So, although with a view to the ongoing meltdown in the global economy it might seem a little odd to look at last months figures, this makes sense – if only to ascertain the status before TSHTF. Since, even before the virus really hit, the German economy remained in a rather fragile state, as the January monthly showed (here). But, hey, let’s look into the German economy in some more detail:
While the last “Monthlies” pointed to a plateauing of the German economy (cf. here and here), the beginning of January marked the point where everybody began to take the threats emanating from the Corona-virus seriously. However, since the economic impact was only starting to gain traction, it is quite interesting to see how the German economy evolved prior to this crucial chain of events. But, hey, let’s look into the German economy in some more detail:
For numerous companies the financial year ended on 31 December 2019. Generally, the company’s managing directors are obliged to prepare the corresponding annual financial statements within certain time limits according to § 264 of the German Commercial Code (“Handelsgesetzbuch“, “HGB“). However, in the crisis of the company, these periods may be considerably shorter. Therefore, especially foreign shareholders of German corporations and their respective tax advisors (who are actually preparing the annual accounts for most of German companies) are strongly advised to observe the relevant regulations in order to minimize their own liability risks.
Securing corporate financing, especially liquidity, is a top priority not only in an acute crisis. However, a glance behind this corporate truism – usually presented with a weighty expression – immediately reveals a seemingly insoluble dilemma: in particular the advanced stage of the corporate crisis is characterized by a permanent lack of liquidity. The only … more
The German “Law on the Protection of Business Secrets” (“Gesetz zum Schutz von Geschäftsgeheimnissen“, “GeschGehG“) entered into force on 26 April 2019. With this law, the German legislator has implemented the so-called “Know How Directive” of the European Union into German law (with a delay of more than three quarters of a year) and thus, on the one hand, has extended this legal institution, which has so far been predominantly regulated in the secondary criminal law provisions of Sections 17 to 19 UWG (“Gesetz gegen den Unlauteren Wettbewerb“, German Act against Unfair Competition), in particular under civil law, and, on the other hand, replaced the above-mentioned provisions of UWG by an independent set of regulations.
Initial practical experience indicates a considerable paradigm shift in this area, as the following aspects show.
… seems to be an appropriate title for this month monthly: Given the last minute’s escape from a “technical recession”, combined with the latest data, last month’s asssessment that a plateau to the recession might be nigh (cf. here), is actually supported. However, some crucial facts and my gut-feeling (sorry, this is not really scientific, I know) point in another direction. But, hey, let’s look into the German economy in some more detail:
“Be careful with what you choose,
you may get it”
The deadline for the legislator to implement the EU “Restructuring Directive” is 17 July 2021 (see for further background information to the Directive here (in German)). However, The Ministry of Justice will most probably not publish the (German) draft bill originally expected for the end of this year, which should also take into account the consequences of the ESUG evaluation (see here for more details (in German)), until the spring of next year. Meanwhile, however, various associations have been very active and have, in some cases, developed concrete proposals as to how they believe the implementation into German law should take place. A look outside the box shows that the Dutch, for example, are already much further along in implementing the directive – and are likely to set completely different priorities than the German position papers suggest.
Although some indices have improved since August (cf. my earlier report, here), the overall picture of the German economy is still grim. Is this the highly awaited plateau or rather a short breathing-space due to the annual “autumn recovery”? Before trying to answer this question, let’s look into the German economy in more detail: