U.S. economy contracted an estimated 3.5% in 2020, worst drop since WW2

The U.S. economy contracted 3.5 per cent in 2020, the Commerce Department reported Thursday, the worst economic freeze since the end of the Second World War.

The report estimated that the nation's gross domestic product — its total output of goods and services — slowed sharply in the October-December quarter after a record 33.4 per cent surge in the July-September quarter. That gain had followed a record-shattering annual plunge of 31.4 per cent in the April-June quarter.

The economy grew at a four per cent annual rate in the final three months of 2020.

The report estimated that the nation's gross domestic product — its total output of goods and services — slowed sharply in the October-December quarter after a record 33.4 per cent surge in the July-September quarter. That gain had followed a record-shattering annual plunge of 31.4 per cent in the April-June quarter.

The economy grew at a four per cent annual rate in the final three months of 2020.

Read more at:U.S. economy contracted an estimated 3.5% in 2020, worst drop since WW2 | CBC News

European Rail: A rail renaissance for Europe – by Lena Donat

The climate crisis is forcing us to rethink the way we travel and transport goods. The European Union can only reach its climate-neutrality target if transport emissions drop.

We cannot go back to pre-pandemic transport patterns; rather, we should use the dislocation to reinvent mobility in Europe. Luckily, we do not need to reinvent the wheel. Rail is the cleanest and most reliable means of long-distance transport and we can build on the railway network constructed over two centuries in Europe, turning rail again into the backbone of a sustainable system.

Read more at: A rail renaissance for Europe – Lena Donat

EU approves AstraZeneca coronavirus vaccine

COVID-19 Vaccine AstraZeneca is now authorised across the EU. This follows the granting of a conditional marketing authorisation by the European Commission on 29 January 2021.

EMA has recommended granting a conditional marketing authorisation for COVID-19 Vaccine AstraZeneca to prevent coronavirus disease 2019 (COVID-19) in people from 18 years of age. This is the third COVID-19 vaccine that EMA has recommended for authorisation.

EMA’s human medicines committee (CHMP) has thoroughly assessed the data on the quality, safety and efficacy of the vaccine and recommended by consensus a formal conditional marketing authorisation be granted by the European Commission. This will assure EU citizens that the vaccine meets EU standards and puts in place the safeguards, controls and obligations to underpin EU-wide vaccination campaigns.

Read more at: EU approves AstraZeneca coronavirus vaccine | News | DW | 29.01.2021

The EU's vaccine strategy - the key points

The European Commission, on behalf of member states, has sealed deals with six companies for up to 2.3 billion vaccine doses. The BioNTech-Pfizer and Moderna vaccines are so far the only jabs authorised in the EU, but the vaccine jointly developed by Oxford and AstraZeneca is expected to be approved on Friday (29 January) by the European Medical Agency (EMA).

With two doses per person needed for both authorised vaccines, the EU could vaccinate at least 380 million people - covering approximately 80 percent of the European population.

Read more at: https://euobserver.com/coronavirus/150747

Covid-19 vaccines: Less Than 1% of People Experienced Side Effects From Moderna Coronavirus Vaccine, CDC Says - by Alexa Lardieri

The Centers for Disease Control and Prevention said in its Morbidity and Mortality Weekly Report that 0.03%, or 1,266, of the more than 4 million people who have received the first dose of Moderna's COVID-19 vaccine experienced adverse events.

Of the recipients with side effects, 108 were identified for further review as severe allergic reactions, including anaphylaxis – a life-threatening allergic reaction that the CDC says can occur after a vaccination, although rarely. It typically occurs within minutes to hours.

Read more at: Less Than 1% of People Experienced Side Effects From Moderna Coronavirus Vaccine, CDC Says | Health News | US News

Covid-19 Vaccine: Turkey, Serbia, Bosnia and Hungary Put Trust in Russian, Chinese Vaccines - by Hamdi Firat Buyuk, Danijel Kovacevic, and Milica Stojanovic

While the majority of countries in Central and Southeast Europe have brokered deals to obtain Western-manufactured COVID-19 vaccines, Turkey, Hungary, Bosnia and Herzegovina and Serbia are keeping their options open and also obtaining Chinese and Russian vaccines – despite concerns about their reliability.

Some health experts have warned that the effectiveness of these vaccines is still not fully researched, and note that their delivery dates are also still uncertain.

“Unfortunately, Turkey could not purchase a vaccine in which all three phases of research had been completed. Furthermore, there are no plans to bring [Western] Moderna or AstraZeneca vaccines [to Turkey],” Emrah Altindis, a Turkish professor of Biology at Boston College, wrote on Twitter.

Turkey said earlier that it would purchase 50 million doses of China’s CoronaVac vaccine, which is still in third of phase of research. After various delays, only 3 million doses arrived on December 31. So far, Turkey has vaccinated 1.2 million of its more than 82 million citizens.

Note EU-Digest: At a press conference in Beijing a state taskforce announced the vaccine had exceeded World Health Organization standards and would help establish effective immunity in China.

Health officials said vulnerable groups would be prioritised ahead of the general population. Key groups have already been receiving vaccines under emergency approvals, including about a million receiving the Sinopharm vaccine.

Read more at: Turkey, Serbia, Bosnia and Hungary Put Trust in Russian, Chinese Vaccines | Balkan Insight

The EU's vaccine 'non-diplomacy' – International relations

Faced with a another wave of infections, Europe is again struggling to get a grip on the Covid-19 pandemic. At the moment, the efforts of containing the virus currently focus on getting as many people vaccinated as possible as quickly as possible. And Eastern Partnership countries are no exception to that rule. But while the EU works around the clock to register and deliver the vaccines produced by six Western companies, neither the Chinese (Sinovac Biotech) nor the Russian vaccine (Sputnik-V) are on the European officials' immunisation menu. And that may be a luxury most Eastern Partnership countries currently can’t afford.

Some, like the political elites in Georgia, Moldova and Ukraine, do criticise the Russian cure. They are suspicious of Sputnik-V for both its alleged inefficiency and the propaganda campaign pursued by Russian foreign policy. The memory of the 2020 disinformation campaigns while supposedly aiding Italy or Serbia are still fresh.

However, the refusal of even examining the possibility of importing the Sputnik-V has fuelled the internal animosities between government and the pro-Russian opposition in Ukraine. The country’s Minister of Foreign Affairs Dmitry Kuleba highlighted the propagandistic costs that come with the Russian vaccine. China’s propaganda however isn’t bothering Kyiv, which is willing to purchase the Chinese vaccine as well as Western ones.

In Belarus and Armenia, on the other hand, there’s hardly any scepticism towards the Russian vaccine and already arranged the imports or are in advanced bilateral negotiations. And across the region, there’s less scepticism towards China. The latter seems to act much more subtly, raising minimum noise and negative perceptions for its anti-Covid-19 cure. As long as Eastern Partnership countries cannot receive the vaccine from Western pharmaceutical companies, they will be signing up for the Chinese vaccine, if not the Russian one.

Read more at: The EU's vaccine 'non-diplomacy' – International relations | IPS Journal

USA: Covid-19 - another Biden heritage from Donald Trump: : US tops 25 million coronavirus cases

More than 25 million cases of coronavirus have now been confirmed across the United States. Experts say the true number is likely to be higher. More than 417,500 in the US have died with the virus.

The daily number of deaths has exceeded 4,000 in recent weeks - including on Wednesday when Joe Biden was sworn into office.

President Biden signed a raft of new measures last week, including boosting vaccinations and testing.

Read more at: Covid-19: US tops 25 million coronavirus cases - BBC News

Canada-US Relations: How political symbolism brought down Keystone XL- by Aaron Wherry

The new president of the United States described his inauguration on Wednesday as a moment to move forward. But moving forward properly requires a reckoning with the past. In Joe Biden's case, that reckoning came for the Keystone XL pipeline.

The project's fate seemed to be sealed years ago, but it haunts us still. And now, with strident words from Alberta Premier Jason Kenney about a trade war, it could haunt Canadian politics indefinitely.

Read more at: How political symbolism brought down Keystone XL | CBC News

USA: Wall Street: Why US investors are now betting on water

Municipal companies and utilities could also stand to profit from water futures, the CME argues. In California where water is scarce, water prices often soar overnight because of wildfires or droughts.

Costs for the next six months can be estimated only roughly, as Nasdaq Senior Manager Patrick Wolf told Bloomberg. He's in charge of the futures in California, the United States' largest water market.

Read more at: Why US investors are now betting on water | Business| Economy and finance news from a German perspective | DW | 21.01.2021

EU: Commission takes further steps to foster the openness, strength and resilience of Europe's economic and financial system -

The European Commission yesterday (19 January) presented a new strategy to stimulate the openness, strength and resilience of the EU's economic and financial system for the years to come. This strategy aims to better enable Europe to play a leading role in global economic governance, while protecting the EU from unfair and abusive practices. This goes hand in hand with the EU's commitment to a more resilient and open global economy, well-functioning international financial markets and the rules-based multilateral system. This strategy is in line with President von der Leyen's ambition for a geopolitical Commission and follows the Commission's May 2020 Communication Europe's moment: Repair and Prepare for the Next Generation.

Read more at: Commission takes further steps to foster the openness, strength and resilience of Europe's economic and financial system - EU Reporter

Car Industry Alternative Energy: Electric car batteries with five-minute charging times produced

Batteries capable of fully charging in five minutes have been produced in a factory for the first time, marking a significant step towards electric cars becoming as fast to charge as filling up petrol or diesel vehicles.

Electric vehicles are a vital part of action to tackle the climate crisis but running out of charge during a journey is a worry for drivers. The new lithium-ion batteries were developed by the Israeli company StoreDot and manufactured by Eve Energy in China on standard production lines.

Read more at: Electric car batteries with five-minute charging times produced | Electric, hybrid and low-emission cars | The Guardian

Global Economy: China Is the Only Major Economy to Report Economic Growth for 2020 - by Grace Zhu and Bingyan Wang

China’s economy expanded by 2.3% in 2020, roaring back from a historic contraction in the early months of the year to become the only major world economy to grow in what was a pandemic-ravaged year.

China’s ability to expand, even as the world struggled to control a deadly virus that has killed more than two million people, underscores the country’s success in largely taming the coronavirus within its borders and further cements its place as the dominant economy in Asia.

Note EU-Digest: On Monday, China reported a year-on-year increase of 6.5% for the fourth quarter of 2020 and a 2.3% increase for all of 2020, surpassing analysts' forecasts and making China the the only major economy to log positive growth in 2020.Fortune magazine predicts that financial experts believe that China's economy will overtake that of the US somewhere between 2026 and 2029.

Read more at: China Is the Only Major Economy to Report Economic Growth for 2020 - WSJ

The Netherlands: "If we reelect Mark Rutte "the Dutch political Houdini" we don't deserve any better" - by Johan Fretz

The self induced fall of the Rutte III cabinet took place in such a slow motion that its impact was spread out over a week. That was precisely Rutte's intention: if you move more slowly towards the ground, the impact will be less hard. Even in his own fall, Rutte remained the merciless strategist. If there was no other option, then only with as little damage to himself as possible.

Earlier this week, he had put on the table a sample of genuine “Rutlet logic”. Before the Christmas holidays, he had pretended that he thought it was all so intense and had to deal with it first. Now, after the holidays, he said that stepping down was a thing of the past. He may have thought we were all stupid and blame him: he has never been punished for anything in ten years. But the dynamics suddenly changed rapidly.

Lodewijk Asscher of thr PVDA labor party, the only one who had said aloud since the beginning that he felt shame and regret about his part in the benefits affair, still resigned. As is so often the case, it is the politicians who prefer integrity over power who pay the highest price, even though Asscher's choice was very justified and inevitable.

In looking back on his years in The Hague, he will have to reflect on the fact that he and his party entered Rutte II so indiscriminately, a cabinet that aimed to develop the public sector and human scale and in which it was established from the outset that such accidents would happen. That is why support for Asscher has crumbled so quickly in recent weeks: the affair reminded many voters how angry they were about this fatal government participation.

Even after Asscher's departure, Rutte continued to stop the fall of his cabinet behind the scenes. After all, it was not necessary from his VVD party viewpoint, and he undoubtedly felt strengthened by the voters behind the forty polled seats, who don't give a damn. But on Friday, Rutte solemnly said at the press conference: “We had to take responsibility,” as if it came from his deep inside. Those who listened more closely heard his cunning again: "Of course, it is always my ultimate responsibility in the end." In other words, I, the Good Samaritan, now fall for other people's sins, but have clean hands myself.What Typical Rutte B.S.


Political reality and public pressure can force a cabinet's resignation, but what they clearly cannot enforce is an inner realization in those responsible that they have failed morally. Mark Rutte does not resign out of regret or shame. He resigns because he had no other option. In doing so he devalues ​​the symbolic value of the fall, which if it had been sincere could have contributed to the healing and the initial restoration of trust in the institutions.

Now our political Houdini PM has again freed himself from the chains underwater and has escaped from the steel box. On March 17 last year, he happily emerges, with that tirelessly cheerful grin that for ten years has kept others from seeing his brutal politics of hollowing out and reckoning behind it. Do we deserve better? If we re-elect him or not ?

Read more in the original Dutch version of "Het Parool" from where this translated version came: Als we Rutte opnieuw herverkiezen, verdienen we niet beter | Het Parool

The Netherlands: Dutch government quits over 'colossal stain' of tax subsidy scandal - by Stephanie van den Berg

Prime Minister Mark Rutte’s government resigned on Friday, accepting responsibility for wrongful accusations of fraud by the tax authorities that drove thousands of families to financial ruin, often on the basis of ethnicity.

Read more at: Dutch government quits over 'colossal stain' of tax subsidy scandal | Reuters

EU-China Deal: How should Biden respond to the EU-China deal? - by Jeff Rathke,

The United States has been transfixed by President Trump’s efforts since Nov. 3 to overturn the results of the presidential election, but America’s friends and adversaries alike are moving to position themselves for the Biden administration.

This will constrain the 46th president's room for maneuver — an example is the agreement in principle between the European Union (EU) and China on a Comprehensive Agreement on Investment (CAI), concluded in the last days of 2020. The successful push to conclude the CAI (largely led by German Chancellor Angela Merkel) took many by surprise, because just a few months earlier it was foundering on concerns about China’s international assertiveness and doubts in Europe about the wisdom of tying the EU’s fate more closely to Beijing. Washington should resist the temptation to try to scupper the deal by exploiting divisions in Europe; instead, it should develop a positive agenda with the EU that focuses on achievable priorities in an effective China approach.

Read more at How should Biden respond to the EU-China deal? | TheHill

US Economy: Analysis: Wall Street brushes off political turmoil, looks to economic rebound

Wall Street, despite major social and political problems still upbeat about US Economy.

Read more at: Analysis: Wall Street brushes off political turmoil, looks to economic rebound | Reuters

Politcs and Corporate Funding Don't Mix: Goldman, JPMorgan, Citi, Morgan Stanley Pause Contributions - Bloomberg

Goldman Sachs Group Inc., Citigroup Inc., Morgan Stanley and JPMorgan Chase & Co. plan to pause all political contributions, joining a growing list of companies changing or reviewing their donation policies in the aftermath of riots at the Capitol in the past week.

Goldman is still formulating its measures that will probably curtail future political giving to the elected leaders who fought to overturn the 2020 result. A representative for the firm confirmed the plan. JPMorgan, the largest U.S. bank by assets, said it’s planning a six-month suspension to both Republicans and Democrats. Citigroup said it intends to temporarily stop all political contributions in the current quarter.

Read more at: Goldman, JPMorgan, Citi, Morgan Stanley Pause Contributions - Bloomberg

USA: Biden plans stimulus aid worth trillions, pushes $2,000 cheques

United States President-elect Joe Biden plans to roll out an economic stimulus package worth trillions of dollars on Thursday that includes relief for unemployed Americans and rent forbearance for tenants.

The president-elect said Friday’s dismal jobs report — which saw the economy shed 140,000 jobs in December — makes it clear that Americans need more immediate and direct relief from the coronavirus pandemic and that taking action now will help the economy even with deficit financing.

Biden, a Democrat, said the bipartisan COVID-19 relief package passed by Congress in December was a very important step, but amounted to just a “down payment” on broader efforts needed to help Americans. The package included $600 cheques, but Biden wants the amount increased to $2,000

Read more at: Biden plans stimulus aid worth trillions, pushes $2,000 cheques | Business and Economy News | Al Jazeera

EU Economy: Italy to spend 222 billion euros of EU funds to revive economy

Italy plans to spend more than €222 billion from various European Union funds to revive its coronavirus-battered economy, a draft government document seen by Reuters showed on Thursday (7 January).

Rome is entitled to more than €200 billion from a European emergency programme designed to help those EU nations hardest hit by the coronavirus.

The €222 billion scheme includes resources from the emergency fund and other European programmes, including an agricultural fund, the document showed.

The plan still needs to be approved by the cabinet which will likely meet before f end of this week, according to government sources.

Prime Minister Giuseppe Conte is facing internal opposition from former premier Matteo Renzi, whose centrist Italia Viva party polls at no more than around 3% but is crucial for the government’s survival. Italian government totters as Conte, Renzi divide deepens.

Read more at: Italy to spend 222 billion euros of EU funds to revive economy – EURACTIV.com

The Netherlands: Population growth halves as coronavirus cuts immigration

The population of the Netherlands grew by 63,000 last year, half the increase recorded in 2019, according to new figures from national statistics agency CBS.

The increase, driven largely by EU migration, took the population to almost 17.5 million by the end of the year, the CBS said in its initial forecast. The decline in growth is due both to more people dying in the first half of the year and a downturn in the number of new immigrants and international students coming to the Netherlands, the CBS said.

Read more at: Population growth halves as coronavirus cuts immigration - DutchNews.nl

USA - A Trump Coup ? : ‘This is not America’: Europe reacts as Trump supporters wage chaos in US capital – by Emma Anderson

European politicians expressed concern over “highly disturbing” scenes as supporters of Donald Trump stormed the Capitol building and clashed with police in Washington amid a push to overturn the U.S. president’s electoral defeat.

The breach of the Capitol building came as Congress members were in the midst of counting Electoral College votes in the election — the final step toward certifying Joe Biden’s win. Vice President Mike Pence, who was presiding over the proceedings, was among those evacuated from the Senate chamber and Getty images broadcast on national television appeared to show an armed standoff at the door of the House of Representatives’ floor.

“In the eyes of the world, American democracy tonight appears under siege,” Borrell tweeted, saying the November election results must be respected. “This is an unseen assault on US democracy, its institutions and the rule of law. This is not America. The election results of 3 November must be fully respected.”

Read more at: ‘This is not America’: Europe reacts as Trump supporters wage chaos in US capital – POLITICO

The Netherlands: Back-of-the-pack Dutch Rutte Government under fire for slow coronavirus vaccine rollout – by Eline Schaart

The Dutch government's vaccine strategy has been flawed, Prime Minister Mark Rutte said Tuesday as he admitted watching on with frustration as other countries' citizens were given a jab against the coronavirus.

“Because the government's approach was not agile enough, vaccination will start later than in other European countries,” Rutte said during a debate in parliament.

The Netherlands will only vaccinate its first citizen, a care home nurse, on Wednesday — making it one of the last countries in the EU to begin giving coronavirus vaccines.

read more at: Back-of-the-pack Dutch under fire for slow coronavirus vaccine rollout – POLITICO

US Economy Poll: Americans Wary That Stock Market Bubble Will Burst

A new Rasmussen Reports national telephone and online survey finds that 61% of American Adults are at least somewhat concerned that the stock market bubble will burst and push the economy back into recession with 23% who are Very Concerned. Twenty-five percent (25%) don't share that fear, but that includes only seven percent (7%) who are Not at All Concerned.

Read more at Americans Wary That Stock Market Bubble Will Burst - Rasmussen Reports®

China-EU trade relations: China-EU investment agreement to inject new life into global economic recovery

China and the European Union (EU) on Wednesday announced they have completed investment agreement negotiations as scheduled.

The long-awaited result, which came after 35 rounds of negotiations in the course of seven years, is a milestone in EU-China relations and is expected to inject new vitality into the pandemic-battered global economy, European experts, officials and business leaders have said.

Read more at: Xinhua Headlines: China-EU investment agreement to inject new life into global economic recovery - China.org.cn

Britain an "Island" again: How U.K.'s Separation From EU Will Affect The Country

New Year's Eve - the ball drops, the champagne corks pop and the United Kingdom finally officially finishes its divorce from the world's largest trading bloc, the European Union. Brexit has huge consequences for business, travelers and regular people who built lives based on a Europe that spanned the English Channel. This is a big gamble for the U.K., one that started more than four years ago when one of the biggest cheerleaders for Brexit was a former London mayor named Boris Johnson.

Johnson and his fellow Brexiteers had no real plan for how to actually untangle decades of economic and legal integration with Europe. And so a country known for effective, sometimes dull governance was plunged into years of political chaos that cost two prime ministers their jobs; first, David Cameron, the man who called the referendum, even as he urged Brits to vote against it.

From the perspective of a political scientist, you could not have hoped to live through a more interesting time to study the politics of your country. The other thing for me that is fascinating, though, is that many - for many people who supported Brexit, leaving the European Union wasn't an end in itself. It was a means to an end. That is to say if we leave the European Union, then we can, dot, dot, dot. You fill in that blank as you want - become a more activist international player, deregulating the way the European Union would never let us. So actually, the real test of Brexit in many ways is yet to come, which is now you've got that freedom. What the hell are you going to do with it? And how are you going to make people's lives better because of it, despite the fact that you're in charge of an economy that is growing less fast than it would have done had we not left in the first place?

Read more at: How U.K.'s Separation From EU Will Affect The Country : NPR

US Economy: S&P 500, Dow close at record highs, dollar gains at end of tumultuous year

All three major indexes gained ground, with the Dow and S&P 500 picking up steam in the session’s final minutes to exit 2020 at record highs. Over the course of a historic year, the indexes both roared and plummeted as economic shutdowns to contain the coronavirus brought markets to their knees.

Read more at:S&P 500, Dow close at record highs, dollar gains at end of tumultuous year | Reuters