Germany’s Fuel Tax Cut Draws Criticism as Short-Term Relief Measure

Germany has approved a temporary reduction in fuel taxes, lowering duties on petrol and diesel by around €0.17 per litre for a limited period beginning in May. The measure, adopted by the Bundestag as part of a broader relief package, is designed to cushion households and businesses from rising energy costs linked to ongoing geopolitical tensions and elevated oil prices.

While the policy offers immediate financial relief, it has prompted criticism from economists and energy policy experts, who question both its effectiveness and longer-term implications. Among them, Claudia Kemfert, head of the Energy, Transport and Environment department at DIW Berlin, argues that such measures risk addressing symptoms rather than underlying structural challenges.

Kemfert describes the fuel discount as a costly and inefficient intervention, warning that a significant share of the financial benefit may not reach consumers. Instead, there is a risk that oil companies could absorb part of the tax reduction through pricing mechanisms, a concern acknowledged by policymakers who have indicated that market behaviour will be monitored.

Critics also point to the broad nature of the measure, noting that it does not differentiate between income groups. As a result, higher-income households, which typically consume more fuel, may benefit disproportionately. This has led to calls for more targeted forms of support aimed at vulnerable groups.

Beyond distributional concerns, the policy has raised questions about its alignment with Germany’s longer-term energy strategy. Analysts warn that reducing fuel costs, even temporarily, may weaken incentives to cut consumption or shift towards alternative energy sources. In this context, the measure is seen by some as reinforcing dependence on fossil fuels at a time when governments across Europe are seeking to accelerate the transition to cleaner energy systems.

Recent commentary at the European level has similarly emphasised that energy support measures should remain temporary and carefully targeted to avoid placing additional strain on public finances or undermining climate objectives. The European Commission has reiterated the importance of combining short-term relief with structural reforms, including investment in renewable energy, improved efficiency and demand reduction.

The German government, however, maintains that the tax cut is a necessary response to exceptional market conditions. Officials argue that the measure provides rapid and tangible relief at a time when energy costs are placing increasing pressure on both households and industry.

The debate highlights a broader policy tension currently visible across Europe: how to balance immediate economic support with the longer-term goal of reducing fossil fuel dependence. While the fuel discount may ease short-term pressures, its effectiveness in contributing to a more resilient and sustainable energy system remains contested.

Source: DIW

Russian Billionaire Wealth Climbs to New High as Sanctions Reshape Economic Landscape

The combined wealth of Russia’s richest individuals has reached a new peak, underscoring how commodity-driven sectors have adapted to shifting trade dynamics despite ongoing Western sanctions.

According to data published by Forbes and cited by Reuters, the total value of assets held by Russian billionaires rose to approximately $696 billion in 2026, marking an increase of around 11 percent compared to the previous year. The figures indicate a recovery and expansion beyond pre-war levels, when aggregate wealth stood at roughly $606 billion in 2021.

The ranking remains dominated by industrial and energy-focused figures. Alexei Mordashov, whose interests span steel and mining through Severstal, retained the top position, followed by Vladimir Potanin, a key player in the global nickel market. Oil sector veteran Vagit Alekperov and gas producer Leonid Mikhelson also remain among the country’s wealthiest individuals.

The rise in fortunes has been closely linked to the performance of natural resources, which continue to underpin Russia’s economic model. Elevated global prices for oil, gas and metals, combined with the reorientation of exports towards Asia and other non-Western markets, have supported revenues for major producers. At the same time, the withdrawal of some international competitors has strengthened domestic market positions for large, locally controlled groups.

However, the increase in wealth does not fully reflect liquidity or global accessibility. A significant portion of assets remains tied to domestic markets or subject to restrictions, limiting the ability of individuals to deploy capital internationally. Analysts note that valuation gains are often influenced by currency movements and local market conditions rather than a full restoration of external investment flows.

In a global context, Russian fortunes remain comparatively modest. The world’s richest individuals continue to be led by technology-sector entrepreneurs such as Elon Musk and Larry Page, whose wealth is supported by highly valued, globally integrated companies and deeper capital markets.

Macroeconomic indicators suggest a more constrained outlook. The International Monetary Fund expects Russia’s economic growth to moderate to around 1 percent in the near term, following stronger expansion in 2024. While energy revenues and state spending continue to provide support, the broader trajectory reflects ongoing structural pressures linked to sanctions, limited foreign investment and shifting trade patterns.

The latest wealth data highlights a divergence within the Russian economy. While key sectors tied to natural resources have demonstrated resilience and, in some cases, growth, the broader environment remains shaped by restricted access to international markets and a gradual reconfiguration of economic ties.

German Companies Adjust to Uncertainty as Geopolitical Pressures Disrupt Planning

Geopolitical developments are increasingly shaping how companies in Germany approach planning and decision-making, with many reporting reduced visibility over the economic outlook, according to a recent survey by Atradius.

The study, conducted in March among nearly 200 businesses across a wide range of sectors, indicates that more than half of respondents have experienced a decline in predictability over the past year. A large majority also acknowledge that geopolitical factors are influencing their operations, although the intensity of this impact varies.

“Geopolitical risks are no longer an abstract scenario, but have a concrete impact on business decisions,” said Frank Liebold, Country Director Germany at Atradius, highlighting that companies with international supply chains and export exposure are particularly affected.

Despite recognising these risks, many organisations do not feel fully equipped to respond. Around half of respondents describe their level of preparedness as insufficient, while fewer than half consider themselves well positioned to manage potential disruptions. Assessments of resilience remain moderate overall, with companies giving relatively low scores to their own ability to withstand external shocks.

“The results reveal a structural discrepancy: companies recognise the risks but do not feel sufficiently equipped to deal with them,” Liebold added.

In response, businesses are prioritising measures aimed at maintaining operational stability. Adjustments to pricing policies, strengthened risk management practices and the accumulation of financial buffers are among the most common actions. By contrast, more fundamental changes, such as restructuring supply chains or scaling back investment plans, are less widespread at this stage.

“Many companies are currently focusing on ensuring stability and managing risks in their day-to-day operations. This is understandable given the current situation,” said Liebold.

Companies are also concentrating on areas within their direct control. This includes reinforcing core activities, improving flexibility in operations, expanding digital capabilities and reviewing product portfolios. Some are also placing greater emphasis on internal communication with employees as part of their response to ongoing uncertainty.

The findings suggest that while geopolitical risks are now firmly embedded in corporate decision-making, most companies are responding with short-term adjustments rather than broader strategic shifts, as they navigate an increasingly complex operating environment.

Colliers Survey: Office Strategies Diverge by Company Size in Romania

Office strategies in Romania are becoming increasingly differentiated depending on company size, with large organisations focusing on stability while smaller firms show greater openness to expansion, according to a survey conducted by Colliers among 101 companies.

The data shows that approximately 87% of large companies, defined as those with more than 500 employees, plan to maintain their current office footprint in 2026. This points to a shift away from expansion toward optimisation and efficiency. By contrast, smaller companies, with fewer than 100 employees, are more likely to consider expansion, including into new cities, reflecting a higher degree of flexibility.

Mid-sized firms, employing between 100 and 500 people, appear to be in a more transitional phase, adjusting both workspace strategies and organisational structures in response to evolving collaboration needs.

Differences are also visible in how companies assess their business outlook. Around 68% of large organisations report a positive perspective on their performance, compared to roughly half of mid-sized firms. Workforce planning follows a similar pattern, with nearly two-thirds of large companies expecting stable employee numbers, while only about 40% of mid-sized firms indicate the same level of predictability.

Patterns of office use vary across segments. More than 40% of small firms report that at least 70% of their employees are present in the office on a typical day. In contrast, attendance levels in mid-sized and large organisations tend to be lower, reflecting more widespread adoption of hybrid working models. Formal office attendance policies are also more common among larger companies, with over 40% having introduced structured rules on physical presence, compared to around 30% of mid-sized firms and 12.5% of small businesses.

Organisational priorities differ significantly, particularly in relation to employee wellbeing and cost management. Approximately 85% of large companies have implemented mental health support programmes, compared to 26% of small firms. At the same time, high rent and maintenance costs remain a key concern across all segments, while mid-sized companies place greater emphasis on improving space efficiency.

Challenges related to office use also vary. Smaller firms most frequently cite accessibility, particularly distance from employees’ homes, as a constraint. Larger organisations, by contrast, highlight the rigidity of existing office layouts and the difficulty of adapting them to changing requirements.

Technology adoption continues to expand across the market. Mid-sized companies appear particularly active, with the use of artificial intelligence-based solutions exceeding 40%, approaching levels seen in larger organisations.

“The office space market is no longer evolving uniformly, but is becoming increasingly fragmented. Company size directly influences how decisions related to space, people, and technology are made. We are seeing a transition from a general hybrid work model to differentiated strategies, where the focus is increasingly shifting toward efficiency, adaptability, and employee experience,” said Daniela Popescu, Director, Tenant Services & Workplace Advisory at Colliers.

The findings suggest that both the labour market and the office sector in Romania are entering a more mature phase, with companies adopting tailored approaches to workspace strategy rather than following a single, uniform model.

Offshore Wind in Poland: Industry Pushes Back Against Tourism and Environmental Concerns

Offshore wind energy development in Poland is accelerating, with industry stakeholders seeking to address concerns related to tourism and environmental impact through data and experience from established European markets.

The sector is emerging as a key component of Poland’s long-term energy strategy, with initial investments estimated at more than PLN 130 billion and potential total expenditure reaching up to PLN 500 billion by 2040. Proponents argue that offshore wind will support energy security, stabilise electricity prices and contribute to industrial growth.

At the same time, the expansion of offshore projects has been accompanied by public debate over potential negative effects, particularly on coastal tourism and marine ecosystems. Industry representatives say these concerns are not supported by available evidence when projects are implemented in line with regulatory standards.

“The public debate surrounding offshore wind energy is still rife with oversimplifications and inaccuracies. Yet both European experience and available research clearly show that offshore wind poses no threat to either tourism or the environment, provided projects are carried out in accordance with applicable standards. It is crucial to base the discussion on data, not on repeated myths,” said Małgorzata Żmijewska-Kukiełka, CEO of Green Transition HUB.

Industry data indicates that the emissions generated during the manufacturing and installation of offshore turbines are offset within the first years of operation, after which the assets contribute to net carbon dioxide reductions compared to fossil fuel-based energy sources. Developers also point to increasing recyclability of turbine components and regulatory requirements for decommissioning plans.

Concerns regarding tourism impacts have been a recurring theme in public discussions. However, offshore wind farms in Poland are planned at distances of several dozen kilometres from the coastline. Experience from countries such as Denmark, Germany and United Kingdom suggests that similar developments have not led to measurable declines in visitor numbers or holiday rental demand. In some locations, wind farms have been incorporated into tourism offerings, including boat tours and educational facilities.

Environmental impact remains a key consideration in project development. Offshore wind projects in Europe are subject to multi-year environmental assessments covering marine habitats, fish populations and bird migration patterns. According to industry-backed analyses, no significant long-term population declines have been directly attributed to operational wind farms.

Construction-related impacts, such as underwater noise during foundation installation, are addressed through mitigation measures. At the same time, some studies indicate potential ecological benefits, including the creation of artificial reef structures around turbine foundations and reduced fishing activity in surrounding areas, which may support marine biodiversity.

The sector continues to emphasise the need for evidence-based discussion as Poland moves forward with one of its largest infrastructure programmes, while public scrutiny remains focused on balancing energy transition goals with environmental and social considerations.

Swiss Life Asset Managers Mandated to Manage VBL Residential Portfolio

Swiss Life Asset Managers has been appointed to take over portfolio and asset management responsibilities for a residential property portfolio owned by Versorgungsanstalt des Bundes und der Länder, following a restructuring of the assets into a dedicated fund.

The portfolio is being transferred into the newly established “Via Nova Wohnen” property fund as part of a broader reorganisation aimed at ensuring long-term stability, targeted development and improved management of regulatory and sustainability requirements.

Under the mandate, Swiss Life Asset Managers in Germany will be responsible for overseeing portfolio strategy, asset performance and development planning, in line with VBL’s long-term investment objectives. The focus includes coordinated investment planning, refurbishment programmes and the gradual decarbonisation of the housing stock.

“The reorganisation of VBL’s residential portfolio demonstrates the added value that professional third-party asset management can deliver in complex portfolio structures,” said Holger Matheis, CEO of Swiss Life Asset Managers in Germany. “Institutional owners face the challenge of making their residential property portfolios sustainable in the long term. This is precisely where we come in: with clear governance, integrated management and robust decision-making frameworks across the entire lifecycle of a portfolio. The VBL mandate underscores this commitment.”

The new fund structure is intended to support more transparent and consolidated management of the portfolio, enabling a consistent approach to capital expenditure, modernisation and long-term asset positioning.

Christina Schädler, Head of Real Estate at Swiss Life Asset Managers in Germany, added: “The VBL mandate involves the structured management of a large residential property portfolio over many years. This requires robust data, clear processes and an integrated view of investments, decarbonisation and portfolio development. This is the core competence of our portfolio and asset management, and our leading Digital Real Estate Platform also supports us in this.”

Swiss Life Asset Managers said the mandate will be managed through its Europe-wide digital real estate platform, designed to standardise processes, improve data transparency and support decision-making across the portfolio lifecycle.

The restructuring does not involve a sale of assets. VBL will remain the beneficial owner through its fund units and retain strategic control over the portfolio. The changes relate to the investment structure and management framework, with no impact expected on tenants or existing property management arrangements.

The mandate reflects continued demand among institutional investors for specialised third-party asset management solutions, particularly as regulatory and environmental requirements increase across European residential markets.

Photo: Holger Matheis, CEO of Swiss Life Asset Managers

Alior Bank Expands Private Banking Office at Ocean Office Park in Kraków

Alior Bank has expanded its office footprint at Ocean Office Park B in Kraków, following a new lease agreement with Cavatina Group. The additional space will be used by the bank’s private banking division, extending its presence at the complex after entering the building last year.

From 2025, the bank will occupy approximately 7,000 square metres within the scheme. The expansion forms part of a broader consolidation of Alior Bank’s operations in Kraków into a single location.

“Increasing the leased space at the Ocean Office Park complex in Kraków for the private banking segment marks the next stage in the development of Alior Bank’s presence at this location, which began last year. Our experience to date confirms that the space provides access to modern technologies and comfortable, discreet working conditions, whilst also fostering collaboration between teams and the building of lasting relationships with clients,” said Michał Polanowski, Head of the Logistics Department at Alior Bank.

Ocean Office Park B is located in the Zabłocie district on Klimeckiego Street and forms part of a wider office complex developed by Cavatina Group. The building offers modern office space and has achieved BREEAM certification at the Excellent level.

Cavatina Group said the building is nearing full occupancy.

“We are delighted with the trust Alior Bank has placed in us by entrusting us with another project from its portfolio, thereby expanding the current floor space. The occupancy rate at Ocean Office Park B currently stands at 97%, of which 22,000 sqm has already been let, whilst the Ocean D building is 100% let. We would like to thank our tenants for their trust,” said Natalia Jaglińska, Leasing and Property Management Director in Kraków at Cavatina Group.

The transaction was supported by CBRE, which advised on the leasing process.

“The transaction marks the culmination of a two-stage consolidation process, meticulously carried out over the past two years, to bring Alior Bank’s Kraków offices together in the modern Ocean Office Park complex. The addition of the private banking branch to Alior Bank’s previously relocated structures in Kraków will provide the bank’s clients with more convenient access to a comprehensive range of services, whilst strengthening the bank’s image and improving the working environment for the local team,” said Maciej Dubiel, Head of CBRE’s Katowice office.

The Ocean Office Park complex continues to attract tenants across sectors, reflecting sustained demand for modern office space in Kraków.

Prague New Housing Market Holds Steady as Supply Constraints Persist

Demand for new apartments in Prague remained broadly stable in the first quarter of 2026, according to data compiled by major developers, despite a decline compared to a strong period a year earlier.

Approximately 1,800 new apartments were sold during the quarter, a figure largely unchanged from the previous quarter and in line with the average quarterly sales volume recorded over the past two years. However, this represents a decrease of around 30% year-on-year, reflecting a high comparison base rather than a sharp weakening in demand.

The data, provided by developers including Central Group, Skanska Residential and Trigema, points to continued structural imbalances in the market, particularly on the supply side.

More than two-thirds of transactions involved smaller units, with one-bedroom apartments accounting for roughly 45% of sales and studios for approximately 31%. Larger apartments continue to lose share, reflecting affordability constraints and more limited access to financing for higher-value properties.

Sales activity remains concentrated in key development zones. Prague 9 alone accounted for nearly one-third of transactions, while together with Prague 5 it represented around half of total sales. Prague 4 and 10 also maintained a significant share, underlining the dominance of larger development districts with greater availability of new stock.

Pricing continued to rise, reaching new highs. The average asking price for new apartments increased to CZK 182,311 per square metre in the first quarter, up 2.6% compared to the previous quarter and 8.6% year-on-year. Achieved sales prices rose more sharply, climbing 11.2% annually to CZK 177,647 per square metre.

Developers attribute the upward pressure on prices primarily to limited supply and rising construction costs. Over the past four years, the number of available new apartments has remained broadly stable at between 5,000 and 5,500 units, insufficient to meet sustained demand in the capital.

At the same time, higher costs for materials, energy and financing are increasingly affecting project viability, with some developers warning that new schemes may be delayed or postponed. This could further constrain supply in the medium term and maintain upward pressure on prices.

The structure of available housing reflects current demand patterns, with smaller units such as studios and one-bedroom apartments dominating the pipeline. Supply is also highly concentrated geographically, with a significant share of available units located in Prague 9, 10 and 5, while central districts account for only a small proportion of the market.

Overall, the data suggests that while transaction volumes have stabilised, the Prague residential market remains undersupplied, with limited new deliveries and rising costs continuing to shape both pricing and development activity.

Millennials Lead Mortgage Demand in Romania, Broker Data Shows

Millennials accounted for the majority of mortgage demand in Romania in 2025, according to data from online broker Ipotecare.ro, which highlights the growing role of younger buyers in the residential financing market.

Based on more than 1,000 loans brokered and over 27,000 financial simulations, the company found that buyers aged between 30 and 45 represented around 64% of total demand. Borrowers under 30 years old accounted for a further 24%, while those aged over 45 made up 12% of the analysed portfolio.

The data also indicates a strong preference for newer housing stock. More than two-thirds of the transactions financed through the broker involved properties completed after 2010, while homes built before 1990 were selected by roughly one-fifth of buyers across all age groups.

Average purchase values increase with age, reflecting differences in income and financial capacity. Buyers under 30 acquired homes at an average price of approximately EUR 104,000, compared to EUR 122,000 for those aged 30 to 45. Purchasers over 45 paid an average of EUR 127,000, around 22% more than the youngest cohort.

Financing structures show a similar pattern. Younger buyers typically provided a 25% down payment, while Millennials contributed around 30%, and older borrowers reached an average of 36%.

Commenting on the findings, Laurentiu Bogdan, Managing Partner at Ipotecare.ro, said the dominance of Millennials reflects their stage in life, as many are focused on securing their first home or improving their living conditions. He added that younger, digitally native buyers are becoming increasingly active and are expected to play a larger role in the coming years.

The analysis also shows that men accounted for 57% of mortgage contracts brokered by the company, compared to 43% for women, a gap attributed to income differences and broader socio-economic factors.

While limited to the broker’s own activity, the findings provide an indication of current demand patterns in Romania’s residential financing segment, particularly the continued strength of Millennials and the gradual emergence of Generation Z buyers.

Stuttgart Kodak Site Competition Concludes with NUWELA Winning Design

Art-Invest Real Estate, in partnership with the City of Stuttgart, has completed the urban planning and open space design competition for the redevelopment of the former Kodak site in Stuttgart-Wangen, marking a key milestone in the transformation of the historic industrial location.

The final jury meeting, held on 13 March 2026, selected Munich-based planning firm NUWELA as the winner, recognising its proposal for a mixed-use urban quarter that combines heritage preservation with contemporary design. The concept integrates parts of the original Kodak complex, dating back to the 1930s, into a broader development that aims to create a cohesive and functional neighbourhood.

The competition attracted 16 planning teams from across Germany and internationally, reflecting a wide range of architectural and urban planning approaches. Following an initial evaluation phase, two finalist concepts were shortlisted and subsequently refined before the jury made its final decision.

NUWELA’s proposal stood out for its structured yet adaptable layout, centred around a green axis designed to connect different parts of the neighbourhood. The plan combines residential, research and commercial uses, with more than 400 apartments envisioned as part of the scheme. A community-oriented approach is also embedded in the design, including a central meeting space intended to support local interaction.

Urban climate considerations played a significant role in the selection process. The winning concept incorporates ventilation corridors and landscaping strategies aimed at improving microclimatic conditions, while also responding to the site’s topography. The integration of new buildings into the hillside setting was highlighted as a key strength of the proposal.

City representatives emphasised the project’s broader importance for the surrounding districts, noting its potential to act as a catalyst for further development in Stuttgart-Wangen and neighbouring areas. The scheme is expected to contribute both architecturally and functionally to the city’s evolving urban fabric.

Art-Invest Real Estate indicated that the project will now move into the next phase of the planning process in coordination with local authorities. The development is positioned as a long-term regeneration initiative, aimed at delivering a balanced environment for living and working while retaining elements of the site’s industrial identity.

« Previous 1 … 123 124 125 126 127 … 578 Next »

Latest news

All posts by fletcher@cijeurope.com.