European Policy Research
In this section you find analyses and commentaries on European (and especially German) economic and fiscal policy. Particular attention is devoted to the institutional development of the EU, above all monetary union, and its individual policy areas.
Talking Point
Italian EU Council presidency: Further softening of stability pact not a good idea
During its 6-month EU Council presidency, Italy wants to launch a renewed reform of the Stability and Growth Pact. This will also be an issue on this week’s European Council von 26 and 27 April. The extent of the reform is not clear yet – but it is clear that a softening of the just revised fiscal rules is anticipated. [more]
Chart in focus
Research Briefing
Balance-of-Payments Facility: Current profile and future challenges of non-euro area financial assistance
The Balance-of-Payments Facility of the European Union is a medium-term financial assistance mechanism for non-euro area member states suffering from a balance-of-payments crisis. This Research Briefing reviews current challenges in the ongoing negotiations between the European Parliament, the Commission and the Council on a recent legislative proposal which aims to streamline the facility with the current institutional framework of the ESM. Still, there is a particular need for reconciliation regarding the facility's volume, economic conditionality and the future role of the IMF. [more]
EU Monitor
The dynamics of migration in the euro area
Migration patterns within the eurozone have changed fundamentally. While prior to the crisis many citizens from Central and Eastern European EU countries migrated to Spain and other peripheral countries, the westward migration is now primarily directed to the core. The crisis has also triggered increasing migration from the periphery to the core. Eurozone migration acts as a sensible adjustment mechanism in the labour markets. In Germany it contributes to the reduction of bottlenecks in the market for qualified labour, whereas in the GIPS it functions like a safety value. Migration also fosters growth in the host countries, while the impact on the GIPS is ambiguous. Emigration reduces persistent structural unemployment especially in problem sectors like construction. It also helps to rein in public spending. However, the huge swing in the migration balance, especially in Spain, weighs on domestic demand. Higher remittances would be helpful to mitigate the shock from the outflow of purchasing power. While fears of a brain drain are overstated, lasting migration deficits would accelerate population ageing in the periphery. [more]
In focus
Major Family Businesses in Germany: Spring Survey 2013
Within the framework of “The major family businesses in Germany” study series, 401 of the 4,400 major family businesses in Germany with an annual turnover of more than 50 million euros provided representative information in the spring 2013 survey on their current and future economic situation, the euro crisis, economic policy priorities for the coming years, own activities in R&D and the conditions for innovation. [more]
Current Issue
Focus Germany: So far, so good
Given the continued strong employment build-up and wage increases as well as slight increase in hours worked disposable income should grow by 2.5% even though monetary social benefits and income from self-employment and from investment are expected to rise only at a sub-par rate. Due to the falling inflation rate this allows real private consumption to rise by 1.2% in 2014, and might even have some upside potential. From 2015 the federal government plans to deliver a balanced budget. This year the federal budget will already run a structural surplus. Budgetary risks arise from higher interest rates and a weakening economy, as the budget includes barely any reserves for them while being exposed to potential additional spending on adjustments that need to be made to the minimum subsistence level (basic personal allowance) and children's allowance or for increases that need to be made to infrastructure spending. [more]
Coalition agreement, Trade relations Germany – US – China, Lifelong learning, Educational achievement, Financial integration between the Federation, the Länder and the municipalities in Germany, Debt ratio in Germany
Elections in Germany, General budget 2013, Low interest rates and savings decisions, Inflation
Spotlight on Germany
Articles on economic policy appear in the following periodicals: 
Dataflash Eurozone
    European elections 2014
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