Germany Handles the Dubai Situation Well

Germany is handling the economic situation in Dubai well. After high-level real estate investors “have taken heavy hits” due to the recessions in Dubai.

Germany is not the only one suffering. OPEC has also lost a great deal of money because of investments that fell through. Dubai claims the failure was the fault of Israel discouraging investing in Dubai.

According to department of Domestic Economic Affairs official Stephan Shroer, “there’s not really much we can do about the economic situation now. The damage is done.”

However, despite Germany’s economic strife, they are considering taking in an influx of immigrants from Indonesia. The Indonesians were working for construction companies in Dubai, which OPEC and members of the EU invested in.

Though no official word has been given that the immigrants will be allowed to reside in Germany, Germany is preparing for the influx of immigrants, and they have “some capacity and budget to deal with the refugees.

Although if Germany allows the displaced Indonesians to enter, they, “need indication that the burden will be shared, and the ultimate goal would be to get them back home to Indonesia.”

Germany also does not blame Israel for the problems. “Until proven otherwise, we choose to believe that the Israelis acted in good faith.”

Germany, despite hard times, is handling the situation diplomatically and with the best intentions of others involved.

Dubai Real Estate Battle Continues

The Dubai real estate crisis continues to worsen. Many nations, especially powerful European countries, have pulled out of the area. While the German press and Rodge Gupta were not available for comment, it is clear that Europe was merely protecting its own assets in its actions. While much attention is being given to the Organization of the Petroleum Exporting Countries, the source of the problem is the real estate issue as it continues to extend its impacts globally.

Dubai Real Estate Crisis Damages OPEC

OPEC

The Dubai real estate crisis has hit OPEC hard. After a plethora of multinationals pulled out of Dubai, the other members of OPEC have united against Europe. In addition, they have placed the blame of the events on Israel. 

Germany has been especially negatively affected.

The crisis has also affected immigrant workers and has led to unemployment. 

Further details are coming soon.

Spain Slides Down Slippery Economic Slope

As the United States attempts to rebuild after its recent financial crisis, other countries are experiencing similar economic hardships. Spain's banks are in a sharp decline, and after Citigroup's recent financial plunge, Spanish banks are floundering for funds. Jonathan, an International Monetary Fund analyst, stated that Citigroup's situation has made Spain's "more severe because now the Spanish banks cannot borrow funds directly from American banks."

What is the cause of such a crisis? The IMF attributes the failure to the lack of liquidity (the cash reserves of the banks) as well as to the "vague structure of Spanish banks."

Spain is in desperate need of assistance. According to the IMF, the unemployment rate is now at an astonishing 17.4%. In addition, consumers are becoming wary of the market.

Jonathan asserts that a bailout is absolutely necessary. He believes that the U.S. Treasury is a catalyst, for if it bails out Citigroup, a little more stabilization will be restored to the global market. While the EU has already channeled money to Spain, Germany still needs to "commit funds in order to get the investor sentiment from negative to positive."

Five Mysterious Deaths at the Ukrainian-Russian Border

The oil pipeline under construction running between Leipzig and Volgograd

Speculation runs rampant in Europe as five leading members of a construction team at the Ukrainian-Russian border were killed during the construction of a new oil pipeline, planned to run between Leipzig and Volgograd.

In early 2010 after a successful, albeit shaky, agreement, a German ILF Company was granted a contract to build the oil pipeline. Construction began soon afterwards and made significant progress until the deaths of the five members of the team on the Ukrainian side of the Ukrainian-Russian border.

Tobias Kuhn, spokesperson for the ILF German company, says, “We are at our wit’s end here at ILF. No one is sure how to respond, and we demand an explanation for the deaths and the lack of progress into Ukraine of the pipeline.”

The mysterious deaths of the five construction team members are stirring up controversy in Europe as people are striving to acquire the truth.

Experts say no to investment in Spanish bonds

Spanish Bonds may not yield as high returns in the near future

Economy experts caution investment in Spanish bonds. Their warnings are due to poor earning reports and lack of liquidity in Spain’s financial system. Unemployment in Spain is also through the roof; reaching record highs especially in the 20-29 year old age bracket

 Financial expert Jorge Villareal says that the purchase of bank bonds at this point is “very risky,” although he does not encourage current shareholders to sell bonds.

These concerns might very well be linked with recent debate over the efficiency of currency union as an economic tool. The euro restricts governments of Europeans nations from inflating currency. Countries are instead forced to cut wages instead of simply printing more money. Though celebrated in times of economic boom, the euro and the downsides of a currency union prove detrimental in time of recession. 

Five Workers Killed Working on ILF Pipeline in Ukraine

Speculation runs rampant in Europe after five gas line construction workers died in mysterious circumstances. The workers were employed by German construction company ILF, who agreed to make the pipeline in 2010.

The company had been contracted to build a oil pipeline from Europe to Russia. Most of Europe's energy needs are met by Russian gas and oil. 

The agreement between the EU and Russia was tenuous but a significant accomplishment nonetheless. Construction went well until they reached the Ukrainian border. The Associated Press reported that all of the company's paperwork was in order as they prepared to start construction in the Ukraine. 

Most key details are missing, leading to fear that the agreement may no longer be in place.