devletmemuru

However, the rebound, which followed a 1.6 per cent fall in orders in December, will not ease fears about the fragility of the eurozone’s economic recovery. Although domestic orders showed the strongest growth in January, that could have reflected knock-on effects of foreign-generated business.

Eurozone service companies, meanwhile, have been hit by weak domestic demand, caused by rises in unemployment and the withdrawal of government emergency stimulus measures.

“Manufacturing was never our concern for Germany or the euro area as a whole,” said Gilles Moec of Deutsche Bank.

The cuts in the German federal budget, agreed after a 14-hour session of the Bundestag budget committee, will mostly affect spending on welfare and unemployment benefits, and on interest payments on government debt.

The action could trigger complaints from countries that have been urging Germany to increase public spending in order to stimulate domestic demand and help the recovery of the rest of the eurozone.

Members of the ruling centre-right coalition pushed through the cuts, which will trim spending from €325.4bn ($443.5bn, £294.5bn) to €319.5bn, and reduce the forecast deficit for 2010 from €85.8bn to €80.2bn.

The original budget was tabled by Wolfgang Schäuble, the finance minister, and proposed the highest deficit ever recorded in absolute terms – more than double the previous peak figure of €40bn.

It is rare for parliamentarians in Germany to attempt to reduce federal spending, rather than try to increase budget lines for their favourite projects.

However, members of both the majority Christian Democratic Union and minority Free Democratic Party in the coalition have argued that Germany needed to send a signal to the rest of Europe – particularly in light of the ongoing Greek economic crisis and pressure on the euro.

They said the gradual recovery of the German economy, and the continuing relatively low level of unemployment, made the cuts possible.

The spending figures were opposed by Social Democrats and Greens, but confirmation by the full Bundestag on March 19 seems certain.

Financial Times

Workers for Turkey’s former alcohol and tobacco monopoly, or Tekel, have decided to take a three-week break from their non-stop protests in central Ankara after winning a small victory in the courts.

The workers have been striking since Dec. 15, but Mustafa Türkel, head of the Tobacco, Drink, Food and Allied Workers' Union of Turkey, or Tek Gıda-İş, said, “This resistance has yet to end.”

As the workers were taking down their tents outside the union building, Türkel said, “They are going home to reunite with their families and summon the energy for the next term.”

The move to temporarily stop the strike comes after a decision by the Council of State to extend the Tekel workers’ grace period before transferring them to 4/C status, which would have required them to find new work in a public institution within 30 days. The workers were also upset about being required to accept reduced wages, benefits and rights.

After losing their jobs amid the privatization of Tekel, thousands began protesting and demanding to be transferred to other public offices with their rights intact.

Prime Minister Recep Tayyip Erdoğan, offering an 11-month temporary employment option, also known as 4/C, urged Tekel workers to sign the contracts by March 2. Labor confederations, however, brought the issue to the Council of State, demanding that the time limit set by the government be canceled. Following the court’s ruling, Tekel workers now have more time before they must make their final decision and will continue to receive their severance pay.

“We are still speaking on behalf of 11,000 workers. We will widen our strike as much as possible from April 1. Colleagues who are still working but will lose their jobs in May or June at the latest may go on strike to support us,” Türkel said. 

Around 125,000 workers of to-be-privatized state companies will face worse working conditions under 4/C contracts in case of the Tekel workers’ failure, Türkel said.

Calling on the ruling Justice and Development Party, or AKP, Türkel urged the introduction of an immediate solution. “Otherwise, Tekel workers will be present during any mass meeting or election campaign to say, ‘We are an example that they are liars.’”

“We will never give up resistance unless the 4/C monster is canceled,” Türkel said.