Business
ECB expected to pump up eurozone support as pandemic persists
The European Central Bank could announce Thursday hundreds of billions of euros in new bond-buying to keep fighting the pandemic crisis, analysts predict, as EU governments prepare to wrangle for months over a joint response.
While some policymakers have urged abandoning the ECB’s self-imposed limits on buying government debt to stoke growth and inflation, the meeting is also the first since a ruling by Germany’s Constitutional Court urging restraint of the central bank’s powers.
“At a minimum, we think (governors) will add a further 500 billion euros” ($557 billion) to the 750-billion-euro Pandemic Emergency Purchase Programme (PEPP) decided in March, Capital Economics analyst Andrew Kenningham said.
If the ECB keeps up its present pace of buying government and corporate debt, “the total envelope will be exhausted by early October”, he added.
“The only questions are exactly what changes are announced and when.”
ECB board member Isabel Schnabel reiterated last week that the “size but also the composition and duration” of PEPP could all be increased, with some analysts forecasting an extension from the end of this year to September 2021.
As well as Thursday’s policy moves, eyes will be on June’s quarterly growth and inflation forecasts from ECB staff, as January-March figures were compiled before the virus struck.
Bank president Christine Lagarde last week predicted that the eurozone economy would contract by between eight and 12 percent in 2020, before a hoped-for strong rebound next year.
Inflation collapse
Meanwhile inflation in the 19-nation eurozone collapsed to 0.1 percent year-on-year in May — down from 1.2 percent in February before the pandemic and worlds away from the ECB’s just-below-two-percent target.
The inflation outlook could fall as low as zero across the year, Capital Economics predicted, potentially offering a powerful justification for further measures to support activity and lift price growth towards the bank’s goal.
Governors will meet less than a month after a German Constitutional Court (GCC) ruling that a 2.6-trillion-euro bond-buying scheme launched in 2015 may not have been “proportionate” to its price stability goal and demanding clarification.
If the ECB cannot satisfy the judges, the German Bundesbank, the central bank, may not be able to participate in bond-buying.
While finding a face-saving solution to the immediate legal headache, policymakers must also consider how court challenges might limit their future options.
Bank of France governor Francois Villeroy de Galhau last week said the so-called “capital key” — under which the ECB buys countries’ bonds in line with their stakes in its capital — is an “uncalled-for constraint”.
Free of limits, the central bank might choose to buy more Italian, French or Spanish debt to keep financial conditions on an even keel across the eurozone.
Stimulus debate
But the self-imposed capital key rule was also shaped to dodge just the kind of legal tripwire that has sprung up in Germany.
“While I do not think the ECB will be deterred by the GCC, I also think they do not necessarily want to raise the stakes by blatantly going against its worries,” Oliver Rakau of Capital Economics told AFP.
“An official dropping of the capital key is likely fairly controversial at this stage.”
ECB chiefs will also be aware that long-awaited help on the fiscal front remains far off, as leaders are just getting started debating a 750-billion-euro pandemic recovery fund proposal from the European Commission.
While Germany this month gave up some of its red lines in a deal with France, including on the emotive question of joint debt issued from Brussels, a so-called “frugal four” group including Austria and the Netherlands are fighting a rearguard action.
Short of joint measures, markets’ fears of an eventual breakup of the eurozone could resurface, the ECB warned last week.
But tied into the EU’s always hotly contested budget negotiations and calls for bloc-wide taxes on plastics and big tech to fund borrowing, it will be a challenge for governments to seal the deal even by a January deadline.
Reporting and photos: AFP
Bestbuy Maldives (BBM) extended their strong and decades old partnership with Unilever International, by adding to their brand portfolio – Vaseline, Hellmann’s, and BRU Coffee for the Maldivian market.
The collaboration was announced at a Business gathering held at the Manhattan Business Hotel, attended by over 300 trade partners from across Maldives.
With this partnership, BBM strengthens its retail offerings across the Maldives archipelago. Vaseline, a trusted name in skincare, and Hellmann’s, known globally for quality food products, will now be available through BBM’s distribution network.
“Vaseline is a name that generations trust for skin care. And Hellmann’s is a global icon in flavours. We’re proud to bring both to shelves across the Maldives and enrich everyday living for our customers,” said Muksith Hussain, Business Head – Retail.
In the hospitality sector, BBM introduces Bru Coffee as an addition to its HORECA (Hotel, Restaurant, Café) offerings. BRU Coffee provides a quality beverage option for hotels, resorts, and restaurants across the Maldives.
“BRU is one of the most loved coffee brands in the region. With this launch, we’re giving our hospitality partners a versatile product that delivers on both taste and reliability that can be consumed as a beverage and for the purpose of dessert preparation, something they can serve with confidence,” said Hisham Girsy, Business Head – HORECA.
The gathering served as a platform for BBM to engage with its valued trade partners and introduce these new brands to the market.
A.V.S Subrahmanyam, Chief Operating Officer at BBM, remarked: “BBM is built on relationships. This event reflects our commitment to not just introduce great products but to support, connect, and elevate our trade partners. We’re in this together, and the journey ahead is promising.”
As BBM continues to grow its portfolio and global partnerships, the focus remains clear delivering excellence, building trust, and shaping the future of trade in the Maldives.
Bestbuy Maldives (BBM) is a leading distribution company in the Maldives, connecting international brands with local businesses across retail and hospitality sectors. With a customer-focused approach and extensive distribution network, BBM continues to be a trusted partner in the Maldivian market.
MICE travel is undergoing a sea change—quite literally. No longer limited to traditional conference rooms and structured schedules, Meetings, Incentives, Conferences, and Events (MICE) are now about creating moments that inspire, rejuvenate, and bring teams closer together. At Cinnamon Dhonveli Maldives, the boundaries between business and leisure blur, offering a setting that transforms work into a pleasure.
Just a 20-minute speedboat ride from Malé, Cinnamon Dhonveli Maldives is the ideal destination for teams looking to escape the expected. Here, brainstorming sessions take place on powder-soft beaches, where the rhythmic waves set the pace for new ideas. Mornings might begin with yoga by the ocean, followed by strategy meetings in open-air pavilions. Afternoons invite collaborative workshops under swaying palms or team-building activities that include snorkelling, paddleboarding, or even a friendly beach volleyball match.
Dining at Cinnamon Dhonveli Maldives elevates every corporate event with fresh, sea-to-table cuisine, designed to fuel both body and mind. From curated group dinners under star-streaked skies to themed private banquets, every meal becomes an experience in itself. For those looking to celebrate milestones or reward top performers, the resort’s scenic locations offer the perfect backdrop for gala evenings or intimate cocktail gatherings.
Accommodation blends comfort with elegance, offering ocean-view suites and beachside retreats that allow participants to rest, recharge, and return with a fresh perspective. Despite the remote charm, connectivity is never an issue—seamless Wi-Fi and business-friendly amenities ensure that productivity doesn’t pause, even in paradise.
Cinnamon Dhonveli Maldives turns corporate travel into something memorable. Whether it’s a leadership retreat, a high-level conference, or an incentive escape, the resort offers a canvas for events that leave lasting impressions. Here, business goals are pursued in harmony with nature, creativity flows effortlessly, and the line between work and well-being fades.
Let your next MICE experience be more than a meeting—make it a journey worth sharing.
Maldives Marketing and Public Relations Corporation (MMPRC/ Visit Maldives) has announced the ‘Maldives Culture and Food Festival’, a two-day extravaganza showcasing the Maldivian cuisine, local arts and craft, and entertainment.
The festival will take place at Central Park, Hulhumale’, on New Year’s Eve, December 31st, 2024, and continue into New Year’s Day, January 1st, 2025, offering a unique and immersive experience for locals and tourists alike.
This exciting initiative by MMPRC is a collaborative effort involving key partners such as the Ministry of Tourism (MOT), Housing Development Corporation (HDC), MyHulhumale’, Business Center Corporation (BCC), Male’ City Council, Waste Management Corporation Limited (WAMCO), the Maldives Police Service, Maldives National Defence Force (MNDF), Public Service Media (PSM), Maldives Airports Company Limited (MACL), Dhiraagu, Ooredoo, Manta Air, Maldivian, Ace Travels, and Gulf Air. It promises a dynamic programme filled with performances, activities, and food stalls. Attendees will have the opportunity to savour authentic Maldivian dishes, explore traditional arts and crafts, and witness captivating cultural performances.
On December 31st, the festivities will begin at 20:00 with doors opening to the public. A spectacular drone show will be held, depicting a tourist’s journey through the beautiful Maldives. The evening will continue with captivating cultural performances including Boduberu performances, and “Dhafi Negun”. A New Year’s Eve countdown will also take place, culminating in a dazzling fireworks display to welcome 2025.
The celebrations will continue on January 1st 2025 from 16:00 to 22:00, with the festival reopening and featuring food and arts and crafts stalls. A range of family-friendly activities will be available, including a police and fire truck showcase, a climbing wall, a bounce house, and a Transformers display. Additionally, the festival will feature energetic Boduberu performances and an exciting Roboman showcase.
“MMPRC is proud to present the first Maldives Culture and Food Festival,” said Ibrahim Shiuree, CEO and MD of MMPRC. “This event is a key initiative to celebrate the achievements of the Maldives in 2024 and to promote the diverse cultural heritage of the Maldives while providing a memorable experience for locals and visitors. We invite everyone to join us in celebrating the Maldivian spirit as we bid farewell to 2024 and welcome the new year.”
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