1. 21.07.2020 · ZEW (fhe)
    Comment
    ZEW economist Friedrich Heinemann comments on the decisions on the EU financial framework at the EU special summit.

    After days of negotiations, the European Council agreed on the EU Recovery Fund package and the next EU multiannual financial framework. The “Next Generation EU” package, which is intended to speed up the recovery from coronavirus-induced recession, remains at 750 billion euros. However, the 500 billion euros in grants provided for in the Commission proposal have been reduced to 390 billion euros, with the rest being made available to Member States as loans. The whole package is financed by EU borrowing, which is to be repaid by 2058.

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  2. 21.07.2020 · ZEW (msc/sel)
    China Economic Panel
    China Economic Panel | China | Greater China | Cyclical indicator | Business survey | Short-term forecast
    In July 2020, the CEP indicator increases by 1.2 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.

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  3. 15.07.2020 · ZEW (fhe/ybr)
    Research
    ZEW economist Friedrich Heinemann comments on the planned distribution of the 750 billion Euro budget in the coronavirus crisis.

    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).

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  4. 14.07.2020 · ZEW (msc/fbr/jrr/sel)
    ZEW Indicator of Economic Sentiment
    Business survey | Cyclical indicator | Business cycle research | ZEW Indicator of Economic Sentiment | Short-term forecast | Germany | Europe
    In July the ZEW Indicator stands at 59.3 points and thus shows an improvement for the second time since January.

    The ZEW Indicator of Economic Sentiment for Germany decreased slightly in July 2020. Expectations are now at 59.3 points, 4.1 points lower than in the previous month. The assessment of the economic situation in Germany has improved slightly for the second time since January 2020. The corresponding indicator currently stands at minus 80.9 points, an increase of 2.2 points compared to June.

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  5. 13.07.2020 · ZEW (fhe/sel)
    Research
    ECB | Bond | Debt
    Not only had the ECB overweighted bond purchases, it had also relaxed the rules of the purchase programs for EU countries.

    Even before the coronavirus pandemic, Eurosystem central banks were increasingly buying disproportionately large amounts of bonds issued by highly indebted euro area countries. In addition, the rules of the purchase programmes have been continuously relaxed since 2015. These are the findings of a study on the ECB’s sovereign purchase programmes, conducted by researchers of ZEW Mannheim with the support of the Brigitte Strube Stiftung.

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  6. 09.07.2020 · ZEW (scg/sel)
    Research
    Start-Up | Unemployment | Firm formation
    Sebastian Camarero Garcia of ZEW examined the negative effects of unemployment benefits on start-up success.

    Unemployed individuals who become self-employed are, on average, less successful after having received unemployment benefits for a longer period of time. A longer entitlement to unemployment benefits means that many of those affected remain unemployed for a lengthier period. This, in turn, entails negative consequences for the success of the ventures of unemployed individuals. These are the findings of a recent study conducted by ZEW Mannheim and the University of Zurich. “If people feel pressured to become self-employed as a way out of unemployment, they tend to be less motivated and are less likely to be successful,” says Sebastian Camarero Garcia, a researcher in ZEW’s “Social Policy and Redistribution” Department.

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  7. 07.07.2020 · ZEW (lpo/biv/chs)
    Research
    Social participation | Coronavirus | Unemployment
    Only the containment of unemployment by politics can contain these social consequences.

    German unemployment only saw a moderate rise since the onset of the coronavirus crisis. Meanwhile, an unprecedented number of workers remain in short-time work schemes. As the COVID-19 pandemic progresses, however, unemployment rates are likely to rise. For those affected, unemployment imposes not only economic, but also social costs, which has been illustrated in a recent ZEW expert brief. “Policymakers should therefore give utmost priority to preventing unemployment in order to mitigate the severe social consequences,” says Dr. Laura Pohlan, a researcher in the “Labour Markets and Human Resources” Department at ZEW and co-author of the study.

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  8. 25.06.2020 · ZEW (sel)
    Research
    ICT | Mobile communications | Working Time | Flexible working time
    ZEW study shows that companies can benefit from homeoffice in the coronavirus crisis

    In light of the current coronavirus crisis, many businesses have no choice but to offer far more flexible work arrangements for their employees than they did before. Working from home is currently crucial to reduce the risk of infection at the workplace and on the way to work. In many cases, allowing employees to flexibly adapt their working hours also became inevitable due to the closure of schools and childcare facilities. In this context, a study by ZEW Mannheim shows that companies can benefit from flexible work arrangements if they provide adequate digital infrastructure for their employees. Service providers that adopt flexible working models and make mobile devices like laptops or smartphones available to their employees tend to be more productive than others.

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  9. 23.06.2020 · ZEW (sel)
    China Economic Panel
    China Economic Panel | China | Greater China | Cyclical indicator | Business survey | Short-term forecast
    The economic expectations of the China Economic Panel at ZEW improve again in June 2020.

    In the current June survey (9–17 June 2020), the CEP indicator climbs 15.7 points to a new value of 30.5 points, which is only slightly below the level of April 2020. 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.

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  10. 19.06.2020 · ZEW (chs)
    Comment
    European Integration | Europe | Coronavirus | Solidarity
    ZEW Economist Friedrich Heinemann comments on the decisions of the EU Council summit.

    Today, the European Council will discuss the proposals by the European Commission regarding the EU financial framework and the coronavirus recovery plan, Next Generation EU. The Commission proposed a 750-billion-euro recovery fund based on European bonds to help Member States weather the recession triggered by the coronavirus. What is at issue in the Council is not so much the size of the package as its allocation among the Member States and aid instruments. Professor Friedrich Heinemann, head of the Research Department “Corporate Taxation and Public Finance” at ZEW Mannheim, comments on this matter:

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