Germany

How to fight Europe’s demons of deflation

Deflation terrifies economists because once it starts, they have no idea what to do about it. When demand in an economy shrinks, companies cut jobs, and with fewer employed demand shrinks even more. The deflationary spiral is self-reinforcing. Central banks can cut interest rates to near zero and slosh money around like drunken lottery winners, but once hope flickers and dies, there is nothing they can do to persuade anyone to invest in the economy. Deflation took hold in Japan in the early 1990s and despite the government straining every sinew, its economy is still ailing 20 years on. Europe is right, then, to be in a panic. Inflation across

We know that war is hell. But it doesn’t ever make us stop doing it

There’s a plausible theory — recently rehearsed in the BBC’s excellent two-part documentary The Lion’s Last Roar? — that our war in Afghanistan was largely the creation of the Army, which sorely needed a renewed sense of military purpose after the debacle in Iraq. As a taxpayer, this appals me. As the parent of a boy approaching conscription age it horrifies me. But as an Englishman, it doesn’t half make me proud that we’ll still do anything — up to and including embroiling ourselves in a futile conflict — rather than admit we’re finished as a fighting nation. Though we joke about having beaten Germany twice at their national sport

What Angela Merkel really wants (it’s not good news for Dave)

Angela Merkel is misunderstood. Last winter, when Russia moved to annex Crimea after the overthrow of Ukraine’s government, American officials put it about that the German Chancellor had described Russia’s leader Vladimir Putin as ‘living in another world’ and ‘out of touch with reality’. No evidence has emerged that she ever said any such thing. Europhiles in the press and in Westminster have now pulled the same trick on David Cameron. The Prime Minister has lately been ruminating about quotas for migrants from certain European Union countries. He complained last month when an unannounced £1.7 billion upward adjustment in Britain’s EU payment turned out to be triple the levy on

The bluffing game between Cameron and Merkel begins…

We should all get used to reading stories about how Angela Merkel has warned David Cameron that if he persists with X, Y or Z she’ll no longer be able to support Britain staying in the EU. It is the nature of a negotiation that those involved in it will, at points, suggest that they will walk away if the other party continues to demand something. The skill is, obviously, to know whether the other person is bluffing or not. Now as Mats Persson points out, Merkel’s comments are not as definitive as they are being portrayed as in some places. But there is no getting round the fact that

The Spectator at war: An accent of prejudice

From The Spectator, 31 October 1914: We regret to record that a gallant and patriotic sailor, Prince Louis of Battenberg, has fallen a victim to the foolish prejudice that people with foreign names and of foreign birth cannot be loyal British subjects. It was announced on Friday that Prince Louis of Battenberg had resigned the office of First Sea Lord in a letter to Mr. Winston Churchill, the candour and simplicity of which do him the greatest credit. The First Lord’s reply will interest the public from its mention of the very large number of capital ships and naval craft of all descriptions which are now falling into the lap

The EU’s gift to Nigel Farage – Brussels demands £1.7 billion more from Britain

With truly dreadful timing, the European Commission has sprung David Cameron with a demand for £1.7 billion in extra British budget payments to the EU. The commission says this amount is due because the British economy has performed better than forecast. But this unexpected demand is for serious money, an almost 20 per cent increase in the British contribution. If Britain pays up, Christmas will have come early for Nigel Farage and Ukip. This explains why all three Westminster parties have been so quick to denounce the demand as unacceptable. There are mutterings of legal challenges and the like. The money is due by December 1. But politically, I don’t

Fury: the men blow stuff up, then Brad Pitt takes his top off

Fury is a second world war drama that plays with us viscerally and unsparingly — I think I saw a head being blown off; I think I saw a sliced-off face, flopping about — but is still just another second world war drama. That is, Americans good, Nazis bad, and a man doesn’t become a man until he has abandoned all mercy and learned how to kill. ‘It’s Saving Private Ryan, but with tanks,’ I heard someone say as I left the screening, and although I would never steal someone else’s opinion, it is Saving Private Ryan, but with tanks, and also sliced off faces. I added that last bit

A voyage along my grandfather’s coastline

My grandfather was born in a huge white house on the Baltic coast of eastern Germany, and ever since I was a child I’ve been fascinated by this enigmatic tideless sea. I’ve travelled along its southern shore, from Germany to Estonia, but I’d always wanted to sail across it, and last month, at last, I did, aboard the Queen Victoria on Cunard’s Royal Viking Adventure. I joined the cruise in Stockholm (the other passengers had sailed here from Southampton). Why had no one ever told me what a stunning city this is? Perched on a little island, the old town is perfectly preserved — a cluster of cobbled alleys, patrolled

The European market hangover – bad news is bad news again

In the latest Spectator, Liam Halligan takes a sobering look at European markets bearing the brunt of sanctions against Russia. ‘The western economy that’s suffered most, by far, is the largest one in the eurozone. Germany’s manufacturing thoroughbreds have sunk tens of billions of euros into Russian production facilities in recent years. . . . ‘This helps explain why, having grown 0.8 per cent during the first three months of 2014, German GDP shrank 0.2 per cent in the second quarter. The eurozone’s powerhouse is now on the brink of recession. Industrial production dropped 4 per cent in August, the biggest monthly fall since early 2009. Exports were down 5.8

Tate Modern’s latest show feels like it’s from another planet

‘Some day we shall no longer need pictures: we shall just be happy.’ — Sigmar Polke and Gerhard Richter, 1966 Who says Germans have no sense of humour? OK, so their writers tend to be a pretty gloomy bunch — but like loads of other German artists, from Otto Dix to Georg Baselitz, Sigmar Polke’s paintings are illuminated by a dry, mordant wit. It’s encapsulated in an early doodle called ‘Mona Lisa’ (1963), which hangs near the entrance to this hugely enjoyable retrospective — the first comprehensive survey of his eclectic, eccentric work. ‘Original value $1,000,000,’ reads the handwritten caption. ‘Now only 99c, including frame.’ That Polke’s pictures now sell

Europe will reconcile with Russia, and soon. It can’t afford not to

After months of escalating tensions over Ukraine and talk of a new cold war, Russia and the West could soon reach a surprising rapprochement. The eurozone economy is suffering badly and sanctions against Russia are partly to blame. Winter is also upon us, and that reminds every-one Vladimir Putin still holds the cards when it comes to supplying gas. The clincher, though, is that Ukraine is heading towards financial meltdown. Unless an extremely large bailout is delivered soon, there will be a default, sending shockwaves through the global economy. That’s a risk nobody wants to take — least of all Washington, London or Berlin. Sanctions against Russia were always going to

Martin Vander Weyer

Storm warning: the world economy’s October troubles aren’t over yet

October is always a turbulent month, and I’m feeling uneasy about this one. The FTSE100 index, which looked set to break through 7,000 in September, has lost more than 500 points since then — and would have lost more but for manoeuvres in the mining sector. Pessimism stalks the bond markets, and even a falling oil price is read more as a harbinger of faltering growth than a stimulus for further recovery. Ebola is the new volcanic ash cloud, and attention is focused on the apparently incorrigible weakness of the eurozone — where the biggest problem is what was long seen as the most potent solution, namely the German economy.

A Lab-Con coalition? It’s not as crazy as you think

In the few days since Conservative defector Douglas Carswell gave Ukip its first Westminster MP and John Bickley scared the pants off Ed Miliband by almost snatching Heywood and Middleton from Labour, there has been much talk of a broken mould and a new age in British politics. listen to ‘John Bickley: ‘If there was an Olympic medal for hypocrisy, Labour would win gold’’ on audioBoom Election geeks have posited half-a-dozen or more governing permutations in the event that Ukip makes big gains next May. Among the more obvious are these: A Labour majority, facilitated by Ukip gains from the Conservatives (Cameron’s bedtime with Farage and reveille with Miliband); a

All my doubts about Anselm Kiefer are blown away by his Royal Academy show

In the Royal Academy’s courtyard are two large glass cases or vitrines containing model submarines. In one the sea has receded, dried up, and the tin fish are stranded on the cracked mud of the ocean floor. In the other, the elegantly rusted subs are mostly suspended like sharks in an aquarium: a fleet in fact, all pointed in the same direction. These works are the visitor’s first sight of the vast and glorious exhibition by Anselm Kiefer (born Germany, 1945) currently occupying the main galleries of Burlington House, and they are apparently related to his interest in the Russian poet and futurist Velimir Khlebnikov. At once we are confronted

‘I like vanished things’: Anselm Kiefer on art, alchemy and his childhood

At the entrance to Anselm Kiefer’s forthcoming exhibition at the Royal Academy visitors will encounter a typically paradoxical Kiefer object: a giant pile of lead books, sprouting wings. When I asked Kiefer to explain this strange object, he immediately — and characteristically — began talking about alchemy. Lead, of course, was the material from which alchemists hoped to make gold. ‘But at the beginning,’ Kiefer explained, ‘it wasn’t just a materialistic idea, it was a spiritual one: to transform matter into a higher spiritual state.’ So, I suggested, in a way all art is alchemy: transforming one substance — paint and canvas, for example — into something else entirely. ‘Yes,

The enigma of Werner Herzog

Strange things happen to Werner Herzog — almost as strange as the things that happen in his haunting, hypnotic films. In 1971, while making a movie in Peru, he was bumped off a flight that subsequently crashed into the jungle. Years later, he made a moving film about that disaster’s sole survivor. In 2006, while filming an interview with the BBC in Los Angeles, he was shot in the belly by some nutter with a small calibre rifle. Most film-makers would have been turned to jelly by this terrifying interruption; Herzog simply laughed it off, cheerfully dropping his trousers to reveal a bleeding bullet wound, and a natty pair of

Six decades and two chat-up lines

 Gstaad In this freewheeling Swiss village of the 1950s, the unconventional was the norm and monumental drinking commonplace, but the manners of the players were always impeccable. Yes, there were ladies of lower-class parentage and with a dubious past, but they covered it up with a grand manner and an affected aristocratic confidence they had learned through experience. That’s how things were back then. The slags that pass as celebrities today would not have lasted a minute. Some might think it snobby, but it was nothing of the kind. One just had to act in a certain manner and that is all. Everyone knew where everyone else came from, so

If you want a lesson in how not to run an economy, take the Eurostar

For the last five years, politicians of all shades have been banging on about how we should adopt this or that aspect of German economic policy. George Osborne argued in 2011: ‘We want to learn the lessons of the successful Mittelstand model, which has operated in Germany for many decades.’ Only a few weeks ago, Vince Cable argued: ‘Britain has not been as good as competitors like Germany in turning ideas into wealth creation.’ The German economy seems to be widely admired, despite lagging behind Britain’s for nearly a generation. It is true that Germany had a better post-crash period than the UK, but its financial sector was smaller and many of

The Spectator at war: How to talk to a pacifist

‘Keep your temper’, from The Spectator, 8 August 1914: ‘When a nation goes to war the policy of the Government nearly always fails to carry with it the convictions of a minority.  It is, of course, very rare for a Government who make war to find themselves without the support of the majority – for, as a rule, they would not even contemplate war without ascertaining the general tendency of public opinion – yet such cases have happened. It is probable that the majority were opposed to the war of George III. and Lord North against the American colonists. Even when the causa causans of a war in past history

Hitler’s Valkyrie: Unity Mitford at 100

On 8 August 1914, four days after the declaration of war, Unity Valkyrie Mitford was born, the fifth child and fourth daughter of David and Sydney Freeman-Mitford, who admired the actress Unity Moore. Grandfather Redesdale suggested Valkyrie, after his friend Wagner’s Norse war-maidens. The fact that Unity Valkyrie had been conceived in the town of Swastika, Ontario, where her father was prospecting for gold, made it all the more portentous. A few weeks after her birth, Unity and her mother (‘Muv’) joined ‘Farve’, who was with his regiment in Newcastle. His quarters were so cramped that Unity was laid to sleep in a drawer. But this was nothing to the