Die Bedeutung und Rechtswirkung von Tarifverträgen (German Edition)

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Nearly half of people with mini-jobs are either of pensionable age or students, and the majority are women. This seems to suggest that mini-jobs have not led to an ever increasing erosion of standard employment. However, there appear to be strong lock-in effects. Interaction with the tax system exemptions for secondary jobs, tax treatment of second earners further increases lock-in effects. People with a migrant background are generally less well integrated into the labour market, notably to limited language skills and lower qualifications.

The employment rate of nationals of other EU countries rose by 1. However, the same does not hold for non-EU migrants. It is below the EU average The main reason for this is the large inflow of non-labour migrants who face considerable difficulties in finding jobs. Women are particularly affected with an employment rate of Lack of language skills together with lower qualifications seem to be among the main reasons for this.

While overall youth unemployment in Germany is one of the lowest in the EU, young people with a migrant background face chal lenges. This is also reflected in the significantly higher NEET young people neither in education, employment or training, aged rate of third country nationals as compared to that of nationals Moreover, the employment situation of na tive-born with foreign born parents i. While the number of newly-arrived asylum seekers has fallen, integrating the large number of young refugees into education and work represents a long-term challenge. Federal Ministry of Education and Research, Considering difficulties in labour market integration, demand for training and active labour market policies is expected to remain strong in The steady rise in the at-risk of poverty rate and inequality seen since the crisis slightly reversed.

In , the percentage of the population at risk of poverty or social exclusion continued to fall, owing to improvements in all of its three components. The at-risk of poverty rate has fallen slightly, from Following a steady increase since the crisis, in-work poverty also fell slightly in However, this improvement remains modest and only benefits men, as in-work poverty among women increased further. Further improvements are held back by disincentives to work longer second earners, mini-jobs lock-in effect, see above and the moderate wage dynamic.

Positive economic and labour market developments are only recently accompanied by reduced income inequality. However, income inequality worsened in the ear ly s, and the Gini coefficient subsequently hovered around this higher level see Graph 4. The recent declines in inequality and poverty risk may be explained by the positive labour market developments, plus the new national minimum wage. Improvem ents in the income position of low income households have helped reduce rising disposable income inequality.

Germany ranks well above or close to EU average for indicators related to coverage and adequacy of unemployment benefits. Germany also performs well for the indicators related to adequacy of minimum income benefits, which play a major role as the last safety net. Federal Ministry for Labour and Social Affairs, The declining replacement rate in the statutory first pillar has a negative effect on pension adequacy and increases the risk of poverty in old age.

The risk of poverty in old age applies particularly to former low-wage earners or people with atypical jobs, self-employed people without employees or those with an interrupted employment history temporary agency workers. Moreover, Germany has the second widest gender pension gap in the EU In addition, the replacement rate of the statutory pension scheme is expected to decline see Chapter 4.

In response, in June the Bundestag enacted three bills on the pension reform which also address old-age poverty. They include tax credits for low earners, an increase in basic public allowances and additional incentives for employers offering occupational pension schemes. Even if fiscal sustainability risks are currently low in Germany, making it more attractive to work more and longer, can help increase old-age income, boost potential output, improve the fiscal outlook, and reduce the need to save for retirement.

Self-employed people may be particularly at risk of old age poverty as a result of limited social protection. Those self-employed people who do not have compulsory pension schemes for the free professions and who do not have considerable personal means have little protection on retirement.

Former self-employed people already account for a high share of recipients of this benefit Federal Ministry for Labour and Social Affairs, c. The young are more vulnerable than the elderly in some respects. In , the material deprivation rate of people over 65 was considerably lower, at 7. Persistent generational inequalities may have a severe impact on intergenerational fairness. Moreover, Germany a high gap in the EU between people with disabilities and those without as regards being at risk of poverty or social exclusion The rising cost of housing has a considerable impact on the poor.

In , despite an overall declining trend, the housing cost overburden rate of people at risk of poverty was still significantly above the EU average Foreign workers have not benefited from the recent fall in the rate of in-work poverty.

FLÄCHENTARIF - Definition and synonyms of Flächentarif in the German dictionary

Their poverty risk rose from Although the poverty risk for children of foreign nationals improved considerably in Access to health remains good, though inequalities persist between regions and groups. While operating at high cost and with certain inequalities in access see Section 4.

Despite the growing number of nursing graduates, national studies predict considerable future shortages in the profession, owing to demographic ageing. Spending on education remains below the EU average and the government target with possible negative implications for potential growth. This gives cause for concern in view of the numerous new challenges, including the integration of newly arrived migrants, growing student numbers and digitisation.

Distribution constraints on public spending in education due limited cooperation possibilities between central and federal level remain largely in place; despite a change in the Base Law. Support from the federal government due to the constitutional changes, in force since June , are at present restricted to investments in school infrastructure for financially weak municipalities Federal Ministry for Economic Affairs and Energy, a.

Educational outcomes are stable overall but remain considerably influenced by socio-economic background. A national survey on linguistic and mathematical competences of 4 th graders marks little progress in lessening the influence of socioeconomic factors on educational success compared to earl ier studies Institute for Educational Quality Improvement, There is a wide performance gap between native-born and foreign-born students.

In PISA low performance in science was Children of immigrants second generation closed the gap only partially at This is of concern given the very substantial share of second generation students in Germany Renewing the teaching workforce raises challenges. The necessary replacement of retired teachers has already led to general supply gaps in some regions and subject areas such as mathematics and sciences Standing Conference of the Ministers of Education and Cultural Affairs, To alleviate the situation, pensioned teachers are reactivated, teachers from abroad are recruited and more a nd more career changers are being accepted into the profession, often without prior pedagogical training but with tailored accompanying support after they take up teaching Flexible provisions are necessary to address the growing demand for teachers wit h even higher than expected student numbers Klemm and Zorn, , but they do not provide a permanent solution.

Commonly agreed standards for career changers and measures to increase the attractiveness of the teaching profession might contribute to furth er raise the teacher supply. University education is becoming more widespread but is more difficult to accomplish for students with a migrant background. The rate of people obtaining a tertiary degree has reached Students with a migrant background face much bigger hurdles to complete their tertiary studies: Employment rates for VET graduates continue to be high but fewer people are choosing this education path. The employment rate of recent VET graduates in was at This points to a significant mismatch in qualifications and at sectoral and regional levels Federal Ministry of Education and Research, Efforts to better advertise the VET system include orientation and information campaigns at secondary schools, outreach to higher education dropouts and improvements in VET training, for example, through experience abroad.

Digitalisation in VET focuses on inter-company vocational training, competence centres speeding-up the digitalisation in training and funding for digital equipment of SMEs. Adult learning is below the EU average and remains a particular challenge for the low-skilled. Adult participation in learning remained at 8.

Reaching the low-skilled and unskilled, the long-term unemployed and older people is especially difficult. In the context of the Upskilling Pathways: New Opportunities for Adults recommendation European Commission, d several steps are being undertaken in Germany to address the low-skilled adult population of 7.

Income inequality increased in Germany in the early s, and wealth inequality is high in international comparison. These facts are summarised in the recent Poverty and Wealth Report and were largely confirmed by a previous country report and an in-depth review which argued that high income inequality may result in a high overall propensity to save Federal Ministry for Labour and Social Affairs, ; European Commission, c and a.

Rising inequality may be linked to demographic and labour market changes. Structural changes in the labour market, such as the increase in low wage employment, atypical employment, and decreasing unionisation, contributed to divergent real wage developments Federal Ministry for Labour and Social Affairs, With the improved em ployment rate, inequality of earned income among the whole population has decreased from onwards, and has even gone down below the level of the year Felbermayer et al.

Theoretical literature suggests that inequality may have a dampening effect on macroeconomic developments. The theoretical literature on the impact of inequality on macroeconomic developments has identified several channels: This could dampen private consumption and consequently growth; ii the incentive channel: This could reduce the human capital base in the medium to long run, with a corresponding negative effect on productivity Galor and Zeira, Recent empirical evidence for Germany is consistent with the theoretical literature suggesting that inequality may have an effect on growth, its components an d the trade balances.

The study identifies the human capital channel as the main driver of this result, whose negative impact kicks in with a delay of one decade. This illustrates the case for timely anticipatory policy action, especially in the field of equality of opportunity in education see Chapter 4. Furthermore, the share of consumption in disposable household income decreases substantially with increasing monthly income, suggesting that ther e is a significant difference in savings rates across the income distribution The study by Albig et al indicates that the savings rate might have risen more and that private consumption was somewhat weaker between and compared to the case where the Gini coefficient had remained constant.

It also points out that the trade and current account surplus may have increased due to a stronger effect of rising inequality on imports than on exports. As a result of increasing life expectancy and lower birth rates, the share of elderly people in the population has increased. Apart from the standard population ageing, there are some specific features characterising the German age distribution. First, there is the large group of 'baby-boomers' born between the mids and mids.

Second, the birth cohort following the 'baby-boomers' born since the mids had particularly low levels of births per year. The consequences of this pattern are significant for the German economy and the current account. The 'baby-boomers' are currently in their prime working age, where work income and savings are highest. However, when most of this group reaches pensionable age, the German labour force will shrink substantially, while the group of pensioners will grow strongly.

According to economic theory, demographics are currently contributing to the German surplus, but should lower savings in the long run, thereby balancing the current account. Anticipation of ageing can be a key driver of higher savings. This may help explain the very high German current account surplus. However, the current account increase implied by theory e. Buiter, ; Obstfeld and Rogoff, is always temporary. In particular, the current account position should increase when larger cohorts pass through high saving stages of the life cycle and are faced with 'ageing news' positive cohort effect.

It should then decrease when a larger proportion of the population grows older and their savings rate is lower negative cohort effect. Moreover, population ageing also provides a rationale for Germans to invest a significant share of savings abroad. An ageing population may also be affecting domestic investment patterns, resulting in rather subdued investment growth at home and higher investment abroad. The prospect of shrinking domestic labour supply and waning domestic demand are depressing returns on domestic investment. Yields on assets abroad are likely to be higher, owing to a more favourable age structure e.

Barro and Sala-i-Martin, This theoretical pattern leads to a positive and increasing NIIP, as can be observed in the German case. However, there seem to be also other factors at play that influence the structurally high German saving rate. This is sometimes explained by a specific German propensity to save European Commission, a.

Mo reover, elderly and young households in Germany depart from economic theory in that they do not dissave on average see Graph 4. As a result, the adjusted German version of the life cycle savings pattern appears structurally higher acr oss all age cohorts than what one would expect in the light of standard theory. European Commissions' calculation, based on Destatis, continuous household budget survey Laufende Wirtschaftsrechnungen.

Additionally, pension adequacy might be at risk for the 'baby boomers' and subsequent generations, thereby contributing to stronger precautionary savings. In turn, this is likely to encourage precautionary savings to compensate for the expected reduction in old-age income. Employment-specific second pillar pensions may compensate to some extent by contributing to future incomes. However, their impact is constrained because it is not mandatory for firms to have them or for workers to enrol.

Additionally, they are less attractive to mobile work ers who change employers. The federal government has also provided incentives for making additional precautionary savings. Those reforms may also have pushed up private savings, as they strongly incentivised old-age provision. Moreover they focus on safe, but low-yielding assets, which are to a large extent sourced from abroad European Commission, b. Additionally, the low interest rate environment might also be a reason for private households to further increase their savings in order to achieve a certain nominal amount 'nominal illusion'.

In the long run, empirical models suggest that the German current account balance is likely to become negative as a result of population ageing. However, in the longer term, large-scale transitions from working to retirement age will start to bring down the aggregate saving rate and, thus balance the current account. Despite the recent pick-up in investment growth, important asset types still need to catch up.

As regards the various asset types, investment in machinery and equipment has started to respond to the economic upswing; investment in intellectual property products has grown consistently and is gradually increasing in importance; and investment in residential construction is picking up too, although supply is still lagging behind housing needs in certain areas. On the other hand, investment in other construction is stagnating, possibly affecting essential infrastructure. Private investment has picked up and is expected to grow briskly in the short to medium term, but business investment intensity remains weak.

Investment in machinery and equipment has posted strong real increases in the course of reacting to record high orders, high capacity-utilisation rates and a favourable outlook. It has reached pre-crisis levels, but its intensity remains subdued against the backdrop of favourable financing conditions and declining relative prices for machinery and equipment. On the other hand investment in non-residential construction NRC is stagnating. Investment in intangible assets has continued to gain importance on aggregate, but disparities across sectors and firm sizes are persistent. The private investment share of GDP seems to be rising mainly on account of housing investment, driven by both real increases and price inflation Graph 4.

Private investment in intangibl e assets appears to be concentrated in some sectors and restrained in others. Investment in intangible assets 41 is crucial to promoting productivity growth Thum et al. A particular need is investment in digital skills, essential for innovation and the dissemination of technology.

While large technology-intensive corporations, particularly in the automotive sector, are investing in intangible assets, the services s ector and small and-medium-sized enterprises SMEs are lagging behind by comparison with other advanced economies OECD, c. Investment appears to be strongly concentrated in only a few sectors, with often fewer than half of the companies in those sec tors investing in intangible assets Belitz et al.

All this points towards a considerable secto r and company-size specific concentration of investment in intangible assets and possibly underinvestment in SMEs and other sectors, such as services, which can dampen potential growth. The increasing average age of firm owners, especially where SMEs are c oncerned, could be one of the reasons for their lower research and innovation activity, as older entrepreneurs are typically more risk-averse towards investments in innovation.

In this context, the standard push factor, low interest rates, appears to have hardly any impact on firms' investment decisions. Obstacles to investment, according to company surveys include shortages of skilled labour administrative and infrastructure constraints and the tax treatment of innovation activity.

This affects SMEs more than big business. Substitution of capital for labour is considered to have limitations where capital and labour are complementary , especially for SMEs. The prospect of a shrinking labour force is thus likely to put a lid on domestic investment growth in the medium and long run. Improving human capital, investing more in education and skills of the workforce, could help offset this risk and contribute to higher investment. Labour productivity and total factor productivity are growing faster than the euro area average, but sector-specific challenges remain.

Overall, labour productivity is growing faster than the euro area average, especially in medium-high technology sectors, such as motor vehicles, chemicals or machinery and equipment. In contrast, labour productivity growth in the services sector has been a long way below that of the manufacturing sector over the last decade Graph 4.

While total factor productivity shows a stronger increase than the euro area average, the annual growth rate for the last three years for which records are available has remained stable and below pre-crisis growth levels. Available firm-level data show that the gap between the most and the least productive companies has widened over the last decade.

Synonyms and antonyms of Unabdingbarkeit in the German dictionary of synonyms

This applies to both labour productivity and total factor productivity, suggesting that there are obstacles prev enting resources from being efficiently reallocated to their most productive uses This may act as a barrier to reallocation and productivity growth McGowan et al. The concentration of investment in intangible assets in a few sectors and firms has also exacerba ted the performance gap. The housing market is facing strong demand fuelled by rising incomes, low interest rates, and high levels of net migration.

Price heterogeneity across regions has increased strongly, especially in and around the major urban centres. While prices increased overall Graph 4. However, this is not excessive in international comparison Bundesbank, and there is no indication so far of a national house price bubble and macro-prudential risks remain contained see also Section 4. The strong price increases reflect buoyant residential demand, and scarce, even if slowly catching up, supply. Measures to ease supply constraints have double benefits: Measures for renovating and upgrading can also contribute to climate policy goals and reduce costs of living.

More investment could help make affordable housing more widely available. Most studies agree that Germany faces a significant construction backlog in major and intermediate urban areas, though there is no agreement on the extent of this gap Dahl and Goralczyk, Government estimates suggest that the current thousand units completed annually need to increase to thousand, while other broad-based studies suggest a gap closer to thousand units over the next five years, to compensate for underinvestment since Estimates that take account of official statistics on construction costs per square metre suggest that closing the gap would imply increasing residential investment by 0.

To open up attractive urban space for new dwellings, higher complementary investment in urban transport and utilities e. The latter does not seem to have kept up, which has resulted in a decline capital stock and potentially capacity bottlenecks Graph 4. A lasting policy for affordable housing requires an adequate supply response see also IMF a.

Long-term values are computed over Filling the housing supply gap could have a significant impact on the current account surplus. The large dip in construction investment as a share of GDP from the late s until was the most significant change in German investment during the emergence of the current account surplus. Remedying the sizeable accumulated shortage of housing, would have a significant impact on the current account. Given historical elasticities and input-output estimates, the main impact of increasing investment in housing would be to push up domestic nominal GDP.

In addition such a change would also result in spillovers, strong effects in nominal demand in the rest of the euro area, based on latest estimates of international inter-industry technology coefficients. Eradicating the entire construction backlog within five years would probably require an increase in construction investment of more than 3 pps. The Federal Government has introduced a number of measures aimed at alleviating the shortage of dwellings. First, it introduced Housing Construction Campaign, a package of measures designed to tackle housing shortages and rising house prices.

Public investment is picking up but a significant backlog has largely remained in place. Real public investment increased robustly in in comparison to the sometimes negative growth rates in the ye ars before Graph 4. This trend reflects the efforts by the government to strengthen investment, but the public capital stock as a share of GDP is still declining. The biggest fall since the crisis has been recorded in construction and the only sector, which has expanded in line with GDP ov er the years, is intellectual property.

Net public investment by level of government. Local authorities' net investment in infrastructure has been falling for years, resulting in a large investment backlog. Municipal authorities are responsible for over half of public investment, so it is vital to address the challenges facing this level of government.

The gravity of the reduction in investment can also be seen by the continuously negative net investment of municipalities around EUR 6 billion annually over , 0. Within this backlog, the areas with the biggest shortfall are: Closing the investment backlog at municipal level would require an additional annual public investment of 0.

Measures to bridge the gaps in the skills and planning capacity needed for public investment have yet to yield results.

Two of the main factors holding back public investment are staff shortages and a lack of engineering expertise; funding is less of a problem. Staff reductions in recent years, particularly at municipal level, have contributed to a loss of skills and the capacity to plan, organise and manage investment projects, particularly relatively large-scale ones. However, it was not until that the agency became operational, and the take-up rate has been rather low so far. Time will tell how effective it will prove to be; one issue is the large number of municipalities, which could create capacity bottlenecks at the agency itself.

The new Infrastructure Company for Transport Infrastrukturgesellschaft Verkehr is being set up in order to concentrate knowledge and staff at federal level, so as to manage large-scale investment projects more effectively. It is scheduled to be set up in and become fully operational by A comprehensive long-term investment strategy could also help incentivise more investment by providing clarity and certainty about future developments.

A recent study suggests that public investment, e. Public expenditure on educatio n has remained at 4. In contrast, public investment can be expected to crowd out some private investment in the construction sector.

Translation of «Unabdingbarkeit» into 25 languages

Public structural and civil engineering orders, including contracts for road construction, are at an historically high level last reached at the turn of the century. Orders in the road construction sector are peaking.

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However, the surge in public construction orders is coming up against capacity bottlenecks in the construction sector. The current high capacity utilisation, combined with lengthy planning permission processes and construction design procedures, may slow down increases in public investment.

While there has so far been no overheating Gornig and Michelsen, a and b , price increases for construction services can be expected Ifo Institute, Many construction firms plan to invest more, though skills shortages have been reported as the main bottleneck for capacity expansion DIHK, Germany is expanding communication networks, but is lagging behind in the deployment of very high-capacity broadband. The expansion of the communication networks was stepped up in Graph 4.

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The deployment of a very high-capacity digital infrast ructure, including next-generation gigabit-networks 45 , is a pre-requisite for competitiveness and the take-up of cutting-edge digital innovations. Instead, the incumbent, where the German government is an anchor stakeholder, prefers to use vectoring. Vectoring is a technique to upgrade the existing copper cable networks used as a technological solution for expanding dig ital networks and connecting new users due to its cost-effectiveness and currently acceptable data transfer capacity.

The digital divide between urban, semi-rural and rural areas is a particular challenge. However, many services, such as mobile health devices for monitoring chronic health conditions or telemedicine services that can improve access to care for patients living in remote or sparsely populated areas, rely on ultrafast connectivity.

Market failures could account for the underinvestment in broadband in rural and semi-rural areas. Because of the high fixed costs of investment, unit costs increase significantly as population densities drop, i. If deployed on commercial terms, broadband networks therefore tend to profitably cover only population in urban areas. Widespread and affordable access to broadband generates positive externalities because of its capacity to accelerate growth and innovation in all sectors of the economy.

Different financing models, such as a wholesale-only approach or different cooperation models, could facilitate the roll-out of rural broadband WIK-Consult, Total investment in Germany proved to be fairly resilient to the crisis. Investment in housing has picked up since but indications are that it still needs to catch up with rising housing needs. In the next few years, housing investment is expected to develop dynamically, while non-residential construction will require a permanent improvement in business confidence and the capacity to set up, plan and implement public investment projects.

Assessment of barriers to investment and ongoing reforms. Barriers to private investment in Germany are not related to financing constraints see Section 4. More ambitious liberalisation of regulated professions could spur investment in the affected sectors and in the wider economy European Commission, b. Main barriers to investment and priority actions underway: The relatively high level and complexity of corporate taxation and high tax administration costs remains a key barrier.

While measures have been taken to simplify certain areas of taxation, enhance tax administration and improve conditions for venture capital, no further initiatives have been taken or are planned to review corporate taxation or the local trade tax Gewerbesteuer. As the labour market tightens, availability of skilled labour is becoming more of a binding constraint, in particular for medium-sized enterprises.

Measures that reduce disincentives for working more hours for people working in mini-jobs or second earners , along with a stronger focus on training and adult learning could considerably alleviate this constraint. Regulatory restrictiveness in the services sectors gives rise to low productivity and uncompetitive pricing which affects also the costs and performance of the manufacturing sector. Limited action has been announced with respect to further liberalizing professional services.

The current design of the federal fiscal relations has been a barrier to public investment at municipal level. The scope for public investment tends to be narrowed by a mismatch between the available resources of the different layers of government and their individual investment responsibilities, and by limited revenue autonomy of federal states and municipalities.

Several measures have been recently taken to improve public investment conditions at municipal level. The agreed reform of federal fiscal relations should further increase investment possibilities at municipal level, even though it falls short of more fundamental changes in terms of increasing tax autonomy of federal states and municipalities. Efforts to reduce the bureaucratic burden have had some effect but could still be strengthened, for example to further improve conditions for start-ups. Germany has a favourable business environment and is ranked 20 th out of in the World Bank Doing Business Review World Bank , While most sub-indicators are high in the ranking, disadvantages remain regarding the administrative burden for starting a business and for registering property.

Some measures have also been taken in recent years to make public procurement procedures simpler, more flexible and more user-friendly. However, the friendliness of the tax system for private investment still ranks low by EU-wide comparison. Small businesses and start-ups would particularly benefit from reducing inefficiencies in taxation and modernising the tax administration, including by further enhancing electronic services European Commission, f.

Germany is not using the potential of eGovernment. It is one of the EU countries with the lowest online interaction between public authorities and citizens. According to the eGovernment Monitor Initiative D21, , the use of eGovernment and satisfaction with its services actually decreased over the last year. Currently, eGovernment services are fragmented and not very user-friendly.

These new powers could help advance the development of eGovernment services. Germany is lagging behind other EU countries in deploying and using eHealth. European Commission, g This corresponds with the comparatively low adoption of eHealth both among general practitioners and hospitals, an area in which Germany scored below the EU average in a Commission survey European Commission, and b. Higher publication rates could improve the quality of services and allow for further efficiency gains. In the health sector the incidence of non-publication and the number of cases in which only one bid is received are striking.

Examples include the purchase of medical imaging equipment or medicinal products. In general, the lack of data is a problem. A smarter use of public procurement could also encourage innovation. Despite the introduction of a centre of excellence for innovative public procurement in , only limited progress seems to have been made at federal and regional level towards encouraging innovation through public procurement.

Over the last few years Germany has taken measures to further strengthen its already solid research and science base, but there is scope for scientific excellence to improve. Germany has a solid science base, supported by i nitiatives such as the Pact for Research and Innovation , which funds science and research institutes; the Higher Education Pact , which supports higher education institutes in providing quality education; the Excellence Strategy, a successor programme to th e Excellence Initiative ; and the tenure-track programme to support young scientists.

However, Germany currently ranks only 8th in the EU on the key indicator reflecting scientific excellence. Though ov erall cooperation between public research institutes and firms is strong, SMEs still face challenges in benefiting from it. Germany's policies to encourage science-business cooperation e. As regards the rate of cooperation between SMEs and ac ademia or research institutes, Germany scores only slightly above the EU average, according to the Community Innovation Survey The latest data show that the proportion of total jobs for which high-growth innovative firms account has fallen and that Germany's score is below the EU average.

Moreover, though there are some very dynamic start-up environments in large cities such as Berlin, the overall trend in entrepreneurship is negative. This ap plies to all sectors, including knowledge-intensive ones. The negative trends observed may be explained in part by the favourable labour market situation, with good job opportunities making entrepreneurship less attractive.

However, these downward trends might also reflect the first effects of an ageing population. Demographic trends may have an increasing impact on e ntrepreneurial activity in the coming years, including on the transfer of existing businesses. The values were estimated by DG Research and Innovation. A number of measures have been taken to strengthen entrepreneurial activity, and especially to attract private investments in risk capital. A law was passed to extend the use of loss carry-forwards, which can be relevant to young and innovative companies. To encourage more investment in the venture capital market, an important milestone was achieved in in providing investors with an exit option.

However, the venture capital market remains less developed compared to other international innovation leaders. Seed and early stage financing has recovered since the beginning of the financial crisis in The lack of sufficient scale-up capital is considered to be an impediment to the growth of domestic start-ups. Most efforts in Germany have been focused on supporting early-stage financing.

The availability of later rounds of financing at the capital-intensive scale-up phase, on the other hand later stage venture capital and growth financing is still very subdued and is considered a constraint on the growth of domestic start-ups EFI, The main reason for this is the scarcity of sufficiently large amounts of finance and of large venture capital funds. Initiatives to encourage institutional investors such as insurance companies to invest in this market could help bridge this gap. Recently, support for developing venture debt in Germany was introduced into the political debate, with a view to providing an alternative source of capital for start-ups.

Skill shortages have become the main obstacle to innovation, especially for SMEs. For example, we use so-called session cookies to recognize that you have already visited individual pages on our website. These are automatically deleted after leaving our site. In addition, we also use temporary cookies which are stored on your consumer device for a specific period of time in order to optimise user-friendliness. If you visit our site again to make use of our services, they automatically recognise that you have already visited our site and which data and settings you have entered so that you don't have to enter them again.

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Meaning of "Unabdingbarkeit" in the German dictionary

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2. Noncontact fighting. An elite technique of Russian spetsnaz;
3. Translation of «Flächentarif» into 25 languages.
4. Synonyms and antonyms of Flächentarif in the German dictionary of synonyms.
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6. NewTek Discussions.

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