Schramböck: Brexit trade agreement significantly reduces damage to Austria’s economy

Wifo study on behalf of the BMDW on the effects of the Brexit trade and cooperation agreement – kick-off of the FIW Trade Talks

Vienna (OTS / BMDW) The Austrian Institute for Economic Research (Wifo) analyzed the effects of the Brexit trade and cooperation agreement on behalf of the Ministry of Economic Affairs. In the study published today, the authors of the study take into account for the first time the new successor trade agreement between the United Kingdom and the EU, which the negotiating partners agreed on December 24, 2020, and provide initial assessments of the possible economic trade and welfare effects of the new trade agreement.

“The trade agreement with the United Kingdom cushions serious consequences for the Austrian economy. Compared to a no-deal scenario, the agreement almost halves the negative trade effects of Brexit. The UK is and will remain an important partner for us in Europe. Therefore, the agreement is an important basis for a further good economic relationship. It ensures that the negative consequences of Brexit for our domestic companies are alleviated and guarantees fair competitive conditions for our companies, ”states Economics Minister Margarete Schramböck today.

The export economy secures every second job in Austria and ensures prosperity in Austria. “An active trade policy is a decisive motor for the development of an international business location like Austria. In the long term, we have to push further trade partnerships and develop new future markets for our companies, ”says Schramböck. An export platform is therefore to be founded this year. “We have to grow with the world’s strongest markets. Compared to other large countries in the world, China stood out as a growth engine in the midst of shrinking economies. In terms of exports, we will therefore focus on Asia, ”emphasized Economics Minister Margarete Schramböck.

Event note: FIW Trade Talks with British Brexit expert David Henig

In the first (online) edition of the FIW Trade Talks, Harald Oberhofer will speak to the proven Brexit expert David Henig on January 14, 2021 from 4 p.m. on the subject of “Brexit and the future of trade relations between the EU and Great Britain”. More information and the possibility to register can be found at
https://www.bmdw.gv.at/Presse/Veranstaltungen/FIW-Trade-talks.html.

Link to the study and policy note below
https://www.bmdw.gv.at/Services/Zahlen-Daten-Fakten/Aussenwirtschaft.
html # Brexit available.

Inquiries & contact:

Federal Ministry for Digitization and Business Location
Press department
+43 (0) 1 711 00-805130
press department@bmdw.gv.at
https://www.bmdw.gv.at

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the firm of the iconic boots studies going public

From work shoes in the 60s to iconic boots that have passed through the feet of the members of The Who, Nirvana, Pearl Jam, by those of Pope Juan Pablo II and for all ‘celebrity’ worth its salt, to give just a few examples. And yes, it was also part of the wardrobe and identity of a whole generation of teenagers in the nineties. After turning sixty years in the middle of the pandemic and resisting the onslaught of the crisis and Brexit, Dr. Martens is now studying his London IPO.

The British shoe manufacturer, which is owned by the Permira fund (acquired in 2014 for 333 million euros through its Luxembourg company IngreLux), it sells 11 million pairs of shoes a year in more than fifty countries. Through a presentation the company has confirmed that will place at least 25% of its share capital without issuing new shares in what will be one of the first IPOs in the City this year.

“The company is considering applying for admission of its common shares to the premium trading segment of the FCA (the British regulator) and to be listed on the main market of the London Stock Exchange,” the firm announced. Dr. Martens has hired Goldman Sachs International and Morgan Stanley International as coordinators of the operation and has Barclays, HSBC, Merrill Lynch y RBC Europe as placement entities, while Lazard acts as a financial advisor.

His case is not the only one, since there is also talk of a possible premiere on the market of companies such as the food delivery company Deliveroo, McLaren Group O Jaguar Land Rover, as well as the craft brewery BrewDog. The fact that London and Brussels could close their trade agreement, even if it is minimal, and the start of vaccination on a global scale that makes it possible to foresee that the recovery of the economies may gradually gain traction, has encouraged all these companies to rethink their future as listed companies.

The pandemic, which forced the firm led by Kenny Wilson After closing its stores for months, it boosted its Internet sales to double, so that its semester income (which goes from April to September) increased by 18% to 318 million euros compared to the same period of the previous year. The company sold 5.5 million pairs of shoes in that time.

HISTORY OF AN ICONIC BRAND

  • The creator of the boots was the German doctor Klaus Martens. The idea for his first design is said to have come to him at the end of the Second World War after injuring his ankle while skiing in the Alps.

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What to expect from post-Brexit | Opinion

The bars of Radetzky’s march in Vienna have announced to us in this new year that the United Kingdom completed its unilateral separation with the European Union, ending a relationship of almost half a century. Thus, the British and EU negotiators closed a post-Brexit free trade agreement of minimums on Christmas Eve. A prestigious English newspaper recently published a cartoon depicting Boris Johnson as the Pied Piper of Hamelin enchanting, to the tune of Brexit, much of British society to follow him to the precipice of the unknown. To reach people you have to show them the promised land and, for that, there is nothing like a good story that draws an idyllic world.

His speech has prevailed over English pragmatism. For the prime minister, as well as for other English politicians, Brexit has always been a bargaining chip to gain power because it is the tactic that has provided the most electoral performance: invoking patriotism and blaming all its ills on the EU. In this sense, the French president, Emmanuel Macron, stated: “The decision to leave Europe, this Brexit, is the product of a lot of lies and false promises.” He recently claimed that, following the withdrawal from the EU, Britain would recover enough money to alleviate the weakened NHS (National Health Service).

In the UK the trade agreement is not going to be celebrated with the same joy by everyone. For the more than 16 million who voted to remain in the EU, their feelings are sad and desolate. On the contrary, for the 17 million eurosceptics it is of satisfaction for the victory as Boris Johnson has recently stated in one more proof of his peculiar populism: “The fate of this great country now resides firmly in our hands as we regain control. and sovereignty ”. It should not be forgotten that the UK has as much right to withdraw as others to stay.

Now, once outside the EU, and in order to hide the magnitude of the economic crisis produced by Brexit, it is trying to blame Covid-19 for its consequences. Once again, those responsible for his erratic management are everyone else except him. But it will not be able to mask for long the perfect storm due to a multifactorial crisis that the United Kingdom is experiencing, formed by the three Cs (customs – customs – crisis and coronavirus) as the English public opinion calls it. The Bank of England and various government studies warn of serious post-Brexit economic “shocks”.

The EU, for its part, has not welcomed the loss of an important partner such as the United Kingdom, although it has felt some relief. Since joining the European Economic Community in 1973, he has always been an uncomfortable member. If the achievements of an organization are the sum of individual efforts, the United Kingdom has been a drag on the process of political and economic integration.

There is an Andalusian song that says: “Something dies in the soul, when a friend leaves.” The British Prime Minister never tires of repeating that they are our most faithful friends, but they have concealed it very well in all this time. Life experience teaches us that true friends are known by their actions. Therefore, it should be remembered that the United Kingdom did not participate in the Schengen Agreement (1995), rejected the euro and the Economic and Monetary Union (2002), did not sign the Treaty for the Stability, Coordination and Governance of the EMU (2012 ) and rejected the European pact to reinforce fiscal discipline (2013). More recently, he has refused a new referendum when the previous one was, in my opinion, based on lies and had a not very high turnout (71%). While those under 50 years of age voted against Brexit, those over 50 did so in favor, especially in rural areas. Withdrawal from the EU is a deeply selfish and discriminatory decision from a generational point of view. Possibly with that background and without Brexit, the outcome of the European summit last July, in which the European Union Solidarity Fund was approved to deal with serious public health emergencies, would have been very different.

Polls in the UK say that the British want more talk about the pandemic, economic revival and social protection. However, the nature of the new relationship between the UK and the EU means that many things will be different.

The trade agreement avoids the tariffs that are imposed on goods, but it does not save more paperwork for companies and people traveling to EU countries. There will be more additional controls at the borders, as well as customs and security declarations. In short, more bureaucracy, more obstacles and more costs.

The free movement of people, between the two sides of the English Channel, will end and will be replaced in the UK by a ‘point-based’ immigration system for both the EU and people from other parts of the world. Also, anyone from the UK who wants to stay in the EU for more than 90 days, in any 180-day period, will need a visa.

Despite Boris Johnson’s promises and a House of Lords Committee for the EU report warning that the benefits of the Erasmus program would be very difficult to replace with a national program, the country has sadly announced that You will no longer participate in that program and will replace it with a new one. According to Johnson, students “would have the opportunity not only to go to European universities, but to go to the best universities in the world.” It was not necessary to leave the EU for this. Nothing prevented the British from establishing a program of their own to travel to universities other than the EU.

Nor have the government’s promises that the UK would maintain “exactly the same benefits” as it had as a member of the EU, and that they could never have been realized. However, the country will continue to be in a worse situation than it was while it was in the EU, and there is still uncertainty about what will happen to the banking and services that represent 80% of its economy. In certain areas, the UK has always sought to maintain a special position. Like that community of neighbors in which one of its owners decides not to pay, but wants to continue enjoying the services.

There is a phrase from Winston Churchill, former British Prime Minister, that adequately defines the current sentiment of the United Kingdom: “You must know that, if we have to choose between Europe and the open seas, we will always choose the open seas.”

Vicente Castelló is Professor at the Jaume I University and member of the Interuniversity Institute for Local Development

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Covid-19 pandemic | Covid-19 restrictions have prevented 15,000 deaths, study says – Sectors – Economy


He Bank of the Republic published the results of an analysis that estimates the economic effects derived from measures to curb the covid-19 pandemic in the country. It found that restrictions and changes in individual behavior saved around 15,000 lives.

(You may be interested in: ‘Some cities with greater economic sacrifice have more mortality’).

The study used data on the behavior of the pandemic and economic performance until November, before the manifestations of indiscipline that led to increases in infections and deaths since December.

The investigation found that government restrictions and changes in individual behavior saved around 15,000 lives, while leading to a reduction in consumption in 2020 by approximately 4.7 percent.

“The results suggest that most of this effect was the product of government policies,” say authors Juan Esteban Carranza, Juan David Martín and Álvaro José Riascos.

(Further: ‘Reasons for the World Bank to see Colombia among the countries that will grow the most’).

Of all the deaths averted, they estimate that 67 percent were thanks to official measures.

“Our simulations,” say the researchers, “suggest that government restrictions reduced annual consumption in 2020 by about 3 percent and saved about 10,000 lives.”

Without the restrictions ordered by the Government, the economy would still have faced a 1 percent contraction, generated by the population, which would have reduced both consumption and work to avoid contagion.

In this way, the work estimates the way in which policies such as quarantines and limits on the gathering of people acted as a burden on consumption.

While official measures prevented 10,000 deaths, if these had not been decreed, individual care decisions would have prevented some 2,800 deaths. In this way, the effect of self-care measures is close to one third of the effect of official restrictions.

Regarding what would follow for the economy, in one of the study simulations it is expected that activity will converge to its long-term path by the middle of this year.

(As well: ‘Commerce already sells more than before the pandemic’).

The model estimates a drop in consumption of 4.5 percent in 2020 compared to its long-term levels, and that it would almost fully recover this year.

The researchers caution that these calculations are based “on electricity consumption, which is an imperfect measure of consumption and economic activity in general.”

They explain, for example, that there are sectors that could be permanently affected, such as tourism and entertainment, which are not intensive in the use of electrical energy.

So it would come as no surprise that while their calculations show a complete recovery, it is most likely that “a portion of the economy will underperform for a long time”.

Find also in Economics:

This is what housing rents may rise in 2021

Vaccines give confidence, but do not completely erase uncertainty

Inflation in 2020, the lowest in history for a full year

ECONOMY AND BUSINESS

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(VIDEO) “We only had Barcelona …”: Lenin Artieda’s report on the star 16

Lenin Artieda, a journalist from Ecuavisa, again took out an emotional video broadcast in said medium to commemorate the 16th star of Barcelona SC achieved last Tuesday in Quito against LDU.

Artieda also uploaded this content to his social networks where the reactions of the yellow fans.

“In the year that it was believed that everything had been lost … We only had Barcelona left,” Artieda mentioned at the end.

VIDEO:

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Covid-19 vaccine will be only for a quarter of the world population – USA and Canada – International


According to a study published in the scientific journal ´The BMJ´, Almost a quarter of the world’s population will not have access to the covid-19 vaccine until 2022. This is mainly due to the challenges of production, logistics and distribution of this.

By November 15 of this year, 7.48 billion doses had been purchased, equivalent to 3.76 billion treatments.out of 13 manufacturers currently producing viable vaccines.

Based on these data, Johns Hopkins University researchers Anthony D. So and Joshua Woo have concluded that there will be an unfair distribution between developed and underdeveloped countries.

(Also read: Argentina authorizes Sputnik V and Pfizer vaccines against covid)

From this purchase, 51% will go to rich countries, where only 15% of the world’s population resides, while the other 49% will go to low-income countries, where the remaining 85% live.

Obstacles to the arrival of the vaccine

The ratio between purchase of doses and registered cases is more clearly observed when it is taken into account that The United States reserved about 800 million doses, despite accounting for 20% of all global COVID-19 infections by mid-November.

For their part, Japan, Australia and Canada asked for 1,000 million when the sum of their cases did not represent even 1% of all global cases.

(It may interest you: Scientists are investigating whether the new strain infects children more)

This graph shows the commitments made by each country to acquire doses of vaccines against the 2019 coronavirus disease, per capita.

Currently there are 13 manufacturers that today have viable vaccines or vaccines approved by health authorities. These would scale their production to about 5.96 billion doses by the end of 2021. However, The cooperation between the United States and Russia will depend on whether 40% of them reach low- or middle-income countries.

“Our study provides an overview of how high-income countries have secured the supply of covid-19 vaccines, even though the situation for the rest of the world is uncertain,” the researchers note.

Vaccine by country

The first bar is the number of people worldwide, while the second bar shows the vaccine doses that will be available by the end of 2021 according to each manufacturer.

The price is another of the conditions to access the vaccine. According to scientists at Johns Hopkins University, prices range from $ 6 to $ 74 per treatment. (Between 20,000 and 260,000 Colombian pesos approximately).

(We recommend you read: What the Vatican says about vaccines against covid-19)

Support for the vaccine

The World Health Organization (WHO) has ensured that international cooperation is key to containing the pandemic.

For this reason, the COVAX mechanism was announced, which coordinates the research, production and sale of vaccine candidates against covid-19 and which has already received the support of 80 countries, including Canada, Japan, Mexico, United Kingdom. and Switzerland.

“Successful and equitable vaccine delivery requires unprecedented global coordination and a sustained commitment of financial, logistical and technical resources from high-income countries,” Jason Schwartz, a health policy expert at Yale University, said in an editorial. also published in ‘The BMJ’.

(Read on: This was the start of vaccination with Moderna in the US.)

Trends WEATHER

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Moisés Caicedo would be valued at $ 12 million

The future of Moisés Caicedo is outside the country, there are many interested clubs and Independiente knows that it will be impossible to retain him.

There are clubs that have been mentioned as possible destinations for Caicedo, from Spanish Alavés, West Ham or Manchester United of the Premier League.

The colleagues of Fútbol Bohemio have carried out an investigation and mention that those of the Valley would have valued the 19-year-old player at 10 million euros ($ 12.3 million at today’s exchange rate).

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Stiven Plaza trains separately in Turkey

The Ecuadorian Stiven Plaza has been definitively relegated to Trabzonspor, the club announced that he and two other players have been called to train separately, arguing “poor performance”.

Let’s remember that Plaza played and was injured in the Turkish Cup match where he started as a starter, so the club already decided not to have him.

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Spain must avoid turning the ECB’s open bar into a double-edged sword | Opinion

The ECB gave Europe a serious reality check yesterday by announcing macroeconomic forecasts that were substantially more pessimistic than expected, both in terms of growth and inflation, which has forced the body chaired by Christine Lagarde to approve more monetary stimuli. The effects of the second wave of the Covid-19 pandemic will cause, according to Frankfurt, a contraction of 2.2% of GDP in the fourth quarter of 2020 and a delay of practically a year in recovery. Despite the optimism unleashed by the advances in the vaccine, the ECB considers that the euro area will not return to normal until the end of 2021, which is why it has decided to maintain the stimulus measures until 2022. The body has announced that it will expand its extraordinary program of Debt purchases of half a trillion euros more and that will extend until March 2022. It will also strengthen the liquidity lines to the banks in order to ensure that the financing reaches all the capillaries of the productive tissue and allows the recovery to be fueled.

As if it were the negative opinion of a doctor, the diagnosis made by Frankfurt should serve as a catalyst for European economies that face the scourge of the crisis protected by the shield of a loose monetary policy and favorable interest rates But they must be aware that those crutches will not last forever. The powerful response of Frankfurt to the crisis, at the height of the challenge posed by the pandemic, guarantees optimal financing conditions for the governments of the euro zone so that they can in turn finance the recovery of their economies, their companies and The bench. This represents a historic opportunity to try to lay the foundations of a more competitive and flexible post-pandemic European economy, but at the same time it constitutes a strong temptation to over-indebtedness, as well as to use credit facilities to promote politically profitable measures, but that do not help to the recuperation.

The Government, which has insisted on maintaining macro forecasts incompatible with the wave of outbreaks and restrictions that Spain is experiencing, has even more reasons than other European economies, less damaged by the pandemic, to take advantage of this historic moment. Despite this, and while Frankfurt warns that the Covid-19 storm will last longer than expected, the Executive studies an additional increase in the salary of 2020 officials, instead of betting on practicing austerity in spending and putting a serious and effective policy aimed at promoting recovery and getting Spain out of the crisis as soon as possible.

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BITTER TIE for both: Emelec 1 – 1 Barcelona

This Sunday night, Date 11 of Phase 2 of Liga PRO Serie A 2020 culminated with the Clásico del Astillero.

Club Sport Emelec received Barcelona Sporting Club at the Capwell stadium. The match ended tied one to one (1-1).

At 13 minutes, Sebastián Rodríguez opened the scoring for the Blues. And at 34 ‘, J. Álvez tied. In the complementary stage, Barceló missed a penalty and couldn’t give the Blues the advantage.

With this result, Emelec and Barcelona continue as leaders of the tournament (Phase 2) with the same score (22 points); However, due to the greater number of goals scored, Rescalvo’s are in first place.

Note from: Victor Loor Bonilla

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