Above-average pay in export sectors

Economic and european policy, Macroeconomics, Sectors and resources

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The traditional German export sectors pay their employees above-average wages and salaries. The top right-hand quadrant of the chart shows those sectors that generated a foreign trade surplus in 2016 and also paid their employees gross wages and salaries above the average for the manufacturing sector as a whole. In the automotive industry alone, the foreign trade surplus in 2016 was EUR 122 billion (39% of the total surplus). Wages and salaries in this sector were 27% higher than the industry mean. Mechanical engineering took second place in terms of foreign trade surplus (2016: EUR 94 billion). [more]

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Ambitious climate goals are moving out of reach

November 23, 2017

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Sectors and resources

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Between 1990 and 2016, Germany reduced its greenhouse gas emissions (GHG emissions) by 27.6%. Excluding the significant downtrend in the first few years after the German reunification, GHG emissions still declined by more than 19% between 1995 and 2016. This is a considerable success, particularly in an international comparison. After all, global energy-related carbon emissions increased by more than 50% during the same period. [more]

Environmental aspects do not play a key role in car purchase decisions

September 13, 2017

Region:

Eric Heymann, Jakob Lahrsow

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Sectors and resources

Analyst:

Germans who want to buy a new car tend to focus on three issues: the price, the degree of comfort and security aspects. That is the conclusion of authors of the latest Aral car buying trends study. While environmental considerations now play a larger role – their importance rose by 5 pp, to 25%, in comparison to the 2015 survey – they still rank only 11th in the list of influencing factors and come behind aspects such as ergonomics or brand image. This appears somewhat surprising, particularly against the background of the heated discussions about excessive diesel car emissions (nitrogen oxides) in the last few months. [more]

Budgetary relief and debt dampening effect from the low interest rate environment: Not only a German phenomenon!

August 14, 2017

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Yields on German government debt securities have fallen rapidly in the aftermath of the global financial and economic crisis and provided a considerable relief to the public sector budget. At the moment, federal government securities have negative yields for maturities up to 6 years and the yield on 10 year German Bunds stands at just roughly 0.4%. [more]

The grass is always greener on the other side: Europeans more EU-sceptic than non-Europeans

July 31, 2017

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Economic and european policy

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Analyst:

Barbara Boettcher, Jakob Lahrsow

The European project has had some ups and downs but the extent of European cooperation is unique in history. This is why the outsiders’ view on the European Union is even more interesting. [more]

Are Europeans facing an identity crisis?

April 4, 2017

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Economic and european policy

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Analyst:

Barbara Boettcher, Matthias Dincher

In the current debate about the future of the EU, politicians as well as the media are warning of a tendency by member states to shift their focus back to their own national interests and of a subsequent loss of significance of the EU. Are policymakers reacting to actual changes in the attitudes of EU citizens or is there an underlying perception issue here? [more]

ECB unimpressed by the rise in inflation for now

February 22, 2017

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The headline inflation rates, which have increased substantially in recent months, have rekindled the debate surrounding the ECB's bond-buying programme. German producer prices have also risen sharply in recent times. In December 2016, the prices of metal (up by 5% on December 2015) and energy (up by 10%) increased particularly sharply. Nevertheless, the remaining inputs (weighting: 83.6%) continued to show no inflationary pressure at all. [more]

EU budget: Who's to pay for Brexit?

August 26, 2016

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Brexit, Economic and european policy

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Analyst:

Barbara Boettcher, Laura Rosenberger

Brexit means that the EU is going to lose one of the largest contributors to its budget. The UK paid in a total of EUR 15.1 bn in the first two years of the current budget period 2014-2020, second only to Germany. This is a pattern similar to the previous budget period 2007-2013. [more]

German industry: growth in employment likely to end

August 24, 2016

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Economic and european policy, Macroeconomics, Sectors and resources

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Analyst:

The manufacturing sector is one of Germany's biggest employers. On average, more than 5.2 million people were working in manufacturing in the first half of 2016. This represents an increase of 6.3% compared with the beginning of 2005 – and comes in spite of the deep recession of 2008/2009. In the period under review, job growth was particularly strong in mechanical engineering, the food industry, the rubber and plastics industry, and the metals industry. Expansion of employment in German industry has slowed recently, however. Because of the low rate of global growth and muted investment activity, employment in the industrial sector is likely to stagnate up to 2017 – albeit at a high level. [more]

EU Regional Policy: Changes after Brexit?

August 5, 2016

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Brexit, Economic and european policy

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Analyst:

Laura Rosenberger, Patricia Wruuck

The mid-term review of the EU’s multiannual financial framework 2014-2020 is scheduled for the end of 2016. The scenario of a Brexit taking effect in the upcoming years and the potential impact thereof might well be discussed as part of the review. However, given current uncertainties about timing and circumstances of the UK leaving the European Union, it is still too early to fully adapt accounts. Yet, two things seem certain for the time being: First, a Brexit taking effect during the second half of the budgetary planning period would certainly prompt the need for further adjustments. Second, it would also affect funding for regional and cohesion policy as one of the largest EU budgetary items. [more]

A European 'generation gap'?

July 7, 2016

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Brexit, Economic and european policy, Macroeconomics

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Analyst:

Patricia Wruuck

One of the widely discussed patterns of the UK-referendum vote is its demographic distribution. Some surveys find that voters older than 65 were more than twice as likely to have opted for “leave” than those younger than 25 years.* Demographic differences with respect to perceptions of Europe are not unique to the UK. [more]

Euro-area financial sector: growing and changing

February 23, 2016

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Banking and financial markets

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Analyst:

Heike Mai

Despite a small dip in Q3 2015, the assets of financial institutions in the euro area are still broadly at a record level of about EUR 66 trillion. The financial sector – composed of banks, insurance companies & pension funds, and “shadow banks” – more than doubled its size over the past 15 years. Shadow banks have grown the most and now represent 40% of the financial sector with assets estimated at EUR 26 trillion. [more]

Falling oil price benefits pickups and the like in the US

January 28, 2016

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International

Topic:

Sectors and resources

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