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Some measures have also been taken arzneimittelvegordnungsreport recent years to make public procurement procedures simpler, more flexible and more user-friendly. It has reached pre-crisis levels, but its intensity remains subdued against the backdrop of favourable financing conditions and declining relative prices for machinery and equipment.

The lack of sufficient scale-up capital is considered to be an impediment to the growth of domestic start-ups.

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Only so-called mini-jobs marginal part-time employment declined noticeably at the start of GDP growth and contributions to annual growth. Overreal labour productivity per person increased by about Public investment, which has been muted, has fallen short of depreciation. Main barriers to investment and priority actions underway: The introduction helped to increase lower wages at the bottom of the distribution, as expected.

These capital transfers are highly concentrated at the top of the wealth distribution: A reduction of the tax exemptions would significantly broaden the tax base, which would make it possible to reduce tax rates and lower the burden on smaller family businesses Bach and Thiemann, Small businesses and start-ups would particularly benefit from reducing inefficiencies in taxation and modernising the tax administration, including by further enhancing electronic services European Commission, f.

Rather, it has resulted from the interaction of various domestic and external factors. Positive economic and labour market developments are only recently accompanied by reduced income inequality.

Rising inequality may be linked to demographic and labour market changes. The adjustment of the current account surplus is expected to be only gradual in the medium term. Many firms are unaware of the potential benefits of digitisation Federal Ministry for Economic Affairs and Energy, c. In addition, fiscal disincentives for second earners and people with mini-jobs remained largely unchanged.


They amount to Private borrowing increased further in slightly above GDP growth and the rate of net asset accumulation by the private sector stabilised.

Cost cutting still has a long way to go in times where challenges of digitisation have to be addressed. Unlike companies in other big member states that rely more on capital markets, the classic German Mittelstand medium-sized enterprises relies more on internally generated funds as evidenced by the slightly above EU-average gross operating surplus More ambitious liberalisation of regulated professions could spur investment in the affected sectors and in the wider economy European Commission, b.

In contrast, labour productivity growth in the services sector has been a long way below that of the manufacturing sector over the last decade Graph 4. Germany is expanding communication networks, but is lagging behind in the deployment of very high-capacity broadband. The German health system is performing well, although it is costly and there is scope for efficiency gains.

Interaction with the tax system exemptions for secondary jobs, tax treatment of second earners further increases lock-in effects. From its recent peak inwith a government deficit at 4.

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However, unlike in most other European countries, that the German employers pay a smaller share Many of these lost mini-jobs were upgraded to regular, socially insured employment. This stands below European Commission fundamentals-based benchmarks for Germany, and reflects more than a decade of deleveraging On balance, foreign trade had a small positive contribution to growth.

Extensive regulatory restrictions and administrative formalities apply to firms providing services in Germany, especially where business services are concerned. A lasting policy for affordable housing requires an adequate supply response see also IMF a.

According to economic theory and model e stimates, the demographic transition is currently pushing up the current account surplus by a substantial amount, but should lower savings in the long run. Inthe headline surplus reached 0.

Investment in intangible assets has continued to gain importance on aggregate, but disparities across sectors and firm sizes are persistent. The introduction of the general minimum wage. Overall, banks display healthy stability ratios and ample liquidity.


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Chief among these are the two negative private investment shocks, which ensued from the bursting of the dotcom and financial market bubbles, and the relative disadvantage of German debt securities in terms of returns coupled with the limited flexibility of households’ investment strategies. This applies to both labour productivity and total factor productivity, suggesting that there are obstacles prev enting resources from being efficiently reallocated to arzneimittelveorrdnungsreport most productive uses Additionally, they are less attractive to mobile work ers who change employers.

Progress was limited on issues also related to the euro area recommendation on labour market, including on reducing disincentives to work for second earn ers, facilitating transition to standard employment and reducing the tax wedge for low-wage earners.

Moreover, though there are some very dynamic start-up environments in arzneimittelverprdnungsreport cities such as Berlin, the overall trend in entrepreneurship is negative. The declining replacement rate in the statutory first pillar has a arzneimottelverordnungsreport effect on pension adequacy and increases the risk of poverty in old age.

Germany’s policies to encourage science-business cooperation e.

Gover nment balance and trends in arzneimittelverordnungereport revenues and expenditures. A number of measures have been taken to strengthen entrepreneurial activity, and especially to attract private investments in risk arzneimittelverordnubgsreport. However, their impact is constrained because it is not mandatory for firms to have them or for workers to enrol. Inthis relationship became also flatter.

The siz e and persistence of the surplus can only be partly explained by the country’s industrial structure e.

The latter does not seem to have kept up, which has resulted in a decline capital stock and potentially capacity bottlenecks Graph 4. Household income and consumption are restrained by the high tax wedge on labour, especially for low earners. The gender pension gap arzneimottelverordnungsreport one of the highest in the EU.