October 18, 2012

Former 'couple' Germany and The Netherlands

Former 'couple' Germany and The Netherlands

as Max Pam of Dutch TV program 'Buitenhof' asks in his column when the Dutch and the German economy have split, and what are the causes for this to happen here are some answers:

First it has to be confirmed that the statements in Max Pam's column where German and Dutch economies once acted like 'northern European twins' are true. 
The one interconnected to the other, not only by their central banks with almost identical emphasis on prize stability, but also by their bilateral trade links, and even by some almost identical parts of infrastructure, like the havens of Rotterdam and Hamburg are for both export oriented countries their gate to the world market.

So some commentators on Twitter argued on their assumption that lack of consumer confidence is the only reason for sluggish consumer spending. One has to know that Dutch people are being subjected to bad economic news concerning housing market, pension cuts and other bad stuff almost on a daily basis, where some economists even started to warn of an negative effect of repeating bad news into a self fulfilling prophecy. 

So people tend to think the split between currently successful  German economy and Dutch economy is because of difference in consumer spending based on lack of 'consumer confidence'. Well, partially yes, but the German retail sector has also its difficulties (Big supermarket chain 'Schlecker' went bust recently), the 2nd and more important fact is, that both economies are heavily export oriented. Although Mathijs Bouman (Dutch economist) recently put up some evidence that 70% figures (Link) for Dutch export part of GDP is largely exaggerated.(CBS data)

So one part of the answer is that Germany put much more effort into investment (the mother of all growth) in its 'green sector' by not only building huge production capacity for its domestic ecopower section but also pumped large chunks of cash into energy preservation by housing insulation etc.
The roughly estimated cost for the buildup of its solar power capacity of some 25 GW was good for some 75bn € only for the 1+ million installed smaller plants between 2000-2011. 

Additional investments in local and national grid summed up also to Billions while the combined installed wind power capacity reached some 23 GW with approx 46 Bn € (taking into account average price per KW peak capacity) (** find and insert exact numbers**)    

The Netherlands <> Germany bilateral trade

CBS: Exports to Germany increased by 20% in 2010 (CBS data) (dut)
         Dutch im/exports targeted on a limited number of countries (CBS data)(dut)

Pinokkio:"Our GDP rose after introduction of Euro" (De Pers) (dut)
"In The Hague there is always today, never tomorrow" (FD) (dut)
source: thomsonreuters.com datastream
Some German economic data:

Germany's economy (Wiki ger)

BDI Foreign trade growth 2012: "3 pct +X" (focus) (ger) 
German exports to Greece tumble (handelsblatt) (ger)
Trade balance: German exports first time above 1000 bn (Die Zeit) (ger)
German industry expects export boom (Die Welt) (ger) 

German green industry domestic investments and distributed costs:
(long term projection) Langfristszenarien EEG Auswirkungen (pdf ger)

German power production details and comparison (Wiki ger)
German energy consumption (Wiki ger)
German energy consumption in detail 2011 (AG Energiebilanzen , pdf, ger) 
investment projection renewables Germany 2010-2020159,5 bn € (prognos,pdf,ger) 

Power grid in the North Sea to be extended (FAZ, ger) 

Duitsland verslaat Nederland (May 2nd 2013, video, Nieuwsuur, Dutch)
Text above excerpted from greater European solution: Economic policy first, fiscal policy follows

September 21, 2012

Member states' contributions to EFSF/ESM/Target2

@lindayueh (Twitter: Sept 20th 09.51 CET) :
Target2 claims: Germany lowest as % GDP 24%, Luxembourg 278%, Finland 40%, Dutch 25% 
@mikkoforss (Twittter: Sept 20th 22.12 CET):
Max cost for Finland from full EZ breakup via EFSF/ESM & Target2 now at 47% of GDP, calculates Rehn cabinet ex-advisor
Willem H. Buiter & Ebrahim Rahbari: Target2 Redux (pdf,engl,73 pages,)

last updated: Nov 4th 2012

September 07, 2012

Reasoning behind the demise of European solar industry

Reasoning behind European solar industry's demise
Jan 27th 2010 #
Photovoltaik-Industrie fordert Nachbesserungen
May 31st 2010 #
Röttgen verteidigt Kürzung
Mar 20th 2012 #
Interview mit Solarworld-Chef Frank Asbeck: „Kein Unternehmen schreibt schwarze Zahlen“...
Jan 14th 2012 #
Drohende Kürzungen bei Förderung: Solarlobby ringt um Abwehrstrategie
Jan 19th 2010 #
Solarworld-Chef Frank Asbeck "Vielen Herstellern bricht es das Genick"
Feb 13th 2010 #
Über dem «Solarvalley» verdunkelt sich der Himmel
Apr 26th 2010 #
Sonnenenergie: Wolken aus Fernost...
Jun 18th 2010 #
Solarunternehmen: Preisverfall Nagelprobe für Siliziumhersteller
Oct 29th 2008 #
Photovoltaik-Produktionsanlagenhersteller Roth & Rau: Starkes Wachstum in den ersten neun Monaten 2008

2010 #
Dec 5th 2011 #
Erste Runde im Anti-Dumpingstreit an Solarworld
Nov 14th 2011 #
Warum Deutsche in Amerika gegen Chinesen kämpfen
Jul 5th 2012 #
Kaufsignal: SMA-Solar-Konkurrent Power-One setzt auf China
Apr 27th 2012 #
WIRSOL-VORSTAND RIEL "Der Vertrieb war Solon und Solarworld egal"
Apr 2nd 2012 #
Subventionen: Solarworld kassiert ab
Sep 7th 2012 #
EU-Verfahren gegen Chinas Solarkonzerne

2011 #
Marktanteile der Hersteller für Photovoltaikmodule weltweit im Jahr 2011

Mar 28th 2012 PHOTON International: Wachstum der Solarzellen-Produktion hat sich 2011 weltweit verlangsamt, ist aber noch immer gigantisch; Marktbeobachtung zeigt, dass chinesische Photovoltaik-Hersteller die Top 10 beherrschen
2012 # pdf Bericht des Bundesministeriums für Wirtschaft und Technologie zur Lage der deutschen Photovoltaikindustrie 

# pdf Das Jahr des Drachen (Photon,pdf,ger, 27pages)

EU panel manufacturer's data




Sharp UK

Sharp UK



Aleo korrigiert Jahresumsatz



Geschäftsmodell von Sovello erweist sich als stabil

Scheuten NL

Photovoltaik: Steffen Reusch vorläufiger Insolvenzverwalter bei Scheuten Solar

Panel production machinery 

3S Swiss Solar Systems: Umsatzprognose angehoben

Oerlikon verkauft Solarsparte nach Asien

Photovoltaik-Produktionstechnologie: Oerlikon will Solar-Segment an Tokyo Electron verkaufen


Roth & Rau veröffentlicht Geschäftsbericht 2010

Meyer Burger schreibt erstmals Verlust

Silicon pricing & availability 
Jun 12th 2008 #
Solarbranche fürchtet hohe Silizium-Preise
Jun 19th 2008 #
Am Siliziummarkt geht die Sonne auf
Sep 30th 2011 #
Jetzt bricht Silizium ein: Gute News für Solarworld, Q-Cells, Trina und Co.
Aug 21st 2009 #
Suntech hofft auf fallende Siliziumpreise [Verkauft werden die Solarzellen über Distributoren und Modulehersteller weltweit. Zu den Kunden des Unternehmens zählen namhafte Solarfirmen wie die SolarWorld AG, Conergy AG, Altersa, IBC Solar AG, Ibesolar Engeria S.A..]
Feb 10th 2010 #
„Wir fangen neu an“...
Dec 3rd 2007 #
ersol: Silizium für zusätzliche Produktionsmenge von rund 300 MWp unter Vertrag
Jun 14th 2006 #
Solarbranche sorgt für Siliziumknappheit
Apr 8th 2010 #
Polysiliziumindustrie vor Marktbereinigung

Dünnschicht-Photovoltaik vor dem Durchbruch: kristalline Siliziumzellen weiterhin dominierend

Marketing solar panels
2009 #
Der Kunde wird König [Trotzdem ist er seit dem Sommer über einige deutsche Hersteller verärgert: „Nach Solarworld brauchte ich im Juli gar nicht zu fragen, da hieß es immer nur: Wir müssen erst unsere Großkunden in Spanien beliefern.“]
Aug 20th 2009 #
Solaraktien im Schatten

# pdf Facts about German solar energy production Aktuelle Fakten zur Photovoltaik in Deutschland  (Fraunhofer institute , pdf, 47 pages)

note: It seems that this background blog entry is already attracting some readers. If some of you are interested in immediate expertise from experts in European solar industry, this author can recommend to contact Phillipe Welter, publisher of Photon magazine, or his staff: PHOTON – Das Solarstrom-Magazin online

# = German language

cat=EU, trade


last update=Sept 9th 2012

August 01, 2012

Human cost of euro crisis

NYTimes.com - Increasingly in Europe, Suicides ‘by Economic Crisis’
Man hangs himself in playground
Businessman commits suicide near Molfetta
Human-sized dummies hung around Rome in protest at suicides

Jobless Man, 42, Commits Suicide – 350 Incidents in June 2012 (Keep Talking Greece, Jul 9th 2012)
Note found on Syntagma suicide victim
Suicides have Greeks on edge before election

Crisis-led suicide epidemic: Greek mother & son jump to death
Greek suicide epidemic continues: Debt-strapped pensioner hangs himself
Spanish homeowners rally together to fight evictions by banks
Spain protest movement fights housing evictions
The human cost of austerity (Al Jazeera, Oct 27th 2012)
Spanish firemen and locksmiths refuse to evict homeowners (Telegraph, Feb 22nd 2013)
Spain: Eviction Orders Top 75,000 In 2012 (Sky News, Mar 22nd 2013)
Unemployed youth turn their backs on Spain (DW.de Apr 1st 2013)
Young Greeks See Emigration as Only Answer to Crisis, Poll Shows (Bloomberg, May 26th 2013)
Greek ex car racing champion commits suicide due to economic crisis (Keep Talking Greece, Apr 2nd 2013)
More Children in Greece Are Going Hungry (NYTimes, Apr 8th 2013)
Helios orphans fall victim to haircut (Cyprus-Mail, Apr 14th 2014)
Spain approves new eviction law (Huffington Post/AP, Apr 18th 2013)
Spain's population falls as immigrants flee crisis (Reuters, Apr 22nd 2013)
32.500 Spaanse gezinnen uit hun huis gezet
Crisis-burdened Spain and Cyprus are hot spots for women to sell their eggs (Quartznews, May 10th 2013)
How Austerity Kills (NYTimes, May 12th 2013)
Portugal's African community hit hard by austerity (BBC, May 22nd 2013)
Portugal's pensioners take to the barricades (dw.de, May 25th 2013)

Carol Hunt: I would urge my children to emigrate in search of hope

July 28, 2012

Dutch Central Bank DNB investigates Rabobank

DNB onderzoekt Rabobank (NOS, Dutch)

engl. translation:

The DNB, (Dutch central bank) investigates with support of of the financial markets authority (AFM) the role of the Rabobank in the Libor scandal. Sources confirmed that to the NOS. The investigation is running since last year.

DNB confirms that there is an investigation running about the creation of the Libor interest rate, but can't tell anything about the role of Rabobank. The Euribor interest rate is also under investigation. That's the European counterpart of the Libor rate of London. Besides that foreign oversights look into the role that Rabobank played in the Libor scandal.

The bank confirms that multiple oversights are looking into the case. A spokesperson says that the bank is fully cooperative.

The Rabobank belongs to a panel of banks that daily determines the Libor rate. That rate is known to be the base for uncounted credits and loans. Recently a scandal came to light when the British bank Barclays confessed to have rigged the rate. The bank settled the case with the British & American authorities with an amount equivalent of 370 million Euros. In other countries there are investigations, too.

This week the German minister of consumer protection called upon Deutsche Bank to come clean. "It cannot be that consumers have to pay the bills of traders who are manipulating interest rates without scruples."

No comment
According to the [newspaper] Financieel Dagblad the Rabobank has discharged four employees in 2008 and 2011 who have been possibly involved in the scandal. The Rabobank didn't want to comment on the case.

The employees have allegedly communicated too high or just too low interest rates, because their colleagues on the trading floor had advantages from a Libor rate that was a bit higher or lower than everyone expected. With that approach they could achieve substantial profits.

last update=July 28th 2012

Opinions of world financial & political leaders on eurozone

Just a collection of links:

Jul 31st 2012   Obama says eurozone will survive, but decisions urgent
Carlos Slim:EU has wrong approach to crisis (NOS)(dutch)
Paul Volcker: Germany must assume more responsibility for Europe (Cicero.de)(German)
Buffett says euro zone not working
David Cameron: the eurozone must make up or break up
David Cameron defends 'make up or break up' euro warning
Feb   2nd 2012 US Fed's Ben Bernanke warns on eurozone stress
June   8th 2012 Eurozone debt crisis puts US at risk, warns Bernanke
May 14th 2012 El-Erian: The Eurozone Is Facing A Lose-Lose Situation
Jun  29th 2012 Euro Zone Plan Good, but Not Good Enough: El-Erian

chapter=to be assigned
last update=July 28th 2012 17.45 CET

Italian structural flaws

Just a collection of links regarding structural flaws in economy & state

How can Sicily cut the bloated budget that is dragging it down?
Fears over Sicily's future as euro flow stops and bankruptcy looms
The six things wrong with Italy – and how to solve them (The Guardian, Feb 20t 2013)

cat=Italy, structural reform
chapter=to be assigned
last update=Feb 20th 2013

Greek structural flaws

just a collection of links to obvious flaws in economy & state structure:
Record rates of tax evasion on islands
Special Report: Clandestine loans were used to fortify Greek bank

cat=Greece, structural reforms
chapter=to be assigned 
last update=July 28th 2012

June 09, 2012

Examples for flawed elements in capitalism

Examples for flawed elements in capitalism
Oct 31st 2011

Wer mehr bezahlt, bekommt bessere Rating-Noten

US "cases":
Apr 23rd 2010

Uncommon Sense: Still Government Motors
Apr 28th 2010

Goldman Sachs' Lloyd Blankfein under fire at hearing
Apr 28th 2010

Factbox: Levin, Blankfein trade jabs at hearing

Federal takeover of Fannie Mae and Freddie Mac (Wiki)

Madoff investment scandal (Wiki)
Mar 31st 2008

The last days of Bear Stearns

Bankcruptcy of Lehman Brothers (Wiki)
Sep 18th 2008

US: Bush defends Fed's decision to bail out AIG

Troubled Asset Relief Program (Wiki)
Nov 28th 2011

Secret Fed Loans Gave Banks Undisclosed $13B
Nov 29th 2011

You Won't Believe What Hank Paulson Revealed To Hedge Funders Right Before The Height Of The Financial Crisis
Dec 16th 2011

Bank Failures Cost U.S. $88 Billion 
Dec 27th 2011

SEC Ups Its Game to Identify Rogue Firms
Oct 31st 2012

It's Time to End the Tarp Profitability Myth

german "cases":

Phillip Holzmann (Wiki) (eng)

Philipp Holzmann (Wiki)
Aug 21st 2008

Lone Star Funds to take over IKB
Nov 15th 2010 #
Die Optionen der Commerzbank: Staatshilfe zum Nulltarif
Jan 5th 2011

Deutsche Bank: The first German Wall Street bank
Jun 12th 2007

'We Suffer the Consequences': Loan Crisis Hits German Taxpayers
Nov 4th 2009

General Motors cancels Opel sale
Feb 24th 2009

13 Billion Euro Bailout: Germany's HSH Nordbank Saved from Collapse
Jul 15th 2011

HSH Nordbank Passes Stress Test; Criticizes Regulator’s Rules
Oct 23rd 2011 #
Sorgenkinder HRE und WestLB: SoFFin macht riesigen Verlust

Dutch/Belgian cases:
Nov 21st 2008

ABN, Fortis to merge as planned before 2011 sale

ABN Amro and Fortis set for €4,4 bn bail-out (FT.com)

Fortis ABN Amro takeover (Wiki)

general problems
Dec 16th 2011

Edmund Phelps:'Alliance between banks and governments at the heart of eurozone crisis'

Comecon A historic reminder !

# = German language

June 08, 2012

Eurozone inflation chart 2000 -2012 by Vincent Flasseur/Reuters


                   (this background section is just used for additional info linked within main articles of EZR!)
More eurozone (&EU!) charts in chart-section: http://ezrcharts.blogspot.com (mainly Reuters)

June 05, 2012

Some recommended external links