IN BRIEF (Page 16)
No major impact
Germany looks to have comfortably ridden out a sales tax hike that threatened to derail its recovery this year and should be little affected by other risks such as the euro's strength.
The government raised value-added tax by 3 percentage points to 19 percent on January 1 to ease the strain on public finances, a move analysts expected to put the brakes on growth this year.
Italy 'on course'
Italian Finance Minister Tommaso Padoa-Schioppa promised yesterday to stick to the government's economic priorities despite a political crisis.
Padoa-Schioppa said he had assured EU and euro zone counterparts at a meeting in Brussels that the political turmoil in Rome would alter the government's economic program, which includes plans to cut the deficit to EU limits this year.
India takes off
India's economy has "taken off" but rising prices are a key worry, the government said yesterday, a day before the release of the national budget expected to contain inflation-fighting measures.
Economists have expressed concern about India's economy overheating with growth running at more than 9 percent and inflation near two-year highs.
Profit falls
Iberia, the biggest Spanish airline, reported yesterday that net profit fell by 70 percent to 116 million euros in 2006 from the 2005 figure owing to increased fuel costs.
Analysts had expected the airline to post a net profit of 73.9-132.5 million euros in 2006, showing profits for the 11th year in a row.
Carrefour talks
French retailer Carrefour said yesterday it was in talks with as many as six potential partners to open retail stores in India and could sign a deal soon.
"We are close to signing an agreement. We are in talks with five or six Indian groups," said Dominique Coulombel, India-based sourcing manager for Carrefour. "It is a matter of months."
Tokyo tie-ups
Tokyo Stock Exchange head Taizo Nishimuro said yesterday that Asia's largest bourse would pursue further tie-ups in response to intense global competition, just days after linking with the London exchange.
"As international competition becomes increasingly fierce, (the exchange) needs to cooperate closely with other overseas bourses, but at the same time compete with them in areas where there should be competition," he told reporters.
Calming fears
Thailand's foreign minister yesterday sought to allay fears among opponents of a free trade deal with Japan that the kingdom could become a dumping ground for Japanese toxic waste.
Nitya Pibulsonggram said Thailand hoped to sign the delayed economic partnership agreement soon, but that it must address concerns about toxic waste.
Relations improve
Negotiating relationships between major economic powers have improved in recent weeks as they attempt to reach a breakthrough in World Trade Organisation talks, European Union trade commissioner Peter Mandelson said yesterday.
His comments came after World Trade Organisation director-general Pascal Lamy said on Friday that the Doha Round of trade talks must reach a breakthrough by July or they will be stalled once again.
Agencies
(China Daily 02/28/2007 page16)
