Latest Press Releases

Both German and French agricultural ministers have spoken out against reducing EU agricultural spending and called for the agricultural budget to be maintained at its current level. In a joint study conducted by the Centre for European Economic Research (ZEW), Mannheim, and the Bertelsmann Stiftung, researchers have found that the EU’s common agricultural policy (CAP) provides only limited added value to the EU, and recommend a comprehensive redistribution of funds in favour of other policy areas. Professor Friedrich Heinemann, head of the ZEW Research Department “Corporation Taxation and Public Finance” comments on the Franco-German policy statement:

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After long negotiations, the German government has agreed to introduce the so-called Baukindergeld, a subsidy granted per child to help families to build or buy homes. The government subsidy programme to finance residential construction and real estate purchases will apply retroactively from January 2018 and aims to make it easier for young families to acquire residential property.

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Today, the case of the Public Sector Purchase Programme (PSPP) of the European Central Bank (ECB) is being brought before the European Court of Justice. The asset purchase programme of the ECB is primarily being accused of violating the ban on monetary financing. In a ZEW expert brief, Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW) in Mannheim, has commented on this issue.

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In the ongoing political debate surrounding Germany’s policy regarding refugees and asylum, the current focus is on whether Germany can achieve its goals in this area without the support of other nations. Professor Friedrich Heinemann, head of the Research Department "Corporate Taxation and Public Finance" at the Centre for European Economic Research (ZEW), offers his view on the matter.

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The Eurogroup has agreed to release a fifth and final loan tranche of 15 billion euros to Greece. In addition, the Greek government has been granted an extension for the repayment of its loans as well as interest rate cuts so as to ensure the country’s debt sustainability in the coming years. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW), offers his view on the matter.

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Following their meeting at Schloss Meseberg in Brandenburg, the “Meseberg Declaration” signed off by German Chancellor Angela Merkel and French President Emmanuel Macron concretises the current proposals for a reform of the Eurozone. Professor Friedrich Heinemann, head of the Research Department "Corporate Taxation and Public Finance" at the Centre for European Economic Research (ZEW), offers his view on the matter.

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As expected, the European Central Bank (ECB) has not made any changes to its interest rate policy in its latest decision. However, it has now set a timetable for phasing out its asset purchase programme. The ECB expects to halve its net asset purchases to 15 billion euros per month as of October as well as to discontinue them completely by the end of the year. This latest decision is, however, subject to the condition that incoming inflation data matches the ECB’s inflation expectations. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW), offers his view on the matter.

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As expected, the US Federal Reserve announced its latest decision to raise the target range for the federal funds rate by 0.25 percentage points to 1.75–2.0 per cent. This is the sixth increase in interest rates since late 2015. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW), Mannheim, shares his thoughts on the Fed’s decision.

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Under the shadow of the newly-formed populist government in Italy, the German Bundestag’s EU Committee held an expert hearing on Eurozone reform on Monday. The focus of the hearing was on the European Commission’s proposals for the completion of the Economic and Monetary Union. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW), Mannheim, was one of the experts invited to the hearing. He assesses the Commission’s proposals.

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Details from the coalition negotiations between Italy’s far-right populist party Lega Nord and the Five Star Movement have caused a stir on the financial markets: their plans to massively increase public spending and cut taxes, and especially their demand for a debt relief of 250 billion euros of TARGET 2 liabilities have spread uncertainty across the European Union. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at the Centre for European Economic Research (ZEW), Mannheim, shares his thoughts on this development.

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