Comment
Brexit | Europe | EU policy | EU Parliament

Speaking at the European Parliament today, President of the European Commission Jean-Claude Juncker presented his White Paper on the future of the EU. President of the Centre for European Economic Research (ZEW) Professor Achim Wambach has subsequently commented:

Comment
Economic policy | International Economic Policy | United States | U.S. presidential election

In his first speech to Congress, US President Donald Trump outlined the key aspects of his government programme. Professor Friedrich Heinemann, head of the Research Department "Corporate Taxation and Public Finance" at the Centre for European Economic Research (ZEW), comments on the economic and fiscal policy measures Trump proposed in his address to Congress.

Research
Research funding | Public Expenditure | Conveying device | Research and Development | Research financing | Promotional measures
In 2015, federal and state R&D expenditure in the research and business sector amounted to 25.08 billion euros.

Between 2005 and 2015, public spending on research and development (R&D) in Germany has seen a nominal increase of around 50 per cent. In 2015, federal and state R&D expenditure in the research and business sector amounted to 25.08 billion euros. This increase, however, is not sufficient to meet the target set by the German government, which hoped to see the share of public R&D spending reach 1.15 per cent of the GDP by 2025. These are the findings of a recent study carried out by the Centre for European Economic Research (ZEW) in Mannheim on behalf of the Commission of Experts for Research and Innovation (EFI).

Research
Worker Replacement | KfW/ZEW Start-up Panel | Productivity | Young firms
When employees are replaced, this has negative effects on the productivity of young firms.

While studies have shown that a moderate level of staff turnover can benefit established companies by contributing to an increase in productivity, this is not the case for more recently established firms. When employees at these younger firms are replaced, this has negative effects on the firms' productivity. This negative effect is particularly marked if the company founders have no experience of managing staff, and also becomes more pronounced the more recently the company was founded. In terms of the damage done to the productivity of these young firms by staff turnover, it does not make any difference whether the replaced employees left the company of their own accord or whether they were let go by the firm. These are the findings of a recent study carried out by the Centre for European Economic Research (ZEW) in Mannheim.

China Economic Panel
China Economic Panel | Business survey | Greater China | Short-term forecast | Cyclical indicator | China
In February, the CEP Indicator is at a minus of 4.2 points.

According to the current survey for February (conducted between 31 January 2017 and 17 February 2017), the economic outlook for China has improved slightly. The CEP Indicator, which reflects the expectations of international financial market experts regarding China’s macroeconomic development over the coming twelve months, has risen by 1.7 points compared to the previous month to a current total of minus 4.2 points. This falls far below the current long-term average of 4.8 points.

Research
Energy pricing policy | Energy Policy | Energy market | Energy source | ZEW-Energiemarktbarometer
Trend towards higher prices for all energy sources, with particularly electricity, crude oil and natural gas expected to become more expensive.

The price of almost all energy sources is set to rise over the next five years. While electricity, crude oil and natural gas are expected to become more expensive, coal proves to be the exception, displaying a medium-term trend of stable to decreasing prices. In the short-term, that is until mid-2017, however, a more stable price structure is predicted for all energy sources. These are the central findings of the ZEW Energy Market Barometer, a biannual survey conducted among approximately 200 energy market experts by the Centre for European Economic Research (ZEW) in Mannheim.

Events
YES! - Young Economic Summit | ZEW | Germany | Pupils | Young Economic Summit
YES! is a joint project of the German National Library of Economics (ZBW) – Leibniz Information Centre for Economics and the Joachim Herz Stiftung.

The "YES! – Young Economic Summit", an economics competition involving schools from six different federal states in Germany, will be launched soon. This year, YES! is working together with new scientific partners from the Leibniz Association, namely the Centre for European Economic Research (ZEW) and the GIGA German Institute of Global and Area Studies. The "YES! – Young Economic Summit" is expanding from its base in North Germany to become a nationwide programme. This year, 22 teams from Schleswig-Holstein, Hamburg, Saarland, Rhineland-Palatinate, Hesse and Baden-Württemberg will compete. There are plans for "YES!" to become a nationwide competition with 50 schools from every federal state in Germany taking part in the project by 2019. YES! is the biggest annual conference for school students in the field of economics in Germany.

Information Economy
Social Media | Germany | Media usage | Information Services | Social networks
Social media offer a cheap medium through which companies can communicate and interact with various stakeholders.

There is a wide variety of possible ways for companies to use social media to bring them greater market success. However, many of these companies are still not exploiting the potential of social media to the fullest, for example, when it comes to improving their products and services. The fact that these opportunities are going to waste is alarming considering that one in every two companies in the information economy active on social media already expects the role that social media plays in a business' success to continue to increase in importance over the next two years. By contrast, only around a quarter of these companies view social media as currently playing a very important role in a company's success. These are the findings of a recent survey carried out among companies in the German information economy by the Centre for European Economic Research (ZEW) in Mannheim.

ZEW Indicator of Economic Sentiment
Business Cycle | Cyclical indicator | Short-term forecast | Germany | Business survey | ZEW Indicator of Economic Sentiment
Graph for the ZEW Indicator of Economic Sentiment: The ZEW Indicator of Economic Sentiment for Germany records a decrease of 6.2 points in February 2017. The indicator now stands at 10.4 points.

The ZEW Indicator of Economic Sentiment for Germany records a decrease of 6.2 points in February 2017. The indicator now stands at 10.4 points. "The downturn in expectations is likely to be the result of the recently published unfavourable figures for industrial production, retail sales and exports. Political uncertainty regarding Brexit, the future US economic policy as well as the considerable number of upcoming elections in Europe further depresses expectations. Nevertheless, the economic environment in Germany has not significantly worsened," comments ZEW President Professor Achim Wambach.

Dates and News
Health | Bundesversicherungsamt | ZEW |

ZEW President Professor Achim Wambach has been appointed new member of the Federal Insurance Office's Scientific Advisory Board for the Further Development of the Risk Structure Compensation Scheme. He is appointed to the Board to help develop an evaluation report regarding the Risk Structure Compensation Scheme. His appointment by the Federal Ministry of Health runs from 1 February 2017 until 30 September 2017.

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