Germany

The German government has agreed in principle to apply a cap on gas prices for some 25,000 large industrial companies from Jan. 1, 2023, the economy ministry said on Monday, after an expert commission presented its proposals in Berlin, Reuters reported. The ministry said that the government will make some technical adjustments to the commission's original proposal, but a cap of 7 euros cents per kilowatt hours for 70% of companies consumption will apply as per the commission's suggestions. Read more.

Hopes that the euro zone can stave off a recession got a boost as Germany defied expectations by reporting another quarter of economic growth, though momentum slowed dramatically in France and Spain, Bloomberg News reported. Surging energy prices, record inflation and rising interest rates are weighing on output across the continent in the third quarter as a post-lockdown splurge on leisure and tourism fades. But data Friday showed Germany managed to grow by 0.3% between July and September. Consumer-price growth from the region was mixed.

Germany, considered Europe's most reliable debtor, is having trouble selling its bonds, just as it seeks billions to tackle the energy crisis, Reuters reported. Recent weak auctions have demonstrated the challenges of issuing debt in markets racked with uncertainty about interest rates and state spending, and made it harder for Germany - typically a reluctant spender - as it seeks to fund its 200 billion euro ($201.40 billion) scheme to cut domestic energy costs.

Germany is preparing for a worst-case scenario in which it needs to double financial aid to Uniper SE, the nation’s biggest gas supplier, to €60 billion, Bloomberg News reported. Uniper’s financial situation is worsening with an expected adjusted net loss of €3.2 billion ($3.2 billion) for the first nine months of the year as it buys more expensive wholesale gas to meet supply contracts after Moscow cut flows. Prices would have to stay high for two years for the shortfall to hit the government’s maximum projection.

The German parliament on Friday cleared the way for the government to provide up to 200 billion euros ($195 billion) in subsidies to households and businesses to ease the strain of high energy prices, a plan that has been greeted with suspicion elsewhere in Europe, the Associated Press reported. Lawmakers agreed to let a government economic stabilization fund borrow the money and approved an exemption from a rule that imposes severe limits on running up new debt.

Customers of German cryptocurrency bank Nuri (formerly known as Bitwala) are being urged to withdraw their money before December 18 in order for the “company to be terminated and liquidated,” BollyInside.com reported. Due to the lengthy crypto bear market and macroeconomic factors, Nuri filed for insolvency in August. Trading will be available through November’s end. “Over the past three months, we have worked closely with our insolvency administrators on a restructuring plan during the preliminary insolvency proceedings and have looked for a possible acquisition to carry on our story.

German prosecutors have searched the headquarters of Deutsche Bank in connection with an ongoing investigation of the multibillion-euro tax fraud scheme known as "cum-ex", Deutsche Bank said on Tuesday, Reuters reported. Germany's largest lender is one of many banks that prosecutors have raided in connection with the tax scheme that thrived more than a decade ago.

Germany and the Netherlands have proposed a package of 10 measures that the European Union could use to curb gas prices and avoid fuel rationing, including looking into setting a new benchmark price for liquefied natural gas. The plan, seen by Reuters and shared with other EU countries before the bloc's energy ministers meet on Wednesday, calls for the EU to kickstart joint gas buying, to avoid one country outbidding another and driving prices higher.

Germany is coming around to backing the idea of joint EU debt issuance to help cushion the blow of the energy crisis, as long as the freshly raised money is disbursed to struggling member states as loans, not grants, Bloomberg News reported. The change in the position follows criticism from other leaders that Germany’s €200 billion national aid plan could trigger economic imbalances in the bloc. The EU’s pandemic-era SURE program — which offers employment support of as much as €100 billion in the form of loans — could provide a blueprint for a new debt-backed instrument, we’ve been told.

Germany has hired a number of investment banks for a new syndicated 30-year bond sale on Monday, according to memos from two lead managers seen by Reuters. The bond, due 15 August 2053, will carry a coupon of 1.8% and "will be launched and priced in the near future, subject to market conditions," the memos said, a phrase debt management offices usually use a day before a sale. Germany hired Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs and JP Morgan for the sale, the memos said. Read more.