Latest Press Releases

In the February 2021 survey (16–24 February 2021), the CEP indicator increased by 9.1 points to a new value of 64.0 points, its highest value to date since the survey began in mid-2013. The CEP indicator, based on the China Economic Panel (CEP) and conducted by ZEW Mannheim in cooperation with Fudan University, Shanghai, reflects the economic expectations of international financial market experts for China on a 12-month basis.

Read more

In response to the first COVID-19-related lockdown, particularly small and medium-sized enterprises in Germany received easy access to extensive state aid in order to strengthen the liquidity position of cash-strapped firms. For the most part, this was done in a ‘whatever-it-takes’ fashion to rescue as many firms as possible from insolvency. Clearly, it has been necessary to support healthy companies whose financial difficulties have been the result of the pandemic and the associated measures. However, struggling companies whose existence would have been under threat even without the lockdown also received financial aid. Due to the urgency of the measures, they were implemented in an untargeted manner, which – in addition to generating direct costs in the billions – could also have negative consequences for medium-term growth opportunities and productivity development in Germany. As a recent study by ZEW Mannheim shows, the untargeted financial support has contributed to a backlog of corporate insolvencies. In particular, very small, financially weak companies, which under normal economic circumstances would have been highly likely to file for insolvency, were kept alive without the prospect of successful recovery.

Read more

According to preliminary calculations by the German Federal Statistical Office (Destatis), the coronavirus crisis in 2020 resulted in the government deficit totalling 139.6 billion euros. Professor Friedrich Heinemann, head of ZEW’s Research Department “Corporate Taxation and Public Finance”, comments on this issue:

Read more

The current annual report from the Commission of Experts for Research and Innovation (EFI) that was delivered virtually to Chancellor Merkel today, analyses the impact of the coronavirus crisis on research and innovation (R&I) activities of companies and comments on the current R&I policies implemented by the government.

Read more

The third Coronavirus Tax Assistance Act is not ambitious enough to soften the impact of the coronavirus crisis, which is hitting the German economy even harder than the financial crisis. Given the extent of the crisis, measures have turned out to be too cautious and not innovative enough on the whole. Therefore, further measures are appropriate. Christopher Ludwig, researcher in the ZEW’s “Corporate Taxation and Public Finance” Department, made this position clear at an expert hearing on the third Coronavirus Tax Assistance Act at the German Bundestag Finance Committee in Berlin.

Read more

The health economy is not only of considerable economic importance to Germany. Health services are also an essential part of the provision of public services for its citizens. At the start of 2021, ZEW set up the Project Group “Health Care Markets and Health Policy”. ZEW economist Dr. Simon Reif explains in the following interview what exactly health economics is, where we encounter it in our day-to-day lives and what research questions the project group is pursuing.

Read more

Country-by-country reporting (CbCR) is being implemented very heterogeneously by EU Member States and the reporting financial firms. Instead of providing more tax transparency, the reports lack comparability and there are problems with their interpretation. The reason for this are imprecise specifications regarding the calculation and presentation of CbCR data. This is the conclusion of a study by ZEW Mannheim and the University of Mannheim. According to the study’s conclusion, the European Commission should therefore initiate clear and uniform guidelines as well as definitions for compiling a CbCR report before extending the reporting obligation to all multinational companies.

Read more

The coronavirus pandemic has led to a decline in cancer screenings, in particular during the first wave of the pandemic in spring 2020. This could have a negative impact on overall public health, as late diagnosis can reduce the chances of successful treatment. Fear of contracting COVID-19 seems to be a major reason why patients avoid screening appointments. This finding was confirmed by survey data as well as in a recent analysis of trending Google search terms conducted by economists at ZEW Mannheim.

Read more

The “Health Care Markets and Health Policy” Project Group, which took up its work at ZEW Mannheim on 1 January 2021, can chalk up a great success just a few weeks after it was set up. Its funding application for a major research project in the field of health economics was granted by the state of Baden-Württemberg. The ZEW project is one of 17 projects that will be funded as part of the “Forum Gesundheitsstandort Baden-Württemberg” this year and with a total of 51.9 million euros next year.

Read more

The ZEW Indicator of Economic Sentiment for Germany increased again considerably in the current February 2021 survey, climbing 9.4 points to a new reading of 71.2 points compared to January. The assessment of the economic situation in Germany worsened slightly, and currently stands at minus 67.2 points, 0.8 points lower than in January. The assessment of the situation has thus remained practically unchanged at the same low level over the past six months. “The financial market experts are optimistic about the future. They are confident that the German economy will be back on the growth track within the next six months. Consumption and retail trade in particular are expected to recover significantly, accompanied by higher inflation expectations,” comments ZEW President Professor Achim Wambach.

Read more