Bad day for EU 'powerhouse'

This morning we heard that Germany's growth would be minus 6.0 per cent for this year instead of the previously expected shrinkage of only 2.25 per cent, read here. At the end of last November, only five months ago the expectation was for a decline of 1 per cent in Germany, read here. Now it has been announced that Chrysler motor company is to seek bankruptcy protection with the following effects for its one time German owner:

Daimler said earlier this week that it would now be giving up its remaining 19.9% stake in Chrysler.

Under the deal, Daimler said it will also write off Chrysler's outstanding loans, and make three annual payments of $200m into the Chrysler's pension plans.

Daimler said it marked the final separation of the two firms.

The German firm bought Chrysler in 1998 for $38bn. Tough times for a country within which which some thought it might be exempt from this Anglo- Saxon recession!