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Fewer German Companies Dependent on China

Fewer companies in Germany say they are dependent on intermediate products from China. This is the finding of an ifo Institute survey, according to which 37 percent of all manufacturing companies in Germany are currently dependent on important intermediate products from China. In February 2022, immediately before the start of the war in Ukraine, the figure was 46 percent. “At the same time, we see that fewer companies are looking to reduce their imports from China in the future,” says Lisandra Flach, Director of the ifo Center for International Economics.

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Economists Call for Reform of EU Research Policy

A report by a group of economists from France, Germany, and Italy criticizes the EU’s innovation policy and the direction of spending on research and development in Europe and calls for changes. “The EU is losing the innovation race, thereby giving up on economic well-being and surrendering regulatory and geopolitical influence. Its complete absence in the group of top-20 tech companies and top-20 start-ups is ominous. It spends too little on R&D and focuses on mi-tech,” says Nobel laureate Jean Tirole from the Toulouse School of Economics.

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Right-Wing Populist Voters Favor Dismantling the Welfare State

Voters of right-wing populist parties are increasingly in favor of dismantling the welfare state in order to be able to compete with other countries. This is according to a survey of 12,000 voters in Germany, France, Spain, and the United Kingdom. “The right-wing populist spectrum sees the welfare state as a form of redistribution towards immigrants,” says Marcel Thum, Director of the ifo Institute’s Dresden Branch.

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Parenthood Increases Inequality between Women and Men in Germany

Inequality in the labor market between men and women in Germany is at its greatest when there are children involved, finds an international research group that has examined the development of inequality in 17 countries in Europe and North America over the past 50 years. Among 30-year-olds, mothers earn on average 70 to 80 percent less than fathers. For childless people of the same age, the difference is much smaller and has fallen to less than 5 percent.  

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Economic Researchers Advocate Greater Energy Cooperation in Europe

Economic researchers from various countries have called on the EU to view the energy crisis following the Russian attack on Ukraine as a wake-up call and to strive for better cooperation in Europe. “Not only can switching to non-fossil energy sources reduce strategic dependency: if done correctly, it can also lower electricity prices and help the EU and its member states achieve their climate targets.

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