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A new study using ECB data by the German Institute of Economic Research shows rising inequality in Germany. The 45 richest households in Germany own wealth equal to the bottom half of the population- each group owning 214 billion euros in assets in 2014. The wealthiest 5 percent of the people in Germany own 51.1% of the country's wealth. ECB numbers are underestimating the inequality by showing that 5 percent control 31.5% of the wealth in Germany. The Institute's analysis shows Germany is worse than Spain and France when the wealthiest household's wealth is taken into account. 

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The manufacturing purchasers index for the eruozone was 45.1, remaining at the same level as May, a three year low, according to survey firm Markit. The figures are based on a survey of purchasing executives. Index figures below 50 indicate contraction in the manufacturing sector. Germany was at a PMI of 45, Spain at 41.1. The PMI reports indicate a contraction of 1% at an annualized rate for the eurozone economies in the 2nd quarter of 2012.

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Moritz Kramer, a managing director at S&P, says Spain, Italy, France and Portugal cannot depend on austerity measures and cuts in spending alone to resolve the eurozone crisis. This is only one aspect of the problem facing the countries in southern Europe. The major reason for the problem is the lack of competitiveness in their economies. Nobel winner Stiglitz also points this out and adds that its important to note that the human and natural resources of Europe are the same and the potential just as good today as before the eurozone financial crisis. He says southern Europe has failed to utilize its human and capital resources and improve its technologies in ways that would make it more competitive with Asian countries. Experts point to the decade it took Germany to address problems created by inflexible labor markets, wage competitiveness, and investments in technology and human resources to get to where it is today.

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The October 2012 meeting of EU leaders ends with agreement for setting up the EU banking supervisor in the course of 2013. German chancellor Merkel turned down Spain's push for direct aid to its troubled banks and not aid from the ESM bailout fund to Spain which would increase Spain's sovereign debt. The Spanish government has indicated that it might take 40 billion euros out of the 100 billion euros approved by the EU for Spain. Merkel's view is that any direct aid will only go for future recapitalization not to clean up the mess at Bankia and other banks that stems from the failure of Spain's banking regulators and the housing bubble. Merkel said at a news conference: "If recapitalization is possible, it will only be possible for the future." Merkel also said preparations to set up the single banking supervisor would probably go into 2014, and by then "we won't have any more problems with the Spanish banks- at least, I hope not." Germany sees the need to have a carefully developed banking supervision system setup rather than a hurried approach. Merkel is aware that this might be seen as action taken to avoid committing German taxpayer money before elections for chancellor in Sept 2013- "No matter what I'm going to say, it will probably not be the right answer by your standards." ...

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An intense debate is taking place as Spain's agricultural regions face prolonged drought. The Valencian Community and Alcoy depend on rain and in drought conditions can lose 100% of crops. Murcia, Alicante and Almeria in the south east get water from local rivers, desalinated water and from the river Tagus. About 40% of water comes from desalinated water and diversion of water from the River Tagus hundreds of kilometres further north. Irrigation helps farmers plant organic lemons in what was once a dry arid region, and drip dry irrigation conserves water. The Spanish government is planning to limit the drop in the levels of the Tagus river to conserve water in the river which would reduce water to the south east around Murcia and Almeria. This region is considered to be the vegetable garden of Europe.

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 The average work has declined in Europe, and increased slightly in America. It is about one day a week less in Europe for the 5 largest European economies, according to the OECD. Shorter work hours set by employers and furloughs are affecting workers in Europe. This is because many European businesses used shorter working hours to avoid layoffs during the pandemic. 

Nearly 2 million Europeans are in furlough programs with governments making up the lost pay.

Working hours are less in Southern Europe because of a lack of full time work. About one third of workers in France and half in Spain and Italy would like to work more hours but cannnot find the extra hours. In Germany one fourth of workers choose to work less than 30 hours a week by choice.

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Jonas Vinegaard of Denmark settles the race with a fast time working himself upto near exhaustion and adding 7 minutes to his lead during the trials in the 17th stage of the Tour de France. From 10 seconds in earlier stages of the cycling race in Basque Spain across the Pyrenees mountains and into France Slovenian cyclist Pogacar was only 10 seconds behind Vinegaard. With this time in the trials and putting up a great effort in the Alps near Geneva Vinegaard now has a 10 minute lead over Pogacar, enough for him to make it to Paris without the pressure that would otherwise be seen. Vinegaard shows a new kind of resilience, strength, strategy and skills that has endeared him with a new generation of cycling enthusiasts, with a humility that comes naturally for him.

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France's president Hollande says in a televised town hall speech in Dijon, France, that the "deficit will probably be around 3.7%, even if we try to make it less." The austerity measures are hurting economic growth and France is likely to press for more time to met the EU's deficit target, similiar to the situation facing Spain and Portugal. Earlier France had committed to achieving the 3% target in 2013.

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Increasingly complex political coalitions are away centrist parties of the establishment have maintained power in Europe. Traditional political parties on the right allied with business and working class parties allied with organized labour are replaced by a fragmented landscape with parties emerging at the far right and far left. This is also a result of the deep recession following the global financial crisis of 2009, changes in international trade and globalization that have increased inequality, and the migration crisis in Europe.  In Germany and Netherlands centrist parties have formed coalitions to remain in power. In France and Italy mainstream socialist parties suffered defeat, in France to a newly formed party by Mr. Macron, and in Italy to a party started by a comedian Beppe Grillo called the Five Star Movement which allied with the Northern League party at the far right. In Spain's general election in 2019 the Socialists showed a new trend of going back to their roots as working class parties. By addressing minimum wage and other issues relating to equality the Socialist party in Spain increased its share of the vote by 6% to 29% in 2019 elections. Previously in the last 2 decades the Socialist parties had moved away from their focus on equality towards economic efficiency. The tradeoff between equality and economic efficiency moved away from equality in Europe and the U.S. during the last 3 decades,leaving Socialist parties exposed to losing some of their working class base to new parties formed to address today's issues of fairness and social justice.   ...

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Over 90,000 people were to fill the stands at the MCG cricket grounds in Melbourne, Australia, for the third day of the Third Ashes Test match with England. England won in 2 days after losing in Perth in Australia in 3 days. This means losses for Cricket Australia. More questions about the pitch with 10mm of grass that was not much help for spin bowling, and did very well for pace bowlers like Carse and Starc. 

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France, Germany, Italy, Spain and Britain agreed to have automatic exchange of information for offshore accounts to fight tax evasion. Luxembourg agreed to join this group. The EU nation move follows the U.S. Foreign Account Tax Compliance Act of 2010 which requires foreign banks and entities to disclose accounts of U.S. citizens, in an effort to fight tax evasion.

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Airlines are facing cuts to flights upto 70% and preparing for different scenarios in cuts to air travel. Cash flow is critical, and airlines are raising more cash using aircraft and landing slots for loans and to issue aircraft backed bonds. The latest cuts to flights as more countries lock down including Spain, and stop to flights from U.S. to Britain, is creating a situation in which some form of government assistance may be needed for airlines to continue to operate. 

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Problems with the July 2011 plan for Greece and other troubled eurozone economies include the lack of funding and powers for the European Financial Stability Facility (EFSF). The contagion effects to Italy and Spain will require larger funding and powers for the EFSF for it to be able to deal with future crises. The bondholder debt haircut for Portuguese and Irish bondholders, and the sense that the crisis in Greece may have to be revisted yet again, are other issues that remain unresolved. Analysts sense that the EU's governance mechanisms are always a step behind in dealing with the repeated crises and EU leaders are doing only enough to get to the next crisis moment.

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The NYT  looks at how the world is coping- with pictures of a classroom in Denmark , blocks of apartments in Barcelona. One of the first countries to open schools with children 2 yards apart, washing hands every hour and not allowed to play with close touching, teachers staying apart in staff areas. Spain is one of the countries hit hardest and with strict lockdown not allowing children to step outside till now, as is allowed in Britain and France. Children in Barcelona are shown in block apartments with parents calling for letting children outside fdor short periods. Madrid is now letting children go outside home for one hour at a time.