Be careful with benchmarking in pension policy
IW News, 17 March 2017 Pension Systems

Be careful with benchmarking in pension policy Arrow

The Eurogroup will look into the possibility of introducing benchmarking in pension policy. Most European pension systems face a similar demographic challenge. Yet, they differ in many aspects. If this is not taken into account, a benchmarking process is likely to fail its purpose. more

Transatlantic trade
IW News, 16 March 2017 Transatlantic trade

Trumps distorted view Arrow

When Angela Merkel meets Donald Trump on Friday, the elephant in the room will be transatlantic trade. With its export surplus, Germany is the focus of criticism by the US president. Yet, the surplus in the trade balance of other EU countries with the US is higher – after accounting for the size of the economy. more

EMU is more resilient than many think
iwd, 15 March 2017

EMU is more resilient than many think Arrow

Even if the debt crisis in the euro area states may not yet be over, it still doesn’t mean that the euro area needs a common budget – as many politicians are demanding. The call for such a fiscal stabilisation mechanism fails to recognise the fact that many southern European countries have, in the meantime, implemented reforms aimed at tackling the underlying causes of the crisis, thereby significantly improving the ability of these states to adapt. more

Circular Economy
IW News, 14 March 2017 Circular Economy

German industry could save 2 billion euros in mineral raw materials Arrow

Today the European Parliament will vote on the EU’s waste legislative proposals. Yet, besides setting recycling and landfilling targets production patterns also must change to avoid waste. Many German manufacturing firms already focus on saving materials. A recent company survey conducted by the Cologne Institute for Economic Research shows that there is still more potential for digitising measures relevant for a circular economy. more

The European Derivatives Market after Brexit
IW-Kurzbericht, 10 March 2017 Markus Demary

The European Derivatives Market after Brexit Arrow

The Brexit will affect the stability of derivatives markets. These markets are huge and global, but they concentrate on the financial hub London. This article discusses post-Brexit scenarios for the financial supervision of these important markets and recommends to strengthen the supervision at the EU-level.  more

Is the US starting a regulatory competition with the EU?
IW-Kurzbericht, 10 March 2017 Markus Demary

Is the US starting a regulatory competition with the EU? Arrow

The US-President Donald Trump has signed an executive order which directs the US Treasury department to revise financial regulation, especially the Dodd-Frank Act. Critics are afraid that this will cause inconsistencies in global regulation and weaken the EU’s financial centres. This article gives a first assessment on the consequences of a revision of the Dodd-Frank Act for the EU. more

Expertise, 7 March 2017 Regina Flake

The Role of the Private Sector in Vocational and Educational TrainingArrow

The Role of the Private Sector in Vocational and Educational Training

Even though the four analysed countries are very different in terms of their starting points and their demographic, economic and institutional framework conditions, they all face the same challenge: designing a vocational education and training system that makes the country future-proof.more

The Role of the Private Sector in Vocational and Educational Training
Expertise, 7 March 2017 Regina Flake

The Role of the Private Sector in Vocational and Educational Training Arrow

Even though the four analysed countries are very different in terms of their starting points and their demographic, economic and institutional framework conditions, they all face the same challenge: designing a vocational education and training system that makes the country future-proof. more

Balanced Trade: What’s the Big Deal?
Contribution, 20 February 2017 Michael Hüther for Handelsblatt Global

Balanced Trade: What’s the Big Deal? Arrow

Is Germany’s trade surplus really that bad? Those demanding action need to come up with better reasons than simply referring to economic models, writes a leading German economist.  more

The Role of the Private Sector in Vocational and Educational Training
Expertise, 7 March 2017 Regina Flake

The Role of the Private Sector in Vocational and Educational Training Arrow

Even though the four analysed countries are very different in terms of their starting points and their demographic, economic and institutional framework conditions, they all face the same challenge: designing a vocational education and training system that makes the country future-proof. more

IW News, 2 March 2017 Return of inflation

Early countermeasures required Arrow

Inflation is back in the Eurozone: Eurostat's flash estimate of annual inflation was 2.0 percent in February. This increase is not only due to hiking energy prices, but also to an increase in the core inflation rate. The ECB should therefore counteract its monetary policy.  more

IW-Kurzbericht, 16 February 2017 Markus Demary

The End of Low Interest Rates? Arrow

After the economic recovery has strengthened and inflation rates have increased, hopes for higher interest rates emerged among savers, while debtors began to fear higher financing costs. This article argues, that there is room for higher interest rates, but this room is small compared to historical interest rate levels.  more

European Emission Trading
IW News, 15 February 2017 European Emission Trading

It works! Arrow

The European Parliament is set to reduce the amount of available CO2 certificates more than originally foreseen. Industry shall be incentivised to invest increasingly in new, low-carbon technologies. For national governments – and in particular the German government – this should be taken as a signal to restrain itself from additional national plans.  more

Qualified immigration from India showing signs of success
IW-Kurzbericht, 14 February 2017 Oliver Koppel / Axel Plünnecke

Qualified immigration from India showing signs of success Arrow

In recent years, qualified immigration has started to play a significant role for the German labour market, especially for securing skilled STEM (science, technology, engineering, and mathematics) employment. Efforts made to attract STEM immigrants from India are starting to show signs of success – both the number of employees in academic STEM jobs and the number of students in STEM disciplines have increased significantly in recent times. From a strategic viewpoint, this immigration from demographically strong non-European countries is particularly important for the future. more

ECB Might Overshoot the Inflation Target
IW-Kurzbericht, 1 February 2017 Markus Demary / Michael Hüther

ECB Might Overshoot the Inflation Target Arrow

The European Central Bank (ECB) has prolonged its large-scale asset purchase programs for public and private bonds in December 2016 until the end of 2017. Otherwise the programs would have expired in March 2017. Due to its strong focus on the inflation target of below, but close to 2 percent, the extension of the asset purchasing programs was expected in case of weak inflation dynamics. Inflation, however, recovered at the end of last year due to normalizing oil prices. more

IW-Kurzbericht, 23 January 2017 Michael Grömling / Jürgen Matthes

German companies relaxed about Brexit Arrow

The United Kingdom intends to leave the single market, yet still wants to retain broad access to it by means of a comprehensive free trade agreement. But the question remains as to whether the European Union is prepared to play ball. Brexiteers claim that German companies in particular, worried about their exports to the UK, will push for a gentle compromise in the favour of the UK, so that trade can continue with as little disruption as possible. Yet a survey by the Cologne Institute for Economic Research (IW Köln) has cast doubt on this view. more

German firms relaxed in view of upcoming Brexit
IW Press Release, 12 January 2017 IW Business Survey

German firms relaxed in view of upcoming Brexit Arrow

More than nine out of ten German firms do not expect strong effects from Brexit on their business activities in the near future. This is the result of a recent business survey covering 2,900 German firms conducted by the Cologne Institute for Economic Research. more