Is Germany falling prey to the eurocrisis?

Signs emerge that the German economy is faltering

After months of Germany playing reluctant parent to Europe through its financial woes, there are emerging signs that the German economy may be taking a hit itself.

Business Insider has reported that the latest manufacturing Purchasing Manager's Index (PMI), which measures major orders of goods and services by firms in manufacturing and non-manufacturing industries in the private sector, is showing a 36 month low, having fallen by 1.6 per cent this month.

This fall in Germany's PMI measure has been accompanied by an increase in the Spanish Exchange Traded Fund (ETF), the EWP against the German ETF, the EWG. These measures show that Spain's EWP has increased by 1 per cent whilst Germany's has fallen by 1 per cent.

Joe Weisenthal also points out that the Ifo Business Climate Index, a key measure of business confidence in the country, fell:

The Index fell to 105.3, below the 105.6 that was expected, and well below last month's 106.9.

Weisenthal explained this data as showing:

First of all, Germany's economy, as we've been writing about is cracking (finally) as all of its export markets are deteriorating.

More importantly, there's a growing sense that Germany is going to be on the hook, in some way or another, for the debts of its peers.

So even if the economy deteriorates, the Spanish market benefits from the fact that it may not go completely bust.

With the German economy begining to falter, he offers one final note of optimism:

An optimist might say that this is the best thing that could happen to Europe. After all, until Germany's economy weakens, it really has no incentive to see any kind of change, let alone economic stimulus, in Europe.

That said, Matt Yglesias at Slate has doubts:

The fact that a nation specializing in capital goods exports is vulnerable to shocks from abroad was eminently predictable so I'm not super-keen on the theory that German prosperity accounts for its political class' attitude toward the situation.

However the German public responds to the slow-down in its economy, these signs suggest that they may not be in a position to act as sole parent to Europe for much longer.

The German economy falters. Photograph: Getty Image

Helen Robb reads PPE at Oxford University where she is deputy editor of ISIS magazine.

Photo: Getty
Show Hide image

Jeremy Corbyn sat down on train he claimed was full, Virgin says

The train company has pushed back against a viral video starring the Labour leader, in which he sat on the floor.

Seats were available on the train where Jeremy Corbyn was filmed sitting on the floor, Virgin Trains has said.

On 16 August, a freelance film-maker who has been following the Labour leader released a video which showed Corbyn talking about the problems of overcrowded trains.

“This is a problem that many passengers face every day, commuters and long-distance travellers. Today this train is completely ram-packed,” he said. Is it fair that I should upgrade my ticket whilst others who might not be able to afford such a luxury should have to sit on the floor? It’s their money I would be spending after all.”

Commentators quickly pointed out that he would not have been able to claim for a first-class upgrade, as expenses rules only permit standard-class travel. Also, campaign expenses cannot be claimed back from the taxpayer. 

Today, Virgin Trains released footage of the Labour leader walking past empty unreserved seats to film his video, which took half an hour, before walking back to take another unreserved seat.

"CCTV footage taken from the train on August 11 shows Mr Corbyn and his team walked past empty, unreserved seats in coach H before walking through the rest of the train to the far end, where his team sat on the floor and started filming.

"The same footage then shows Mr Corbyn returning to coach H and taking a seat there, with the help of the onboard crew, around 45 minutes into the journey and over two hours before the train reached Newcastle.

"Mr Corbyn’s team carried out their filming around 30 minutes into the journey. There were also additional empty seats on the train (the 11am departure from King’s Cross) which appear from CCTV to have been reserved but not taken, so they were also available for other passengers to sit on."

A Virgin spokesperson commented: “We have to take issue with the idea that Mr Corbyn wasn’t able to be seated on the service, as this clearly wasn’t the case.

A spokesman for the Corbyn campaign told BuzzFeed News that the footage was a “lie”, and that Corbyn had given up his seat for a woman to take his place, and that “other people” had also sat in the aisles.

Owen Smith, Corbyn's leadership rival, tried a joke:

But a passenger on the train supported Corbyn's version of events.

Both Virgin Trains and the Corbyn campaign have been contacted for further comment.

UPDATE 17:07

A spokesperson for the Jeremy for Labour campaign commented:

“When Jeremy boarded the train he was unable to find unreserved seats, so he sat with other passengers in the corridor who were also unable to find a seat. 

"Later in the journey, seats became available after a family were upgraded to first class, and Jeremy and the team he was travelling with were offered the seats by a very helpful member of staff.

"Passengers across Britain will have been in similar situations on overcrowded, expensive trains. That is why our policy to bring the trains back into public ownership, as part of a plan to rebuild and transform Britain, is so popular with passengers and rail workers.”

A few testimonies from passengers who had their photos taken with Corbyn on the floor can be found here