In their latest book “The Odysseus Complex” Ifo President Clemens Fuest and Johannes Becker, Professor at the University of Münster, develop a plan to reform the Eurozone, which would make the currency union less prone to crises and would mitigate conflicts among its member states. “The Odysseus Complex” has been published on 20 February 2017 by the Hanser Verlag. Details

Prof. Axel Börsch-Supan, Director of the Max Planck Institute for Social Law and Social Policy in Munich and Head of the Munich Center for the Economics of Aging (MEA), will address key issues concerning our pension system and demographic change in his lecture: “Older. Healthier. More productive. What developments can we expect in terms of pensions and demography?". The lecture (in German) will be given on 24 April 2017 at 6 p.m. in the Ludwig-Erhard-Saal of the Ifo Institute and will be livestreamed via the internet. Details

After prolonged negotiations the World Trade Organisation has successfully concluded a new multilateral trade agreement that was paid very little attention. In the face of growing scepticism about trade agreements per se and the proliferation of policies geared towards national interests, the WTO's Trade Facilitation Agreement marks a major success. Ifo researcher Erdal Yalcin and Felicitas Beier show why in the latest issue of the ifo Schnelldienst. Details

Austria's pension system is often presented in the media as a model for Germany. After a closer examination of key data on the Austrian pension system, Anja Hülsewig, ifo Institute, and Oliver Hülsewig, Professor at the Munich University of Applied Sciences, cast doubts on its sustainability. Reforms are needed to shore up the financing of the system, including the expansion of private and company pensions. Details

The world of work is in a state of upheaval. In the public debate concerns are being expressed that technological changesm and digitalisation in particular, are leading to the loss of jobs. Is this concern justified, or will the "World of work 4.0" even bring new jobs and growth in prosperity? These are the issues discussed in the ifo Schnelldienst 7/2017 by Oliver Stettes, Cologne Institute for Economic Research, Melanie Arntz, Terry Gregory and Ulrich Zierahn, Centre for European Economic Research (ZEW), Mannheim, Katharina Dengler, Institute for Employment and Research (IAB), Nuremberg, Daniel Veit, University of Augsburg and MÜNCHNER KREIS, as well as Werner Eichhorst and Ulf Rinne, Institute for the Study of Labor (IZA), Bonn. Details

The German economy is already in the fifth year of a moderate upturn. Capacity utilization is gradually increasing, and aggregate production capacities are now likely to have slightly exceeded their normal utilisation levels. However, cyclical dynamics remain low compared to earlier periods of recoveries, as consumption expenditures, which do not exhibit strong fluctuations, have been the main driving force so far. In addition, net migration increases potential output, counteracting a stronger capacity tightening. Details

Apr 10, 2017: The business climate indicator for trade and industry in the Free State of Saxony rose sharply in March. Saxon companies were even more satisfied than last month with their already good current business situation. Business expectations on the part of manufacturers and wholesalers also contributed to the exceptionally optimistic six-month business outlook. The business climate indices for eastern Germany and Germany as a whole also rose in March 2017. Details

Mar 30, 2017: Confidence in trade and industry in eastern Germany improved again at the beginning of spring; the business climate index rose in March from 109.5 to 110.4 points. The survey participants assessed their business situation as well as their business expectations slightly more favourably than in February. The development of industry and trade in eastern Germany was similar to that in Germany as a whole in March. Details

Mar 29, 2017: German exporters are slightly more optimistic than last month. The Ifo Export Expectations rose from 14.5 balance points in February to 14.7 balance points in March. German exporters remain unconcerned by political uncertainty worldwide. They are also benefiting from the favourable current economic situation in their sales markets. Details

Mar 29, 2017: German companies’ willingness to recruit waned slightly this month, but remains at a very high level. The Ifo Employment Barometer dropped to 109.4 points in March from 110.6 points last month. Last year’s big recruitment drive appears to be slowing down slightly. Details

Mar 28, 2017: Sentiment in the service sector continued to weaken. The business climate index fell to 108.1 points in March from 108.6 points. In a repeat of last month’s developments service providers were more satisfied with their current business situation, but they expressed less confidence about their six-month business outlook. The expectations index fell to its lowest level since August 2014. Details

Mar 27, 2017: Sentiment among German managers continues to improve this month. The Ifo Business Climate Index rose to 112.3 points in March from 111.1 (seasonally adjusted) points last month, reaching its highest level since July 2011. The upwards trend in assessments of the current business situation continues unabated. The business outlook for companies also improved again this month. The upswing in the German economy is gaining impetus. Details

Mar 27, 2017: The Ifo Export Climate rose from 0.78 index points in January to 0.85 points in February 2017. The improvement in the export climate was due both to higher corporate and consumer confidence abroad, as well as the enhanced price competitiveness of German business. Details

Mar 23, 2017: The business climate improved clearly at the beginning of the first quarter of 2017, according to the results of the Ifo Institute’s survey of freelance architects. Details

Mar 9, 2017: Investment by German manufacturers rose by 3% in 2016, according to the results of the latest Ifo Investment Survey. In 2017 manufacturers plan to increase their spending on investment by 5% (almost 5% in real terms). The key factors driving investment are fairly balanced, with investment in expansion and in replacement procurement accounting for a third of expenditure in 2017 respectively. Details

Mar 9, 2017: The latest Randstad Ifo Personnel Manager Survey analyses how many companies have employees who have already taken early retirement at 63, their positions and whether companies generally struggle to fill the positions left vacant. The survey results show that over half of the companies surveyed are already affected by retirement at 63, with 52% of companies reporting employees taking early retirement. More companies were affected in manufacturing (62%) than in distribution (53%) and the service sector (44%). A further 12% of all firms reported that although none of their employees have taken early retirement at 63 to date, they expect them to do so in the next two years. Details