Germany: ifo Dresden proposes new eligibility criteria for regions as of 2021
The ifo Institute in Dresden, together with its partners, has proposed new criteria for German regional funding from 2021.
"In the future, the economic performance per employed person, the underemployment rate, a forecast of the number of people capable of working up to 2035 and the equipment with fast Internet as well as motorway and ICE connections should be used to determine the assisted areas," says Joachim Ragnitz, one of the study directors. "Under the new system, too, regions in eastern Germany in particular will be identified as structurally weak, but many regions in western Germany that were originally industrial regions will also be identified as such, as they have not been able to cope with the collapse of previously dominant economic sectors. However: Which regions will actually be able to receive funding in the future also depends on EU regulations and cannot yet be conclusively assessed."
Together with the Gesellschaft für Finanz- und Regionalanalysen, Münster (GEFRA) and the Bundesinstitut für Bau-, Stadt- und Raumforschung im Bundesamt für Bauwesen und Raumordnung, Bonn (BBSR), the ifo Institute (Dresden branch) has examined a large number of different criteria to determine to what extent they are suitable for measuring structural weaknesses.
The CDU/CSU and SPD had announced in the coalition agreement that they would restructure German regional funding. In the future, funding will be provided "as needed" rather than "in the direction of the compass". This makes it necessary to determine the structurally weak areas in Germany eligible for funding on the basis of a uniform, all-German system.
Article (in German)
Maretzke, Steffen, Joachim Ragnitz and Gerhard Untiedt, "Eignung von Regionalindikatoren zur Bestimmung der GRW-Fördergebiete ab 2021", ifo Dresden berichtet 26 (01), 2019, 03–08
Publication (in German)
"ifo Dresden berichtet 01/2019", ifo Institut, Dresden, 2019, 01–34
All Articles in this Issue:
- Eignung von Regionalindikatoren zur Bestimmung der GRW-Fördergebiete ab 2021
- Deutschlandprognose 2019: Konjunktur kühlt sich ab
- ifo Konjunkturprognose Ostdeutschland und Sachsen Winter 2018:
- Ostdeutsche Wirtschaft im Fahrwasser der deutschen Konjunktur
- Mehr Dienstleister im ifo Geschäftsklimaindex
- Wie ist der Mittelstand in Deutschland verteilt? Eine Analyse mit Befragungsdaten
- Vierteljährliche VGR für Sachsen: Ergebnisse für das dritte Quartal 2018
- ifo Konjunkturumfragen Ostdeutschland und Sachsen: Kräftige Abkühlung
