Summary
The lowest level of confidence between banks and consumers, and lowest level interest rates of ECB, has lead to slowest loan growth rate in Europe. The back up given by the governments was not enough to speed up the economy. The main global future trends and possible management scenarios are to be determined by global climate change - business and finance coming to grips with the challenges due to financial sector's needs for consistent & long-term energy and interest rate policy frameworks.
Analysis
Financing climate change in EU perspectives, public & private sector investments into renewable energy and opportunities in renewable energy climate change are going to be financed by public private partnership project financing aggreements.
Especially OPEL-GM dispute, HRE problems and other deficit financing projects on the agenda of German Government and the coming Elections were the main uncertainties in European economy. Increasing amaount of unemployment, low level of new contracts and contract cancellations of companies like SAP, SIEMENS, EADS ..also in construction business and automotive industry has contributed mainly to lowest level of growth in european loansin July 2009. Commerzbank, Dresdner Bank and Deutsche Bank in Germany are very careful in expanding loans due to liquidity trap and financial crisis, which turned out to triggering an economnic crisis leading to the lowest level of confidence for new loans between banks and companies, as well as to end consumers. The lowest rate of interest rates set by the European Central Bank and the lowest level demand for new mortgage credits and very high amount of non-performing loans, 400 billions Euro in Europe, were the main causes of this slowest loan growth in Europe in July 2009. The seasonal fluctuation in summer was never so high in european financial markets.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
