Chief of German Nationalbank Weidmann postulated an increase of wages of averaged 3%. The Nationalbank normally is ordered not to intervene into negotiations of industrie and unions. With this postulate Mr Weidmann could loose his countenance. In EU there is a long term small deflation and with an increase of the wages a small long term inflation, which economy needs, is possible. The money people earn could starting the domestic market. The starting domestic market could lead to more GDP-growth and that could take an QE similiar effect. The more money circulates the better the economy growths. The GDP-growth in Germany in 2013 was 0,4%. If it decrease more Germany would be recessive. The consumerprices in Germany are increased by 1,2% yty.
Furthermore the sanctions could lead to decreasing orders from Russia. Today the German government forbid the corporation Rheinmetall the delivery of a trainingscamp to Russia. 30000 Soldiers should be trained there per year. Other military orders should follow.
Russia will turn away from europe and look to China. Some european countries, also Germany have good relationships with Russia. The sanctions will have negative impacts on the economies of european countries. Sanctions to Russia could be a destabilising factor for europe, an instrument of calculated pressure for USA to Europe. China has already 46 long terrm treaties with Russia. Chinas orders are decreased in first quarter of 2014 by 15% to 17%. China will be glad, USA will furthermore sanction Russia, so more orders will come to the country.
As Russia administer ban on US and german agriculture products, Brazil will take advantage of this measure. Russia ban target cheese, fish, beef, pork, fruit, vegetables and dairy products. Russia may also impose measures on the aerospace, shipbuilding and auto industries in the future. The ban target nations that sanctioned or supported punitive measures against Russia, including Canada, Australia and Norway.
German agricultur companies export 2,5% of it’s output to Russia.