Research
ZEW policy brief | Investment | France | Germany | Eurozone | European Union
German and French MPs agree that higher national investments may spur growth in the eurozone.

French and German members of parliament (MPs) are both open to granting more competencies to the EU in the fields of defence and immigration policy. There is, however, considerable disagreement on certain reform proposals for the eurozone. While the French politicians support the adoption of a joint liability scheme in form of Eurobonds and a common European Monetary Union unemployment insurance (EMU-UI), German representatives are opposing these proposals. MPs from both countries agree, however, that higher investments by Member States may serve as an instrument to spur growth in the eurozone. These are the findings of a study by the Centre for European Economic Research (ZEW), which will be presented in Brussels today.

Comment
Tax Policy | Inheritance tax | Tax reform | reform process

After a lengthy political dispute over a required reform of the German inheritance tax system, the mediation committee of the Federal Government and the Länder has reached a compromise. Professor Christoph Spengel, research associate at the Centre for European Economic Research (ZEW) and Chair of Business Administration and Taxation II at the University of Mannheim, comments on the recent agreement,

Research
old age provision | Bond Market | Germany | Private pension | Private pension provision
Information letters motivate young individuals (27-30) to invest in private retirement accounts.

The information letters sent out annually by the German pension authority (Deutsche Rentenversicherung) encourage contributors to the statutory pension insurance fund to invest more money in private pension schemes. Whilst these letters result in an increase in labour supply, they simultaneously have a negative effect on charitable donations. This is the finding of a recent study conducted by the Centre for European Economic Research (ZEW) in Mannheim.

Comment
OECD education report | Educational System | OECD countries | Statistics of education | Germany | Educational research | OECD

Today, the Organisation for Economic Co-operation and Development (OECD) published the 2016 edition of Education at a Glance, comprising the OECD’s annual indicators on education. Dr. Friedhelm Pfeiffer, deputy head of the Research Department "Labour Markets, Human Resources and Social Policy" at the Centre for European Economic Research (ZEW), comments on how well Germany fares in international comparison in terms of education.

CEE Indicator of Economic Sentiment
ZEW-Erste Group Bank Economic Sentiment Indicator for Central and Eastern Europe (CEE) | Turkey | Eastern Europe | Central-Eastern Europe | Short-term forecast | Cyclical indicator | Business survey | Central Europe | East European financial markets
Economic expectations for the CEE region including Turkey stay unchanged in September 2016.

Economic expectations for Central and Eastern Europe including Turkey (CEE region) stay unchanged in September 2016. The ZEW-Erste Group Bank Economic Sentiment Indicator for the CEE region remains at 15.4 points, the same reading as in the previous month. The ZEW-Erste Group Bank Economic Sentiment Indicator for Central and Eastern Europe reflects financial market experts’ expectations for the CEE region on a six-month time horizon. The indicator has been compiled on a monthly basis together with further financial market data by the Mannheim Centre for European Economic Research (ZEW) in collaboration with Erste Group Bank, Vienna, since 2007.

CH Indicator of Economic Sentiment
In September 2016, the ZEW-CS Indicator for the economic sentiment in Switzerland rose again by 5.5 points to a reading of 2.7 points.

In September 2016, the ZEW-CS Indicator for the economic sentiment in Switzerland rose by 5.5 points to a reading of 2.7 points. This is the first increase of the ZEW-CS Indicator after it had been falling for the last two months. As in the previous month, optimists and pessimists hold almost equal shares among the experts. When it comes to the current economic situation in Switzerland, however, experts are less positive in their evaluation than in the previous month: The corresponding indicator declined by 3.3 points to a level of 8.0 points.

Research
Emissions trading | Climate protection | Enterprise | KfW/ZEW CO2 Barometer
German companies regulated under the Emissions Trading Scheme do not expect the Paris Agreement to make a substantial contribution to climate protection.

German companies participating in the European Emissions Trading Scheme (EU ETS) have low expectations regarding the effectiveness of the agreement adopted at the Paris climate change conference in 2015. Approximately 60 per cent of companies do not expect that the agreement will result in a sustainable reduction of global greenhouse gas emissions. Similarly, the majority of the surveyed companies do not expect major effects on their competitiveness, employment or location of production facilities resulting from the agreement. Most companies, however, do expect prices for emissions certificates to rise again after the past few months had seen a sharp decline in prices. This is the result of the KfW/ZEW CO2 Barometer 2016, an annual survey which has been jointly conducted by the KfW Banking Group and the Centre for European Economic Research (ZEW) since 2009 and which examines the impact of the EU ETS regime on the regulated companies.

ZEW Indicator of Economic Sentiment
ZEW Indicator of Economic Sentiment | Business survey | Germany | Short-term forecast | Cyclical indicator | Business Cycle
ZEW Indicator of Economic Sentiment for Germany, September 2016

The ZEW Indicator of Economic Sentiment for Germany remains unchanged in September 2016. The index stands at a level of 0.5 points (long-term average: 24.1 points). "The current ambiguity of economic impulses from Germany and abroad means that forecasts for the next few months are difficult. German exports, particularly to non-EU countries, as well as industrial production figures have disappointed. By contrast, the economic environment in the European Union is improving. Overall, the ZEW Indicator of Economic Sentiment suggests that the economic situation in Germany will remain favourable in the coming six months," comments ZEW President Professor Achim Wambach.

Research
German Football League | Football (Sport) | Competition | Germany | Professional sports | Competitiveness
A high concentration of good players in high-ranking teams and of worse players in low-ranking teams is reflected in a decline in competitve balance in the 1st Bundesliga.

In the past two decades the German Bundesliga has suffered from a reduced level of competition. One of the key factors for this development is the change in the players' mobility. As a result, there is an increasingly high number of top-performing players in extraordinarily good football teams. These teams tend to win more games, which leads to a reduced level of competition. This is the finding of a study carried out by the Mannheim Centre for European Economic Research (ZEW).

China Economic Panel
China | Cyclical indicator | Short-term forecast | Business survey | China Economic Panel
 Expectations for the Chinese economy have dropped in August 2016. The CEP-Indicator now stands at minus 1.9 points.

The latest survey carried out in August (17 – 31/08/2016) indicates that expectations for the Chinese economy have worsened. The CEP Indicator, which reflects the expectations of international financial market experts regarding China's macroeconomic development over the coming twelve months, has fallen by 8.5 points to a current negative reading of minus 1.9 points. The CEP Indicator therefore currently lies significantly below the long-term average of 5.8 points, seen in the period from mid 2013 to August 2016.

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