Team
The people behind the ifo Institute offer the very high level of expertise and experience needed to fulfill our research and service mandate.
ifo Viewpoint 245: Why a Reform of the German Corporate Tax System Is Urgently Needed
The current crises have led to a debate about the future of Germany’s business model and German industry. Rising energy prices, disrupted foreign trade, and the US IRA subsidy program raise the question of what needs to be done to maintain Germany’s competitiveness as a location for companies and highly productive jobs.
ifo Viewpoint No. 206: EU-wide Minimum Wage Is no Recipe for Prosperity Differences
In Europe, there are increasing calls for an EU-wide minimum wage. For example, during the European election campaign, the lead candidate for the Social Democrats, Frans Timmermanns, called for all EU member states to introduce a minimum wage of 60 percent of the respective national median wage. Commission President Ursula von der Leyen has also called for regulations governing EU-wide minimum wages.
ifo Viewpoint No. 188: Populist Blackmail and the EU
When it comes to justifying violation of European rules on sovereign debt or liquidating banks, one argument is very much in vogue just now: That you have to make an exception once in a while to avoid fuelling populist criticism of the euro and EU.
Ifo Viewpoint No. 172: Preparing for Crises – a “Legacy” for States
A proposal put forward by the German Federal Ministry of Finance has given a boost to the negotiations between Greece, the EU Commission and the IMF. These parties could not agree on the volume of the fiscal consolidation package needed to enable Greece to meet the budget goals set by the Troika. It is not only difficult to calculate the costs of the refugee crisis. The future revenue and spending of the crisis-afflicted country are difficult to predict in any case. This led to a proposal from Berlin to approve consolidation measures in advance, which would only take effect if Greek government spending were to exceed forecasts.
ifo Viewpoint 235: Broad Tax Cuts for Gasoline Are the Wrong Way to Go
In view of drastic rises in energy prices, there are increasing calls for governments to shield citizens from the burden. The French government has announced that it will reduce gasoline tax by EUR 0.15 per liter for four months starting in April. In Germany, there is criticism that the government is earning money from the increase in the price of gasoline via VAT. The claim is that the additional revenue should be returned to the citizens. Some are calling for fuels to be subject only to the reduced VAT rate of 7 percent. Since VAT rates cannot be changed at will due to European law, German Finance Minister Christian Lindner wants to introduce a gasoline rebate – people should submit fuel bills to the tax office and get a portion refunded.
ifo Viewpoint 217: The Policy Agenda for the Post-pandemic Period
Many companies, employees, and self-employed people in Germany are currently struggling to cope with the restrictions of the shutdown. Nevertheless, the time has come to think about what comes next. How can policymakers support an economic recovery?
ifo Viewpoint 252: An Interest Rate Cap Would Not Be a Good Idea
Currently, rising interest rates are making life difficult for borrowers. Anyone who has debts with flexible interest rates or wants to buy an apartment must expect interest rates of 4 % and more. Two years ago, it was often less than half that. The situation is similar for people who take out a loan to buy a car or who simply overdraw their account. In Austria, there have now been calls for the government to intervene and introduce an interest rate cap. Interest on overdrafts on a checking account should be limited to a maximum of 5 %, and the maximum interest rate for real estate loans should be 3 %. What are we to make of this?
ifo Viewpoint 216: How Will an Exit from the Shutdown Work?
The Covid-19 pandemic has plunged Germany, and many other countries, into an unprecedented crisis. Restrictions on leaving the house and meeting with people have been imposed and many companies have halted production.
ifo Viewpoint 256: Saving on Social Security Contributions? That Would Need a Comprehensive Strategy
The German Federal Constitutional Court’s ruling on compliance with the debt brake has sparked a controversial debate on how to limit new borrowing in the federal budget. The question of whether social spending, which accounts for half of government spending, should be cut is particularly controversial. Since categories of expenditure such as interest, defense, and public investment are either unchangeable or have high priority, it must be clear to everyone involved that curbing government spending without touching social spending is a difficult undertaking.
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 Viewpoint 246: The Current Banking Quake: Where Does It Come from and What Should Policy Makers Do?
The crises at Silicon Valley Bank and Credit Suisse have shaken the world of finance. While policymakers and central banks are being placatory, the markets are not calming down. Banks that very recently seemed healthy are running into liquidity problems.
ifo Viewpoint 219: Collective Bargaining in the Public Sector
On October 22 and 23, collective bargaining in the public sector will enter its third and possibly decisive round. The trade union ver.di is demanding 4.8 percent more pay, or at least EUR 150, for federal and municipal employees. While collective wage settlements apply only to salaried employees in the first instance, they are usually also adopted for civil servants. What should we make of this demand – and what is an appropriate wage settlement in the current situation?
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 224: Central Bank Swerving from Its Path
The Executive Board of the European Central Bank (ECB) wants to make monetary policy “greener.” Hardly a week goes by without the topic being promoted by one of the board members. In addition to the visible effort to make the traditionally dry seeming monetary policy appear practically helpful and close to the people, the ECB’s activities in the matter itself amount to a further significant expansion of its competencies. This involves, first, independently assessing the environmental friendliness of projects financed by corporate bonds; and second, giving preference to positively rated projects in various securities transactions.
ifo Viewpoint No. 199: Tragedies Like Greece Must Not Be Repeated
This August the third bail-out programme for Greece came to an end, but this does not mean that the crisis is over. The country will feel its after-effects for a long time to come and it remains hard to say whether investors will ever get their money back. But the Eurozone can stop crises like Greece from happening again elsewhere by implementing reforms that strike a balance between greater fiscal discipline and more solidarity.
ifo Viewpoint No. 205: The G20 Resolutions: Breakthrough to Better International Taxation?
"It is right that the G20 countries are trying to coordinate their efforts against tax avoidance. So far, this has usually only happened unilaterally," explains ifo President Clemens Fuest in the current ifo Viewpoint.
ifo Viewpoint 236: We Must Not Undermine the Signaling Function of Price!
The German government’s relief package is well-intentioned. But regulation and subsidies aren’t a sustainable way to combat inflation.
ifo Viewpoint 227: Advantages and Disadvantages of a Reform of the Marital Splitting System
The taxation of married couples in Germany has long been considered in need of reform. The current marital splitting system provides for married couples to be taxed jointly. There is always an advantage if the partners have different incomes. This is due to the progressive income tax rate: the tax rate rises with increasing income.
ifo Viewpoint 255: The Future of Germany’s Debt Brake
The recent ruling by the Federal Constitutional Court has reignited the debate over Germany’s debt brake mechanism. Amid growing calls for reform, some critics advocate its complete abolition, while others propose exempting investments from the debt brake. Let us examine these suggestions.
ifo Viewpoint No. 187: Smart Tax Competition and the UK’s Withdrawal from the EU
Britain’s upcoming exit from the EU has led to a debate on the strategy British economic policy could take after Brexit. Politicians from other EU countries are concerned that the UK could establish itself as a tax and regulation haven at the EU’s doorstep. Using tax incentives the UK could attract companies as well as wealthy EU citizens to the country, with a negative impact on the economic development and tax revenues of the remaining EU member states.