Deeper reforms in Germany will ensure more inclusive and sustainable growth

Merketl Gutteres UN

Secretary-General António Guterres (left) at a press encounter alongside German Chancellor Angela Merkel. Source: Video screen capture

This article is brought to you in association with OECD.

The German economy is undergoing a robust expansion, with record-low unemployment and real wage gains underpinning domestic demand while strong exports are driving business investment. The strong fiscal position will offer opportunities for funding structural reforms and public investment to meet future challenges, according to a new report from the OECD.

The latest OECD Economic Survey of Germany looks at the multiple factors behind years of steady growth and high levels of well-being, as well as the challenges remaining to ensure the benefits are shared by all. The Survey projects growth topping 2% for the 2018-19 period, and lays out an agenda for ensuring sustainable and more inclusive growth going forward.

The Survey, presented in Berlin by OECD Secretary-General Angel Gurría, highlights the need for new policies to help reduce inequality and poverty risk, and recommends more extensive use of new technologies, including for the low-carbon transition. It also points to the need for new strategies to boost productivity, improve skills across the labour force and prepare for the future of work.

“Germany’s recent economic performance is remarkable, and the robust expansion appears set to continue,” Mr Gurría said. “Unemployment is at record low levels and Germany is providing jobs, and better lives, to hundreds of thousands of immigrants. More must be done now to ensure that today’s strong economic and social results are sustained and extended to all.” Read the full speech.

The Survey says that economic progress will hinge on improving productivity growth, which has been held back by low levels of skills and slow diffusion of new technologies. Boosting entrepreneurship, through efficient e-government services and other improvements to the business environment, and by removing barriers for more women to become entrepreneurs, can speed up technology diffusion and raise productivity among SMEs. Improving competition and increasing investment in digital networks would allow businesses to better harness digital technologies, while reducing government ownership in the Landesbanken, car manufacturing, telecommunications and postal services would allow reallocation of resources across the economy.

Improving both the acquisition of skills and their use will also be critical as workers prepare for jobs that will be altered by automation, digital platforms and other technological changes. The education and training system will play a key role to improve access to economic opportunities in the context of technological change, including through life-long learning.

Germany’s strong fiscal position offers space for financing policies aimed at making the economy more inclusive. This could include tax relief on second earners to boost women’s participation in the workforce, as well as expanding childcare, early childhood education and primary education.

Transport policy reforms to improve electrification of road transport and reduce congestion in the cities by boosting uptake of ride-sharing services vehicles would help make growth greener and ease the transition to a low-carbon future, the Survey said.

An Overview of the Economic Survey, with the main conclusions, is accessible at: http://www.oecd.org/eco/surveys/economic-survey-germany.htm.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

G7 summit: Trump Vs. G6 leaders on trade and climate change

Switzerland to favour EU citizens in immigration quotas as the risk of a new referendum looms

“BEUC cautions against TTIP that would seek to align EU and US chemicals management frameworks”

Is the ECB ready to flood Eurozone with freshly printed money?

EU Commission: a rise in wages and salaries may help create more jobs

Big impact vs big exit: the social side of the start-up game presented at the WSA Global Congress in Vienna

EU Parliament: ECB accountable for not supporting real economy

Will the three major parties retain control of the new EU Parliament?

Has the treacherous theory about the ‘French patient’ finally prevailed?

Historical success for the First ever European Presidential Debate

After the Italian ‘no’ and the Brexit, Germans must decide which Europe they want

The world has made spectacular progress in every measure of well-being. So why does almost no one know about it?

Chinese “BeiDou” GPS goes to market

The next EU President will first have to drink his tea at Downing Street

How biotechnology is evolving in the Fourth Industrial Revolution

Intel @ European Business Summit 2014: Better decisions now, the new business dashboard 

Migration crisis update: lack of solidarity not only among EU leaders but also EU officials

From inconvenience to opportunity: the importance of international medical exchanges

Afghanistan: UN envoy urges further extension of ceasefire with Taliban, as Eid ul-Fitr gets underway

German political spillovers: ECB’s Draghi resists first attacks by AfD

A Valentine’s Special: heart has nothing to do with it, it’s all Brain

ECB settles the bank resolution issue, makes banking union tangible

EU-Russia relations: the beginning of a warmer winter?

European banking stress tests 2014: A more adverse approach for a shorter banking sector

Is history a new NATO weapons against Russia?

The IMF overstates the risks for Eurozone and downgrades the threats for the US economy

Here are 4 of the most politically charged World Cup games ever played

Military escalation will have ‘serious consequences’ for Yemeni civilians, warns UN Special Envoy

EU-Ukraine Free Trade Agreement sees the light as Moscow’s reaction once more looms

Glaringly false reassurances about the repercussions of the EU-US free trade agreement

A Sting Exclusive: “Regional Policy: a fully-fledged investment policy”, Commissioner Cretu reveals live from European Business Summit 2015

MWC 2016 LIVE: 5G to embrace unlicensed bands and Wi-Fi

Hollande protects the euro from the attacks of extremists

Is Britain to sail alone in the high seas of trade wars?

A new world that demands new doctors in the fourth industrial revolution

“China will strive to enhance the performance of economic growth”, President Xi highlights from the World Economic Forum 2017 in Davos

Greece lost a month that cannot be found neither in “mini Summits” nor in Berlin

Ethiopia will soon introduce visa-free travel for all Africans

The miserables and the untouchables of the economic crisis

How will Brexit affect higher education in the EU?

Paris agreed with Berlin over a loose and ineffective banking union

Banks, insurance giants are free again to abuse the real economy

World Health Organisation and medical students: is there any room for improvement?

China’s New Normal and Its Relevance to the EU

Education and Training: where do we stand in 2014?

The European Sting @ European Business Summit 2014 – the preview

Let’s Learn

Migration Crisis: how to open the borders and make way for the uprooted

Migration has set EU’s political clock ticking; the stagnating economy cannot help it and Turkey doesn’t cooperate

This crisis cannot be confronted with statistics

The DNA of the future retail CEO

“Fortress Europe”, “Pegida” and its laughing stocks

Warmongers ready to chew what is left of social protection spending

US-North Korea summit in Singapore ‘a promising development’ says Guterres

UN warns of ‘deteriorating climate’ for human rights defenders in Guatemala

The European Sting @ Mobile World Congress 2014, Creating What’s Next for the World. Can EU Policy follow?

EDRi @ European Business Summit 2014: Digital Citizenship in Brussels – the case of Net Neutrality

Are you breathing plastic air at home? Here’s how microplastics are polluting our lungs

Trump questions US – Europe kinship, approaches Russia

Here’s how China is going green

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s