french economy – Chateau De Villesavin 41 http://chateau-de-villesavin-41.com/ Fri, 21 Jan 2022 09:27:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://chateau-de-villesavin-41.com/wp-content/uploads/2021/06/icon-43.png french economy – Chateau De Villesavin 41 http://chateau-de-villesavin-41.com/ 32 32 alstom: the French railway giant Alstom will hire 7,500 people worldwide https://chateau-de-villesavin-41.com/alstom-the-french-railway-giant-alstom-will-hire-7500-people-worldwide/ Fri, 21 Jan 2022 07:07:00 +0000 https://chateau-de-villesavin-41.com/alstom-the-french-railway-giant-alstom-will-hire-7500-people-worldwide/ The French railway giant on Friday announced plans to hire 7,500 people worldwide this year to meet growing demand and record orders totaling 77.8 billion euros at the end of last year. The firm hopes to hire 6,000 engineers and managers as well as 1,500 workers and technicians, according to the firm, which has 72,000 […]]]>
The French railway giant on Friday announced plans to hire 7,500 people worldwide this year to meet growing demand and record orders totaling 77.8 billion euros at the end of last year.

The firm hopes to hire 6,000 engineers and managers as well as 1,500 workers and technicians, according to the firm, which has 72,000 employees worldwide.

“These hires are for projects involving rolling stock, signals and services,” Alstom said in a statement.

“The company doubled in size a year ago (with the takeover of Canadian Bombardier Transport), we are present in 70 countries and our order book is quite large,” said the group’s human resources director, Anne -Sophie Chauveau-Galas. AFP.

“So we have needs all over the world to put contracts in place,” she added.

Alstom announced earlier this month a 1.8 billion euro ($2 billion) deal to supply up to 200 regional trains to Norway.

The framework contract with public railway company Norske Tog includes an initial firm order for 30 trains worth 380 million euros, Alstom said.

The company said it was looking to recruit 3,900 people in Europe, 1,700 in the Asia-Pacific region, 1,500 in North and South America and 400 in Africa, the Middle East and Central Asia.

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Villeroy warns French president against economic limits https://chateau-de-villesavin-41.com/villeroy-warns-french-president-against-economic-limits/ Wed, 19 Jan 2022 07:09:39 +0000 https://chateau-de-villesavin-41.com/villeroy-warns-french-president-against-economic-limits/ Breadcrumb Links PMN Company Author of the article: Bloomberg News Guillaume Horobin Content of the article (Bloomberg) – Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. The governor of France’s central bank has waded into the economic debate ahead of April’s presidential elections, warning candidates they have […]]]>

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The governor of France’s central bank has waded into the economic debate ahead of April’s presidential elections, warning candidates they have little room to promise tax cuts or spending increases and should rather focus on improving labor supply to increase growth potential.

Addressing students at Paris Dauphine University, Francois Villeroy de Galhau said growth prospects have dwindled in recent decades due to a lack of skilled labor, despite relatively high unemployment. and the abundance of public spending and available capital. He called for improvements in education and learning, as well as an overhaul of the country’s pension system.

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Villeroy said France also needed a combination of measures that would improve training, discourage unemployment benefits and allow wage increases in certain areas that are not attractive to workers. The government should aim to lift potential growth to between 1.5% and 2% from less than 1.5% currently, he said.

“All of these levers on labor supply should add up, not clash in our public debate,” Villeroy said. “They must be pursued with perseverance, rather than remaining ephemeral announcements”,

The central bank governor’s comments come with just three months left before the French go to the polls. Polls currently show Emmanuel Macron, whose supporters tout his economic record, won the first round of voting and faces a runoff against center-right candidate Valérie Pécresse or National Rally leader Marine Le Pen.

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Macron, who has not officially declared that he will run again, has pledged to spend in recent months, including on police forces, public transport or measures to protect French consumers from rising oil prices. ‘energy.

While Pecresse has pledged to be tougher on reducing the public debt and deficit, she wants to lower inheritance taxes and spend more to support families and education. Le Pen, who once promoted non-repayment of debt as a possibility, has changed course but still has costly proposals including tax cuts and the dismantling of wind turbines.

Still, Villeroy said that beyond additional efforts to improve labor supply, candidates have little leeway to offer voters lower taxes or higher spending. The current trajectory of public spending and economic growth means that France’s debt ratio would at best stabilize in the coming years – a situation that Villeroy says would be unsustainable.

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“The debt situation should worry us,” he said in an interview with France Info radio on Wednesday, following Paris Dauphine’s speech. “It’s too high because you can’t bet that rates will stay at today’s favorable levels, there may be another crisis, and we have huge needs to invest in the climate transition.”

Villeroy called on France to define a strategy to better control the growth of public spending over the long term, in addition to efforts to stimulate economic growth.

“’Today’s public debate is seeing a proliferation of proposals for new spending and additional tax cuts,’ Villeroy said. “The reality, and it has to be said, is that our country can afford neither.”

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Macron touts rosy French economy and new jobs ahead of election https://chateau-de-villesavin-41.com/macron-touts-rosy-french-economy-and-new-jobs-ahead-of-election/ Mon, 17 Jan 2022 16:01:00 +0000 https://chateau-de-villesavin-41.com/macron-touts-rosy-french-economy-and-new-jobs-ahead-of-election/ CHALAMPE, France, Jan 17 (Reuters) – President Emmanuel Macron on Monday presented 21 new foreign investment projects in France and a booming economy as proof that his economic reforms have borne fruit less than three months before a presidential election at which it should Course. During a visit to Alsace in the east, Macron inaugurated […]]]>

CHALAMPE, France, Jan 17 (Reuters) – President Emmanuel Macron on Monday presented 21 new foreign investment projects in France and a booming economy as proof that his economic reforms have borne fruit less than three months before a presidential election at which it should Course.

During a visit to Alsace in the east, Macron inaugurated a 300 million euro ($340 million) industrial project by German chemical giant BASF (BASFn.DE) to produce high-tech nylon in France, one of 21 new projects worth 4 billion euros and 10,000 jobs as part of a campaign to attract foreign investors.

US drugmaker Pfizer (PFE.N) also announced a €520m investment plan in France on Monday while US firm Eastman said it would invest $1bn to build a recycling plant. plastics. Read more

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As the presidential race heats up, Macron is keen to deflect the debate away from immigration and public order issues and focus on the economy, which has recovered strongly from the COVID-19 pandemic.

“Our country has been deindustrializing for 15 years,” Macron told workers at the sprawling site by the Rhine.

“Since 2019, we have started to create new industrial jobs again. This is the result of the choice we made. Our choice – everything makes sense – was to make reforms at the start of our mandate,” Macron added.

Since 2017, Macron has implemented a cocktail of supply-side economic reforms designed to boost business competitiveness, lower taxes for investors and ease tough labor market rules.

Critics say he has acted as a “president of the rich” who wants to cut France’s precious social safety nets and cut social benefits for some of the poorest.

But three months before the April election, indicators show that the French economy is booming, with growth expected to reach 6.7% in 2021 and France is back closer to pre-pandemic levels than any other G7 country except the United States.

Whether that translates into votes for Macron remains to be seen. With energy prices soaring across Europe, households are having to pay higher electricity bills, fueling fears within government of voter discontent.

Macron supporters received an unexpected boost from economist Paul Krugman on Friday.

“In fact, among the major advanced economies, the star of the pandemic era is arguably…France,” he wrote in his New York Times column.

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Reporting by Michel Rose; Editing by Emelia Sithole-Matarise

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France’s 2021 budget deficit is lower than expected at 7% of GDP – minister https://chateau-de-villesavin-41.com/frances-2021-budget-deficit-is-lower-than-expected-at-7-of-gdp-minister/ Sat, 15 Jan 2022 23:02:00 +0000 https://chateau-de-villesavin-41.com/frances-2021-budget-deficit-is-lower-than-expected-at-7-of-gdp-minister/ French Prime Minister Jean Castex, Economy and Finance Minister Bruno Le Maire and Deputy Minister of Public Action and Accounts Olivier Dussopt, wearing protective masks, leave after the first weekly cabinet meeting of the year at the Elysee Palace in Paris, France, January 5, 2022. REUTERS/Sarah Meyssonnier Join now for FREE unlimited access to Reuters.com […]]]>

French Prime Minister Jean Castex, Economy and Finance Minister Bruno Le Maire and Deputy Minister of Public Action and Accounts Olivier Dussopt, wearing protective masks, leave after the first weekly cabinet meeting of the year at the Elysee Palace in Paris, France, January 5, 2022. REUTERS/Sarah Meyssonnier

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PARIS, Jan 16 (Reuters) – France’s stronger-than-expected economic recovery last year means the public sector budget deficit is likely to be better than expected, the budget minister said in an interview published on Sunday.

The government had built its budget planning on expectations of economic growth of 6.25% last year, but the most recent indications indicate that this figure was probably around 6.7%.

“The strength of our growth is reflected in more tax revenue than expected and we have spent less because businesses are using less emergency aid,” Public Accounts Minister Oliver Dussopt told Le newspaper. Sunday newspaper.

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“Any additional revenue goes entirely to deficit reduction, even without sacrificing any measures to stimulate the economy or support purchasing power,” he added.

The government is injecting 100 billion euros ($114 billion) into the economy, mainly in public investments, as part of a pandemic recovery plan and has also had to deploy emergency aid for low-income households last year struggling with soaring inflation.

Despite stimulus spending and income support, the 2021 government deficit is now expected to reach around 7% of economic output, he said. The government had previously estimated the deficit at 8.2%.

In this context, the Ministry of Finance was comfortable with its forecast of a further decline in the deficit this year to 5% and a return below the European Union’s deficit ceiling of 3% in 2027, said Dussopt.

The stronger-than-expected recovery means the central government deficit is expected to be better than expected at 34.5 billion euros to 171 billion euros, he said.

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Reporting by Leigh Thomas; edited by Jonathan Oatis

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In Montreal, a beloved barbecue restaurant that defies change https://chateau-de-villesavin-41.com/in-montreal-a-beloved-barbecue-restaurant-that-defies-change/ Wed, 12 Jan 2022 13:00:00 +0000 https://chateau-de-villesavin-41.com/in-montreal-a-beloved-barbecue-restaurant-that-defies-change/ For the Time Capsule series, we spotlight a beloved restaurant, hotel, or landmark that has changed remarkably little over the years. This week, we are visiting Chalet Bar-BQ in Montreal. Even at the end of World War II, Canada, far from European and peaceful fighting, had a relatively strong consumer economy. This helped make Chalet […]]]>

For the Time Capsule series, we spotlight a beloved restaurant, hotel, or landmark that has changed remarkably little over the years. This week, we are visiting Chalet Bar-BQ in Montreal.

Even at the end of World War II, Canada, far from European and peaceful fighting, had a relatively strong consumer economy. This helped make Chalet Bar-BQ, the Montreal-based roast chicken restaurant that Swiss visionary Marcel Mauron designed in 1944, an instant success. The chickens were cooked in the middle of the dining room and the menu was precise: you could order whatever you wanted as long as it was chicken, fries, dip, coleslaw and apple pie. apples, and you tasted it amid knotty pine paneling and framed alpine scenes.

Customers at the time were mostly English speaking and the waitresses wore dirndls. When the fighters, the veterans of the Canadian Women’s Army Corps and the “nursing sisters” who served on the front line returned from overseas, they crowded into the restaurant on Sherbrooke Street in the Notre-Dame district. Dame-de-Grâce and joined their companions at home by dipping their thighs in the special bubbling sauce of Chalet Bar-BQ.

The “chicken meal” at Chalet Bar-BQ, one of the flagship offerings of the short menu, is accompanied by fries or baked potatoes, barbecue sauce and toast.


Photo:

Mathieu Fortin for the Wall Street Journal

NOW:

General Manager Daniel Colantonio swears if you bite into that pine paneling – it hasn’t been replaced since it was originally installed – it would taste like chicken. Meals are no longer cooked in the center of the restaurant and a few new products (Quebec-style poutine and chicken Caesar salad) have slipped onto the menu. But gasoline, and essences, remain the same, even during temporary Covid take-out periods: fresh chicken (never frozen); no additives, preservatives, colorings or seasonings (although a pinch of salt is inserted into the cavity); five or six broiler chickens (the juice from one falls on the next, so they’re basically self-watering), all cooking at 475 degrees above hard charcoal. The potatoes are still freshly cut every day. The dirndls are gone, but the waitresses (and the single male waiter) seem to have been around forever. “People are coming back because of the consistency,” said David Theiventhiran, who is overseeing the operation. “It’s always the same thing.”

Other grill masters

Montrealers bicker over the best place for steak and fries, bagels, croissants, even salmon tartare. But apart from the debate on the future of Quebec in Canada, nothing divides Montrealers as much as the question: who serves the best chicken in town? While Chalet Bar-BQ has strong fans, here are a few competing arguments:

Côte St-Luc BBQ rotisserie, known for its maple grilled chicken.

Many happy returns

BBQ Laurier, which caused trauma throughout the city when it closed ten years ago, reopened in October. “Before the original closed, it was kind of my headquarters, although the fabulous chicken and the famous ‘mocha’ cake made you feel like you had to have a long workout right away,” said said Daniel Fournier, a businessman. “But now that it’s back, all of Montreal is no longer in mourning.”

Quick and spicy

Permanently alive My Sissy specializes in piri-piri chicken, which includes a layer of chili sauce. “The atmosphere can’t be beat, and neither can Portuguese chicken,” said Daniel Béland, director of the Institute for Canadian Studies at McGill University. “It’s good and it’s fast.

Sweet spot

Côte St-Luc BBQ rotisserie is known for its maple grilled chicken. “You get in there and you watch the guys cook the chicken,” said Lorna Sandler, retired casting director. “I always tell them I want extra juicy chicken. If it doesn’t look juicy, I tell them to cut another chicken for me and they really do.

Few diners know for sure what is in Chalet Bar-BQ’s addictive sauce. The recipe remains a well-kept secret.

Get a sauce

Restaurant critics, food sleuths, and five generations of my family have spent decades trying to figure out the secret sauce recipe at Chalet Bar-BQ (and a similar sauce at Swiss Chalet,

the counterfeit chain of around 200 restaurants founded a decade later by a son of the Montreal restaurant’s founder).

We didn’t do better than the dozens of other Epicurean spy operatives, but a reliable estimate would include these items: chicken broth, tomato paste, corn starch, carrots, celery, onion, herbs, sage, paprika. , salt and a hint of cinnamon. The wavy sauce is used with the chicken, of course, but also with the fries and with the bun that comes on the plate. A restaurant veteran’s advice: Insist when placing a takeout order that the bun is toasted. Otherwise, it will come unheated and you won’t like it.

Reality check

The cost, yesterday and today, of Chalet Bar-BQ’S Classics

Chicken Quarter

1958: 66 cents for black, 77 cents for white

2022: $ 6.68 for black, $ 7.62 for white

Grilled Chicken Sandwich

1958: 41 cents

2022: $ 11.26

French fries

1958: 15 cents

2022: $ 2.96

Tart

1958: 15 cents

2022: $ 3.91

Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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France calls for an EU-wide UK migration treaty on Channel crossings | France https://chateau-de-villesavin-41.com/france-calls-for-an-eu-wide-uk-migration-treaty-on-channel-crossings-france/ Mon, 10 Jan 2022 13:32:00 +0000 https://chateau-de-villesavin-41.com/france-calls-for-an-eu-wide-uk-migration-treaty-on-channel-crossings-france/ France will pressure the EU to negotiate an asylum and migration treaty with the UK in a bid to deter people from making the dangerous Channel crossing. The French government, which took the rotating presidency of the EU Council of Ministers last week, wants the whole bloc to act, despite warnings that other member states […]]]>

France will pressure the EU to negotiate an asylum and migration treaty with the UK in a bid to deter people from making the dangerous Channel crossing.

The French government, which took the rotating presidency of the EU Council of Ministers last week, wants the whole bloc to act, despite warnings that other member states have no appetite for a migration treaty with Great Britain.

A senior French government official said the purpose of an EU-UK treaty would be to open “a legal means of immigration with Britain, so that people can legally travel to Britain to seek asylum “.

The source added that “obviously this means reciprocity,” suggesting that UK authorities could return those refused asylum to the European country in which they arrived. “We would be prepared to consider that. The idea is to have a zero balance at the end of the day.

Yet it remains unclear whether the UK would accept such proposals. During Brexit negotiations, the government was denied an asylum pact that would have allowed UK authorities to return people denied asylum in the EU, an arrangement that existed under the Great Britain’s accession to the EU. The government, however, has long opposed people seeking asylum outside the UK, fearing it could trigger bogus claims.

EU Home Affairs Commissioner Ylva Johansson told the Guardian last month that other member states had limited appetites for an asylum and migration treaty with the UK, citing the Brexit dispute over the Northern Ireland Protocol. The French government source replied that it was “a very important European issue, not just a French issue,” noting that France, Belgium and the Netherlands were “grappling with a problem. major ”as thousands of people came to their country to try to reach the UNITED KINGDOM.

France and Britain had a dramatic diplomatic fallout last year, after 27 people drowned in the English Channel trying to reach the UK. Emmanuel Macron, the French president, accused Boris Johnson of not being serious, after the British Prime Minister posted proposals on Twitter in time for the newspaper deadlines, before the Elysee received them.

The French government maintains that the UK has lax labor market laws that act as a magnet for irregular migrants. Clément Beaune, French Minister for Europe, has accused the United Kingdom of an “economic model, of sometimes almost modern slavery”.

For its part, the British government blames the borderless travel zone of the EU: Home Secretary Priti Patel said last year that “the real problem with illegal migratory flows is that the EU does not ‘has no border protection ”.

France received more than three times as many asylum applications as the United Kingdom in 2020, with 93,470 applications, second in the EU behind Germany, which received 121,955 applications. In the same year, 29,456 people applied for asylum in the UK

The treaty mentioned with the United Kingdom is part of a larger French program for stricter control of the free movement of people. Macron, who is slated for re-election this spring, wants to reform the EU’s passport-less Schengen zone and make progress on a long-standing stalled asylum law governing the distribution of refugees in the bloc.

France wants greater political control of the Schengen area of ​​the 26 countries, with regular meetings of interior ministers, like the monthly meetings of the 19 finance ministers of the euro zone. “Our plan is to put more politics in the governance of Schengen,” said the government source, who said the agreement was drafted at a different time.

The Schengen area, which today covers 400 million inhabitants, was born out of a 1985 agreement between France, Germany and the Benelux countries.

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Government winces as ‘tax haven’ charge begins to stick https://chateau-de-villesavin-41.com/government-winces-as-tax-haven-charge-begins-to-stick/ https://chateau-de-villesavin-41.com/government-winces-as-tax-haven-charge-begins-to-stick/#respond Fri, 10 Sep 2021 14:47:13 +0000 https://chateau-de-villesavin-41.com/?p=645 About three years before Ireland was decried as a “tax haven” at a 2013 US Senate hearing about Apple, the technology giant’s exotic tax structures were first picked apart by Marty Sullivan, a Harvard-educated former US treasury economist-turned lecturer and commentator. He is the respected chief economist of Tax Analysts, which publishes US industry bible […]]]>


About three years before Ireland was decried as a “tax haven” at a 2013 US Senate hearing about Apple, the technology giant’s exotic tax structures were first picked apart by Marty Sullivan, a Harvard-educated former US treasury economist-turned lecturer and commentator.

He is the respected chief economist of Tax Analysts, which publishes US industry bible Tax Notes, and an acknowledged authority on the corporate tax gymnastics in which Apple and other multinationals have engaged in this State. Sullivan, as his name suggests, is also part Irish through his father’s ancestors.

“I was visiting Cork once and I met a guy on the street. He asked me my name and I told him Sullivan. He said your whole family lives down the street. I love Ireland, I love its people. But. . .” He trails off. Despite his affection for his ancestral homeland, Sullivan is adamant that it really is a tax haven.

The label is seen as pejorative, inaccurate and damaging by the Government and its supporters in the multinational sector, as the Republic fights to keep its 12.5 per cent corporate rate under enormous international political pressure. But Ireland was this week yet again accused of being a tax haven, this time in a banking report by the European Union Tax Observatory think tank in Paris.

“My definition of a tax haven is a jurisdiction with low rates and extra-large amounts of corporate profit that are disproportionate with regard to the jurisdiction’s economic activity,” says Sullivan.

He recalls the first time he looked at Irish data, with the huge profitability of US companies here so much larger than in other countries such as Germany and France. It helped to convince him that Ireland is a haven.

“You can see it in every data set. Ireland says its workers are just very productive, but the statistics are bloated with all the profits of US companies. We love you guys, but you can’t possibly be that productive. That is my view.”

Ireland is clearly a tax haven and it has to be said, according to Sullivan, even if the Government doesn’t want to hear it: “The intellectual in me bristles at the necessity to not call a spade a spade.”

The Government and big accounting firms such as Deloitte and PricewaterhouseCoopers may reject the notion that Ireland is a tax haven, based on a 23-year-old definition used by the Organisation for Economic Co-Operation and Development (OECD). It uses four criteria to determine tax haven status: nominal or zero taxes (and offering non-residents tax-avoidance opportunities); lack of transparency; an unwillingness to exchange information with OECD states’ tax authorities; and no requirement for substantial business activity.

But the tax-haven label has stuck and its incessant use to describe this State abroad is increasingly turning the screw on the Government as the world’s biggest nations prepare to finalise a deal to curb global tax avoidance at a G20 meeting in Rome next month.

Harsh critic

The EU Tax Observatory said this week that the main European banks book €20 billion of profits each year in 17 tax havens, including Ireland. None of the Irish banks is named but the European banks make almost four times as much profit per employee in Ireland – about €250,000 – as they do in non-havens. This, along with the fact the Irish tax rate is less than 15 per cent, makes Ireland a haven, it said.

The director of the observatory is French economist Gabriel Zucman, a globally-renowned academic expert on corporate tax avoidance and a harsh critic of the Irish regime. If his fellow Gallic academic Thomas Piketty is seen as the global rock star of economics, then Zucman, who did his PhD under Piketty and frequently collaborates with him, is one of his backing singers.

Zucman’s academic output is rarely music to Irish government ears. Three years ago he co-produced a landmark report that concluded the State was the “biggest tax haven in the world”. It estimated that multinationals shifted $106 billion (€89.7 billion) of profits here in 2015, more than all the Caribbean island tax havens combined.

The Government rejected the report as “misleading” and trotted out its OECD definition defence mantra. It said many loopholes have been closed. More, such as the infamous Double Irish tax structure, have been shut since.

Definition

In correspondence with The Irish Times this week following the release of the observatory’s report, Zucman acknowledged that there are “many” definitions of a tax haven but he insisted that the one in the banking report – a tax rate less than 15 per cent and abnormally high profits per employee – “has the merit of being data-based, clear and objective”.

Pointedly, the Department of Finance this week responded: “Measured by any objective international criterion, Ireland cannot be defined as a tax haven.”

The observatory is funded by the EU, which has crossed swords for years with Ireland on tax. But the think tank operates independently.

The tax haven “cat call”, as one Irish tax sector executive put it this week, was also fired at Ireland in July by the New York Times in an article about the refusal of the Government and Minister for Finance Paschal Donohoe to sign up to the US-driven OECD agreement that sets new tax rules and imposes a global minimum corporate rate of 15 per cent, the sticking point for the State.

To the consternation of State officials, the newspaper described the Government’s attitude to queries on the issue as “grudging” and said “the optics are not good” on its refusal to sign up to the deal. Donohoe argues the OECD deal would cost Ireland more than €2 billion per year and erodes sovereignty.

The New York Times concluded “Ireland’s days as a tax haven may be ending”.

Some Irish observers report that the Government is waiting for US congressional approval of the OECD deal, which is not a given, before inevitably committing to change.

Growing pressure

The pressure has been growing steadily on the State since those US Senate hearings on Apple eight years ago, when senator Carl Levin stunned Ireland by calling it a haven in front of the entire world. But the label as applied to Ireland goes back much further.

The New York Times often called Ireland a tax haven as far back as the 1970s, but only in relation to the regime for artists. The term appears to have been publicly applied to Ireland in a corporate context for the first time by the US house ways and means committee in 1974. The label appeared subsequently in a landmark report by US tax authorities in 1981.

By the following year, the Wall Street Journal was regularly describing Ireland as a haven, soon followed by the Washington Post. In 1988, highbrow UK magazine the Economist called plans for the International Financial Services Centre (IFSC) in Dublin “a tax haven for foreigners”, with its proposed 10 per cent rate.

It also sneered that the IFSC probably wouldn’t “bring any tangible benefits” to Ireland.

By the 1990s, US fiscal academics were taking serious note of Irish attempts to woo foreign investment with tax competition they said was depriving the US treasury of funds. Prominent US tax experts James Hines and Eric Rice compiled one of the first exhaustive academic lists of tax havens in 1994. Ireland was among the 41 countries named on the seminal list that is still a benchmark today.

It was also tagged as one of only seven “major” tax havens. The State now regularly features on such academic lists.

European opposition

European opposition to the Irish corporate tax rate began to surface during the Celtic Tiger years and opposition to mass corporate profit-shifting here peaked after the crash, but the European Commission has never formally accused the State of being a “tax haven”.

However, Pierre Moscovici, a former French finance minister and then the EU’s economic affairs commissioner, in 2018 called Ireland a “tax black hole”, which somehow sounded even worse.

Even Brazil formally listed Ireland as a tax haven in 2016, adding extra levies to Irish funds that made returns from Brazilian assets. The move caused chaos in Brazil’s aviation industry, which leased 60 per cent of its aircraft from entities registered in Ireland for tax purposes.

The Irish defence to the charge of being a tax haven appears to be wearing thin abroad, as consensus congeals around a perception of this State’s practices.

On the OECD criteria, Ireland is clearly not considered a tax haven and it is behind this definition the Government habitually retreats whenever the debate arises. All the major accounting firms that work for multinationals also use the OECD definition, set down in 1998, as cover.

Apple case

Karen Frawley is an international tax partner with Deloitte. On Thursday, she was elected to the role of president of the Irish Tax Institute. She backs the Government’s rejection of the “tax haven label” and suggested the definition used in the EU Tax Observatory report is too “wide”. She says the “most broadly used” definition is the more benign OECD one.

“A lot of the sentiment towards Ireland goes back to the Apple tax case,” she says. In 2016, the European Commission accused the State of giving the US company a sweetheart deal and ordered Apple to cough up more than €13 billion in back taxes. Ireland and the tech firm both rejected this, and Apple won an appeal against the commission in Europe’s second-highest court last year.

The case may go all the way to the bloc’s highest court. In the meantime, in the minds of many people, the saga confirmed that Ireland does act like a tax haven.

“There was reputational damage to Ireland in the reporting of the Apple case and the perceptions that flowed from that. It caused more pressure on Ireland from certain non-governmental organisations, and it also increased pressure from a political standpoint,” says Frawley.

The impact has, so far, been much less damaging to Irish foreign direct investment, Frawley argues. Irish corporation tax receipts were €800 million ahead of profile last month, she notes, as tech giants cashed in some of their lockdown- and pandemic-driven gains.

She accepts that once the perception arises that Ireland does special corporate tax deals, it is “hard to remove”. In her acceptance speech to the institute yesterday, she argued that Ireland needs to reduce its tax reliance on multinationals as the global landscape changes with the proposed OECD deal.

Jim Stewart, a finance professor with Trinity College and a noted domestic expert on corporate tax, says the IFSC alone “would be put on any list of tax havens” while the State, overall, “has many features” of a haven.

“The numbers employed in the IFSC are small relative to the size of the assets, and the tax take from it is also small relative to asset size. Something like 50 per cent of all the world’s aircraft are leased from there. A lot of the goings on in the IFSC tick all the boxes for a tax haven,” he says.

The Department of Finance argues that many tax loopholes continue to be closed. Stewart says most of the tightening of rules has come outside the financial sector. The tech sector has perhaps been most affected. In its Double Irish swansong before that device was banned at the end of 2019, Google shifted $75.4 billion out of Ireland to Bermuda.

But Stewart says new corporate tax loopholes have opened up, such as huge intellectual property tax write-offs.

Still, he argues the OECD deal has changed the game, especially if the new tax deal is approved by US politicians. “I think he game is up for Ireland,” he says.

He accepts, however, that the accusation of being a “tax haven” is also a political charge as much as a financial one. “Not a single government would ever put its hand up and say it is a tax haven. In that sense, it is a political term,” he says.

Profit-shifting

Marty Sullivan also says that, if he was a member of the Irish Government, he would continue to deny the haven label. The State’s OECD defence “is exactly what I’d do too”, he says.

“Ireland is on a spectrum of what I’d call tax havens. By far, it is not the worst offender. The problem is the US tax code can’t stop the profit-shifting. That isn’t Ireland’s fault,” he says. “But the reality is that there is a tremendous shift of profits to Ireland at the expense of the US treasury. The numbers are disproportionate.

“Ireland can make arguments about its sovereignty [over the OECD deal] but the hard politics is that, if Ireland does not co-operate, it might be officially labelled a haven.

“Ireland has everything to lose. Other countries have tried everything else to get it to change and now they will act in their own interests,” Sullivan warns.

The OECD deal looks set to be finalised in Rome at Halloween. If the US congress subsequently backs all of President Joe Biden’s plans for change, Ireland’s “tax haven” perception might turn into a horror show for this State, unless it eventually comes to heel.


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Brussels is paving the way for nuclear power’s green revival – EURACTIV.com https://chateau-de-villesavin-41.com/brussels-is-paving-the-way-for-nuclear-powers-green-revival-euractiv-com/ https://chateau-de-villesavin-41.com/brussels-is-paving-the-way-for-nuclear-powers-green-revival-euractiv-com/#respond Fri, 10 Sep 2021 14:46:44 +0000 https://chateau-de-villesavin-41.com/?p=639 In all likelihood, the European Commission will table a proposal in the coming months to include nuclear energy in the EU’s green finance taxonomy, said Thomas Pellerin-Carlin, a researcher at the Jacques Delors Institute. But it is probably waiting for the outcome of the German elections before making a move, he suggested. Thomas Pellerin-Carlin is […]]]>


In all likelihood, the European Commission will table a proposal in the coming months to include nuclear energy in the EU’s green finance taxonomy, said Thomas Pellerin-Carlin, a researcher at the Jacques Delors Institute. But it is probably waiting for the outcome of the German elections before making a move, he suggested.

Thomas Pellerin-Carlin is a researcher at the Jacques Delors Institute where he is director of the Energy Centre. He spoke to EURACTIV’s Frédéric Simon.

INTERVIEW SUMMARY:

  • The inclusion of nuclear power in the EU’s green finance taxonomy is “the most likely” outcome in view of the latest expert reports, which concluded that nuclear does not pose a “significant harm” to the environment.
  • A negative decision, on the other hand, would unleash a spate of anti-Brussels attacks in France and put Emmanuel Macron in a difficult position ahead of the 2022 presidential elections.
  • A green label for nuclear, however, would also undermine the credibility of the taxonomy in the eyes of German, Austrian or Italian investors.
  • Assuming the Commission already knows it is going to propose including nuclear in the taxonomy, it would be in its own interest to wait for the outcome of the German elections.

////

French Economy Minister Bruno Le Maire has underlined the importance of including nuclear power in the EU’s green finance taxonomy. What are the stakes for France?

There are two main issues, one economic and the other political.

From an economic point of view, nuclear power in France is closely linked to the EDF company, which is more than 80% state-owned. And EDF has big cash problems, with net debt of more than €40 billion and massive investments that must be made, partly in renewable energies and partly in nuclear.

On the nuclear side, there are two types of investment: first, the modernisation of historic power plants built in the 1980s, which must observe the requirements imposed by France’s Nuclear Safety Agency (ASN).

The other type of investment – and this is a choice EDF has made – is new nuclear build and the flagship Flamanville EPR project, which is a complete fiasco, an industrial debacle such as we have rarely seen in the history of energy.

To give you an order of magnitude, the Flamanville EPR was initially supposed to cost €3.5 billion, while today we have an estimate of between €12 billion according to EDF, and €19 billion according to the Court of Auditors.

And the construction is still not complete …

The project was born around 2001-2003, the plant was to be completed in 2012, so they are already at least ten years late! Beyond the delay, there is an enormous financial cost for EDF. And despite this, EDF wants to build six new plants of the same model in France.

Doing all that takes a lot of money. And EDF does not have enough, the company has missed the renewables turn and it is not generating enough cash there although it is trying to catch up.

On the nuclear side, EDF must therefore seek funding, public or private. And this is where the taxonomy comes in. If nuclear is considered green as part of the EU taxonomy, that will facilitate both private and public funding.

Now let’s be clear: nuclear power has a harmful impact on the environment. A nuclear power plant – like a wind farm for that matter – requires cement, steel, and artificialisation of soil. In addition, nuclear power plants can pose a problem for biodiversity and pollute the waters, for example in the event of nuclear incidents or poor management of nuclear waste.

For the taxonomy, the issue is to determine whether this damage to the environment is “significant” or not – this is the “Do No Significant Harm” principle.

The European Commission has requested three expert studies on the matter, all of which concluded that the radioactive waste problem was manageable. On this basis, the Commission must now make a proposal to include nuclear in the taxonomy, but it seems to hesitate. What would be the consequences at the industrial level if nuclear power were to be excluded? Would this be the beginning of the end for nuclear power in France?

No, I think it would rather throw some sand into the wheels, which would make nuclear financing more difficult and expensive. For an industry like nuclear where investment costs are extremely high, the interest rates at which companies can borrow is a fundamental factor of profitability.

A possible exclusion from the taxonomy would also make public funding more complicated, as nuclear would be recognised in European law as a technology that causes significant harm to the environment. This would make it harder to justify using taxpayer money to fund something that is recognised as being harmful to the environment.

One way out would be to seek funding outside Europe, especially in China. EDF already has a partnership with China, there is a first EPR in operation in Taishan. And there is the Hinkley Point C project in the United Kingdom that EDF is building with a Chinese partner.

Economically, it would be logical to continue on this path. But from a geopolitical and diplomatic point of view, it would pose a major problem in terms of sovereignty and potentially of security if the French nuclear power sector was to move under Chinese flag.

With the presidential elections in April, what would be the political impact in France if nuclear power were to be excluded from the green taxonomy?

First, it would fuel French political attacks on “Brussels”. It would also be a boost for the Greens, which is the only French party that has always had a very clear anti-nuclear position. There would probably be attacks from the historic left, especially from the Communist Party, which is very pro-nuclear and intertwined with the unions in this industry.

But the most virulent attacks would certainly come from the far-right and the conservative right – the Rassemblement National (RN) and Les Républicains (LR). With the exception of Michel Barnier, LR is today more ambiguous about Europe, while remaining very pro-nuclear. The candidates of this political family, for example, would probably denounce a technocratic and opaque decision by Europe which does not take into account French interests, etc.

This anti-Brussels criticism would put Emmanuel Macron in an awkward position because the French president has always positioned himself as a convinced pro-European, banging on Brussels has never been his business.

So a negative decision on nuclear at EU level could undermine his campaign by being interpreted as an example of France’s lack of political influence in Brussels. From January 2022, he intends to use the French presidency of the Council of the EU to show how much he has been able to move Europe, in line with the discourse “a strong France in a strong Europe”. And that message would suddenly become more difficult to convey.

Public opinion in France seems rather pro-nuclear to me. Is there not also a risk of stirring up anti-European sentiments among the wider population?

This risk is limited. For the vast majority of French people, the nuclear issue is not salient enough to spark protests or a change of vote.

What is at stake is rather the emotions that can be stirred by EDF’s fate as a public company symbolising the French public service. EDF is strongly associated with the power of the state, which is fundamental in the political vision of the French.

So unless there is a scenario around EDF’s bankruptcy, I don’t think the nuclear issue will be important enough to cause a real political problem among the French people.

It is also for this reason that Emmanuel Macron has decided to postpone discussions on EDF’s reform until after the election, as the issue was so eminently political.

The inclusion of nuclear power in the taxonomy and the future of EDF – are these two issues not related?

Yes, they are related. But, I don’t believe a negative decision by the Commission on nuclear power could have massive impacts on EDF in the months to come. The impact would of course be significant, but it will be deferred over time, with access to financing that will become more difficult.

For now, with high electricity prices, EDF has less of a cash flow problem. They don’t have short-term financial problems. And by April 2022, I don’t think there would be a big impact on EDF.

From a political point of view, however, the debate on nuclear power and the taxonomy risks raising questions about Emmanuel Macron’s European record and Europe’s place in France.

After the 2022 election, any new government will have to tackle the issue of EDF’s future. And there is a real political risk there if EDF were to be split or privatised.

For a large part of public opinion and the French political class, this would be interpreted as a symbol of what is perceived as a decline of the state, a “decline of France”.

Germany is among the countries most strongly opposed to the inclusion of nuclear in the taxonomy. In your opinion, have the German and French positions become irreconcilable?

I think you have to differentiate between political rhetoric and the actual agreements that are found behind closed doors.

In Germany, the anti-nuclear movement is deeply rooted and radical. The demonstrations of the 1970s and 1980s were sometimes violent, with hundreds of people injured, demonstrators armed with Molotov cocktails. It is a level of violence that is more reminiscent of the Yellow Vests than the peaceful demonstrations of the Fridays for Future movement. For the German government, the anti-nuclear position is therefore deeply rooted in society.

Now, there are compromises that are found between diplomats on this subject as well as others. And the key role here is played by the European Commission, which has exclusive powers at EU level to make a legislative proposal. And from this point of view, there is an important role played by Thierry Breton, the EU’s Internal Market Commissioner.

The Commission proposal, whatever it may be, has a good chance of being adopted in the end because it is difficult to constitute a majority to overturn its proposal.

There are rumours of a possible compromise between Paris and Berlin, where France would back Germany on gas in exchange for German support on nuclear. Does such a compromise seem possible to you?

The inclusion of gas would be the end of the taxonomy. For investors, the taxonomy must be credible and the scientific debate on gas is settled: fossil gas is not green, it cannot enter the taxonomy because of the related polluting emissions of CO2 and methane. It would be the end of the taxonomy and a blow to the Green Deal because it would send the message that this is all one big greenwashing exercise.

A green label for nuclear power, on the other hand, would harm the credibility of the taxonomy in the eyes of German, Austrian or Italian investors.

Conversely, from the point of view of an American investor, there is no debate: nuclear is green. And it would be the same in the eyes of Chinese, Indian, Australian or Canadian investors. in fact outside of Europe, I don’t know of any country that has decided to quit nuclear power.

From this point of view, there is no good choice on nuclear – whether the Commission decides to include it or not in the taxonomy, there are only bad options. But at some point, it will have to decide.

You just said it, there is no good choice on nuclear. How can the European Commission break the impasse?

I don’t see how it could do it. With the taxonomy, either you’re in or you’re out.

Well, the taxonomy recognises so-called “transition” technologies. And on gas, the Commission found a creative solution by saying it would make a separate legislative proposal on the role of gas in the energy transition. Could a similar solution be considered for nuclear?

Yes, but that would distort the taxonomy. The objective of the taxonomy is to define thresholds beyond which an investment is considered green or not.

In fact, a credible taxonomy can only cover 1, 2 or 3% of current GDP. Other than wind turbines, batteries, or a few other investments, the vast majority of the economy today is completely out of line with the goals of the taxonomy, or the Paris Agreement. That’s the added value of the taxonomy: identifying those few sectors that are really green in order to help investors, companies and project promoters understand what goals they must achieve in order to become green. Including sectors in the taxonomy which, like fossil gas, are not compatible with climate neutrality, would be greenwashing.

All the lobbying that has been done over the past two years, both on nuclear and gas or “transition activities”, tends to discredit the taxonomy in the eyes of investors. There is a breaking point at some stage.

The Commission was due to make a proposal by the end of the summer to include nuclear in the taxonomy, but it seems to be playing for time. Do you think the German elections in September have an influence on this delay?

I don’t know for sure. But the current dynamics lead me to think that the Commission will make a proposal in this direction by recognising nuclear power as a “green” technology under the taxonomy. According to expert reports that have been issued, there is not enough evidence that waste is a problem that causes “significant” harm to the environment.

Assuming that the Commission already knows it is going to propose including nuclear in the taxonomy, it would indeed be in its own interest to wait for the outcome of the German elections.

Following the expert reports, the Commission should therefore logically propose including nuclear in the taxonomy and recognise it as a “green” technology?

Yes, that would be consistent with the dynamics of the past few months. It is very complicated today to scientifically demonstrate that nuclear waste poses a “significant” environmental problem that cannot be overcome.

It may also be one of the novelties of European policymaking these days: comparing the current Commission with previous ones, there is now a clear priority given to climate in the hierarchy of environmental and energy objectives. The climate is clearly the number one priority.

In the short term, shutting down a one-gigawatt nuclear reactor – the average size of a reactor – almost automatically adds two to three million tonnes of CO2 emissions per year, depending on whether the replacement electricity comes from renewable sources or existing coal and gas power plants.

From that perspective, there is a necessary role for nuclear power in Europe in the 2020s and probably beyond. And in countries where nuclear power stations are being closed – in Germany, Belgium, and even France with Fessenheim – it is above all the reflection of a legitimate political choice, which in Germany is the result of deep democratic support for phasing out nuclear power.

Moreover, within the Commission, President Ursula von der Leyen is not known for taking anti-nuclear positions, unlike many German politicians. As for Frans Timmermans, the Executive Vice-President, he is cautious and is not fiercely opposed to nuclear power, a subject that his chief of staff, Diederik Samsom, knows very well – he has a degree in nuclear physics.

More widely, there are also shifting positions among the environmental movement in France. In the Green EELV party, there is an emerging split between a young generation for whom climate change is the top priority, and for whom the nuclear exit is a laudable but secondary objective, and a generation which became politicised in the 80s and 90s, who have experienced Chernobyl, and who are very attached to a rapid nuclear exit.

For those who have joined the Green movement more recently – the Fridays for Future for example – clearly the climate is the number one priority. There are people today at EELV who tell you privately that they don’t want to shut down nuclear plants until 2035. And that’s new, even though it’s still a minority position.

And then within the Commission there is Thierry Breton, who is a key figure on this subject, and who somewhat exceeds his prerogatives as Internal Market Commissioner by campaigning publicly in favour of nuclear power.

In fact, looking at the College of Commissioners, I don’t see anyone who is fiercely anti-nuclear. While you have a majority of Commissioners who are clearly pro-climate and who have accepted nuclear power as a transitional energy source, and in any case as a necessary evil while waiting for the end of coal. And you also have a few Commissioners, including Thierry Breton, who are fiercely pro-nuclear.

So in view of all this, what seems to me the most likely indeed is that the Commission will make a proposal in favour of the integration of nuclear energy within the framework of the taxonomy.

[Edited by Zoran Radosavljevic]



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Lebanon accepts new government to fight economic collapse https://chateau-de-villesavin-41.com/lebanon-accepts-new-government-to-fight-economic-collapse/ https://chateau-de-villesavin-41.com/lebanon-accepts-new-government-to-fight-economic-collapse/#respond Fri, 10 Sep 2021 12:57:00 +0000 https://chateau-de-villesavin-41.com/lebanon-accepts-new-government-to-fight-economic-collapse/ Mikati said he would seek further talks with the IMF A new government after a year of political stalemate Economist sees difficult path for Mikati The crisis is worse since the civil war in Lebanon C. responsible for the bank to take the finance portfolio BEIRUT, Sept. 10 (Reuters) – Lebanese leaders on Friday agreed […]]]>


  • Mikati said he would seek further talks with the IMF
  • A new government after a year of political stalemate
  • Economist sees difficult path for Mikati
  • The crisis is worse since the civil war in Lebanon
  • C. responsible for the bank to take the finance portfolio

BEIRUT, Sept. 10 (Reuters) – Lebanese leaders on Friday agreed on a new government headed by Sunni Muslim tycoon Najib Mikati after a year of wrangling over government seats that exacerbated a devastating economic collapse, paving the way for a resumption of talks with the IMF.

The breakthrough follows a wave of contacts from France that has spearheaded efforts to get Lebanon’s unruly leaders to agree on a cabinet and begin reforms since the catastrophic explosion of the port of Beirut the year last, senior Lebanese political sources said.

The French foreign ministry made no immediate comment.

In televised comments, Mikati’s eyes filled with tears and his voice broke as he described the hardships and emigration inflicted by the crisis, which has plunged three-quarters of the population into poverty.

The biggest threat to Lebanon’s stability since the 1975-90 civil war, the crisis reached a critical point last month when fuel shortages crippled much of the country, triggering numerous security incidents, adding to Western worry and warnings of the worst to come unless something is done.

To get foreign aid, the government must succeed where its predecessors failed to adopt reforms to tackle the root causes of the crisis, including state corruption.

This might not last long: parliamentary elections are scheduled for next spring and Mikati has said they should take place on time.

Mikati and President Michel Aoun, a Maronite Christian, signed the decree establishing the government in the presence of Nabih Berri, speaker of the Shiite Muslim parliament.

Mikati said the politics of division must be put aside and that he cannot enter talks with the International Monetary Fund just to meet opposition at home.

He pledged to seek the support of Arab countries, a number of which have avoided Lebanon due to the considerable influence exerted in Beirut by Hezbollah, a heavily armed and Iranian-backed Shiite Islamist group, which is allied with Aoun.

Addressing daily challenges, he described how mothers were forced to cut back on milk production for their children.

“If a mother’s oldest son leaves the country and she has tears in her eyes, she cannot buy the Panadol pill,” he said, referring to the drug shortages.

But Lebanon could no longer afford to subsidize goods such as imported fuel because the country did not have enough hard currency reserves, he said.

Aoun said the government was the best that could be accepted and able to act.

DIFFICULT TASK

Like the outgoing cabinet of Prime Minister Hassan Diab, the new cabinet includes ministers with technical expertise who are not political figures but have been appointed by the main parties.

The Diab government has not implemented any of the major reforms sought by foreign donors, a task complicated by resistance from key players in Lebanon’s sectarian and factional politics.

“I think (Mikati) has a 50-50 chance of accomplishing anything. Whether you look at it in terms of a program with the IMF or aid from Arab countries,” said economist Toufic Gaspard, who has advised the IMF and the Lebanon Ministry of Finance.

Obtaining the support of Arab states such as Saudi Arabia would depend on confronting the influence of Hezbollah, while securing an IMF program would require reforms that previous governments have failed to achieve. enforce.

“It is a very delicate political game. It is not going to be easy,” he said.

Youssef Khalil, senior central bank official and assistant to Governor Riad Salameh, has been appointed Minister of Finance.

Hezbollah, which is designated as a terrorist group by the United States, has appointed two of the 24 ministers.

The crisis, which peaked at the end of 2019, stems from decades of state corruption and unsustainable funding.

Mikati was the third prime minister designate to attempt to form the government since Diab resigned after the port explosion.

Mikati was appointed after Saad al-Hariri, a former prime minister, abandoned his efforts.

Hariri traded responsibility for the failure with Aoun, whose political opponents accused Aoun and his political party of seeking an effective veto in the new government by demanding a third of the seats. Aoun has repeatedly denied this.

Mikati told Lebanese media on Friday that the government did not have a blocking third party.

Writing by Tom Perry; Edited by Andrew Heavens, William Maclean

Our standards: Thomson Reuters Trust Principles.



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French container line CMA CGM halts global spot rate hike to merchants’ relief https://chateau-de-villesavin-41.com/french-container-line-cma-cgm-halts-global-spot-rate-hike-to-merchants-relief/ https://chateau-de-villesavin-41.com/french-container-line-cma-cgm-halts-global-spot-rate-hike-to-merchants-relief/#respond Fri, 10 Sep 2021 12:45:14 +0000 https://chateau-de-villesavin-41.com/french-container-line-cma-cgm-halts-global-spot-rate-hike-to-merchants-relief/ CMA CGM SA, one of the world’s largest container companies, has frozen spot rate hikes until February next year as several countries set fire to unprecedented spike in shipping costs global containers since January, upsetting exporters and importers. French container line CMA CGM said it had halted spot rate increases from September 9 to February […]]]>


CMA CGM SA, one of the world’s largest container companies, has frozen spot rate hikes until February next year as several countries set fire to unprecedented spike in shipping costs global containers since January, upsetting exporters and importers.

French container line CMA CGM said it had halted spot rate increases from September 9 to February 1, 2022.

Pressure on shipping companies

The Group prioritizes its long-term relationship with its customers in the face of an unprecedented situation in the shipping industry, said the third largest container line in the world.

“Since the start of 2021, container shipping spot freight rates have continued to increase due to port congestion and the major imbalance between demand and effective sea container shipping capacity,” CMA said. CGM.

“Although these market-induced tariff increases should continue in the coming months, the Group has decided to suspend any further increase in spot freight tariffs for all services operated under its brands (CMA CGM, CNC, Containerships, Mercosul, ANL, APL), ”the line said.

CMA CGM seeks to provide some “price visibility during the peak Christmas season” to its customers, a source from the container shipping industry said.

Other global container companies such as Hapag-Lloyd AG, Maersk Line and Mediterranean Shipping Company SA are expected to join CMA CGM in detention rates.

“The kind of pressure that the Indian government, Federation of Indian Export Organizations, export promotion boards and shippers have put on shipping companies, other companies could also stop tariff increases,” TS believes. Ahluwalia, President of the Northern India Shippers Association (NISA).

“There is a lot of pressure on the shipping lines to stop rate increases. Every country is watching them closely, ”Ahluwalia said.

Sea freight charges have risen sharply from India since the start of the year. For example, the fare to the Port of Felixstowe, which was $ 1,000 in February, now hovers at $ 7,000, while the fare to New York is currently $ 12,000 from $ 2,000 in February.

The freight rate to Australia has increased from $ 1,500 to $ 8,000, while the rate of container shipping to Toronto has increased from $ 2,500 to $ 17,000.

The rate to South Africa rose to $ 6,000 from $ 1,500 in February.

Soaring freight rates helped container lines achieve windfall profits in the first half of calendar year 2021.

If freight rates continue to rise, container lines could collectively generate $ 100 billion in operating revenue in 2021, according to Drewry Maritime Research.

The German Hapag-Lloyd AG has earned more in the last six months than in the previous ten years combined.

Danish shipping giant Maersk Line is expected to earn around $ 14.5 billion this year, analysts say.

“Looking at the market environment today, however, we don’t think the situation will return to normal anytime soon – despite all the efforts and the additional container capacity being injected. We currently expect the market situation to improve only in the first quarter of 2022 at the earliest, ”said Rolf Habben Jansen, CEO of Hapag-Lloyd, on August 12, announcing the company’s half-year results.

“Rates are expected to stabilize at current levels,” Ahluwalia said, noting that rates must “stop somewhere”.

“The other shipping companies will not be able to freely increase their prices. They need to review the dynamics of the market. Thus, on current rates, there will be no significant jumps and rates could stabilize at current levels, ”he added.

However, the rate cuts will not be visible until major ports in the United States, Europe and China return to normal in their operations, he added.



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