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The power struggle between the USA and China is also perceptible in these parts; exports are declining, companies invest less. The German Economic Institute thus adjusts its economic forecast downward.
New sustainability reporting standards shall improve the comparability of corporate activities. Yet, it is crucial to consider the trade-off between the advantages of standardisation to avoid adverse selection versus the disadvantages of excessive bureaucratic burdens, in particular for small and medium-sized enterprises (SMEs).
Despite great approval in parliament, the Federal Constitutional Court stopped the 750 billion Euro EU Corona Reconstruction Fund for the time being due to a constitutional complaint. In a video interview for ACGUSA, IW Director Michael Hüther discusses the consequences of this decision with economist Monika Schnitzer from the University of Munich.
Before the economic crisis, European regions with low economic output per inhabitant grew faster than the wealthier ones. The living conditions on the continent became more similar. Since 2010, however, the process of catching-up has been stopped.
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