Good to have you with us here is a Member States planned to go deeper into the red than ever before this year to counter the pandemic draft budget plan sent to the European Commission indicated the 19 countries bloc will slide to an aggregate fiscal deficit of close to one trillion euros earlier this year the Commission Suspended to the block stability and growth pact and nord a 750000000000 euro joint Borrowing Program to help the hardest hit Member States pay for the economic damage being done by the pandemic but germany has so far been in a fairly good position both in controlling the pandemic and keeping the economy afloat but rising case numbers here could put the countrys success record into jeopardy. Berlins nightlife is at a standstill for the past week bars and pubs have been forced to close at 11 pm for many this essentially means the end of their business customers are frustrated. Theres really nothing else to do were in our mid twentys and were not going home an 8 pm on a weekend to sleep after working a whole week. These 3 say theyre following hygiene rules but for those who dont police say theyre prepared to take action. Nobody wants another lockdown least of all the Restaurant Owners whose losses could be enormous. Coronavirus cases are rising in germany sharply once again there were over 35000. 00 new cases in the last 7 days an increase of over 5 percent the i. M. F. Predicts the pandemic could shrink the German Economy by 6 percent this year getting through the crisis is draining the german coffers the government estimates that it has to date paid 01. 45 trillion euros many stores and businesses are hoping for only a financial beating the right now restaurant tours are casting a wary eye on the increasing number of new infections they are hoping to avoid another lock down under any circumstances. As do we all of course for more im joined by customs chief economist at g. Bank and hes joining us from frankfurt good to have you with us please tell me 1st of all i mean case number and now than they were in spring why is germany not back in lockdown yet. When we get the case numbers are much higher because there is more testing on that occasion in all european economies and at the same time the death toll is extremely low so i think this explains why were not in the lock down yet and the other one is clearly a an economic justification because the journey economy can simply not afford to go back into full lockdown. It sounds a bit worrying that the death rate isnt high enough yet for us to go into lockdown hopefully it doesnt come to this and of course germany is in a very special state it is a federal state which means every state is handling the Health Crisis differently is that good or bad for the economy or the harmony or think of it it has been good because it will allow germany to really have some kind of behavior made situation its a huge country. And so having different different regional rulings you know help the economy to be tailor made and were exactly there is a virus issue and where there should be directed with the local lockup with Current Situation and which we have so many different rules so many restrictions that i think the law will citizen or every citizen has its thieving complications to look through all these rules and this would then create uncertainty and as we all know uncertainty will clearly dent Economic Sentiment Consumer Sentiment Investment Sentiment and just be say this huge complex of the of the rules around could also weaken the general economy and of course at the same time germany as the entire euro zone is pumping tons of money into the system a common i know hard to chief economist at the World Bank Last week said 1st you worry about fighting the war then you figure out how to pay for it the pandemic is not a sprint its a marathon does the euro zone have enough stamina. Yes i think the year that has enough sun and then we should give the year is that all european governments some credit here because all the International Observers had always been criticizing europe too much of this territory for never being fast enough this time around a couple of governments including the German Government they were even faster than the European Central bank in providing stimulus to the economy so i think this is a huge game changer for for europe contrary to what we had in 2008 or 201012 this time around its really huge fiscal stimulus and this should help the economy and then we have to in 2 or 3 years from this will then only meet the earliest wont which we can discuss how to pay the bills. There chief economist at i n g bank thank you so much for your time. And now to some of the other Global Business stories making news. Britain prepares for a no deal breaks its a Public Information Campaign Type of time is running out firms to focus on the 1st of january deadline when the transition period ends talks between london and the e. U. Are still stalled. Hong kong based Airline Cathay pacific expects to operate a 10 percent of normal capacity for the rest of the year and only half its usual volume during 2021 airline is said to benefit from the proposed travel bubble between hong kong and singapore. U. S. House Speaker Nancy Pelosi on sunday set a 48 hour deadline to agree on a 2. 00 trillion dollars coded relief package she said a smaller package proposed by the white house wouldnt deliver tax credits for low income earners Worker Protections and rent help. Chinas 3rd quarter Economic Growth climbed to 4. 9 percent over a year earlier thats according to the Ruling Communist Party of Global Demand for masks and other medical supplies boosted factory output while retail spending returned to prevent levels for the 1st time Government Data show to the worlds 2nd largest economy expanded by 3. 2 percent over a year industry months ending in june china where the pandemic of course began in december became the 1st major economy to return to growth off debate declared the disease under control and began opening factories shops and offices interesting from want to bring in our financial correspondent Chelsea Delaney in frankfurt josie good to see you well clearly i mean most of the Major Economies are in recession how did china managed to get its economy turned around well china is definitely the major outlier there the only major economy that is expected to grow in 2020 a large part of that is because they have essentially controlled the virus they they have been able to reduce local infections to basically nothing and thats allowed them to really reopen the economy and a way that no other economy really has been able to do theyve really focused on the industrial sector which has really been benefiting from this export boom particularly for things of like medical sales and home working equipment but we also are starting to see the retail side of the economy pick up so retail sales have started to grow again which suggests that this could be a little bit more sustainable than people had previously been thinking and you mentioned sustainable i mean china being such a big Global Player in terms of International Trade will of us benefit from that. We have seen this particularly and luxury items are things like sales of cars of luxury cars like Mercedes Benz style miller b. M. W. All of that has really been booming and this is starting to help companies around the world so that thats actually been a benefit to our economy its just a delay in trying food thank you. Germany wants to achieve climate neutrality by 2015 other countries Green Energy Transition is playing a major role here but now its Renewable Energy nor faces a revision that could ultimately end subsidies for bio gas power plants and for many operators this could mean theyll go out of business. Silent scorn and horse manure. Those sort of paranoia tied to months most valuable Raw Materials the farmer fills them into his bio gas plant near the western german city of munster to generate electricity for the past 16 years hes been feeding electric power into the grid and receiving compensation of up to 0. 24 per kilowatt hour but now the subsidies are set to be cut. British its part of what i get now is around 22. 00 to 0. 24 and im supposed to produce for 0. 18 that means i have to cut my costs but at the moment i cant see any potential for savings i need capital to keep the plant viable in the future. Theres an important source of income that this Energy Farmer wishes he had thats the heat from the bio gas plant in principle he could sell it to people for heating their homes if only his farm or and so remote that a month cultivates a rather small field too small to enable him to operate the bio gas facility with his own corn instead he has to buy corn from a neighbor its the result of poor planning years ago. Omar booking a researcher months or university of applied sciences has evaluated 200. 00 bio gas plants in terms of cost effectiveness he predicts that the planned cuts to subsidies will leave 30 to 40 percent of them bankrupt be avoided for vics funding for c n n a we want to transition from fossil fuel so we cant keep doing u. Turns every 10 years weve developed the technology its now technically ready and we should stick with it lived or bio gas is a fundamental component of a Renewable Energy system and its badly needed wont bring it if all i wish for not die tomorrow is looking for ways to make up for the losses he faces one possibility would be feeding the bio gas he produces into existing natural gas grids but for that hed have to update his technology which would cost him a 6. 00 figure sum the 52 year old wonders what bank would give him a loan like that to upgrade a plant thats nearly 2 decades old. As of a month Long Distance that maybe there was too much support at the beginning and now theyre suddenly cutting off the money supply thats tough for us or that we assume things will pick up but at the moment everyones anxious about the future because it started going on about the bio gas sector has to learn to support itself and do without guaranteed government subsidies and in the process many of the older plants may fall by the wayside. And thats your Business Update here on g. W. For me and the team and thanks for keeping us company. The bad. Luck. The big. Laugh. Comes from people make fun about their own social economic and political problems. In mozambique we say that you have to laugh so you dont write its how people called the things they did wrong. As a journalist. Cultist focus in that violence in the local she led by actors fascinate day by checking it all for all those jobs finding out what people are talking about what is moving them. My father taught me how to ask uncomfortable questions about my country and above board that is why i keep going to the state my name is now the sofa and i work at. It. Parker was the bearer of bad tidings when a court issues a warrant he goes to peoples homes and evicts them but more laws or not we have a Court Warrant. The tenants are led away by the police but i havent been paying the rent. From where can i go with my children rents are high in barcelona theres a housing shortage thousands of people live in apartments as illegal occupants the pandemic has made the situation even worse bailiffs ago a busy. Weekend park in our town. There are 8 evictions on parkas schedule today all in last me tell it a suburb of. The family hes going to next has to leave their home its been ages since they last paid the rent. Regular readers we have a Court Warrant and all have to leave today those go home even or why werent we told about it. Or if im here now you must have been given plenty of notice from another government funded as well as you know the owner of the apartment wants them out they owe him rent and the court has approved his possession plame. What should we do
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