Comment
Reformmaßnahmen | Länderfinanzen | Finanzausgleich | Föderalismus
The compromise on the 2020 Financial Equalisation Scheme between the government and the state parliaments won’t solve any of the central issues in the current system.

The German government and the state parliaments have adopted a resolution which foresees a revision of the Federal Financial Equalisation System. The new legislative framework will see the end of the "horizontal" model, which consists in redistributing tax revenues from financially strong states to financially weak states. Instead, the financial strength of the states will be largely offset at an earlier stage, namely by an initial distribution of value-added tax (VAT) revenues among the federal states. Professor Friedrich Heinemann, head of the ZEW Research Department "Corporate Taxation and Public Finance" at the Centre for European Economic Research (ZEW), takes a critical stance on the reform.

CH Indicator of Economic Sentiment
ZEW-CS-Indikator | Schweiz | Konjunkturprognose | Wirtschaftslage | Konjunkturindikator | Konjunkturumfrage
The ZEW-CS-Indicator for the economic sentiment in Switzerland has risen for the second consecutive time to a current reading of 5.2 points.

The ZEW-CS Indicator for the economic sentiment in Switzerland has continued its rise in October 2016. Growing by 2.5 points, the index now stands at 5.2 points. The indicator thus continues the slight upward trend already seen in the previous month. The indicator for the current economic situation also recorded an increase, rising by 9.9 points to a current reading of 17.9 points. The ZEW-CS Indicator reflects the expectations of the surveyed financial market experts regarding the economic development in Switzerland on a six-month time horizon. It is calculated monthly by the Centre for European Economic Research (ZEW), Mannheim, in cooperation with Credit Suisse (CS), Zurich.

ZEW Indicator of Economic Sentiment
Konjunktur | Konjunkturindikator | Konjunkturprognose | Deutschland | Konjunkturumfrage | ZEW-Konjunkturerwartungen
ZEW Indicator of Economic Sentiment for Germany, October 2016

The ZEW Indicator of Economic Sentiment for Germany increased in October 2016. The index gained 5.7 points compared to the previous month, now standing at a level of 6.2 points (long-term average: 24.1 points). "The improved economic sentiment is a sign of a relatively robust economic activity in Germany. However, positive impulses from industry and exports should not distract from existing political and economic risks. In particular, the risks concerning the German banking sector are currently a burden to the economic outlook," comments ZEW President Professor Achim Wambach.

China Economic Panel
China Economic Panel | China | Konjunkturindikator | Konjunkturprognose | Konjunkturumfrage | ZEW-Umfrage
Expectations for the Chinese economy have worsened further in September 2016 to a current negative reading of minus 4.1 points.

Expectations for the Chinese economy have again worsened in the current survey period (12/09/2016 – 28/09/2016). The CEP Indicator, which reflects the expectations of international financial market experts regarding China’s macroeconomic development over the coming twelve months, has slightly fallen by 2.2 points to a current negative reading of minus 4.1 points. The CEP Indicator therefore currently lies significantly below the long-term average of 5.5 points for the second consecutive time, seen in the period from mid-2013 to September 2016.

Research
ZEW policy brief | Investition | Frankreich | Deutschland | Euroraum | Europäische 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
Steuerpolitik | Erbschaftsteuer | Steuerreform | Reformprozess

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
Altersvorsorge | Rentenmarkt | Deutschland | Private Rentenversicherung | private Altersvorsorge
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-Bildungsbericht | Bildungswesen | OECD-Staaten | Bildungsstatistik | Deutschland | Bildungsforschung | 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-Konjunkturindikator CEE | Türkei | Osteuropa | Ostmitteleuropa | Konjunkturprognose | Konjunkturindikator | Konjunkturumfrage | Mitteleuropa | Osteuropäische Finanzmärkte
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.

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