Shorter, topical publications for those professionally concerned with policy issues
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Germany faces enormous challenges in modernizing its capital stock. After neglecting public investment over the last two decades, it is now necessary to update the infrastructure and gradually reduce the investment backlog.
Germany is in need of investment. This applies to both private and public investment, since it serves as intermediate input for entrepreneurial activity and efficient coordination of microeconomic transactions.
In Germany 9 out of 10 citizens are covered by the statutory health insurance scheme (SHI), which is organised on a pay-as-you-go basis. One tenth of the population, on the other hand, is covered by funded private health insurance schemes.
The indebtedness of the municipalities in North Rhine-Westphalia (NRW) has increased significantly over the past 20 years. Politicians have mainly used cash loans, which are generally intended to provide short term liquidity. However, the steady rise in cash loans shows that they are rather used for general budgetary financing.
The introduction of the German debt brake 10 years ago was justified from a historical perspective. Compared to the early 1960s, the debt ratio had more than quadrupled from 20 to 80 percent despite consolidation efforts. In addition, due to government bonds yields well above the GDP growth rate, it was assumed that public borrowing would result in an intergenerational redistribution at the expense of future generations.
The comfortable financial situation for unemployment insurance due to the ongoing good performance of the labour market has recently caused an increase in the number of proposals submitted to expand the range of benefits. Firstly, these proposals aim to ease access to the passive benefits of unemployment insurance by, for example, extending the basic period for receiving benefits and reducing the length of previous employment.
The case of Greece has reveiled an institutional gap remains in the institutional framework of EMU: an orderly insolvency mechanism for sovereign states. After weighing the pros and cons of such a...
Many Eurozone governments, corporations and private households are still involved in an unfinished balance sheet repair process. Debt levels are still high and there are looming risks that negative...
Substantial structural reforms have been taken on labour and product markets by stressed euro area countries since 2008 – more than is generally acknowledged in Germany. These reforms have the...