Germany

Frankfurt Hahn Airport, a German international budget flights hub, has filed for insolvency, according to a court filing published on Tuesday, Reuters reported. It was not immediately clear how the insolvency would affect flight operations. The airport, which is primarily used by low-cost airlines such as Ryanair and cargo airlines and served about 1.5 million passengers in 2019, is 82.5% owned by Chinese airport group HNA, while the German state of Hesse has a 17.5% stake.
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Germany will cut a power surcharge levied on consumers to support renewable energy by 42.7% to help households cope with soaring energy prices, network operators said on Friday, Reuters reported. Germany and other governments in Europe are seeking to provide relief for consumers as gas prices skyrocket. The reduction in the German levy, to 3.723 euro cents per kilowatt hour (kWh), confirms a Reuters report on Thursday. It will not take effect until Jan. 1. read more The government will help fund the cut with 3.25 billion euros ($3.77 billion) in revenue collected from carbon taxes.
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Otima Energie, a small German power and gas retail company, on Wednesday declared itself insolvent, the latest victim of soaring energy prices, while E.ON, Entega and EnBW temporarily withdrew their gas deals from price comparison portal Verivox. Suppliers across Europe are struggling with rocketing prices due to factors ranging from insatiable Asian demand to Europe's carbon policy and a period of lighter winds.
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Deutsche Lufthansa AG paid off a chunk of the German government’s remaining bailout package, eliminating part of its so-called silent participation support with 1.5 billion euros ($1.7 billion) of the money it raised in a rights offering last week, Bloomberg News reported. The 2.16 billion-euro equity raise is now completed and new shares issued, Lufthansa said Monday in a statement. The company plans to repay a remaining 1-billion-euro silent participation to Germany’s Economic Stabilization Fund by year-end.
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TUI AG will raise 1.1 billion euros ($1.3 billion) by selling new stock, making it the latest travel company to tap investors for cash to reduce a giant pandemic debt pile, Bloomberg News reported. The share sale, at a discount price of 2.15 euros each in a rights offering, will allow the world’s biggest tour operator to reduce its draw on a state-backed rescue loan to zero, TUI said Wednesday in a statement. Airlines have been selling stock to firm up balance sheets as easing border restrictions begin to revive bookings.
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A U.S. judge said Germany's Allianz SE must face investor claims it wrongly "abandoned" the investment strategies it promised to use on hedge funds that suffered massive losses as the COVID-19 pandemic shook markets early last year, Reuters reported. In an 81-page decision, U.S. District Judge Katherine Polk Failla in Manhattan said that investors could try to show Allianz was negligent and lacked good faith in managing its Structured Alpha funds. She also dismissed some state law-based claims.
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German financial regulator BaFin ordered online bank N26 to pay 4.25 million euros ($4.98 million) for delayed reports of suspicious activity in 2019 and 2020 in the area of anti-money laundering, Reuters reported. N26 said that the fine was paid in full on July 14, adding all related proceedings have been closed. The bank said the case related to fewer than 50 activity reports, adding that BaFin would make the fine public shortly.

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German industrial inspector TÜV Süd was on Tuesday accused of evading its responsibilities over its alleged role in the 2019 deadly collapse of a dam in Brazil, as Brazilian claimants kicked off the first civil lawsuit in Germany over the disaster, Reuters reported. The municipality of Brumadinho and the family of an engineer killed in the accident allege the company negligently certified the Brumadinho dam in southeastern Brazil, although it did not meet international safety standards.
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Angela Merkel’s tenure will be remembered as Germany’s, and Europe’s, cruelest paradox: On the one hand, she dominated the continent’s politics like no other peacetime leader — and is leaving the German chancellery considerably more powerful than she had found it. But the way she built up this power condemned Germany to secular decline and the European Union to stagnation, according to a commentary in Jacobin. There is no doubt that Germany is today stronger politically and economically than it was when Merkel became chancellor back in 2005.

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