Germany dispute over Intel subsidies

BERLIN: A new budget dispute emerged within Germany’s ruling coalition on Monday, with the finance ministry saying funds no longer needed to subsidize Intel’s new chip-making plants should be used to balance the books and the economy ministry pushing back. Berlin had in June agreed subsidies worth nearly 10 billion euros ($11.13 billion) with the US chipmaker to build two leading-edge facilities in the eastern city of Magdeburg as part of its expansion push in Europe. Intel CEO Pat Gelsinger released a memo to employees on Monday outlining a number of steps the company would take to revive itself which included pausing construction at its project in Germany for two years. — Reuters

Eurozone eyes gradual easing

FRANKFURT: The European Central Bank should keep cutting interest rates gradually, its chief economist said Monday, after policymakers reduced borrowing costs last week for the second time this year. “A gradual approach to dialing back restrictiveness will be appropriate if the incoming data are in line with the baseline projection,” Philip Lane said in a speech in Luxembourg. But he stressed policymakers should keep an open mind about “the speed of adjustment”, and it would depend on how fast inflation drops and the state of the eurozone economy. — AFP

Milei warns zero deficit is a must

BUENOS AIRES: Argentine President Javier Milei presented his 2025 budget to congress Sunday, with the libertarian promising to veto any law that threatened his strict goal to reduce the country’s budget deficit to zero. “We will veto all the bills that threaten the fiscal balance, because we will not be accomplices in swindling the Argentine people,” he said. Since taking office in December, the budget-slashing Milei has applied a drastic austerity program in a bid to rein in chronic inflation and decades of government overspending. — AFP

German investor morale falls steeply

FRANKFURT: German investor confidence fell significantly more than expected in September, a survey showed Tuesday, as a hoped-for recovery in Europe’s largest economy seemed to recede from view. The ZEW institute’s closely watched economic expectations index fell to 3.6 points, down sharply from 19.2 points a month earlier. Analysts surveyed by financial data firm FactSet had predicted a much smaller decline to 16.6 points. The September drop comes after the indicator dropped 22.6 points in August, its worst decline in two years. — AFP