ifo Media Center
The ifo Institute invites you to participate in the discussion of interesting economic topics via the Internet. In our ifo Media Center a whole series of remarkable events are available and can be viewed in full length. We also record selected speeches and presentations given by employees or at events and make them available in our Media Center.
ifo Viewpoint No. 185: The Brexit Bill: A Useful Political Bargaining Chip not an Exact Science
At the start of the Brexit negotiations, EU chief negotiator Michel Barnier presented the British a hefty bill: exiting the EU will cost them 60 billion euros. Prime Minister Theresa May was “not amused” but has promised that her country will meet its obligations. What are these obligations? The European Treaties do not specify how a country’s withdrawal is to be paid for. Two approaches are currently being discussed. One can be called the “divorce” approach. An inventory of common assets and liabilities is determined, and each partner receives its share of net assets. In the case of the EU, net assets are negative. With the Brexit bill the British would assume their share of the net debt. The other is the “club-membership” approach. As long as you are a member you pay your membership fees; when you leave, it is only a matter of how long after having given notice you must make further payments. The assets of the club are not split up but are held by the remaining club members.
ifo Viewpoint No. 184: What It Will Cost Us If Donald Trump Is Serious
Free trade? Open markets? Both no longer seem to be the order of the day. Instead 2016 and 2017 may well go down in economic history as the years that ushered in a drastic change in economic policy course and saw it veer towards protectionism. Things all began with the Brexit vote by the British, with the climax to date being the Americans’ decision to elect a president who openly favours isolation by voting for Donald Trump.
ifo Viewpoint No. 183: Brexit Negotiations: Germany Must Make a Case for Free Trade with Britain
The time has finally come. In a few days the British government will formally declare Britain’s exit from the EU. The country’s EU membership is expected to end in March 2019. The terms of Britain’s exit and its future relations with the EU will be defined in the intervening period. If no agreement is reached, economic relations between the two parties will be governed by World Trade Organisation (WTO) rules. This would mean tariffs ranging from between five and ten percent on many goods, with far higher rates applying in some cases. Trade in certain services may even become impossible.
ifo Viewpoint No. 182: The Trump Tax: a Revolution in International Corporate Taxation
In recent weeks Donald Trump has repeatedly warned that foreign companies which distribute their products in the USA, but do not produce there, will be punished with an import tax of 35 percent. He has not yet explained how he plans to implement this tax. There are, however, strong indications that he may adopt a reform plan put forward by the Republican congressman Paul Ryan. Instead of customs duties, the plan outlines far-reaching reforms in the taxation of company profits. If implemented, the plan stands to revolutionise the international taxation system.
ifo World Economic Survey (2017q1)
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EBDC Business Innovation Panel (2016)
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ifo Investment Survey Industry (2015)
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EBDC Business Investment Panel (2016)
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ifo Viewpoint No. 181: The Minimum Wage: Time to Take Stock
On 1 January 2015 a nationwide minimum wage of 8.50 euros per hour was implemented in Germany. As of January 2017 this wage will be raised to 8.84 euros. It is time to take stock. Although the debate over the minimum wage focuses strongly on its employment effects, the key question is how the minimum wage has impacted the wages actually paid in Germany. Average wages in Germany rose by 2.3 percent in 2015 versus 2014. In eastern Germany this increase amounted to 3.9 percent, and among unskilled workers it was as high as 7.9 percent. So the minimum wage seems to be working.
ifo Business Survey Service (2016b)
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ifo Business Survey Trade (2016b)
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ifo Business Survey Construction (2016b)
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ifo Business Survey Industry (2016b)
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ifo Architects Survey (2016)
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ifo Investment Database (2016)
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ifo Business Survey Insurance (2016)
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ifo World Economic Survey (2016q4)
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Ifo Viewpoint No. 180: The Economic Consequences of Mr. Trump
Politicians across Europe are still reeling at the shock election of Donald Trump as US President. That is understandable. They nevertheless need to snap out of it and start thinking seriously about how Trump’s triumph will impact Europe both economically and politically. The question on everybody’s lips is: how much of his election campaign rhetoric will Trump actually attempt to turn into economic policy and how should Europe react? Although his policy proposals to date have been hazy on detail, a fairly clear picture of Trump’s position has nevertheless emerged in four key areas.
Ifo Viewpoint No. 179: EU Budget Reform: How to Spend It
What does the EU actually do with all of the money at its disposal? If you ask the ‘man on the street’ you get the following answer: most of the money goes to agricultural subsidies. Some people may also recall building site boards that refer to financial support from the EU’s regional and structural policy.
Ifo Viewpoint No. 178: Impact of Globalisation on Taxation
The globalisation of the economy raises basic questions for the financing of public spending. Capital, goods and a growing number of people are mobile across borders. Many companies can relocate their production facilities, jobs and immaterial assets like patents internationally.
