Current publications

Cover EconPol Policy Brief

How to Reduce Agricultural Subsidies From EU Funds

Friedrich Heinemann

“EU agricultural policy seems anachronistic. There is no justification for its dominant position in the EU budget,” says Professor Friedrich Heinemann, head of ZEW’s Research Department “Corporate Taxation and Public Finance” and author of the new ZEW study in cooperation with Bertelsmann Stiftung. The new ZEW study recommends reducing the costs of agricultural subsidies through significant national contributions to agricultural support. “If the Member States wish to privilege their farmers over other economic sectors, they should do so without passing the burden onto European taxpayers,” explains Friedrich Heinemann.

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 Cover EconPol Policy Report 02 2017

The German Current Account Surplus: Where Does It Come From, Is It Harmful and Should Germany Do Something about It?

Gabriel Felbermayr, Clemens Fuest and Timo Wollmershäuser

In the international economic policy debate Germany is criticized heavily for its current account surplus. This paper describes the factors that have led to the surplus and discusses the policy implications. The current account surplus is mainly a result of higher savings, driven by an ageing population. The claim that the German surplus causes economic damage either in Germany or in other countries is not well founded. But Germany faces growing political pressures related to the threat of protectionism, the risk that a growing creditor position may lead to political backlash, and the fact that European Macroeconomic Imbalances Procedures imply that current account surpluses should not exceed six percent of GDP. To reduce the surplus Germany should focus on a corporate tax reform to boost private investment.

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Smart Tax Competition and the UK’s Withdrawal from the EU

Smart Tax Competition and the UK’s Withdrawal from the EU

Clemens Fuest

Britain’s upcoming exit from the EU has led to a debate on the strategy British economic policy could take after Brexit. According to ifo President Clemens Fuest, tax competition in Europe can be expected to intensify. This competition, however, is not likely to result in a general reduction in headline tax rates, but in the creation of targeted tax incentives aimed at specific activities.

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Cover EconPol Policy Report 1/2017

The Future of Eurozone Fiscal Governance

Anne-Laure Delatte, Clemens Fuest, Daniel Gros, Friedrich Heinemann, Martin Kocher and Roberto Tamborini

EconPol Europe’s first policy report discusses various options for reforming fiscal governance in the Eurozone. The authors focus on two possible reform approaches referred to as the ‘Maastricht model’ and the ‘US model’. They argue that certain elements of the two approaches could be combined to achieve a more resilient and economically successful Eurozone.

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