News Archive

In this issue of the EconPol Forum, our authors discuss how Europe can more effectively address all these challenges and solve the associated labor market problems caused by rapid structural change. The authors also provide helpful policy recommendations for national governments and EU companies.

Since the outbreak of the Covid-19 pandemic, the configuration of international supply chains has received increased public attention. Pandemic-related disruptions in production and transportation have led to questions about the reliability of international production networks. Moreover, the war in Ukraine and the associated sanctions against Russia have cast a new light on the geopolitical significance of economic interdependencies with autocratic regimes. How do firms react to these developments, and have they already adjusted their sourcing strategies?

In September 2022 the CESifo Forum was reshaped under the new EconPol brand. The new EconPol Forum is structured into four sections. The first, Policy Debate of the Hour, recognizes the constantly evolving nature of policy challenges, focusing on the most pressing issues of the times. Leading researchers are invited to share their insights and policy conclusions.

A new EconPol Policy Brief shows that in Germany, higher corporate taxes lead to a decline in private investment: a one percentage point increase in corporate taxes is associated with a cut in firm investment of around three percent.  This means that each additional Euro of tax revenues comes at the cost of a decrease in firm investment of more than two Euro. If taxes are increased during a recession, the magnitude of the investment response is twice as large. The authors conclude that fiscal policy should therefore avoid higher corporate taxation in times of economic crisis.

On July 12, 2022 the EconPol Pillars Conferce on European Labor Markets will take place in Brussels. Starting at 9:30 CEST a.m., the conferece discusses the impact of increasing competition with China and Latin America and digital transformation on labor markets in Europe. Livestream of the event will be available unter www.ifo.de/en/live.