting as an adviser to Mr Hollande.

But it acknowledged that the president had hosted the former Volkswagen executive for an hour-long informal meeting two months ago. Read more

Ronald Pofalla (Adam Berry/Getty Images)

By Stefan Wagstyl in Berlin

Controversial job-seekers have been making the headlines over the holidays in Germany. The debate over EU immigration, sparked by the lifting of restrictions on Romanians and Bulgarians, has been entirely predictable – and rather more civilised than, for example, in the UK.

More surprising have been reports of a possible new posting for Ronald Pofalla, chancellor Angela Merkel’s former chief of staff, who quit in December saying he wanted more time for his private life.

There was some sympathy then for the twice-divorced 54-year-old’s plans to start a family with his 32-year-old girlfriend and an understanding that he would, at some point, find work in industry – perhaps in the coal sector in his home region of North Rhine Westphalia. Read more

Gideon Rachman

At the end of every year, I attempt a first draft of history by listing what seem to me to be the five most significant events of the past twelve months. Some of my picks for 2013 also featured in 2012. I hope this is not because of intellectual laziness, but simply because the war in Syria, and the turmoil in Egypt remain defining events of our era. I probably should also once again include the tensions between China and Japan – but they are still simmering and have not yet boiled over. So I’ll give the Senkaku-Diaoyu islands a rest this year.

So let me start the list for 2013 with a genuinely new event that has global significance: Read more