The passage of a new foreign trade act in Germany has restricted the influence of foreign investors. The daily La Stampa sees no need for such a course of action in Italy: "The takeover of substantial shares in companies by Asian states arouses hope and fear in the West. ... China and Russia are countries where democracy is weak and no doubt have the intention of playing a leading role in global geopolitics. They could use the profits not to pay the pensions of their citizens but to pursue strategic goals in conflicts with Westerners at management level." These fears, the newspaper writes, are well-founded in Germany, but Italy "does not have such worries because its companies, like the bankrupt airline Alitalia, do not attract foreign investors. It is already being excluded from global market strategies and has no objections whatsoever to the growing ties between political and economic power. ... Italy's main worry should be the lack of interest on the part of state-controlled investment funds." (25/08/2008)

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More from the press review on the subject » Corporations, » Economic Policy, » Germany, » Italy
All available articles from » Giuseppe Bertola

The Financial Times questions whether the Eurozone is really facing a recession. "After a growth sprint at the start of the year, the region's economic fortunes appeared to deteriorate fast. ... Here are [some of the] reasons why the eurozone's economic malaise might have been exaggerated and why we could even see positive signs in the coming months. … Oil and commodity prices have fallen back, ... easing the main constraint on growth ... [which] will have a 'relatively fast effect' on consumer spending. ... The eurozone housing market overall has not collapsed. ... Unemployment remains ... low ... the euro has fallen by about 8 per cent ... which should help eurozone exports. ... Global financial market turmoil shows few signs of wreaking significant economic damage directly on the eurozone ... Bank lending to businesses remains strong and eurozone consumers' finances, generally, are not over-stretched. ... No fundamental flaws have been found in the main engines of eurozone growth." (25/08/2008)

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More from the press review on the subject » Consumers, » Financial Markets, » Europe
All available articles from » Ralph Atkins

Spanish daily Cinco Días notes with concern that in the month of July eight percent fewer tourists spent their holidays in Spain, saying this is a warning that must be taken seriously. "We will have to wait for the figures for August to say for sure but there is every indication that each day that passes without taking urgently needed steps is a day too many. ... Even though the economic crisis is aggravating the problems it is not to blame for the weaknesses of the Spanish sector: overcrowded tourist destinations, a polluted environment, poorly trained staff, prices that are less and less competitive and holiday complexes in dire need of renovation, particularly on the coast." (25/08/2008)

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More from the press review on the subject » Tourism, » Spain

In its leading article, Le Monde newspaper analyses the economic impact of the Caucasus conflict on Russian financial markets: "Can the economy bring about what Western diplomacy cannot - and induce Russia to respect the territorial integrity of neighbours like Georgia? It can contribute. ... The negative reactions of international financial markets to the movement of Russian troops in South Ossetia on August 7 shook up Russian business circles, which realised the negative impact the war could have on the country's economic and financial situation. In other words, they understood that imperialism has its price. ... The Russian tanks had no problems pushing back the Georgian forces, but they caused capital flight in Moscow. ... The Russian economy shares Putin's desire to revitalise Russia and put the humiliations of the post-Soviet time behind them. But while the new Czar flirts with nostalgia, they are looking to the future." (23/08/2008)

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More from the press review on the subject » Security Policy / Crises / War, » Financial Markets, » Russia

As of next Monday the Polish postal service will lose its monopoly on the delivery of letters. In the liberal left-wing daily Gazeta Wyborcza Journalist Piotr Miączyński passes judgement on the state-owned company. "The postal service is going its own unique way about preparing for the challenges of competition. First it applied for several hundred millions in funding from the state budget. Then it plans to double prices for its services next year. ... The postal service is a huge paradox. It has over 100,000 employees, not much less than the Polish army. But despite this there are giant queues at the counters in post offices and over-employment has made the service one of the most expensive in Europe. ... It is impossible to sack inefficient and superfluous workers because changes are blocked by over 40 trade unions. I wonder whether we customers have any need of a postal service like this? Because it is clear why the employees need the postal service. To pay them their salaries. After all, unlike the letters the salaries always arrive on time." (22/08/2008)

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More from the press review on the subject » Labour market / Services, » Corporations, » Economic Policy, » Poland
All available articles from » Piotr Miączyński

After an airplane crash in Madrid which claimed 153 lives, excessive personnel cuts at Spanair have been cited as the reason for the technical malfunction. However the business newspaper Cinco Días warns against rash and possibly false accusations: "The precarious economic and manpower situation at the airline has aroused suspicion. More than one thousand employees are supposedly threatened with dismissal. Just a few hours before the accident the pilots' union Sepla warned that the company was forcing employees to work longer than authorised. However Jordi Mauri, the chairman of the workers' council, rebuffed this accusation yesterday. ... Without clear evidence, the professionality of the airline's personnel may under no circumstances be called into question." (22/08/2008)

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More from the press review on the subject » Infrastructure / Travel and Transport, » Corporations, » Tourism, » Spain

Yesterday, the British Competition Commission ruled that airport operator BAA will have to sell several airports in London and Scotland. The Times describes the decision as one of the bravest and most sensible made by an official British body. "The proposal to break up BAA ... is excellent for two broad reasons. First, competition generally yields better results, in terms of both customer service and economic efficiency than monopoly, regulation and central planning. ... This particular break-up will protect London from a big environmental blight and the British economy from a serious blunder ... to expand Heathrow. ... It may be true that extra runways at Heathrow would relieve London's air travel problems. But it is equally possible that competition would deliver big improvements - as it did in telecoms and electricity distribution - by squeezing greater efficiencies out of existing resources. ... Unfortunately for Labour, yesterday's report means that Mr Brown has again chosen exactly the wrong issue on which to take his resolute stand." (21/08/2008)

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More from the press review on the subject » Infrastructure / Travel and Transport, » Corporations, » Economic Policy, » United Kingdom
All available articles from » Anatole Kaletsky

The German government has passed a new foreign trade act giving it a right of veto when foreign investors from outside the EU and the European Free Trade Association seek to acquire a stake of more than 25 percent in German companies. The Frankfurter Allgemeine Zeitung criticises the law: "Anyone who lacks the seal of approval must be prepared for the German government to start looking into their every intention. ... The grand coalition [of the social democratic SPD and the conservative CDU] has justified this encroachment into capital transactions saying that in addition to profits, some new investors could also be interested in gaining political control, and even in destroying the German economy. In such cases politicians would be not entirely helpless even without the new law. ... [For that reason] the law could become a boomerang for the Germany as an economic location. The already scant capital could ... decide to take a wide berth around Germany, which is poor in resources. Our economy has more to fear from this danger than from any harm that might be wreaked by hostile investors." (21/08/2008)

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More from the press review on the subject » Corporations, » Economic Policy, » Germany
All available articles from » Heike Göbel

In Bulgaria the case of Bulgarian students who took holiday jobs in Scotland through an employment agency and arrived there only to be forced to live in pitiable accommodation and receive less pay than promised has caused a scandal. For the daily Standart this is an intolerable situation: "Firstly, the whole affair ... was handled by a licensed agency. Secondly, Bulgaria is already an EU member and the times when foreign workers had to spend the night in a cellar full of rats in some foreign country so they could save up money to buy a car should have ended by now. ... If following an inquiry it turns out that the employment agency was responsible, it should be severely penalised. And those in government should give employers in Great Britain an official warning that they cannot treat Bulgarian workers willing to do jobs no one else wants to do like goods to be bought in bulk. For if the state turns a blind eye and offers no support in such a situation, Bulgarians could end up being treated like second-class citizens." (20/08/2008)

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More from the press review on the subject » Social Policy / Employment, » Labour market / Services, » United Kingdom, » Bulgaria
All available articles from » Stela Stojanova

The Spanish business newspaper Cinco Días calls for a united economic reform in Europe in view of the worsening economic situation. "When French President Nicolas Sarkozy took over as the European Council President he attempted to convince the EU to take joint action to counter rising fuel prices ... and failed. And at the time the economic situation was not as bad as it is now. The meeting [of the EU's Economic and Financial Affairs Council] in September would be a good time to jointly tackle the major reforms. There are many topics: a common, flexible and secure labour market, a common energy market, a harmonisation of tax law, the service sector, reducing bureaucratic hurdles and controlling financial systems with a European regulatory authority to prevent further scares." (20/08/2008)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economic Policy, » France, » Europe