LyrArc Article Gist
Changes in the management board at  VW that will lead to an accelerated investment in electric vehicles. Labor leaders had sought to oust CEO Herbert Diess. Mr. Diess will no longer oversee the VW brand or the company's business in China. The management board is expanded to 11 from seven previously. Three new board positions were created two filled by women. The result is that Mr. Diess will now be working with overall guidance from the board and other members that seeks to accelerate VW's conversion into an electric car company. About $180 billion in investment was approved half of this going into digitization and electric cars.

These changes are happening as Germany goes in a new direction under the leadership of Mr Scholz of the SPD and the Greens vice chancellor, Mr Habeck, who is also in charge of an expanded economy ministry including climate change, with large investments planned to combat climate change.

LyrArc Article Gist
The coalition of socialist, greens and communist parties could win about 205 seats says the Ifop poll. Jean Luc Melenchon is leading a effort by socialist parties to form the next government in France. It is the only alternative to Mr. Macron's party in the parliamentary elections on June 12 and June 19. Meenchon supports raising the minimum wage by 15%, introducing a wealth tax and lowering the retirement age. Another poll by BVA shows only 35% of French voters want Macron's party to win a majority. 

Germany under Scholz's socialist SPD and Greens has increased the minimum wage to 12 euros per hour as part of the election platform. The trend in Europe is now for support to workers and families to meet the high cost of living with inflation accelerated by the war in Ukraine, the energy shortages and higher food prices.

LyrArc Article Gist
There is an acute need for foreign trained workers in European Union countries. Germany, Netherlands and Italy discourage migrant untrained workers illegally entering the country. Employers are asking the government to address labor shortages. Germany needs 400,000 trained foreign workers, Italy 280,000.  Germany will increase visas for Indian workers from 10,000 to 90,000 a year showing how quickly action is being taken first to stop illegal entry and second to increase legal visas. German Labor Minister Hubertus is shown here talking to students in Delhi during Scholz's visit to India recently.

Governments in Europe will now say they are getting trained foreign workers by legally bringing them into the country compared to the chaotic entry of less skilled migrants that caused deep discontent in the countries of Europe. Employers will guide this process in each country as they compete for the best talented educated workers.

LyrArc Article Gist
Uncertainty Germany faces as it faces a new election on February 23, 2025. 630 members of German parliament will be elected Feb 23 instead of September 28, 2025 because the FDP of Lindner decided to withdraw from the Scholz SPD Greens coalition. The chancellor is elected from the majority in parliament.

LyrArc Article Gist
Shocking revelation that Forest Service discouraged firefighters from wearing masks that help prevent cancers from toxic smoke. Many firefighters only had bandannas. For several years fires have increased and this was happening with more firefighters doing dangerous work yet this only came up when NYT reporters brought this up recently. The head of Forest Service was summoned to a Congressional oversight hearing and rightly so.  Rep. Jared Huffman of California: “We’ve talked about the New York Times piece. Chief, do you feel like the Forest Service is doing everything that it can to make the safety risk of smoke inhalation known to firefighters?” Mr. Schultz: “We need to continue to focus on safety as we move forward, including this issue.” There are about 40,000 firefighters in Forest Service mostly young men and many more employed by contractors. Because they are first responders also the work of firefighters has 360,000 in the US and 600,000 volunteers. With such sheer numbers masks to prevent inhalation of toxic chemicals that can cause cancer is highly important and should be given high priority.   ...

LyrArc Article Gist
This report in the WSJ shows even chancellor Merkel, Mr. Roller her economic advisor, ignored reports that went back ten years about wrongdoing at Wirecard. Chancellor Merkel supported Wirecard's acquisition of a Chinese company that itself was in trouble in talks with Chinese leaders in September 2019. AllScore the Chinese company had at the time been fined for misappropriation of funds by the central bank of China at the time, as reported by the WSJ. The German Finance ministry had provided documents showing that Wirecard was being investigated before the meetings to Mr. Roller. The Finance minister Olaf-Scholz's ministry oversees BaFin but little was done by BaFin even after the Financial Times in January 2019 reported financial irregularities at the company.

LyrArc Article Gist
Laurence Peter of the BBC News describes a meeting of EU leaders in December 2016. The new Europa building with its space egg shape will be the location of the next summit in 2016, adding to a sense of history that the EU idea has witnessed since the 1950's, even optimism about far it has come at a time of a few setbacks.  He points out that Theresa May was not without persons to talk to at the meeting, though some video clips showed her looking lonely. EU president Martin Schulz said he was emotional seeing students crying after the Brexit vote, but that it was time to find solutions and not be emotional today. Lunch was offered at the meeting by Spain and Portugal, to mark the 30 years since they joined. People forget how much the European Community meant to the two countries after decades of suffering under fascist dictatorships- it meant new hope and an opportunity to set things right. Problems facing the EU today include, the frustration at the carnage in Aleppo, Syria, how to deal with Britain and Brexit, setting up an asylum system that will work, dealing with Ukraine and Russia without making the situation worse, and remaining concerns about the Greece debt crisis. ...

LyrArc Article Gist
German industry says a complete shutoff of Russian gas to Germany would be catastrophic. Paul Krugman, an expert on international economics, looks at it in this NYT report. He says estimates show a worst case scenario drop of 2.1% in GDP for Germany to shutoff Russian supplies of energy. This estimate is from ECONtribute a thinktank from the Universities of Bonn and Cologne. This reluctance says Krugman to take the tough decisions such as turning off Russian energy supplies prolongs the war in Ukraine and its painful consequences in food scarcity and inflation all over Africa, Asia and Latin America. By comparison Greece, Ireland, Spain and Portugal went through severe downturns as a result of debt crises and economies that were mismanaged, with 27% loss of GDP in Greece, says Krugman.  Merkel's government argued for strict austerity policy during the eurozone financial crisis. By comparison says Krugman the shutoff of Russian energy supplies only imposes 2.1% loss in GDP that the German economy could handle.This estimate is also similar to estimates by Bruegel Institute and International Energy Agency, says Krugman. It would also speed up climate change action in Germany and set an example for Europe. German Economy minister Habeck's plan on alternative sources of renewable energy goes part of the way to accomplish this yet more needs to be done to correct the errors of policies from the Merkel administration that allowed German dependence on Russian energy to reach 55%. It is hard to comprehend why the Merkel administration could not be uneasy with something that would give Russia a huge leverage over the German economy and limit its voice in world affairs. It is now left to chancellor Scholz to correct the errors of the Merkel administration and of past members of his party the SPD, such as Mr. Steinmeier and the Schroeder SPD administration that preceded Merkel. Difficult questions have to be shouldered by the Christian Democrats and the Social Democrats. It is only through the courage shown by Annalena Baerbock of the Greens Party, in laying bare what these German policies were leading to, that Germany is recovering her voice in the world. In his speech to parliament making a U turn from the old policies Scholz credited Annalena Baerbock for the hard work in convincing Germans of the need for action.  ...

LyrArc Article Gist
Germany is becoming a key partner for India in its rapid modernization. German chancellor Scholz's visit to India following German Foreign Minister Annalena Baerbock's visit is a turning point for India's trade and manufacturing for advanced technologies relationship with Germany. Renewable energy, defense and manufacturing technologies are key areas for increasing cooperation. Baerbock brings youthful energies, enthusiasm, and new thinking to the relationship with India. A recent visit by Baerbock to Africa to return museum pieces to their original country showed Baerbock as something Asia and Africa have not seen in the twentienth or twenty first century from Germany- real spirit and understanding unparalleled in our time. As the German ambassador points out Baerbock had a great visit at the recent G-20 foreign ministers meeting in India.

LyrArc Article Gist
Jorg Wuttke, chairman of the EU Chamber of Commerce in China says Germany exports 600 million euros worth of good to China every day. China exports $1.3 billion euros world of goods to Germany every day. Germany companies have heavily invested in Germany and millions of jobs in Germany depend on investments in China from engineering services to engine parts. Big companies making cars, chemicals and engineering goods make in China and have markets in China. This makes it very difficult for Germany to develop its own independent policies in relation to China for its own security following the war in Ukraine where China has supported Russia. Two decades of Merkel and CDU policies with the participation of the SPD leadership have led to this situation. Scholz is aware of this as his coalition partners Lindner of FDP, Habeck and Baerbock of the Greens oppose the dependency on China which restricts Germany from developing its own independent policies during a period when there is war in Eastern Europe with Russia. ...

LyrArc Article Gist
What is the best way to get ahead in a company? New studies show that the most important thing to do is to pick the right company for mobility and advancement, getting further education and skills, and for job stability. The studies shown here were done by the Burning Glass Institute in Philadelphia and the Harvard Project on Managing the Future of Work, the Schultz Family Foundation. The study looked at workers in 200 companies over a 5 year period to understand what helps workers build good careers. Companies that rank high for employee retention and pay are Adobe, Alphabet, Boeing, Microsoft. Companies promoting workers without a college degree are Southwest Airlines, AT&T, American Express, CISCO. For launchpads to further mobility Apple and AT&T do well. The main thing is that a person gets into the right company which has big consequences yet the workers starting out they don't have the visibility to make an educated choice, says an expert who did the study.  ...

LyrArc Article Gist
As the US and EU find other ways to act on cost of living action to reduce the impact of higher oil and gas prices, curb pharmacy and health costs, and grocery bills, tackle housing costs, the role that lower retail prices of goods from China play a diminished role. More important are jobs and wages in this economic structure and perceptions are being followed and shaped by policy of Biden, Scholz and other leaders of Democratic and Socialist parties. Biden and Yellen have raised the alarm over China's export based manufacturing strategies being revived one more time, there is also a new perception of the advantage of such lower retail goods from China coming at the expense of jobs and wages, loss of manufacturing technologies as in chips in the US, which is seen as clearly unacceptable. WSJ shows that recent data shows that this strategy in China is not delivering the growth China expected. The diversification of supply chain to India and Vietnam is also a response to earlier concentration of supply chain in China. ...

LyrArc Article Gist
The CDU has the nost popularity at 34% yet Merz himself. a private equity executive with Black Rock Germany, is not personally popular with the German public. His popularity is at about 25%. Boris Pistorius, the Defene Minister in the Scholz SPD and Greens government is the most popular politician in Germany today. Elections are only 4 months away in February 2025, a short time but also a long time with all the changes going on today. In the past CDU and SPD have worked together. Past CDU approaches may not work as Germany badly needs to invest in its economy as the US has done under president Biden. The experience of Britain shows that simply making deals and counting on free trade deals doesn't work, and cuts to public services to budgets including on basic services including water and transportation, climate, do not work either. Are their good leaders and policies that fit the times is a question that will be persistent for many nations.

LyrArc Article Gist
Was Merkel right in setting an amendment to the German Constitution to limit the structural budget deficit to 0.35% of GDP. It is called the Schuldenbremse Amendment. It means there is no money to invest in the country's future, no money for infrastructure even when it is old and crumbling for roads, bridges rail stations and airports, no money for digitization of the economy in which Germany has fallen behind, not enough for defense, and no money to fund needs in education, healthcare, childcare. And not enough money to invest in climate change action. Absent this investment the German economy falls behind, jobs become precarious and public dissatisfaction leads to volatile political situation. Like the Republican party in the US which calls for tax cuts and no walk the talk for infrastructure investment, the CDU/CSU and FDP, have a mindset opposing investing in Germany. Investment that the Greens and SPD promised but could not deliver with the FDP in the Scholz /Habeck /Lindner coalition over 4 years. ...

LyrArc Article Gist
The Free Democrats led by Christian Lindner are polling about 4% a week before the elections in Germany. Lindner's FDP was part of the Scholz SPD Greens coalition after winning 11% of the vote in 2021. Elections would be held in 2025 March. Yet with FDP breaking away from the coalition as its popularity dropped elections will be held next week. From the beginning this coalition was not a good one as FDP supported the debt brake and no spending, when Greens and SPD promised investment in infrastructure that were neglected by Merkel's CDU. Germany economy as shown in the article alongside by Tankersely and Eddy reporting from Wittenberg in the eastern region, has not grown in 5 years. Crumbling infrastructure is seen everywhere in cities across the country and the rail system lacks much needed investment.  Scholz wants to reverse this with Made in Germany and remove the debt brake. The CDU wants to cut taxes and regulation. No one knows if the FDP will pass 5% of the vote needed to have representation in parliament. It happened before for FDP- before the 2021 election. ...

LyrArc Article Gist
Walker of the WSJ describes how the new issues of immigration and identity are changing the way people vote in European Union countries. In the Dutch election there were other surprises. The Dutch Labor Party which won 25% of the vote in the 2012 elections fared badly and got only 6% of the vote. Much of this vote was picked up by antipopulist parties such as the Greens. Mr. Rutte, the prime minister under the current government, and his party centre right VVD won 21% of the vote. Social Democrats and Labor parties in Netherlands, France and Britain are doing badly, and even Martin Schulz's SPD's higher popularity is said to be reaching a peak and may not last till September, says Walker. Labor Party in Netherlands failed because of its participation as a junior party in a centre right government following austerity policies, say analysts. Overall as shown in Netherlands the tensions and loss of credibility of social democrats is playing out differently in each country. The Netherlands election shows that there is also an anti-populist shift that moves some of the vote from social democrats to parties such as Greens, or other parties or movements that have gained credibility as the social democrats faded.  ...

LyrArc Article Gist
Wages for factory workers actually declined over the last two decades. Outshoring led to reduced wages in manufacturing. The auto industry crises after 2000 increased this decline. This trend is finally being corrected after the pandemic exposed the risks of a supply chain dependent on unrelaible partners overseas. The Biden administration has also eased the way for unions to win wage increases, similar to the role of the Scholz administration in Germany for German unions to win wage increases. Both presidents say this is important for the dignity of workers and for workers to earn a living wage. The cost of living crisis has further increased the sense that worker incomes have suffered for too long. Germany's transport union negotiated wage increases of 410 euros a month with Deutsche Bahn this week, and the UAW union is negotiating a new wage agreement with Stellantis, Ford and GM.

LyrArc Article Gist
Key points made by Keir Starmer of Labour party during a 2 day visit to Berlin to meet Chancellor Scholz. Starmer says -Labour is ready to fight an election on the economy and win. Labour understands what it means to live with high inflation. He said "it feels like the Tories are like a football team dragged into the relegation zone and can see the drop, and are desperately trying to change the manager in the hope and belief that it will make a difference." "We're dealing with a cost of living crisis- people literally unable to pay their bills- and you've got a Conservative Party leadership race that is completely divorced from reality." Starmer says all the Tory leadership candidates should be challenged how they are going to fund their tax cuts and spending pledges- by borrowing or slashing public services. Labour will win respect at the negotiating table in any efforts to work with the EU to make Brexit work better. Its position on Northern Ireland will be well received in the EU.   ...

LyrArc Article Gist
Jens Thurau writes about a holiday trip to Fohr on the Wadden Sea on north German coast from Berlin by rail, on Deutsche Bahn, July 27 2025. Thurau writes about the travails of DB, the sudden announcements that the train is headed in another direction, having to get off and catch a regional train. On the return trip the train making a stop when sheep cause rail delays on the rail line further up, the train canceled an having to take aintercity regional express to Berlin. The employees struggle too as the conductor on the return trip offers vouchers from DB to passengers and his apologies. Many DB employees having to deal with customer complaints are planning to leave.  Next trip Jens plans to drive to Fohr.  DB has suffered for years with lack of investment on the 2800 mile rail network. Thanks to chancellor Merkel who never gave priority to such investment and who Jens says called the internet "uncharted territory" in 2013, the digital part of the German economy and DB, along with infrastructure has also suffered. The Scholz coalition promised but failed to deliver on infrastructure with opposition from FDP finance minister Lindner. Only in 2025 has the new coalition of Merz with SDP has the constitutional provision limiting infrastructure spending of Merkel been removed, and DB put on the way to modernizing German rail connections starting with the Berlin Hamburg line. ...

LyrArc Article Gist
Germany's defense chief Carsten Breuer talks with the BBC ahead of a NATO summit at the Hague, Netherlands inJune 2025. He says Russia is producing tanks and ammunition at a rapid rate that suggest some of it is going into stocks, which may be a threat to Baltic region. Under the SPD government with the Greens of chancellor Scholz Boris Pistorius of SPD was Defense Minister and was favored as candidate for chancellor. SPD true to its origins under Willy Bradt sought  German good relations with Russia even after the Ukraine war and limited its scope. Under CDU chancellor Merz note that Boris Pistorius is the only SPD minister from the Scholz government to remain, and in the position of Defense Minister. As the US deescalates with Russia for a larger role in Asia-Pacific Germany takes on a bigger defense role in Europe, yet with a desire for a swift end to the Ukraine conflict and a settlement that secures independence of Eastern European states.  ...

LyrArc Article Gist
Lars Kingbeil SPD parliamentary head March 2025 negotiations with CDU head Merz for a new government in Germany following federal elections. Combined the 2 parties have 45% of the vote with the Left having 9% and the Greens 12% in Opposition and AfD having 21%. In addition Wagenknecht and FDP received 9% of the vote. About 80 percent of the German vote still went to non far right parties in a period of immigration anxiety and economic contraction. Strong action on immigration should by Merz and the CDU that was missing from Scholz and SPD, and weak economic leadership from Scholz limited by the FDP's Lindner Finance minister replaced by CDU under business friendly Merz should change Germany's situation in the next 4 years. It will making immigration issues fade by 2027 and help Germany's economy rebound with investments in key areas.  Merkel and Merz are very different leaders. Merkel a pastor's daughter with a physics background lacks the business background in capital markets of Merz and the ability to understand the mood and thinking of Germans in the industrial west and south of the country and in Bavaria's Munich region (CSU). ...

LyrArc Article Gist
A fact check on Alice Weidel Musk interview on X. The current polls show the leading candidate for chancellor is Habeck of the Greens at 28%. Habeck is known for the work he did to get Germany through a difficult period of cutoff of energy supplies from Russia. He was Deputy Chancellor and Economy Minister in the Scholz government. Scholz is at 20% so is Weidel of AfD. Others are Merz of the Christian Democrats at 25%. Sarah Wagenknecht leads a Socialist party BSW that opposes migrants given asylum similar to the Socialist party in Denmark under PM Mette Frederiksen with 21%. The AfD has 20% support, Christian Democrats have 30%. Social Democrats 20% and Greens about 20%. 7 million immigrants entered Germany since the Merkel years in 2015. The situation in 2015 when Merkel allowed migrants to enter Germany from Austria and Hungary is remembered as a controversial decision. Merkel reversed this decision during the last years of her government. Of the 7 million only 3 million are asylum seekers applications of which some were rejected. The rest were legally allowed into the country. This included Ukrainian refugees from the war with Russia.   ...

LyrArc Article Gist
How Starbucks changed from a customer oriented experience like the ones at expresso bars in Italy, to add sandwiches, lunches and drive through. And in the process diluted its customer oriented experience (conversation, place to meet European cafe style) and the experience of real coffee, upto the point that its main competitor became Dunkin Donuts in many places. Consumer Reports rates McDonalds drip coffee better than Starbucks. Baristas at Starbucks lament the loss of the atmosphere of the early Starbucks as sandwiches and other items are pushed in a fast food type environment. One could have seen this coming as Schultz was a Brooklyn kid who seemed to struggle with his fascination for the Italian expresso bars he saw in Italy, and his New York and American ways of popularizing this experience by building hundreds of locations and expanding quickly. In the process Starbucks became a different place and a different company without quite realizing it. The Brooklyn kid in Schultz won over the other side that remained intrigued by his experience in Italy. This is described in his autobiography, "Pour Your Heart Into It," somewhere the magic disappeared. This is amazing that a place can change and competition can creep in on you when you kind of lose your identity, and forget where you started, the dream and vision. See the separate article where Schultz has taken charge of Starbucks operations and let go of the CEO....

LyrArc Article Gist
This report in the NYT looks at the support for the AfD stalled at about 11% nationwide but closer to twice that in East Germany where years of neglect have led to voters shifting to far right parties. The view is presented that there is a core hard right of 10%. Yet it ignores or prefers to overlook what happened in the east which provides the real clues to what happened, so that future policy could be designed to address social goals in a way that never happened in Germany. This is in line with developments in China where president Xi is addressing social goals after years of tech and infrastructure expansion that neglected rural areas and urban poor. It is in line also with the same action taken to address social goals in US president Biden's $3.5 trillion workers and families plan. Social Democrats under Mr. Scholz and a younger generation represented by the Greens have the same challenges facing them to come up with the plans to correct these problems in Germany and with a plan designed for the neglected eastern part of the country. Helmut Kohl pushed for reunification of Germany. With the collapse of the Berlin Wall the momentum was set for this to happen. Yet looking back over that period since 1990, German chancellors and administrations for three decades from both CDU and SPD have failed to invest and create opportunities in eastern part of Germany. It makes German reunification an empty concept looked at from outside. The previous administrations including Kohl and Merkel relied too much on market capitalism to do what it has been shown not capable of doing- tackling social goals and economic crises, much less  political storms such as creation of GDR following Soviet army entering Berlinin 1945. Much commentary on the issues in east Germany show people there left to themselves after mass migration out of the east to the west leaving older people and pensioners in the east, and a sense of being ignored or forgotten. US president Biden said today in ther UN General Assembly- "Our shared grief is a poignant reminder that our collective future will hinge on our ability to recognize our common humanity and to act together." And he went on to say the next ten years to 2030 "will quite literally determine our futures."  The Social Democrats under Scholz and the Greens under Baerbock and Habeck have to come up with plans and programs that will increase ease of living and opportunities for a thriving eastern part of Germany, after the failures of market capitalism in its unregulated form during the Merkel years and predecessor administrations. ...

LyrArc Article Gist
Germany's Foreign Ministry warned in a cabinet note that investment by China's COSCO in Hamburg port terminal "disproportionately expands China's influence on German and European transport infrastructure as well as Germany's dependence on China." Germany handed over a 25% stake in the Hamburg port terminal to China's COSCO shipping with the decision approved by chancellor Scholz. Several government ministries in Germany including the Economy ministry headed by Habeck and the Foreign Ministry have opposed the bid which is seen as having geopolitical aspects as Germany has no stakes in Chinese ports. "On behalf of the Foreign Ministry, I point out the considerable risks that arise when elements of Germany's transport infrastructure are influenced and controlled by China- while China itself does not allow Germany to participate in Chinese ports," said the note from the Foreign Ministry brought forward by Anna Luhrmann, Minister of State for Europe.  China is seen by Germany and NATO as posing security challenges. "In this respect the acquisition of the container terminal does not only have an economic aspect, but also a geopolitical aspect."  ...