The economic sentiment in the information and communication technology sector (ICT) in Germany further deteriorated in the second quarter of 2020: The ZEW sentiment indicator for the German ICT sector decreased by 3.5 points compared to the first quarter of 2020, falling to a historic low of 47.6 points. This marks the first time that the ZEW sentiment indicator has dropped below the critical 50-point mark since the survey began in 2011, indicating a negative development of the business situation. In addition to reporting negative expectations regarding turnover and demand for business products, firms in the ICT sector are also pessimistic about imminent personnel changes.
18th ZEW Conference on the Economics of Information and Communication Technologies Goes Virtual
The conference on the Economics of Information and Communication Technologies at ZEW Mannheim has long been considered one of the most important international scientific events in the field of digital economy. The event, which took place for the 18th time, was organised by the ZEW Research Department “Digital Economy” on 2 July 2020 – with one major innovation: Due to the ongoing coronavirus pandemic, the event was held virtually for the first time ever and had a reduced programme. With almost 300 international researchers it was extremely successful.
CEP Indicator Rises to a New Reading of 31.7 Points
In the current July survey (7–13 July 2020), the CEP indicator increased slightly by 1.2 points, reaching a new value of 31.7 points. The CEP indicator, based on the China Economic Panel (CEP) in cooperation with Fudan University, Shanghai, reflects the economic expectations of international financial market experts for China on a 12-month basis.
The ECB Governing Council Would Be Well Advised to Consider the Side Effects of the PEPP
At today’s meeting, the Governing Council of the European Central Bank (ECB) decided not to further expand its Pandemic Emergency Purchase Programme (PEPP). For the time being, purchases will continue as planned with a total envelope of 1,350 billion euros until June 2021. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at ZEW Mannheim, comments on this matter.
Study on the EU Recovery Fund “Next Generation EU”
If the recovery fund proposed by the European Commission is to reach its goal of overcoming the coronavirus recession, the European Council will have to make comprehensive adjustments to the proposal at its forthcoming summit. “Otherwise, the majority of funds will only be made available after the coronavirus pandemic has long passed,” warns ZEW research department head Professor Friedrich Heinemann. This is the result of a ZEW study conducted on behalf of the think tank, Initiative Neue Soziale Marktwirtschaft (“New Social Free Market Initiative”, INSM).