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THE BEST OF THE LOCAL 2011

NAZIS

The Local’s top five features of 2011

While the economy was on everyone’s mind this year, The Local’s feature writers took an in-depth look at stories that may have been off the radar. We’ve picked some of our favourites.

The Local's top five features of 2011
Photo: DPA

Is Germany’s right-wing scene out of control? And what happens when Germans seek pen-pals in American jails? These are just a few of the topics our feature writers delved into this year.

1) Germany’s sense of security was shaken when the existance of a neo-Nazi killing squad emerged in November. Have far-right extremists been turning increasingly to terrorist tactics?

Armed neo-Nazi scene embraces violence

The rise of the National Socialist Underground (NSU) has focused attention on Germany’s neo-Nazi scene, which experts say includes violent militants with professional weapons training

2) Germans love swapping letters with pen-pals – especially if they’re behind bars.

Convict connection: US pen pals found in jail

A growing number of Germans are striking up pen friendships with inmates serving time in US prisons. We go inside these unusual transatlantic relationships.

3) The September 11, 2001 terrorist attacks changed America forever. But they also had a profound effect on attitudes toward Germany.

Hamburg looks back a decade after 9/11

A decade after the 9/11 attacks, Hamburg remains stigmatized by perceptions it was a breeding ground for Islamist terrorists, according to the director of the city’s domestic intelligence service.

4) More than 100 million people speak German as their native language. But in some parts of the world, it’s endangered.

Lonely Star State: Texas Germans dwindling

Countless German immigrants moved to Texas in the 1800s, forming their own unique culture. With their language now near extinction, a professor is trying to preserve it.

5) Everyone knows about Europe’s economic struggles. But Germany is doing better than most countries. And it has the middle class to thank.

The family secret behind the economic boom

The backbone of Germany’s booming economy isn’t huge industry – it’s thousands of small and mid-sized firms spread across the country. The quiet achievers are part of the country’s Mittelstand.

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ECONOMY

How is Denmark’s economy handling inflation and rate rises?

Denmark's economy is now expected to avoid a recession in the coming years, with fewer people losing their jobs than expected, despite high levels of inflation and rising interest rates, The Danish Economic Council has said in a new report.

How is Denmark's economy handling inflation and rate rises?

The council, led by four university economics professors commonly referred to as “the wise men” or vismænd in Denmark, gave a much rosier picture of Denmark’s economy in its spring report, published on Tuesday, than it did in its autumn report last year. 

“We, like many others, are surprised by how employment continues to rise despite inflation and higher interest rates,” the chair or ‘chief wise man’,  Carl-Johan Dalgaard, said in a press release.

“A significant drop in energy prices and a very positive development in exports mean that things have gone better than feared, and as it looks now, the slowdown will therefore be more subdued than we estimated in the autumn.”

In the English summary of its report, the council noted that in the autumn, market expectations were that energy prices would remain at a high level, with “a real concern for energy supply shortages in the winter of 2022/23”.

That the slowdown has been more subdued, it continued was largely due to a significant drop in energy prices compared to the levels seen in late summer 2022, and compared to the market expectations for 2023.  

The council now expects Denmark’s GDP growth to slow to 1 percent in 2023 rather than for the economy to shrink by 0.2 percent, as it predicted in the autumn. 

In 2024, it expects the growth rate to remain the same as in 2003, with another year of 1 percent GDP growth. In its autumn report it expected weaker growth of 0.6 percent in 2024.

What is the outlook for employment? 

In the autumn, the expert group estimated that employment in Denmark would decrease by 100,000 people towards the end of the 2023, with employment in 2024  about 1 percent below the estimated structural level. 

Now, instead, it expects employment will fall by just 50,000 people by 2025.

What does the expert group’s outlook mean for interest rates and government spending? 

Denmark’s finance minister Nikolai Wammen came in for some gentle criticism, with the experts judging that “the 2023 Finance Act, which was adopted in May, should have been tighter”.  The current government’s fiscal policy, it concludes “has not contributed to countering domestic inflationary pressures”. 

The experts expect inflation to stay above 2 percent in 2023 and 2024 and not to fall below 2 percent until 2025. 

If the government decides to follow the council’s advice, the budget in 2024 will have to be at least as tight, if not tighter than that of 2023. 

“Fiscal policy in 2024 should not contribute to increasing demand pressure, rather the opposite,” they write. 

The council also questioned the evidence justifying abolishing the Great Prayer Day holiday, which Denmark’s government has claimed will permanently increase the labour supply by 8,500 full time workers. 

“The council assumes that the abolition of Great Prayer Day will have a short-term positive effect on the labour supply, while there is no evidence of a long-term effect.” 

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