Ifo Industry Colloquium 2005

On 3 November 2005 the Ifo Institute conducted its 5th Ifo Industry Colloquium in co-operation with the Chamber of Industry and Commerce (IHK) for Munich and Upper Bavaria and with assistance from the Bavarian State Ministry for Economics, Infrastructure, Transport and Technology. The analysis of the overall economy and economic developments in manufacturing, construction, wholesaling and retailing as well as in selected service sectors was the focus of the conference. After words of welcome by Prof. Erich Greipl, President of the IHK for Munich and Upper Bavaria, Prof. Hans-Werner Sinn analysed the investment and growth weakness of Germany. Then Prof. Edward Krubasik, member of the executive board of Siemens, president of the ZVEI, vice-president of the BDI and president of Orgalime, addressed some of the basic issues of industrial policy. In his opinion, industrial policy must not intervene in national or European interests via direct market intervention, industry subsidies that distort competition or direct subsidies to companies. Instead a "horizontal industrial policy" is needed "to make investments in Europe interesting by creating competitive framework conditions". In the afternoon, business cycle trends were analysed and discussed in four parallel sessions in manufacturing, distribution, construction and services with introductions by Ifo staff and contributions by external experts.