The latest @OECD Economic Survey of #Germany has been released!
Accelerating the green and digital transitions, modernising the public administration, reducing labour taxes, improving education and training are key gov. priorities.
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1/9
The economy will slowly recover on the back of a large order backlog, easing supply chain bottlenecks & a recovery in export demand.
Investment will pick up due to high corporate savings, investment needs linked to renewable #energy expansion & increased public investment.
2/9
Rapid population #ageing is exacerbating labour shortages.
Improving the labour market integration of women, older and low-skilled workers, facilitating skilled labour migration, expanding adult learning opportunities and raising educational quality is key.
3/9
Labour taxes are among the highest across OECD countries, hampering labour supply - particularly of second earners and low-skilled workers.
Shifting the tax burden from labour towards capital income, property, inheritance & consumption taxes would help raise labour supply.
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The #modernisation of the state is key for successfully managing the green and digital transitions.
It is crucial to set mandatory common IT standards, allow for accessing, linking and analysing administrative data & harmonise administrative procedures across levels of gov.
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Germany released 36% less GHG emissions in 2019 than in 1990 and set an ambitious target of reaching #climate neutrality by 2045.
To reach these ambitious targets, emission reductions need to accelerate.
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Increasing carbon prices, phasing out harmful fossil fuel subsidies and tax expenditures & gradually shifting support from renewable energies towards green R&D would improve the cost-effectiveness of mitigation efforts.
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New OECD analysis shows that using carbon pricing receipts to support vulnerable households would help to protect social cohesion.
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New OECD analysis shows that adjustment costs for workers displaced from high-carbon intensity sectors are higher than for other displaced workers.
Expanding active labour market programmes & focusing on vocational education will help these workers move to new jobs.
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