This 2010 edition of OECD's periodic survey of the German economy includes chapters covering emerging from the crisis, facilitating structural change and preventing long-term unemployment, bringing public finances back to a sustainable path, lessons from the financial crisis for the banking system, and structural reforms to lift potential growth in a globalised world.
-Basic Statistics of Germany, 2008 -Executive summary -Assessment and recommendations Chapter 1. Emerging from the crisis -The economy is coming out of a deep crisis...
-...and the recovery will be slow -Repairing the damage caused by the crisis -The strong growth of the export sector and the current account surplus -Drawing lessons from the crisis -Annex 1.A1. Progress in structural reform Chapter 2. Facilitating structural change and preventing long-term unemployment -Employment reacted with a long lag to the recession...
-...but hours worked have been reduced significantly -Strict employment protection increases the risk of labour market duality -Preventing the buildup of long-term unemployment Chapter 3. After the crisis: Bringing public finances back to a sustainable path -The economic crisis has reversed financial consolidation -A new fiscal rule will help to improve public finances...
-...though its design may have to be refined -Compliance with the new fiscal rule requires fiscal consolidation...
-...which has to be achieved through a combination of expenditure cuts...
-....and revenue-raising measures -Improving the structure of the tax base Chapter 4. The banking system Lessons from the financial crisis -The banking sector was hit hard in the crisis -What factors led to the imapct of the crisis on German banks and how to fix them?
Chapter 5. Structural reforms to lift potential growth in a globalised world -Considerable scope remains to lift potential growth -Economic dynamism needs to be consolidated in export sectors and broadened elsewhere...
-... by making framework conditions more conducive to innovation and structural change -Product market regulation needs to become more competition friendly -Innovation should become less dependent on currently strong sectors -The education reform needs to continue -Immigration policy needs to make Germany more attractive to high-skilled foreigners -Annex 5.A1. What factors were behind the German export boom?