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[waldron] 31/5/2023 09:19

ING


31 May 2023
Updated 7 minutes ago
3 min read


France: consumption plunges while inflation moderates

The second quarter got off to a poor start in France, with household consumption falling for the third consecutive month in April, and the outlook has been revised downwards. Against a backdrop of falling demand, inflationary pressures are moderating more quickly than expected


Food consumption in France is now 11% below its pandemic level

Consumption continues to plummet

In April, for the third consecutive month, consumer spending on goods fell. This time, the fall was 1% over the month, following a 0.8% fall in March. Household consumption of goods is now 4.3% lower than a year ago and 6.3% below its pre-pandemic level. The fall is due to lower energy consumption (-1.9% over one month) and a further fall in food consumption. Food consumption is now 11% below its pandemic level. The magnitude of the fall shows the significant impact of the inflationary context and the fall in purchasing power, which has led households to significantly alter their consumption habits.

These figures were eagerly awaited, as they are the first real activity data available for the second quarter. And we can now say that the second quarter got off to a poor start. It is clear that the French economy is slowing sharply. It is unlikely that consumption will make a positive contribution to GDP growth in the second quarter, especially as the slowdown is beginning to have an impact on the labour market, as suggested by the employment climate data published by INSEE last week.

The prospect of a recovery later in the year seems to be fading. This has led us to revise our growth outlook slightly downwards. We are now expecting GDP growth of 0.6% in 2023 and 0.7% in 2024, with the risks still tilted to the downside. Although France escaped recession last winter, today's indicators are a reminder that a recession in the coming months cannot be ruled out.
Strong moderation in inflationary pressures

Against this backdrop of falling demand, inflationary pressures are moderating. As expected, the pace of consumer price inflation eased in France in May. Inflation stood at 5.1%, down from 5.9% in April, while the harmonised index, which is important for the ECB, reached 6% in May, compared to 6.9% in April. The good news is that the fall in inflation is now visible in all consumer categories. Energy inflation fell sharply to 2% year-on-year in May. Unlike in other European countries, it remains positive, however, as the rise in household energy bills did only take place at the start of 2023, rather than in 2022, as a result of the "tariff shield" introduced by the government last year. Food inflation remains very high but is starting to fall, to 14.1% in May from 15% in April.

At 4.1% year-on-year, compared with 4.6% in April, growth in the prices of manufactured goods is also moderating, as is that of services, which stood at 3% compared with 3.2% in April. These last two developments are very good news, as they signal that the inflation peak is behind us, but also that inflation is likely to fall rapidly over the coming months. Indeed, the signs of moderation in inflationary pressures are mounting. For example, tensions in supply chains have disappeared and the growth in industrial producer prices, which gives an indication of changes in production costs for the manufacturing sector, slowed sharply to 5% year-on-year in April (compared with 9.5% in March). Over one month, producer prices fell sharply, by 4.1%, after +1.2% in the previous month. This indicates that growth in the prices of manufactured goods is set to slow markedly over the coming months.

Furthermore, business forecasts for selling prices fell sharply in May, particularly in the industrial and construction sectors, but also in services. Inflation in services should therefore continue to weaken over the coming months. Finally, given the fall in agricultural commodity prices on international markets and the weakness of demand, food inflation should continue to fall gradually, and more rapidly once the impact of the price agreement between food producers and big retailers has been absorbed, i.e. during the summer. Ultimately, inflation is likely to fall over the coming months, helped by weak demand. We are expecting inflation to average 4.7% over the year (5.7% for harmonised inflation).


Author
Charlotte de Montpellier

[ariane] 23/4/2023 06:44

Euro Rallies on Surging Economic Comeback



The message from the April Purchasing Manager Survey (PMI) is clear: the Eurozone economy is rallying back in a strong fashion thanks to a rebound in the bloc's services sector.

The headline Eurozone composite PMI read at 54.4 in April, breezing past expectations for 53.7 and representing an improvement on the previous month's reading of 53.7.

According to S&P Global, compilers of the widely respected PMI survey series, Eurozone business activity growth accelerated to an 11-month high in April.

The services PMI registered a blow-out 56.6, exceeding estimates for 54.5 and accelerating on March's 55.

This leaves little doubt that the European Central Bank (ECB) will hike interest rates in May and potentially again at subsequent meetings.

The Euro to Pound exchange rate rose a quarter of a per cent to 0.8838, the Euro to Dollar exchange rate was as low as 1.0940 ahead of the release and rallied to 1.0970 in the minutes following.

S&P Global says the upturn was driven by reviving demand and was accompanied by "the largest increase in employment for nearly a year."

On the face of it, ECB interest rate hikes are therefore not registering on demand and this could mean the bloc's core inflation level remains elevated for longer unless further rate hikes are delivered.

Expectations for further hikes underpin Eurozone bond yields and this is driving inflows of foreign investor capital, confirmed yesterday by the region's most recent Balance of Payments figures.

HSBC's economists expect the economic picture to improve further and further widen the current account surplus.

"This should underpin further upside for EUR-USD," says Dominic Bunning, a foreign exchange strategist at HSBC. "It is hard to argue that the EUR is too elevated. We continue to see a further rally to 1.15 in the months ahead."

A potential 'fly in the ointment' was the ongoing malaise in Eurozone manufacturing with the PMI for April reading at 45.5, consistent with contraction.

This is worse than the 45.5 the market was expecting and is down on the previous month's 47.3.

Germany is of particular concern as the German manufacturing PMI read at 44 in April, but it was the German services PMI at 55.7 that lifted the composite into growth territory at 53.9.

[ariane] 23/4/2023 06:41

Pound to Euro Rate Climbs after European Central Bank Says Lady Not for Turning

Modified: Thursday, 16 March 2023 18:46 GMT
Written by: James Skinner



"The Governing Council is monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area. The euro area banking sector is resilient," - European Central Bank.




The Pound to Euro exchange rate climbed while the EUR/USD dipped from intraday highs after the European Central Bank (ECB) pushed ahead with an earlier announced increase in all of its interest rates but said little about how it might be likely to proceed in the months ahead.

Europe's single currency struggled after the ECB raised the rates charged or paid on its main refinancing operations, marginal lending facility and commercial bank deposit facility lifted to 3.5%, 3.75% and 3% respectively but offered only ambiguous words about the outlook.

"The elevated level of uncertainty reinforces the importance of a data-dependent approach to the Governing Council’s policy rate decisions, which will be determined by its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission," the bank said in its statement.

"The Governing Council is monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area. The euro area banking sector is resilient, with strong capital and liquidity positions. In any case, the ECB’s policy toolkit is fully equipped to provide liquidity support to the euro area financial system if needed and to preserve the smooth transmission of monetary policy," it added.

Thursday's commitment "to respond as necessary to preserve price stability and financial stability," could mean the bank is still likely to continue raising interest rates in the months ahead and irrespective of the conditions in financial markets.

[misca2] 02/7/2022 08:42

invezz




Euro zone inflation hits new high: ‘there may be more gains to come’

By: Wajeeh Khan
on Jul 1, 2022

Headline inflation in euro zone was up 8.6% year-over-year in June: Eurostat

ECB to lift main rate back into the positive territory for the first time since 2014.

Euronext 100 index currently is down over 15% versus the start of the year.

Euronext 100 index is in focus on Friday after Eurostat (Statistical Office of the European Union) said inflation in the region hit a new high in June.


Senior euro zone economist reacts to the CPI print

Headline inflation, as per Eurostat, was up 8.6% on a year-over-year basis. This compared to 8.5% expected and 8.1% in the prior month. According to Maeva Cousin – Senior Economist at Bloomberg:

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Measures deployed by governments to stem the impact of households from surging commodity prices are failing to break the wave. As Moscow tightens its grip on gas supplies, there may be more gains to come.

CPI climbed into double digits in Spain for the first time since 1985. On the flip side, inflation was down 0.5% in Germany on a month-over-month basis. Experts, however, attribute the decline to new government subsidies and do not see it as a sign of peak inflation.


What to expect from the ECB this month?

The European Central Bank (ECB) is expected to raise rates later in July followed by another hike in September that will lift the main rate back into the positive territory for the first time since 2014.

Still, a possible “recessionR21; is yet to become a prominent narrative in the euro zone. According to ECB President Christine Lagarde:

We are still expecting positive growth rates due to the domestic buffers against the loss of growth momentum.

Euronext 100% is down more than 15% for the year.

[grupo guitarlumber] 12/2/2020 14:32

Surge in Euro Borrowing Could Store Up Trouble for Later
Print
Alert

By Paul J. Davies

The euro is cheaper than many think it ought to be. One explanation: A surge in euro-based borrowing abroad is weighing the currency down. This could make the euro prone to wild swings in the future.

A variety of actors are borrowing euros and exchanging them for other currencies, taking advantage of the region's superlow, even negative interest rates.

Some of this demand comes from hedge funds putting on so-called carry trades, in which they borrow in euros and swap them into higher-yielding currencies such as the Brazilian real or the Mexican peso.

Data from the Commodities Futures and Trading Commission show leveraged funds had at the start of February, the most recent data available, nearly the biggest volume of net shorts or bets against the euro since the end of 2016.

"This is a sign that leveraged investors are selling the euro to fund trades in more volatile, higher-yielding currencies," said Jordan Rochester, a currency strategist at Nomura.

There has also been a surge in borrowing from companies taking advantage of those low rates. And European banks are increasingly using their euro deposit base to lend abroad.

The euro has slipped since the start of February and is trading close to its weakest point against the dollar in over three years, with one euro buying $1.09.

Yet macroeconomic factors suggest the euro should be getting stronger. For one, the difference in interest rates between Europe and the U.S. has shrunk, which should erode the attractiveness of the dollar over the euro as an investment.

The eurozone has also seen growing capital inflows, which should give the euro a boost. It gets steady inflows from its current-account surplus -- roughly speaking, it exports more than it imports. There have also been strong flows into European stocks and bonds and increased foreign direct investment, factors that switched from heavy outflows to inflows since late 2017.

These things combined have swung from outflows of about EUR400 billion ($436 billion) in 2017 to inflows of more than EUR450 billion in the past year, according to George Saravelos, a currency strategist at Deutsche Bank.

"Despite the huge swing in [capital flows], the euro has stayed weak. This is unprecedented," he said. In a recent note, he forecast that the euro could move toward $1.08 in the near term.

One reason the euro has stayed weak is that these inflows have been balanced by other outflows from the surge in euro borrowing. The euro has weakened 3.5% against the dollar in the past year, suggesting these other outflows have been strong.

These cross-border borrowing trends keep the euro weak and calm when investors are happy to take risks, but could spark sharp bouts of volatility and send the euro suddenly higher when investors seek safety, Mr. Saravelos said.

So far, most analysts and investors don't see extreme levels of carry trades, like those done using the Japanese yen and emerging-market currencies before the financial crisis of 2008. Those trades unraveled violently, causing the yen to strengthen suddenly.

Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers, thinks investors are making smaller bets on emerging-market currencies because the trades have become riskier.

"A lot of countries aren't running managed foreign exchange any more," he said. "That volatility cuts into your carry."

European banks have recovered their appetite for lending outside the region, according to Mr. Rochester. Since 2016, the cumulative flow of bank loans from European banks to overseas borrowers has grown from the equivalent of 50% to 70% of annual gross domestic product, according to Nomura. Cumulative outbound currency and deposit flows have risen from about 40% to 55% of GDP in the same period. Loans could go to other non-European banks, or to companies for their trading or investment needs, for example.

These and other outflows increase the supply of euros in international currency markets, which depresses the euro's relative value.

International borrowers have flocked to European bond markets, too. U.S. companies issued a record amount of euro-denominated debt last year, including companies such as Coca-Cola Co. and International Business Machines Corp.

And last year, emerging-market countries sold a record EUR52 billion of government-backed sovereign, supranational and agency debt, smashing the previous EUR41 billion record set in 2016, according to Dealogic, a data provider. This year is setting a record pace already.

The longer rates stay ultralow, the more investors' hunt for yield could encourage them to juice returns with borrowed money. "If nothing happens, then the balance of [money] flows is to the continuation of carry trade dynamics," Mr. Saravelos said.

Some analysts don't think the euro borrowing will necessarily end in tears. In a market correction, there could be a balance between carry trades unwinding and money flowing out of European stocks that would limit any sharp rise in the euro, according to Paul Meggyesi, a currency strategist at JPMorgan.

Write to Paul J. Davies at [e-mail]



(END) Dow Jones Newswires

February 12, 2020 08:50 ET (13:50 GMT)
Copyright (c) 2020 Dow Jones & Company, In

[waldron] 28/11/2019 12:18

In this article

The ECB is presiding over a low growth, low yielding euro environment…
…making a 2017-like EUR/USD rally unlikely
Appealing characteristics of a funding currency
EUR is no longer cheap as its fair value has declined
German stimulus the key hope for the euro – but unlikely
Slowly creeping euro Japanization
Unexciting, uninspiring euro prospects with downside risks

[the grumpy old men] 02/11/2019 04:52

economics
Nations Next in Line to Adopt Euro Eye Balanced 2020 Budgets
By Jasmina Kuzmanovic
and Slav Okov
31 octobre 2019 à 10:10 UTC+1 Updated on 31 octobre 2019 à 13:22 UTC+1

Bulgaria, Croatia reworked public finances on road to adoption
Euro area members wary after Greek crisis, Latvia laundering

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The governments of Croatia and Bulgaria approved balanced budgets for 2020, continuing their efforts to clean up public finances as they push forward with their efforts to adopt the euro.

While both countries meet the criteria to switch to the single currency, they must overcome potential reluctance from euro-area countries to accept new members in the wake of the Greek sovereign debt crisis and Latvia’s money-laundering scandal.

Bulgaria’s government said it would address weaknesses in its lenders found by the European Central Bank and is vying to join the single currency’s ERM-2 waiting room by April. Croatia is aiming for ERM-2 entry by mid-next year and euro adoption by 2023 after slashing 10 percentage points off of its public debt in the last three years.

“Croatia’;s economy will continue to grow at a solid rate,” Finance Minister Zdravko Maric said before the cabinet approved the draft budget at a meeting in Zagreb on Thursday. “The government will use additional revenue to further lower public debt levels and for additional tax easing.”
Euro Aspirations

More countries are applying to join the single currency

If they switch to the euro, Bulgaria and Croatia will follow Estonia, Latvia, Lithuania, Slovakia and Slovenia which, like all ex-communist countries that have joined the European Union since 2004, pledged to ditch their national currencies.

Of the bloc’s largest eastern members, Hungary, Poland and the Czech Republic have no immediate plans join the euro zone despite being bound by EU law to eventually do so. Romania expressed an interest in May last year after shelving previous plans.

Bulgarian Finance Minister Vladislav Goranov announced the cabinet’s approval of the budget, which returns the Balkan state to deficitless public finances after a military-jet purchase widened this year’s fiscal gap to 2.1% of economic output.

After a bank run five years ago raised the Black Sea state’s deficit beyond EU limits, Bulgaria has been narrowing its budget gaps since 2016 and has one of the bloc’s lowest levels of debt, projected at 17% of gross domestic product by 2022.
Pegged Currencies

Croatia has also successfully overhauled public finances after a record recession that ended in 2014. It exited the EU’s excessive-deficit monitoring procedure last year after running balanced budgets since 2017 and slashing public debt by 10 percentage points to a projected 68% of GDP for 2020.

Both nations’ governments have formally expressed their intention to join the ERM-2. The mechanism limits exchange-rate moves against the euro for two years, which should pose no problem for the Bulgarian lev and Croatian kuna, as they’ve already been synced to the euro for decades.

If the countries meet the convergence criteria at the end of the period, they’ll adopt the euro.

The draft budgets will now go to each country’s respective parliaments for approval.

— With assistance by Samuel Dodge

[florenceorbis] 28/9/2019 13:02

France a ‘better option’ than Germany as trade war uncertainty hits Europe
Published Fri, Sep 27 2019 8:22 AM EDTUpdated 3 hours ago
Silvia Amaro
@Silvia_Amaro




Key Points

They are two of the biggest economies in the euro zone and since the sovereign debt crisis emerged in 2011, Germany has always been seen as the most resilient.
France has a much higher public debt pile and has been more exposed to the financial distress taking place in countries, such as Italy.
However, the tables have turned.

GS - Macron and Merkel
French President Emmanuel Macron (L) gestures as German Chancellor Angela Merkel listens on during a press conference on the situation in Sahel during the G7 summit in Biarritz, south-west France on August 25, 2019.
IAN LANGSDON | AFP | Getty Images

The U.S.-China trade war has changed how economists look at France and Germany, two of Europe’s largest economies.

The French economy is now more resilient and more attractive than Germany, three analysts told CNBC, in what marks a clear shift in the way both economies compare.

They are two of the biggest economies in the euro zone and since the sovereign debt crisis emerged in 2011, shaking the foundations of the region, Germany has always been seen as the most resilient. France has a much higher public debt pile and has been more exposed to the financial distress taking place in countries, such as Italy. However, the tables have turned.

“France is the better option. It is less exposed to the downturn in global manufacturing caused largely by (the) trade war,” Holger Schmieding, chief economist at Berenberg bank told CNBC via email Thursday.

The ongoing trade war between China and the United States has started to shift the economic picture in Europe. Germany, the largest European economy, is largely dependent on exports and on its manufacturing sector, which makes it more exposed to the vulnerabilities in global trade.
The French-German axis remains extremely important for Europe but at the same time, the last years have shown that this axis functions best when both countries are on equal footing.
Carsten Brzeski
Economist at ING Germany

Germany’s share of manufacturing in gross domestic product (GDP) is almost 25%, according to recent data from UBS. In comparison, manufacturing in France represents less than 15% of its GDP.

“Global trade tensions inevitably mean that export-dependent countries are under greater pressure than economies where domestic consumption plays a greater role. That’s why Germany is really feeling the heat from (President) Trump and China, while France might still be in a somewhat more comfortable place,” Carsten Nickel, managing director of the research firm Teneo, told CNBC.

In a report published Thursday, UBS analysts have also said that, “longer-term,” they favour France over Germany. They argued this was because French demographics are more growth friendly; French investment and growth rates are above those of Germany; and long-term policies on structural reforms are more substantial in France.

Data released in August showed that the German economy contracted 0.1% in the second quarter of this year compared with the previous three-month period. On the other hand, France grew at 0.3% in the same period.

Forecasts from UBS point to a growth rate of 1.2% in France this year and of 1% in 2020 – above the euro zone’s average. In comparison, Germany is expected to grow 0.5% this year and 0.6% in 2020.

However, it will be important to monitor the coming quarters.
watch now
VIDEO04:15
Macron: China trade agreement must be good for the world

“I would not be surprised if France will actually follow the downswing of the German economy in the coming quarters. It will be hard to escape trade conflicts, Brexit and the global manufacturing slowdown,” Carsten Brzeski, economist at ING Germany, warned in an email to CNBC this week.
What does this mean for the future of the EU?

The relationship between France and Germany is critical for the future of Europe. They are two of the largest European economies, two of the founding members of the European Union – the political and economic partnership that brings together 28 European nations, and often they define the agenda at the EU level.

“In general, the French-German axis remains extremely important for Europe but at the same time, the last years have shown that this axis functions best when both countries are on equal footing,” Brzeski said.

He explained that the ideas that France has for further European integration may not advance if Germany struggles economically.

“When France was in economic doldrums, Berlin killed many proposals. In case positions might reverse now, France would face a Germany which is confronted with a stagnating economy and the least thing they will think about is further European integration,” Brzeski said.

[adrian j boris] 28/9/2019 08:39

The Times: Rail passengers will be able to travel direct from London to Germany and southwest France for the first time under plans for a high-speed network as Eurostar, the cross-Channel train company, announced a project to create an integrated network spanning five countries.



The Daily Telegraph: Eurostar announced a project yesterday under which the cross-Channel train company could merge with a rival operator on the Continent to create an integrated network spanning five countries.

[the grumpy old men] 21/9/2019 11:25

Pound Could Slump to Parity on a Hard Brexit, BNY Mellon Says
By Ruth Carson
20 septembre 2019 à 06:27 UTC+2

Dhar recommends long positions in FTSE 100 as Brexit hedge

Cable may rise 5% from 1.25 level if U.K. secures a deal

Brexit and `Atrocious' Current Account Deficit to Weigh on Pound: Weinberg

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1:36
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Sterling could tumble to parity with both the dollar and the euro if the U.K. crashes out of the European Union without a deal, according to Shamik Dhar, chief economist at BNY Mellon Investment Management.

“It’s pretty clear under ‘no deal’ you’ll get a very big fall in sterling -- I’d say 10% to 15% from here,” said Dhar, a former senior manager in monetary analysis at the Bank of England. “We’ll test parity against the euro, probably the dollar as well in that circumstance, and we’ll be entering a world where the central bank will be cutting rates.”

[grupo guitarlumber] 06/9/2019 11:55

Signatories of the letter include the German states of Baden Württemberg, which initiated it, and Bavaria; three neighbouring regions of France (Auvergne-Rhône-Alpes, Bourgogne-France-Comté and Grand Est); two in Austria (Tyrol and Vorarlberg) and two in Italy (Val d'Aosta and Bolzano-Alto Adige).

[grupo guitarlumber] 06/9/2019 11:51

Swiss-EU relations
Neighbouring regions urge EU understanding for Switzerland
This content was published on September 4, 2019 8:49 PM Sep 4, 2019 - 20:49
Swiss and EU flags

The European Union and Switzerland have been negotiating a framework deal on bilateral relations since 2014.
(Keystone)

Nine regions or provinces in countries bordering Switzerland have called on the European Union to show understanding and allow the Swiss more time to agree a framework deal.

In a joint letter to EU Commission President Jean-Claude Juncker on September 2, they expressed concern that recent developments were a cause for concern, particularly the Swiss-EU stock exchange spat which could create a “downward spiral”, according to media reports on Wednesday. The letter, of which the Swiss news agency Keystone-ATS obtained a copy, was also sent to Juncker’s successor Ursula von der Leyen.

+ Read more about the Swiss-EU stock exchange spat

The regional leaders deem the framework deal negotiated between the European Union and Switzerland to be just and fair but fear the consequences for neighbouring regions if it were to be rejected in a Swiss popular vote. They say that Switzerland’s political system of direct democracy means it needs the time to bring all social groups on board.

Signatories of the letter include the German states of Baden Württemberg, which initiated it, and Bavaria; three neighbouring regions of France (Auvergne-Rhône-Alpes, Bourgogne-France-Comté and Grand Est); two in Austria (Tyrol and Vorarlberg) and two in Italy (Val d'Aosta and Bolzano-Alto Adige).

Since 2014, Bern and Brussels have been trying to formalise long-term ties in an institutional framework agreement. Relations are presently covered by around 120 separate bilateral accords negotiated since a 1992 referendum in the Alpine state rejected joining the European Economic Area.   The proposed overarching agreement covers five of the larger bilateral deals: free movement of people, mutual recognition of industrial standards, agricultural products, air transport, and land transport. 239;

But with Swiss parliamentary elections due in October, the deal has become entangled in domestic politics, with opposition from both the left and right.

Keystone-SDA/jc

[netcurtains] 26/6/2019 12:46

Interestingly the Labour party tried to introduce SUNDAY elections in 2013. If the Conservative party had not voted against this idea its quite likely Brexit would never have taken place!

We dont really live a proper democracy. All elections currently are on Thursday. This means workers and students with long commutes and long hours on shift are less likely to vote compared to a pensioner. Basically the Brexit Voter tends to have 14 hours to vote and a Remain voter has about 30 minutes.

We need to level the playing field by having week-end (or bank holiday) elections and referendums as per Japan, Australia, New Zealand, Germany, South Korea, France, Finland, India even Russia.

If you agree and want a FAIR referendum next time (remember 28% did not vote - most of them young worker voters) please sign the petition for SUNDAY elections. you might not agree with Sunday but at least it gets the debate started.

[the grumpy old men] 13/6/2019 18:09

German court says Catholic Church can keep billions secret
June 13, 2019 at 9:05 am
By The Associated Press
The Associated Press

BERLIN (AP) — A court in the western city of Cologne has ruled that Germany’s richest Catholic archdiocese doesn’t have to reveal what it does with the billions it receives from taxpayers each year.

The investigative journalism group Correctiv had sued for the information, arguing that the Archdiocese of Cologne should be bound by laws granting media access to government information because much of its revenue comes from an income tax paid by Catholics in Germany.

But Cologne’s administrative court ruled Thursday that the way the archdiocese invests its annual income of almost 3 billion euros ($3.4 billion) is protected by the church’s constitutionally guaranteed autonomy.

The Archdiocese of Cologne welcomed the ruling, saying it already provides “full transparency and regular reports” on its long-term investments, which it said follow ethical principles.

The Associated Press