A few months ago we commented that there will be no energy transition without competitiveness, and given the proposal of Germany to carry out another huge green plan, the European Union faces the opportunity to correct the mistakes made in the past with the wrong subsidies and policies. An opportunity to strengthen the economic fabric of the eurozone. However, the risks of repeating the same mistakes are not small. Continue reading Will Merkel’s Green Plan Work?
All posts by Daniel Lacalle
The Drone Attack On Saudi Arabia. Less Supply Risk Than Many Think.
The drone attack on Saudi Arabia has an important impact on the country’s oil infrastructure, but we should not exaggerate its impact on world supply.
Continue reading The Drone Attack On Saudi Arabia. Less Supply Risk Than Many Think.
The New ECB QE Is A Mistake. Here Is What It Should Have Done.
The ECB is creating a dangerous bubble and should not have cut rates by 10bps nor added a new purchase program of €20 billion per month.
1) Eurozone states are already financing themselves at negative rates. There is no need for lower rates and this disguises real risk.
This has saved governments more than 1 trillion euro in interest expenses (handelsblatt.com/today/finance/…)
Continue reading The New ECB QE Is A Mistake. Here Is What It Should Have Done.
India. Domestic Demand Is Destroyed By Misguided Government Decisions
In this interview, I explain that constant government intervention and “picking winners” is weakening the India economy. Demonetisation, tax hikes, interventionism and constant increases in subsidies to some sectors are weakening internal demand, not improving it.