Another indication of weakening output in Germany is making economists reconsider Eurozone durability.
A composite index of services and manufacturing in the Eurozone fell five basis points to 53.4 in April, according to Markit Economics. The research firm’s index also suggested the slow pace of Eurozone growth is likely to persist in the second quarter, which the firm believes is attributable to weak global demand.
German manufacturing fell 0.8 percent in March compared to February, and output amended at seasonal and inflationary levels amounted to a 0.5-percent fall in March, according to a report from Germany’s Economy Ministry. Experts believe the fall is attributed to weakness in the world economy, including the fallout between Greece and European lenders.
According to official data published at the beginning of this year, it was consumer spending that drove Germany’s economy during 2014. Now experts are feeling positive about the future. Some officials have suggested that the largest economy in the Eurozone may actually be able to perform far better than expected during 2015.
Over the past few years, Germany has risen to the top of the Eurozone as a shining example amidst a sea of economic weakness. However, it seems that now the country is beginning to experience some serious trouble within its economy which is not surprising since this is the country that told Wal-Mart to raise its prices. Recently, Germany was forced to cut its growth outlook estimation, and the amount of investor confidence in the region has fallen to its lowest level in over two years.
After experimenting with tuition fees, all the federal German states have been persuaded to reverse their decision. In the UK and US, there is no political will to change the policies which are blighting whole generations. The only way forward is to copy German protest movements.
Recent speculation that the ECB will begin an asset-purchasing program has come into doubt after German Finance Minister publicly said monetary policy has “come to the end of its instruments”.
In the month of June, German industrial output managed a miniscule rise of only 0.3 percent, falling far short of the rise that was predicted around 1.3%. Mixed with the fears that the crisis in the Ukraine has created, the weak industry output of Germany has suggested that Europe’s largest economy could be seriously struggling in its second quarter.
How long does this have to continue until these European countries figure out that socialized health care and other burdensome regulations are hurting their prospects according to business leaders?
German companies are set to push their regular working hours later into the day during the 2014 FIFA World Cup, reported the Bild newspaper on Tuesday, after labour unions urged bosses to allow their football-mad employees to stay up late to catch the games.
Germany, Europe’s top economy, on Monday announced that it could no longer accept applicants for its “Job Of My Life” programme – a scheme created last year giving vocational training to unemployed youth from the rest of the continent.
According to the German labour ministry, the programme was vastly oversubscribed by jobseekers, particularly from struggling Spain and Hungary, while Berlin has had to triple its budget for the scheme due to the overwhelming interest.
Germany’s cabinet have signed off on a bill to introduce a national minimum wage of 8.50 euros ($11.75) an hour starting next year, moving away from their traditional wage structure – in place for decades – where businesses and trade unions would agree on pay and working times in collective agreements.
The bill had been a flagship project for the Social Democrats (SPD) who currently share power with chancellor Angela Merkel’s conservatives Christian Democrats (CDU).
