Talking point
European bank results: Is the glass half-full or half-empty?
The half-year results of large European banks offer ammunition to both optimists and pessimists: loan losses and administrative expenses are shrinking, but so are total revenues. Net interest income, the sickly child of recent years, finally seems to be stabilising; however, net income is down again to poor levels. The state of an industry with two distinct faces. [more]
European integration
Recent trends in FDI activity in Europe: Regaining lost ground to accelerate growth
In recent years, the European Union has lost its appeal as the globally most important region for foreign direct investment (FDI). In 2013, China alone received more FDI inflows than all EU countries together. Apart from the rising importance of emerging markets, the economic crisis in Europe has reduced investment incentives for companies from abroad. However, especially in Europe low FDI stocks can also be linked to competitiveness deficits. Some EU countries have not received substantial FDI flows even before the crisis and would benefit substantially by attracting more investments.  [more]
Germany
Temporary immigration boom: A wake-up call for politicians?
Germany has become the No. 1 destination country for migrants in Europe again and No. 2 in the whole OECD after the United States. The turnaround reflects the crisis in the EMU periphery as well as the (postponed) opening of the German labour market to citizens from the 10 Central and Eastern European countries that joined the EU in 2004 and 2007. The higher immigration should only temporarily obscure the negative effects from the introduction of a minimum wage and the retirement wave triggered by the "pension at 63" option. Given the economic recovery in the eurozone periphery the present migration surge is unlikely to last and ageing Germany’s demand for labour from outside the EU will increase. Therefore, Germany needs to shape up to encourage more pull-based immigration. This requires a skills-oriented migration policy as well as more flexibility in the labour market and at the company level. [more]
Spotlight on Germany
 
 
Interactive maps
Copyright © 2014 Deutsche Bank AG, Frankfurt am Main