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How can we ensure all players in economy, including multinationals, contribute to society in a fair way? How should taxation be handled in individual countries against the backdrop of international value chains and global markets? At this year’s MannheimTaxation Annual Conference many topics presented by ZEW Mannheim addressed the currently hotly debated new regulations in international corporate taxation.

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After Angela Merkel’s 16-year term as chancellor, Germany is doing very well economically, at least if we look at GDP or the unemployment rate. However, this is only half the truth. The need for re-form is enormous. The Economist even wrote about “The mess Merkel leaves behind” and de-nounced the complacency of German politics. Climate change and digitalisation are leading to mas-sive upheavals for which Germany is not sufficiently prepared. The coming government has a lot to do in this regard. With a new composition of political forces, however, it has a unique opportunity to resolve frictions and revitalise markets to make space for innovation and enable the adjustments necessary for change. Let me give you three examples:

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China aims to become the world’s leading nation in innovation and technology by 2050. Research and development (R&D) are crucial for achieving this goal. Therefore, the government grants Chinese companies extensive subsidies for their R&D activities. However, these funds are not always used for the intended research purposes. In the latest episode of  the #ZEWPodcast ‘Wirtschaft · Forschung · Debatten’/‘Economy · Research · Debates’, Professor Bettina Peters, deputy head of the ZEW Research Department “Economics of Innovation and Industrial Dynamics” and Dr. Philipp Boeing, ZEW innovation economist and China expert, talk about the misappropriation of R&D subsidies in China.

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What role do economic research institutes play in addressing economic policy challenges in Germany and Europe? This question was the topic of the panel discussion on 8 November 2021 on the occasion of the 30th anniversary of ZEW Mannheim. ZEW President Professor Achim Wambach was joined in the discussion by Dr. Guntram Wolff, director of Bruegel in Brussels, and PD Dr. Monika Köppl-Turyna, director of EcoAustria in Vienna. The panel was moderated by Silke Wettach from the news magazine “Wirtschaftswoche”.

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Economic experts expect the economic recovery to be postponed until 2022. However, not only is economic growth in Germany expected to pick up in 2022, the forecasts for the inflation rate in Germany and the euro area are also being revised up slightly. This is the result of the business cycle tableaus by ZEW Mannheim and the German daily newspaper, Börsen-Zeitung.

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The decision of the Federal Constitutional Court of 24 March 2021 on the Federal Climate Change Act is already considered historic. The First Senate ruled that the legislation was insufficient, especially with regard to emission reductions from 2031. The complainants’ rights of freedom were violated to the extent that the emission levels permitted in the Federal Climate Change Act until 2030 jeopardised “practically every type of freedom protected by fundamental rights” of the complainants after that time. The Act was declared unconstitutional in parts and the younger generation was granted a right not to have to bear the consequences of climate change alone. The President of the Federal Constitutional Court, Professor Stephan Harbarth, spoke about the Court’s order and its far-reaching consequences as part of the event series First-Hand Information on Economic Policy at ZEW Mannheim on 26 October 2021.

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ZEW Mannheim has received the TOTAL E-QUALITY award for the third time, this year with an additional award for diversity. The institute was honoured by the jury for its successful gender equality policy, its well-established structures for implementing gender equality and its ongoing commitment to promoting equal opportunities.

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How will the economy develop over the next six months? The ZEW Financial Market Survey has been exploring this question for 30 years by surveying the sentiment and forecasts of German financial market experts on a monthly basis. In the 13th episode of the #ZEWPodcast ‘Wirtschaft · Forschung · Debatten’/‘Economy · Research · Debates’, economists Dr. Michael Schröder and Frank Brückbauer look back on the past 30 years and provide insights into the creation and impact of the ZEW Indicator of Economic Sentiment.

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Is the lack of comprehensible sustainability criteria an obstacle to growth in the sustainable finance sector? In which way do policy measures aimed at a sustainable financial market interact with climate policy instruments? Can investors advance sustainable financial investments effectively by exercising their voting rights? Joined by around 80 online participants, four finance experts from academia and business debated the question of whether sustainable finance can ensure climate protection  and addressed the most relevant current developments and topics in the field of sustainable finance. On 22 September 2021, the 90-minute panel discussion was organised by the Sustainable ZEW initiative.

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Professor Kathrine von Graevenitz has taken up the professorship of economics with a focus on empirical environmental economics at the University of Mannheim on 1 October 2021. The appointment of the economist and deputy head of the ZEW Research Department “Environmental and Resource Economics, Environmental Management” will further strengthen the intensive dialogue between ZEW Mannheim and the University of Mannheim.

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