Germany

General Motors Co.'s board of directors will get one more chance to alter the auto maker's course in relation to its Opel and Vauxhall operations in Europe when it meets for its fourth formal meeting on the matter Tuesday, The Wall Street Journal reported. The auto maker's board, formed in July after GM exited bankruptcy court, will be asked by the company's management team to approve the contents of a letter drafted in mid-October to address the European Union's concerns related to the sale of 55% of Opel to automotive supplier Magna International Inc.

BMW has become the first major company in Germany to change its compensation practices amid growing concern over excessive banker bonuses, Spiegel Online reported. The company cited a fairer work environment as its reason. Other firms are sure to take notice, given BMW's size and weight in the global business market. BMW plans to tie executive bonuses to those of its blue-collar workers, in a bid to create a fairer and sustainable compensation environment within the company.

The European Commission will not investigate the improper use of state aid in the ongoing attempts to sell carmaker Opel, Spiegel Online reported. The situation at Opel is so critical that the company would likely collapse before such an investigation could be complete. European Commissioner for Competition Neelie Kroes just last week warned the German government she had "significant indications" the sale to Canadian auto parts manufacturer Magna may breach European single market rules.

Germany’s new finance minister, the veteran conservative politician Wolfgang Schäuble, moved swiftly Sunday to assert his power and tell his compatriots and the world that the finances of the largest European economy were dire and would take years to mend, The New York Times reported. Using the pulpit of the conservative newspaper Welt am Sonntag, Mr. Schäuble warned that there was no chance to balance the budget in the next four years of the new center-right coalition government headed by Chancellor Angela Merkel.

Postal and logistics company Deutsche Post AG said Thursday that its DHL express unit is expected to lose 400 jobs in Germany after the closure of mail-order business Quelle, part of bankrupt retailer Arcandor AG, Forbes reported on an Associated Press story. The Bonn-based Post said it planned to close three German logistics locations in Bochum, Nuremberg and Lehrte that worked as the sole logistics provider for Quelle. It was still unclear when the DHL employees would lose their positions, Deutsche Post said.

Attempts to rescue Quelle, the German mail order company founded in 1927, have failed and it now looks set to be liquidated, causing the loss of thousands of jobs, Spiegel Online reported. No investor could be found after parent company Arcandor filed for insolvency in June. The news has shocked the retailer's workforce. Quelle's parent company, Arcandor, filed for insolvency in June after its request for state aid was rejected.

The German government said Monday it is hopeful of overcoming European Union worries about General Motors Co.'s deal to sell its Opel subsidiary to a Canadian-Russian consortium, and argued that there was no need to review the bidding process, The Associated Press reported. EU Competition Commissioner Neelie Kroes last week voiced concern over Germany's plans to provide €4.5 billion ($6.7 billion) to support the takeover of Opel by Canadian auto parts maker Magna International Inc. and Russian lender Sberbank.

The European Commission voiced concern Friday over Germany's planned aid for a consortium led by Canadian-based Magna International to take a majority stake in carmaker Opel and suggested that General Motors Co. be allowed to "reconsider" the deal, The Canadian Press reported. Germany offered aid worth US$6.7 billion to support the deal, and hopes other European countries that have Opel plants will contribute to that financing. Adam Opel GmbH has its headquarters in Ruesselsheim, Germany.

The U.K. and Belgium on Monday demanded the European Commission scrutinize the sale of General Motors Co.'s European operations to a consortium led by car-parts maker Magna International Inc. to ensure that rules on government aid aren't breached, The Wall Street Journal reported. The governments of both nations fear that GM factories in their countries will bear the burden of job losses that the deal will bring. Magna confirmed Monday it plans to cut 10,500 jobs from GM Europe's work force of about 50,000.

Even as France and Germany begin to show signs of economic recovery, weaker members of the European common-currency union remain mired in recession, The Wall Street Journal reported. The euro is at its strongest level against the dollar this year, and interest rates suggest investor fears over a debt default by a euro-zone member have eased since earlier in the year. Despite this, the euro zone's toughest times could lie ahead. To understand why, it is worth taking a look at Spain.