Latest Press Releases

The ZEW Indicator of Economic Sentiment for Germany fell more sharply than ever before in the March 2022 survey. The indicator plummeted 93.6 points to a current value of minus 39.3 points. This is the biggest drop in expectations since the survey began in December 1991. By comparison, the indicator experienced a decline of 58.2 points at the beginning of the COVID-19 pandemic in March 2020. Expectations are now similarly low as in summer 2019.

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More than two million people have fled from war and violence in Ukraine, especially women and children. They have experienced terrible things in the war and while fleeing, which is why they need not only medical but also psychological help after their arrival in Germany. ZEW researchers have provided an overview based on Google Maps to enable the best possible access to psychological care.

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Europe is showing unity and solidarity with the refugees of the Ukraine war. In Germany, they are being received quickly and unbureaucratically. However, there are still many unresolved issues. For example, it is not clear how long they will need protection. In the event that they cannot return to their destroyed homeland in the foreseeable future, strategies for successful integration are necessary. Studies by ZEW Mannheim show that the integration of young children can be particularly helpful for the successful integration of the entire family. Guido Neidhöfer, a researcher in ZEW’s “Labour Markets and Human Resources” Department, explains:

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Today, the Commission of Experts for Research and Innovation (EFI) presented its annual report to Federal Minister of Education and Research, Bettina Stark-Watzinger. The presentation had been postponed due to the current political situation. Professor Irene Bertschek, head of the ZEW Research Department “Digital Economy”, is a member of EFI. One of the core topics addressed in this year’s report is digitalisation in the health care sector. The expert commission points out shortcomings and calls for immediate action.

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More than one million people from Ukraine are currently fleeing towards the west. Countless volunteers in Eastern Europe and Germany are organising emergency shelters and relief supplies to provide them with essential goods. Paul Berbée, a researcher of the Junior Research Group “Integration of Migrants and Attitudes Towards the Welfare State (IMES)” at ZEW Mannheim, explains the role of volunteers in supporting refugees.

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The rouble has hit a record low as a result of Western sanctions. The Russian central bank reacts with a dramatic interest rate hike, raising the key interest rate from 9.5 to 20 per cent. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at ZEW Mannheim, has commented on that matter:

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The COVID-19 pandemic is a veritable stress test for German fiscal policy. In the midst of the crisis, the debt brake has increasingly lost public support. Voter support for the debt brake was initially strong, but began to wane as it neared entry into force. In 2021, only 59 per cent of Germans still supported the debt ceiling, while 20 per cent said they had doubts about it. More than 60 per cent were in favour of returning to a balanced budget at a later date. These are the results of a representative survey co-authored by ZEW Mannheim.

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The EU Member States have agreed on a set of sanctions in response to Russia’s aggression against Ukraine. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at ZEW Mannheim, comments on the fiscal consequences of the war in Ukraine:

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Do metal processing companies in the USA make themselves appear more eco-friendly in terms of their sulphur dioxide emissions than they actually are? To investigate this, a team of researchers in collaboration with ZEW has applied a new method that combines satellite data with company data and web text mining.

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The currently very high consumer price inflation rates in the euro area are expected to remain well above the ECB’s two per cent target over the whole year 2022 before gradually declining in the medium and long term. High energy prices, scarcity of raw materials and problems in international supply chains are expected to be the main drivers of this high inflation, and are likely to last longer than previously forecast. In line with these results, the ECB is expected to increase its main refinancing rate, but only very gradually over the coming years. These are the results of a survey of financial market experts conducted by ZEW Mannheim.

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