DATA COLLECTION TEMPLATE AND QUESTIONNAIRE Country : Germany Gaby Umbach Contents Part A: General information on cohesion 1 Literature review 2 Regional profiles Part B: Specific policies and their effect on cohesion 1 Macroeconomic policy 2 Public expenditure 3 Territorial policies 4 Public sector transfers 5 State aid 6 Employment policies 7 Technology policies 8 Inward direct investment 1 Part A: General information on cohesion 1 Literature review Ackermann, Michael B.E. (1998): „Die optimale Angleichung der neuen Bundesländer und die Lebensverhältnisse in Westdeutschland“, Frankfurt et al. Based on different economic models (Cobb-Douglas, Slow-Swan) the author analysis the optimal allocation of resources fort he different regions and their effect on the alignment of living conditions in the Eastern German Länder. Accordino, John/Elsner, Wolfram (2000): Conversion Planning in Two Military Shipbuilding Regions: Hampton Roads, Virginia, and Bremen, Germany, in: International Regional Science Review; Jan2000, Vol. 23 Issue 1, p48. Analysis of the responses of Bremen and Hampton Roads to cutbacks in military spending illustrates how conversion planning--and economic development planning generally-are embedded within a sociopolitical context. This context is largely determined by the regions' industrial structure, but it is strongly influenced by the structure and power of local government and the region's social cohesion. National and international economic conversion policies should be flexible enough not only to rapidly respond to severe regional adjustment problems to maintain qualified technological and human potentials, but also to be useful to regions with diverse sociopolitical structures. Biewen, Martin (2002): The Covariance Structure of East and West German Incomes and its Implications for the Persistence of Poverty and Inequality, Berlin, DIW Discussion papers 292. Using data from the German Socio-Economic Panel the paper analyses the dynamics of equal income in Germany. Special attention is given to the separation of permanent and transitory components, the persistence of transitory shocks and their implications for the persistence of poverty and income inequality. Blancke, Susanne / Schmid, Josef (2000): Die Bundesländer in der aktiven ArbeitsmarktPolitik. Zusammenfassung der Ergebnisse des Forschungsprojekts "Die aktive Arbeitsmarktpolitik der Bundesländer. Chancen und Restriktionen einer Arbeitsmarkt- und Strukturpolitik im Föderalismus", Tübingen. The book describes and analyses the active labour market measures of the German Länder. Bruneau, Catherine / De Bandt, Olivier (2003): Monetary and fiscal policy in the transition to EMU: what do SVAR models tell us? In: Economic Modelling; Sep2003, Vol. 20 Issue 5, p959, 27p On the basis of SVAR models of monetary and fiscal policy in France, Germany and the euro area for the period 1979:1–2000:2, it appears that, during these two decades, monetary shocks exhibit significant correlation while fiscal shocks—which are closely linked to standard measures of structural deficits—are uncorrelated between France and Germany. At the same time, euro area fiscal shocks, especially in the 1990s, are largely impulsed by Germany. It is difficult, however, to conclude that the latter shocks reflect purely idiosyncratic shocks, as they often reveal differences in the timing of fiscal adjustments. The macroeconomic effects of monetary and fiscal policy are shown to be consistent with the ISLM model, but, from a statistical point of view, they are usually more significant for monetary policy than for fiscal policy shocks. [Copyright 2003 Elsevier] Breyer, Friedrich and Kifmann, Mathias (2003): The German Retirement Benefit Formula: Drawbacks and Alternatives, Berlin, DIW Discussion papers 326. 2 In this paper a number of objectionable features of the German retirement benefit formula are identified. The authors show that groups of insured with higher than average life expectancy, in particular high-income groups, are subsidized by the rest of the membership because the formula neglects differences in group-specific life expectancy. Furthermore, the current formula leads to undesirable long-run effects if the earnings ceilings are raised, mandatory membership is extended, life expectancy rises or the rate of population growth declines. The authors present two alter-native formulas which take group-specific life expectancy into account. In particular, a return-rate formula which rewards each Euro of contributions with the internal rate of return of the pay-as-you-go pension system proves to be superior to the current formula. Dohse, Dirk (2001): Deutsche Technologiepolitik auf neuen Pfaden: einige Anmerkungen zur regionenorientierten Innovationspolitik der Bundesregierung = German technology policy strikes new paths, in: Raumforschung und Raumordnung : RuR. - Koeln. - Berlin. - Bonn. Muenchen. - Heidelberg : Heymann, Bd. 59 (2001), 5/6, S. 446-455 Dohse, Dirk (2000): Regionen als Innovationsmotoren: zur Neuorientierung in der deutschen Technologiepolitik, Kiel. The author analyses the German R+D policy as well as the technology policy and focuses on the new apporaches coming up in these policy areas. Dohse, Dirk (2000): Technology policy and the regions - the case of the BioRegio contest, in: Research Policy, Dec 2000 Vol 29 No 9, pp. 1111-1134. The paper explicates the German government's BioRegio contest (BRC), created in 1995 to support biotechnological development at regional level through intraregional organizations co-operating, to yield consequential national benefits as to biotechnology capability and technological innovation through region-promoted diffusion and knowledge creation. Discusses 'regional innovation systems' and outlines main aspects associated with the BRC i.e. regional funding for winners, jury judgement of presentations, regions participating and winning (first contest), and place in German technical policy. Lists a 'model' region's biotech credentials, and compares the German biotech industry preand post-BRC. The article identifies clustering of biotech industries as support for BRC going in the right direction. Notes other positive factors, but counters these with why the BRC might go wrong, e.g. lagging regions, criteria factors, and economic distortions. It concludes with an e-mail survey of 100 firms in the 17 BRC regions as to obstacles to German biotech innovation, problems, advantages and overall assessment of the BRC. Eickelpasch, Alexander/ Kauffeld; Martina/ Pfeiffer, Ingo (2002): Das InnoRegio-Programm : Umsetzung der Foerderung und Entwicklung der Netzwerke, in: Wochenbericht : Wirtschaft, Politik, Wissenschaft / DIW Berlin / Deutsches Institut fuer Wirtschaftsforschung (Berlin), Bd. 69 (2002), 21, S. 329-338. Eltges, Markus (2000): Foerderpolitik fuer die neuen Laender, in: Bundesamt fuer Bauwesen und Raumordnung (Ed.): Regionale Aspekte des wirtschaftlichen und sozialen Wandels in den neuen Ländern, Bonn, pp. 67-80. The article focuses on regional policy as well as on infrastructural change and the influence of the German financial equalisation system on the support of the economic development of the new Länder. Falkenkötter, Thomas (2001): Die Auswirkungen der Kohäsionspolitik der Europäischen Gemeinschaft auf die Gemeinschaftsaufgabe "Verbesserung der regionalen Wirtschaftsstruktur" nach Art. 91a Abs. 1 Nr. 2 GG, München. 3 The author investigates on the impact of European regional funding and state aid control on the common tasks of the GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’). The analysis includes: Analysis of the interrelatedness of to systems of support Legal provisions for national financial support Legal limits for European structural support Impact of European state aid control on national economic development and support instruments. Fic, Tatiana (2003): Identifying Determinants of German Inflation: An Eclectic Approach, Berlin, DIW Discussion papers 334. The paper applies an equilibrium correction model to discuss impacts of monetary, labour and external factors on the German inflation. The approach presented is of eclectic character and allows for examination which variables representative for various inflation theories matter empirically when analysing inflation processes in Germany. The results obtained suggest that inflation in Germany is determined by adjustment processes on the market of production factors, external shocks embodied in import prices, level of capacity utilisation and monetary policy actions. Fritsche, Ulrich / Logeay, Camille (2002): Structural Unemployment and the Output Gap in Germany: Evidence from an SVAR Analysis within a Hysteresis Framework, DIW Discussion papers 312. The German unemployment rate shows strong signs if non-stationarity over the course of the previous decades. This is in line with an insider-outsider model under full hysteresis. We applied a "theory-guided view" to the data using the structural VAR model as developed by Balmaseda, Dolado and López-Salido (2000) allowing for full hysteresis on the labour market. Our identification of the model implies long-lasting output gaps for Germany – especially for the disinflation period of the 1980s. Geishecker, Ingo (2002): Outsourcing and the Demand for Low-skilled Labour in German Manufacturing: New Evidence, DIW Discussion papers 313. This paper analyses how international outsourcing has affected the relative demand for low skilled workers in Germany during the 1990s. In contrast to previous empirical work, the single elements of the input-output-matrix are used to disentangle international outsourcing and trade in final goods more accurately. The main finding is that during the 1990s international outsourcing had a significant negative impact on the relative demand for low-skilled workers, explaining between 19% and 24% of the overall decline in the relative demand for low-skilled labour. Goertz, Henning (2001): Eignung von sektoral und regional orientierter Technologiepolitik zur Entwicklung strukturschwacher Regionen in Ostdeutschland, Aachen. The book analyses the regional economic development in German and the interrelatedness of German regional and technology policy. Grande, E. (2001): The erosion of state capacity and the European innovation policy dilemma: a comparison of German and EU information technology policies, in: Research Policy, Jun 2001 Vol 30 No 6, pp. 905-922 Draws from neo-institutionalist research to link the ability of a nation state to achieve its strategic aims, i.e. 'state capacity', to three variables - political and administrative structure and resources, societal sub-sectors' organization, and state-society relationships. Examines state capacity in Germany and Europe in respect to information technology (IT) to determine the effects on Germany's state capacity of that of a supranational, i.e. the European Union (EU). Discusses political factors influencing Germany's technology policy, i.e. fragmentation through federation, highly differentiated R&D, large public research infrastructure, high degree of science and 4 economic autonomy. Notes many of Germany's IT goals failed because policies were either inadequate or too complex to be operationalized effectively. The article identifies erosion of Germany's state capacity in IT from globalization, and 'Europeanization' of IT policy. It considers the EU's IT technology policy performance to be poor also through lack of a proper multilevel framework of governance and co-operation. Recommends improving that via forecasting exercises, proper framework creation, policy activation, mediation by intermediary organizations and networks, and R&D financing. Haake, S. (2002): National business systems and industry-specific competitiveness, in: Organization Studies, 2002 Vol 23 No 5, pp. 711-737. Discusses the way that countries are only more or less competitive with regard to specific industries; examines the industrial profiles of the USA, UK, Germany and Japan; outlines their focus on particular industrial sectors; relates the differences observed, in these four countries, to their adoption of different 'models of capitalism'. Extends on the relevant studies on this issue by proposing the existence of a relationship based on a distinction between communitarian and individualistic business systems, and explores the link between these and developing an industryspecific competitive advantage. Presents a literature review that provides a number of theoretical contributions relating to this concept; contrasts communitarian business systems (closer, long-term relationships) with individualistic business systems (fixed short term relationships). It draws out the implications that these two different types of business system has for knowledge accumulation (high organizational-specificity of knowledge versus low organization-specificity of knowledge). Furthermore the article puts forward that industrial competitiveness arises out of a fit between patterns of national business systems and patterns of industrial task environments. Harding, R. (2002): Competition and collaboration in German technology transfer, in: European Management Journal, Oct 2002 Vol 20 No 5, pp. 470-486 Examines Germany's national innovation and technology transfer system, contends that the system remains effective despite recent decline in national R&D expenditure, and assesses policy changes supporting high-technology sectors. Describes and illustrates the German R&D system, emphasizes the range of funding sources, the rigid, though inter-related funding system, and reveals the existence of a research cartel. Recounts criticism of the cascade system, maintains that the system is resilient, and points out that the system is market-based, distributes risk, is collaborative, and is networked through the Steinbeis Foundation, arguing that these factors support adaptability. Details the role of the Fraunhofer Society, explains that the Society is a network of 48 technology transfer institutes, graphs the Society's funding structure, and illustrates operation of the Fraunhofer system by case study of three institutes, one concerned with systems and innovation research, the second with production and automation, the third with technology development. Jungnickel, Rolf (2003): Foreign-Owned Firms. Are They Different? Palgrave. Foreign-owned firms (FoFs) can have significant implications in terms of employment, income and technology for the national economies involved. This book compares the efficiency of domestic and FoFs, and also looks at the performance of FoFs in several different countries. Contributors take a broad variety of research approaches with a focus on the use of firm-specific data from France, Germany, Austria, and Sweden. They conclude that foreign ownership matters but the real difference is not between FoFs and national firms but between multinational and domestic firms. Klaphake, Axel (2000): Europaeische und nationale Regionalpolitik fuer Ostdeutschland: neuere regionaloekonomische Theorien und praktische Erfahrungen, Wiesbaden. Karl, H./Ranné, O. (2001): Regional policy and the environment - the case of Germany, in: European Environment, Mar-Apr 2001 Vol 11 No 2, pp. 103-112. 5 The article points out that environmental requirements in regional planning policy do not include financial incentives. Looks at Germany's 'Improvement of Regional Economic Structures' (GRW) initiative, maintains that this initiative often conflicts with environmental aims. Highlights a lack of co-ordination procedures within GRW for aligning economic and environmental goals, criticizes GRW for focusing on negative external effects, and suggests reform of GRW by including modulated grant award rates in funding approval. It contends that environmental gain should be incorporated within regional development programmes with the objective of achieving an economic/environmental win/win situation. Asks how this can be achieved, quotes prior research that reported product and price-offsets that can potentially give a region's industry 'early mover' advantage and increase their competitiveness. Finally it discusses development of new technologies, change of environmental measures, e.g. upgrade of sewage plants, and human resource measures such as environmental training. Kooi, J. (2001) German tax reform paves way for restructuring, in: The Treasurer, Mar 2001, pp. 60-63. The paper outlines the main points of the new tax rules in Germany from 1 January 2002: (1) abolition of dual rates; (2) domestic dividend participation exemption; (3) tax consolidation opportunities; and (4) limitations in the safe harbour rules. Explains that the system will be closer to other countries' systems, but warns that costs related to dividends cannot be deducted. Welcomes the consolidation and simplification brought by the new rules, and expects greater numbers of firms to become multinationals, as they sell domestic subsidiaries and buy foreign ones. It concludes that German companies will be increasingly holding companies. Kuhlmann, Stefan (2003): Evaluation of research and innovation policies: a discussion of trends with examples from German, in: International Journal of Technology Management; 2003, Vol. 26 Issue 2-4, p131, 19p. Recent changes in the field of evaluation refer to new demands by politics, economies and society to extend the subject of evaluation processes to cross-sectoral research promotion programs and research institutions, and new developments within the research of evaluation itself. The paper presents an overview of these trends and consequences for the function and methods of evaluation of research and innovation policies against the background of recent German experiences. Lammers, Konrad (2001): Eine neue Förderpolitik für Ostdeutschland. In: Wirtschaftsdienst, Bd. 81 (2001), 3, S. 130-131. Lechner, M, (2000): An evaluation of public-sector-sponsored continuous vocational training programmes in east Germany, in: Journal of Human Resources, Spring 2000 Vol 35 No 2, pp. 347-376. The paper examines the effectiveness of the continuous vocational training programmes introduced in east Germany in the 1990s, after reunification. Describes the east German labour market after reunification and the training programmes set up to counter unemployment. It uses a balanced sample of individuals younger than 53, taken from the German Socio-Economic Panel, to identify those who took part in the training programmes and to analyse the effectiveness of the training. It finds, in general, that there were no positive earnings or employment effects arising from the continuous vocational training and retraining programmes. Finally it suggests that the programmes may have been a waste of money. Lenk, Thomas (2001): Aspekte des Länderfinanzausgleichs. The author describes and analyses the current German financial equalisation system and presents criteria and reform proposal. He integrates the financial power of the districts and also the funds ‘German unification’ into his analysis. Inspired by the 1999 constitutional court ruling on the financial equalisation system he analyses the advantages and disadvantages of this joint system. 6 Niedersaechsisches Institut fuer Wirtschaftsforschung (2002): Entwicklungsprobleme und perspektiven der ehemaligen innerdeutschen Grenzregionen: Analysen, Handlungsnotwendigkeiten, wirtschaftspolitische Konsequenzen, NIW-Workshop 2001, Hannover. Parikh, A./van Leuvensteijn, M. (2003): Inter-regional labour mobility, inequality and wage convergence, in: Applied Economics, (UK), 20 May 2003 Vol 35 No 8, p. 931-942. The article identifies a U-shaped relationship between white collar workers' wage differentials between region of origin and host region (between East and West Germany) and migration. Furthermore it contrasts this with an inverse-U for blue collar workers. Takes 720 observations of flows into 16 immigrating regions between 1992 and 1995, and quantifies a model of migration, house ownership and status, as well as wages and unemployment differences. Regresses the variables, and includes inequality variables. Finds that wage inequality is lower in the East, so white collar workers will emigrate to regions with high wage inequality, but blue collar workers will not. It concludes that where wages are converging rapidly between East and West immigrants tend to wait because the opportunity cost of migration rises. Jan Priewe (2002): Zwischen Abkopplung und Aufholen : das schwache ostdeutsche Wachstumspotenzia, in: lWSI-Mitteilungen : Monatszeitschrift des Wirtschafts- und Sozialwissenschaftlichen Instituts in der Hans-Boeckler-Stiftung / Wirtschafts- und Sozialwissenschaftliches Institut (Duesseldorf), Bd. 55 (2002), 12, S. 706-713. Ragnitz,/Dreger/Komar/Müller (2000): „Simulationsrechnungen zu den Auswirkungen einer Kürzung von Transferleistungen für die neuen Bundesländer“, Halle (Saale). In the framework of a simulation game the authors test the impact of different options of the reduction of infrastructure investments on the economic development and performance in the East German Länder. From their results they come to the conclusion, that the support of investments had a general positive impact n the investments carried out by companies and firms in the East German Länder. Roehl, Klaus-Heiner (2002): Regionalfoerderung in Deutschland: was hat der Ostdeutsche Mittelstand davon? in: IW-Trends : Quartalshefte zur empirischen Wirtschaftsforschung / Institut der Deutschen Wirtschaft, d. 29 (2002), 3, S. 34-40. Rosenfeld, Martin/Heimpold, Gerhard (2002) Gefaelle zwischen vergleichbaren Regionen in Ost und West: Ostdeutsche Ballungsraeume haben es schwer! / in: Wirtschaft im Wandel. Halle, Bd. 8 (2002), 15, S. 480-489. Scherf, Wolfgang (2000): Der Länderfinanzausgleich in Deutschland (Gutachten im Auftrag der hessischen Landesregierung) The author presents an in depth analysis of the German financial equalisation system and critically evaluates the system as well as reform proposals. Solga, H./Diewald, M. (2001): The East German labour market after German unification: a study of structural change and occupational matching, in: Work Employment & Society, Mar 2001 Vol 15 No 1, pp. 95-127. The paper points out that the interplay between the economy and the political structure of a country is such that political change will change economic structures and, consequently, employment structures. Examines how employment structures in East Germany changed after unification and the shift to a market economy, focusing on the way that intergenerational occupational mobility supported this structural change. Within this analysis, discusses the role of educational and 7 vocational training credentials in structuring this intergenerational mobility. It furthermore describes the changes that took place in the East German employment structure after 1989 and assesses the role of vocational qualifications in structuring the labour market by enabling skills to be matched to jobs. Uses data on the employment and training of East German men and women, collected in the longitudinal study, the German Life History Study, looking at educational qualifications, vocational certificates and employment status to assess levels of status and skills mismatch. Also looks at the determinants of unemployment. The article concludes that vocational certificates determined occupational careers of East Germans before 1989 and continue to do so. It argues that this indicates that the German restructuring was not a chaotic process but based on occupational credentials, with job matches based on these occupational credentials being one of the underlying principles that regulated the change. Wagner, J. (2001): The full Monti (German savings banks), in: The Banker, (UK), Sep 2001 Vol 151 No 907, pp. 109.111. The article explains the regulatory problems surrounding the 12 German Landesbanken, or stateowned regional banks, rather than the 562 Sparkassen, or savings banks. Reports the removal of their state guarantee under EU competition law and their loss of triple A ratings in 2005. It notes the ambition of private banks to take over the Sparkassen, and the growing threat from co-operative banks, while asserting that customer loyalty is intense both from individual savers and from small businesses. Points out that Landesbanken will suffer from having to pay more for capital, and that they are beginning to split to create private law holding companies. The paper thus focuses on the debt problems of Bankgeselschaft Berlin, which incorporates a Landesbank, a Sparbank and a mortgage bank. Wilson, D./Souitaris, V. (2002): Do Germany's federal and land governments (still) coordinate their innovation policies?, in: Research Policy, Sep 2002 Vol 31 No 7, pp. 1123-1141. The article whether the assumption that Germany's Federal and Länder co-ordinate their innovation policies is true via an empirical study undertaken in 2000 comprising 20 interviews with academics, public officials, and others, and two case studies (establishment of the Dresden Infineon semiconductor plant, and federal inception of the InnoRegio competitions). It overviews related Länder research, and development of the German innovation system. It tables various Länder interactions identified by participants and elicits views as to their effectiveness. Identifies coordination present within interactions regarding innovation infrastructure and individual projects, but is uncertain regarding promotional programmes. Comments, inter alia, that: a trend towards network-related mechanisms is emerging; there is more voluntary collaboration; effectiveness depends on harnessing national, federal, and regional innovation systems' resources/expertise; and, experimental federalism operates (Sabel, 1996). It concludes with arising implications. Zablowsky, Udo (2003): Strukturpolitik. Neue Perspektiven für die regionalen Förderinstitute im öffentlichen Auftrag. Sparkasse, März 2003, Nr. 03, S. 118 Scarce public budgets and new economic targets have force the German Länder in recent years to change the room for manoeuvre for their financial support instruments. The book thus presents an overview over new support instruments at the Länder level. 8 2 Regional profiles Baden-Württemberg NUTS 1: DE1 BADEN-WUERTTEMBERG NUTS 2 DE11 DE12 DE13 DE14 STUTTGART KARLSRUHE FREIBURG TUEBINGEN GDP per head (2000) DE1 Baden-Württemberg1: 28.083 (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)2 Germany3: 24.700 EU-15 = 100, DE1 = 122,04 GDP at current prices/in Million € DE1 Baden-Württemberg5 (mio €): 294.667 Germany6 (mio €): 2.030.000 EU-157(mio €): 8 524 371 Employment rate (2000) Persons in gainful employment (Erwerbstätige) 74%8 (German average = 68,8%) DE1 BadenWürttemberg DE11 DE12 DE13 DE14 20029:: 5.359.000 200010:: 5.286.800 STUTTGART KARLSRUHE FREIBURG TUEBINGEN April 200211: 1.900.200 April 200212: 1.251.800 April 200213: 1.015.600 April 200214: 850.900 Unemployment rate (2002) DE1 BadenWürttemberg15: DE11 STUTTGART 17 DE12 KARLSRUHE 18 Average numbers per year 294.905 persons (5,4%)16 (German average: 9,8%; West 7,9%, East: 18,0%) 99.992 persons 79.604 persons 1 pre capita at current prices; Source: http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 3 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 4 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 5 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 6 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 7 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 8 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 9 http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 10 http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 11 http://www.statistik.baden-wuerttemberg.de/ArbeitsmErwerb/Landesdaten/MZregbev.asp 12 http://www.statistik.baden-wuerttemberg.de/ArbeitsmErwerb/Landesdaten/MZregbev.asp 13 http://www.statistik.baden-wuerttemberg.de/ArbeitsmErwerb/Landesdaten/MZregbev.asp 14 http://www.statistik.baden-wuerttemberg.de/ArbeitsmErwerb/Landesdaten/MZregbev.asp 15 http://www.statistik.baden-wuerttemberg.de/ArbeitsmErwerb/Landesdaten/LRt0511.asp 16 Bundesanstalt für Arbeit: Arbeitsmarkt in Zahlen 2002, Aktuelle Daten und Jahreszahlen 2002 und Zeitreihen http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (all civil persons in gainful employment) 17 http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=02&U=02&R=RB2 18 http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=02&U=02&R=RB2 2 9 DE13 FREIBURG 19 DE14 TUEBINGEN 20 57.476 persons 42.818 persons Technological standing (5 point scale): 4 Strengths21 The economy is far from being mono-structured. Nearly the half net product is produced in the areas of mechanical engineering, car manufacturing and electrical and electronic engineering. Every second employee is working in this area. Textile, wood and synthetic material industry holds the place. The service sector is comparably weak developed. Agriculture is only of minor economic importance. 22 With an area of 35.752 km² and a population of 10,63 Mio.(2002), Baden-Württemberg is the thirdlargest state within the Federal Republic. Main features of the economy are innovation, research and development. The state lists the second highest number of applications for patents in Germany after Bavaria. It has a strong research and development infrastructure focusing on information and communications technologies, environmental technology and biotechnology. 3,7% of GDP is invested in research and development. Baden-Württemberg is the state with the highest number of universities and colleges (69) (e.g. universities: 10; colleges of education: 6; colleges of art: 8; higher education institutions: 34, private universities: 7; training academies: 8) and about 100 non-university research institutions. 21,03% of all employees work in the high-technology industry. The Stuttgart region, for example, is leading a list of 15 European regions with the highest percentage of high-technology workplaces. The highly export-oriented industrial sector (1,5% of all international exports) is dominated by production industry, software development, mechanical engineering, car manufacturing and electrical and electronic engineering. The industrial structure is rather decentralised. Moreover, tourism is a strong economic area, which make the state second German holiday destination. Its newspaper landscape is rather fragmented with 17 journalistic units and 64 newspaper publishers. Baden-Württemberg does not have a ‘state-wide’ published newspaper, such as the Süddeutsche Zeitung in Bavaria. It is furthermore the state with the most specialist publications and most book production in Germany (data of 1999). In 1999 the state held rank 3 in investment per employee in the processing industry. 23 Companies: ABB, Audi, Bosch, Citizen, DaimlerChrysler, Hewlett-Packard, IBM, Porsche, Zeiss Weaknesses24 [short description] Few natural resources and energy resources; high export orientation Evolution in last decade25 [short description] 19 http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=02&U=02&R=RB2 http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=02&U=02&R=RB2 21 http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-in-Deutschland/Bund/Anschriftenverzeichnis/Bundeslaender.5571.htm and Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p. 10. 22 Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999. p10 23 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 24 http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-in-Deutschland/Bund/Anschriftenverzeichnis/Bundeslaender.5571.htm and Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p. 10. 25 http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-in-Deutschland/Bund/Anschriftenverzeichnis/Bundeslaender.5571.htm and Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p.10. 20 10 Employment has been slightly growing (1992: 5.132.000, 2002: 5.359.100) and the same holds true for the GDP/per capita (1992: 23.757 €, 2002:28.920€).26 Stronger emphasis on software development, new technologies, et. With a view to its labour market, Baden-Württemberg is a frontrunner in the reduction of unemployment. From 1997 until 1999 the unemployment rate was sank around 15% (Western German average: -8,8%). Further indicators: Public revenue and spending (€) DE1 Baden-Württemberg (mio. €) 27 1999 2000 Revenue 28.569.500 29.559.600 Spending 28.619.800 30.264.000 2001 28.911.100 31.557.900 2002 28.132.300 30.779.600 DE11 STUTTGART (in thousand €)28 Revenue Spending 1999 2000 10.930.411 10.822.485 10.939.746 10.746.142 DE12 KARLSRUHE (in thousand €)29 1999 2000 Revenue 6.929.921 6.999.901 Spending 6.888.710 6.957.482 DE13 FREIBURG (in thousand €)30 1999 2000 Revenue 4.722.847 4.810.026 Spending 4.665.940 4.784.967 DE14 TUEBINGEN (in thousand €)31 1999 2000 Revenue 4.038.377 4.222.219 Spending 4.027.819 4.226.452 Employment per sector Agriculture DE1 BadenWürttemberg33 DE11 STUTTGART34 DE12 KARLSRUHE35 1999: 27.409 2000: 28.592 2001: 27.500 1999: 10.912 2000: 11.294 2001: 10.876 1999: 5.464 2000: 5.868 2001: 5.662 Industry (without building and construction trade) 1999: 1.413.316 2000: 1.426.307 2001 1.445.886 1999: 598.728 2000: 605.212 2001: 615.304 1999: 326.946 2000: 330.822 2001: 332.000 Building and construction trade 1999: 254.061 2000: 251.685 2001: 239.452 1999: 95.647 2000: 93.747 2001: 89.920 1999: 61.531 2000: 61.007 2001: 57.840 Trade, tourism, transportation 1999: 759.216 2000: 782.802 2001: 793.171 1999: 288.586 2000: 297.739 2001: 301.637 1999: 204.220 2000: 209.515 2001: 211.423 Public and private services32: 1999: 669.484 2000: 707.883 2001: 731.269 1999: 481.009 2000: 503.060 2001: 514.436 1999: 358.088 2000: 372.899 2001: 383.324 26 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 27 http://www.statistik.baden-wuerttemberg.de/FinSteuern/Landesdaten/Ausgaben01.asp 28 http://www.statistik-bw.de/SRDB/home.asp?H=FinSteuern&U=01&R=RB3 29 http://www.statistik-bw.de/SRDB/home.asp?H=FinSteuern&U=01&R=RB3 30 http://www.statistik-bw.de/SRDB/home.asp?H=FinSteuern&U=01&R=RB3 31 http://www.statistik-bw.de/SRDB/home.asp?H=FinSteuern&U=01&R=RB3 32 Including financial services, leasing/rentals and business consultants 33 Employees, Source: http://www.statistik.baden-wuerttemberg.de/ArbeitsmErwerb/Landesdaten/LRt0512.asp 34 Employees, Source: http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=2&U=01&R=RB4 35 Employees, Source: http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=2&U=01&R=RB4 11 DE13 FREIBURG36 DE14 TUEBINGEN37 1999: 5.695 2000: 6.001 2001: 5.847 1999: 5.338 2000: 5.429 2001: 5.115 1999: 265.378 2000: 267.824 2001: 271.967 1999: 229.453 2000: 230.639 2001: 233.447 1999: 51.099 2000: 51.587 2001: 48.768 1999: 45.784 2000: 45.344 2001: 42.924 1999: 105.144 2000: 155.518 2001: 158.868 1999: 116.272 2000: 120.026 2001: 121.243 1999: 224.474 2000: 233.487 2001: 239.238 1999: 189.030 2000: 195.990 2001: 200.322 Industrial Structure38: Branches of industry (processing industry) DE1 Baden-Württemberg Branch Food and tobacco Textile Timber Paper, printing, publishing Chemical industry Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys, recycling Mining Processing industry Total industry Employment figures 1995 2000 61.130 64.277 55.344 40.978 24.956 20.838 80.971 81.177 60.439 59.783 60.323 63.145 30.201 26.501 135.755 145.891 275.070 267.473 214.759 207.131 2002 62.182 35.994 18.444 78.152 58.421 59.790 23.705 145.263 272.648 202.836 194.311 53.821 225.693 46.663 235.578 42.089 4.729 1.259.813 1.264.542 4.392 1.254.521 1.258.913 4.307 1.239.596 1.243.903 Investments39 DE1 Baden-Württemberg 1995 438.797.000 176.247.000 126.301.000 573.038.000 483.444.000 365.639.000 272.095.000 677.936.000 1.109.366.000 983.410.000 Investments(€) 2000 431.246.000 159.585.000 117.838.000 686.277.000 716.295.000 442.325.000 239.581.000 998.218.000 1.493.611.000 1.438.677.000 2001 467.266.000 158.889.000 118.922.000 611.731.000 648.958.000 417.232.000 245.156.000 1.138.222.000 1.507.200.000 1.676.123.000 1.524.690.000 175.955.000 1.961.346.000 195.824.000 2.608.920.000 173.944.000 80.604.000 6.951.784.000 7.032.388.000 76.929.000 8.927.059.000 9.003.989.000 72.176.000 9.840.690.000 9.912.866.000 Branch Food and tobacco Textile Timber Paper, printing, publishing Chemical industry Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys, recycling Mining Processing industry Total industry 36 Employees, Source: http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=2&U=01&R=RB4 Employees, Source: http://www.statistik.baden-wuerttemberg.de/SRDB/home.asp?H=2&U=01&R=RB4 38 http://www.statistik.baden-wuerttemberg.de/ProdGew/Landesdaten/kenngrWZ932002.asp, http://www.statistik.badenwuerttemberg.de/ProdGew/Landesdaten/kenngrWZ932000.asp , http://www.statistik.badenwuerttemberg.de/ProdGew/Landesdaten/kenngrWZ931995.asp 39 http://www.statistik.baden-wuerttemberg.de/ProdGew/Landesdaten/investWZ932001.asp, http://www.statistik.badenwuerttemberg.de/ProdGew/Landesdaten/ investWz932000.asp, http://www.statistik.baden-wuerttemberg.de/ProdGew/Landesdaten/investWz931995.asp 37 12 Research base DE1 Baden-Württemberg Employment in Education, research and university clinics40 1999: 171.235 2000: 147.530 2001: 150.270 DE1 Baden-Württemberg Public expenditure on science and research (€)41 1999: 3.409.000.000 2000: 3.510.000.000 2001: 3.563.000.000 DE1 Baden-Württemberg Students at universities42 Semester Beginners 1999/00 2000/01 2001/02 32.442 36.275 - Total number of students 187.453 194.000 204.530 DE1 Baden-Württemberg Computer equipment in public schools 2001/0243 Number Total number of schools Schools with internet access Special rooms for computer pools Special rooms for computer pools with internet access Computers to be used for lessons Number of pupils 3.964 3.783 (95,4%) 4.841 (1,2 per school) 4.272 1.295.537 110.330 DE1 Baden-Württemberg Internet access and mobile phones in private households (2002)44 Total SingleCouples Couples households person without with (still households children minor) children Mobile 63% 37% 66% 87% phones Internet 61% 40% 52% 86% access 40 http://www.statistik.baden-wuerttemberg.de/FinSteuern/Landesdaten/LRt1806.asp http://www.statistik.baden-wuerttemberg.de/FinSteuern/Landesdaten/LRt1803.asp 42 http://www.statistik.baden-wuerttemberg.de/BildungKultur/Landesdaten/LRt0304.asp 43 http://www.statistik.baden-wuerttemberg.de/BildungKultur/Landesdaten/computerausstattung.asp 44 http://www.statistik.baden-wuerttemberg.de/Pressemitt/2003031.asp 41 13 DE1 Baden-Württemberg Telephone equipment of private households (January 2001)45 Households …without …mobile …mobile … fixedwith… telephone phone only phone and line fixed-line telephones telephones 2% 52% 43% 3% Support infrastructure DE1 Baden-Württemberg Infrastructure (categories of streets)46 Category Motorway (Autobahn) Federal road (Bundesstraße) Provincial road District road (Kreisstraße) Total 1999: 12.048 2000: 12.065 2001: 12.056 1999: 27.467 2000: 27.463 2001: 27.455 (Landesstraße) Kilometres 1999: 1.021 2000: 1.025 2001: 1.029 1999: 4.448 2000: 4.435 2001: 4.433 1999: 9.950 2000: 9.938 2001: 9.937 DE1 Baden-Württemberg Vehicles47 1998 1999 2000 6.693.704 6.836.002 6.963.988 DE1 Baden-Württemberg Doctors and dentists (2000)48 Doctors 37.606 Dentists 7.769 45 http://www.statistik.baden-wuerttemberg.de/Pressemitt/208.asp http://www.statistik.baden-wuerttemberg.de/UmweltVerkehr/Landesdaten/LRt1501.asp 47 http://www.statistik.baden-wuerttemberg.de/UmweltVerkehr/Landesdaten/LRt1503.asp 48 http://www.destatis.de/jahrbuch/jahrtab52.htm 46 14 Designation for principal domestic policy support instruments (5 point scale): 2,3 2,3 0 (negative) 2,2 4,5 Territorial Policy Public sector transfer Employment policy Technology policy Baden-Württemberg49 BW 43.212 43.911 43.801 46.402 48.972 50.581 47.787 103.0 102.9 103.0 103.5 103.7 104.0 104.2 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total -2.803 -2.521 -2.410 -3.477 -3.426 -3.873 -4.170 Supplementary federal grants (in Mio. DM) Rehabilitational grants Bremen and Saarland 109.7 108.8 108.7 111.3 111.0 112.0 113.3 Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) 46.016 46.432 46.211 49.879 52.398 54.453 51.958 Contribution Fiscal / assignment resources within SHES after SHES (in Mio. DM) (in Mio. DM) Compensations for special burdens (east Germany) Divergence from national average (balance measurement) (= 100) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 43.212 43.911 43.801 46.402 48.972 50.581 47.787 103.0 102.9 103.0 103.5 103.7 104.0 104.2 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 49 15 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 2,7 2000-2006 (mio €) ERDF Total Objective 2 BadenWürttemberg 1160.366 EU contribution 97.769 EU contribution 97.769 ESF % 100% EAGGF EU contribution - % EU contribution - - % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3,5 Change in standing of region relative to national average in last five and ten years50 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate 1991 22.944 9.899.200 5.081.900 159.318 1996 25.185 10.345.100 5.010.100 353.920 2001 28.565 10.560.800 5.367.400 264.213 3,7 8,0 5,5 1995 9302 R+D expenditure (mio €)51 1997 10045 1999 10997 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 50 51 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 16 Bayern (Bavaria) NUTS 1: DE2 Bayern NUTS 2: DE21 Oberbayern DE22 Niederbayern DE23 Oberpfalz DE24 Oberfranken DE25 Mittelfranken DE26 Niederfranken DE27 Schwaben GDP per capita (2000) DE2 Bayern52: 28.933 € (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)53 DE21 Oberbayern54: 35.745 € DE22 Niederbayern55: 22.521 € DE23 Oberpfalz56: 24.973 € DE24 Oberfranken57: 23.990 € DE25 Mittelfranken58: 29.251 € DE26 Niederfranken59: 24.013 € DE27 Schwaben60: 24.905 € Germany61: 24.700 € EU-15= 100, DE2 = 124,0, DE21 = 154,4, DE22 = 97,3, DE23 = 107,8, DE24 =103,6, DE25 = 126,3, DE26 = 103,7, DE27 = 107,6 62 GDP at current prices/in Million € DE2 Bayern63 (mio €): 352.620 Germany64 (mio €): 2.030.000 EU-1565 (mio €): 8.524.371 Employment rate (2000)66 6.229.300 (74,8%67) (German average = 68,8%) DE21 Oberbayern 2.243.10068 DE22 Niederbayern 556.70069 DE23 Oberpfalz 532.00070 52 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp. http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 54 http://www.regierung.niederbayern.bayern.de/niederbay/leistungsdat04.htm 55 http://www.regierung.niederbayern.bayern.de/niederbay/leistungsdat04.htm 56 http://www.regierung.niederbayern.bayern.de/niederbay/leistungsdat04.htm 57 http://www.regierung.niederbayern.bayern.de/niederbay/leistungsdat04.htm 58 http://www.regierung.niederbayern.bayern.de/niederbay/leistungsdat04.htm 59 http://www.regierung.niederbayern.bayern.de/niederbay/leistungsdat04.htm 60 http://www.regierung.niederbayern.bayern.de/niederbay/leistungsdat04.htm 61 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 62 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 63 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp. 64 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 65 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 66 http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 67 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 68 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 69 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 53 17 DE24 Oberfranken 547.00071 DE25 Mittelfranken 879.00072 DE26 Niederfranken 641.80073 DE27 Schwaben 840.900074 Unemployment rate (2002)75 (March 2002) DE2 Bayern 7,3 % (German average: 9,8%; West 7,9%, East: 18,0%) DE21 Oberbayern 5,7 % DE22 Niederbayern 8,4 % DE23 Oberpfalz 8,4 % DE24 Oberfranken 10,3 % DE25 Mittelfranken 8,4 % DE26 Niederfranken 7,3 % DE27 Schwaben 6,5 % Technological standing (5 point scale): 4 Strengths76 [short description] Covering an area of 70.548 km², Bayern is the largest of the German states. In respect of its population (12.230.000 in 2002), it takes second rank right after Nordrhein-Westfalen. In 2001 it produced 17,3% of the German GDP (after allowing for inflation). Bayern is the state with the largest agricultural sector in Germany. At the same time, it is also one of the strongest economic growth centres in Europe as far as the high-tech and services-oriented business is concerned. It has an excellent reputation in practically all new technologies, information and communications, biotechnology and genetic engineering, energy and environmental technology International companies such as Siemens, BMW, Audi, EADS, adidas-salomon and MAN can be found. In 2001 Bayerns high-tech companies earn 53.6%of their sales outside Germany (manufacturing sector: 41.5%; Germany’s comparative figures as a whole: 51.9% and 37.0 % respectively). The economy is highly export oriented. Bayern has the largest share of self-employed persons in Germany (11,7% in 2002). It has a large share of small and medium-sized companies and businesses of the skilled trades and a dynamic service industry, (number one in the insurance sector in Germany, number two in banking). The trading sector makes up some 10%of the real total gross value added. Furthermore it has a well-developed transport, telecommunications and energy infrastructures Bayern has a high standard of education and vocational training and an broad funding of research and technology (2.9% of GDP in 2001). 11 universities, 17 polytechnical colleges, 3 major research facilities, 11 Max-Planck institutes and 7 Fraunhofer installations are located here. Special areas for the extension of the university landscape are the areas information technology, electronic engineering, and natural sciences. Especially the number of students in natural sciences is far above the national average. The state of Bayern has the lowest unemployment 70 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 71 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 72 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 73 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 74 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 75 http://www.regierung.niederbayern.bayern.de/niederbay/arbeitslose1_5.htm 76 http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-in-Deutschland/Bund/Anschriftenverzeichnis/Bundeslaender.5571.htm and http://www.invest-inbavaria.com/RegionsCounties/index.html?PHPSESSID=3b714f65db477e78afa1e7f7ed8ec2af&flash=true. 18 rates in Germany. Its newspaper landscape is characterised by a magnitude of newspapers and journals. About 90 newspaper publishing houses (e.g. Burda, Süddeutscher Verlag, Bertelsmann) produce 27 newspapers. Furthermore, the country is very advanced in view of its movie, tv and radio productions with an enormous density of tv channels. 27.6 % of all applications received by Germany ’s Office of Patents and Trademarks were submitted by Bavaria-based inventors (number 1 in Germany). Moreover, tourism is a strong economic area, which make the state first German holiday destination. In 1999 the state held rank 7 in investment per employee in the processing industry. 77 Weaknesses [short description]78: Lower degree of investments in the producing industry Evolution in last decade [short description] Employment has been growing (1992: 6.042.600, 2002: 6.280.200) and the same holds true for the GDP/per capita (1992: 23.435 €, 2002:29.858 €).79 Development from a predominantly agricultural economy towards a place for high-tech industry and a centre of the new economy since the 1960ies. Parallel to the extension of the infrastructure and energy network. The increase of the self-employed persons’ rate was a major political aim over the past decade. Bayern’s economic policy is not that much characterised by the ‘night watch role’ of the state. The state should thus create more framework conditions instead of concrete targets. By the privatisation of public properties, the state has create room for financial manoeuvre and for investment in e.g. education and research. The fight against unemployment is supported by the tripartite ‘employment pact Bavaria’ (‘Beschäftigungspakt Bayern’) of 1996 (state budget of 2 Mrd. DM). NUTS 2 Level:80 DE21 Oberbayern (Upper Bavaria) The region has the 6. highest GDP in Europe ranking next to the regions Île de France, Lombardy, and Darmstadt and Duesseldorf. Upper Bavaria’s GDP per capita comes up to 180 % of the EU average. The economic structure is dominated by the service sector. About 65% of the employees work in the service sector. Munich is the central economic area and the 2. largest employment area in Germany and one of Germany’s leading high-tech and media location. Munich is a insurance and finance centre and Germany’s media capital. About 100 000 students are registered in Munich based universities and colleges. The region is Central Europe’s gateway to Italy and to the south-eastern European countries and has an important motorway network connection. Munich airport is one of the 10 largest in Europe. A second-largest airport in Germany it contributes to Bavaria's industry and economy. Munich is also one of Germany’s most significant exhibition and fair locations. The economic structure of the region benefits from modern services, the communications and industrial society and international companies, innovative medium-sized and small business companies and skilled craft trades. Major industrial sectors are mechanical and automotive engineering, chemical industry, electrical and 77 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 78 Blancke, Susanne / Lindlohr, Andrea / Schmid, Josef (2001): Wer führt? Ein Benchmarking der Bundesländer nach Arbeitsmarktund Wirtschaftsindikatoren, WIP Occasional Paper Nr. 14, Tübingen, p. 7. 79 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 80 http://www.invest-in-bavaria.com/RegionsCounties/index.html?PHPSESSID=3b714f65db477e78afa1e7f7ed8ec2af&flash=true. 19 precision engineering, optics and the food industry. Moreover, tourism is a strong economic branch. The region generates 42% of Bavaria‘s GDP. Companies: BMW, Siemens, Allianz or Muenchner Rueck (insurance business). Audi, WackerChemie. DE22 Niederbayern (Lower Bavaria) The economic structure provides widely diversified industry sectors and is characterised by the mechanical engineering, metal product manufacturing, food industry, automobile manufacturing industry and its many automobile supplier companies. The region has a lower wage level compared the highly urbanized regions. The development from an agricultural to an industrial and high-tech location is particularly visible. For a very long time it dominated by agriculture alone; now 36 % of the workforce are employed in the manufacturing industry and 57 % in the service sector. Moreover it has a huge substantial tourism sector. The city of Straubing has set up a Center of Excellence for Biotechnology for the renewable materials industry. The University of Passau established an international Center for Information Systems and Software Technology as well as a campus for IT services. The Technical College of Landshut developed into a Center for Microsytems Technology and Light Industry Technology. Thus, the region is attractive for research and development work. Moreover, many national call center organizations have settled here. The transportation infrastructure is well developed. The motorways ensure a fast connection to the industrial areas of Munich and Nuremberg/Frankfurt with connecting harbours in Kelheim, Straubing, Deggendorf and Passau and provide a gateway and easy access to Eastern Europe. Companies: BMW (25,000 employees), bus company Neoplan , Knaus Wohnwagenwerke (recreational vehicle company), ZF Passau GmbH, Vogt Elektronik AG, Communigate and the Association for Communication Services (GKS - Gesellschaft für Kommunikationsservice), Völkl (sporting good manufacturer), Rodenstock (eyeglasses), Eterna. DE23 Oberpfalz (Upper Palatinate) In the north of Upper Palatinate, there is a centre of the glass and porcelain industry. Once being a centre of mining, primary industry and the iron and steel producing industry the centre has undergone structural changes resulting in a location for I&T (ranked 3rd in Germany) and a modern mix of products (steam rollers, x-ray machines, automobiles, machinery, electrical devices, highlyprecise plastic parts, large-scale bridge construction, medical devices, innovative wood construction, steel and metal construction, mobile-phone towers, building machinery, specialized machinery, office furniture, software, chemical products). It is also an important centre for trade with huge shopping centres. Moreover, tourism is a significant economic area. Traffic routes are well developed (e.g. ‘golden road’ from Paris to Prague). The Main-Danube Channel connects the Black Sea with the North Sea. DE24 Oberfranken (Upper Franconia) Upper Franconia is the 3 most concentrated industrial areas in Europe. Its economic structure is characterised by an innovative trade sector, fast-growing modern service and logistics companies, globally operating medium-sized companies (automotive supplier industry, mechanical engineering, electrical engineering, furniture and toy industries, textile and porcelain industries plus the plastics and food industry). As Europe's number 3 industrial region, it has 4 universities and the largest number of breweries in the world. With its motorway network Upper Franconia is a central heart for major trans-European routes. The major cities have airports. 20 Conditions for research and development are very good. Universities are located in Bamberg and Bayreuth, technical colleges in Coburg and Hof. Also the virtual university of Bavaria is ‘located’ here. Moreover, research institutions, such as the Advanced Materials Center of Excellence in Bayreuth complete the educational landscape.Companies: ABM Greiffenberger, Scherdel GmbH, Robert Bosch GmbH, Brose Auto Parts, BI-LOG AG, GHP Holding GmbH, Rosenthal AG, HUK (insurance company), BAUR Versand, Siemens AG Medical Solutions, Loewe AG. DE25 Mittelfranken (Middle Franconia) The regions is among Germany's top ten economic regions. It is characterised by energy and electrical engineering / electronics industries (top position nationwide), mechanical engineering industry. Areas like information and communications, transportation and automation technology, medical technology, the chemical/plastics industries, printing, sports articles or food and beverages become increasingly important. Over the past decades many innovative service companies, providers of financial services, software, tax and business consultancy services or market research benefit, call centres and facility management have developed. Per capita purchasing power is 10 % above the average in Germany. The region of Nuremberg has "a leading role among the German technology regions" (Financial Times Germany). The economic structure is characterised by a mix of industry and services, trade and transport. The region has an above-average export share of 41 %in 2001 (national average 37 %). The Nuremberg Trade Fair influences this economic dynamism with more than 100 events pre year (among the TOP 15 European locations for trade fairs and exhibitions). The Nuremberg region is good accessible. Its international airport connects Nuremberg to the rest of Europe. Middle Franconia has five technological areas of excellence in the areas of transportation and logistics, communications and multimedia, medicine and pharmaceuticals, energy and the environment as well as new materials. Thus, regional networks have emerged, in which companies, research establishments, universities and users exchange know-how and work on joint projects. Middle Franconia is a central area for university education. The region has 6 universities and 8 polytechnics and user centres of microelectronics, laser, automation, new materials, energy and environmental technology. Companies: DATEV, Dorfner, GfK, Karstadt Quelle Group, Nürnberger Versicherungsgruppe, Rödl & Partner, Sellbytel, Nürnberger Presse publishing company, adidas-Salomon, AEG Hausgeräte, Alcatel SEL, Bosch, Diehl, Framatome, Geobra Brandstätter, INA Schaeffler-Gruppe, Leoni, Lucent Technologies, MAN Nutzfahrzeuge, maul+Co Chr. Belser, N-Ergie, Schlott Sebaldus, Schöller, Schwan-Stabilo, Staedtler , Siemens. DE26 Niederfranken (Lower Franconia) Also Lower Franconia is a high-tech region. It ranks sixth among the leading high-tech regions of Europe (EUROSTAT) and offers the full spectrum of location facilities ranging from in-cubators and industrial parks to developed industrial areas. The region is dominated by a SME structure and automotive component suppliers, mechanical engineering, paper and chemical fiber plants characterise the economic structure. At Würzburg the incubator and innovation centre "Biomed", to ZMK (center for modern communications technologies), and to the high-tech and incubation centre TGZ are located. The ZENTEC technology (start-up and cooperation centre) has been set up in Aschaffenburg-Grosswallstadt and the Rhön-Saale-Gründer- und Innovationszentrum (RSG) is in Bad Kissingen. In Schweinfurt the GRIBS start-up, innovation and consultation centre and the Main valley centre of excellence (Chancencenter Maintal) are located, while in Karlstadt the MainSpessart service network for start-ups. The federal motorways provide access to cities throughout Germany. The Frankfurt-Rhein-Main airport and the Nuremberg airport are both easily accessible. Moreover, the Main river connects the regions to the restof the world. The region has three polytechnical institutions at the Julius-Maximilans University, in Würzburg-Schweinfurt and Aschaffenburg and a huge number of research institutes and centres of competence. 21 Companies: ASE - Angewandte Solarenergie GmbH in Alzenau, Takata-Petri AG in Aschaffenburg, Reis GmbH & Co Maschinenfabrik in Obernburg, Koenig & Bauer AG in Würzburg, Bosch Rexroth AG in Lohr am Main, F.S. Fehrer Automotive Systems GmbH in Kitzingen, FAG Kugelfischer Georg Schäfer AG in Schweinfurt, Unipor Machinery&Technology Systems in Hassfurt, Preh Werke GmbH & Co KG in Bad Neustadt an der Saale, and TEMCO Textilmaschinenkomponenten GmbH in Hammelburg. DE27 Schwaben (Swabia) no data available Further indicators: Public revenue and spending (€) DE2 Bayern81 Revenue Spending 2001 33 537.000 33.227.000 Employment per sector82 DE2 Bayern Agriculture: Industry (without building and construction trade): Building and Trade, tourism, construction trade: transportation: Public and private 83 services : 2000: 33.100 2001: 32.300 2000: 1.436.700 2001: 1.449.500 2000: 318.700 2001: 302.000 2000: 1.567.600 2001: 1.617.200 2000: 1.009.000 2001: 1.028.000 Industrial Structure Branches of industry (processing industry)84 Branch Building and construction trade Energy industry Processing industry, mining, working of stone and earth Employment figures 2000 2001 2002 174.157 163.572 151.542 29.079 30.467 30.250 1.207.000 1.219.000 1.186.000 Research base Employment in education, higher education and research85 2001/02 173.601 Public expenditure on science and research in 200086 10,49 Mrd. € Students at universities87 81 http://www.destatis.de/jahrbuch/jahrtab58.htm http://www.statistik.bayern.de/daten/ZahlenspiegelPDF/zzalle.pdf 83 Including financial services, leasing/rentals and business consultants 84 http://www.statistik.bayern.de/daten/ZahlenspiegelPDF/zzalle.pdf 85 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 86 http://www.statistik.bayern.de/daten/bayerndaten/d13.htm 82 http://www.destatis.de/basis/d/biwiku/schultab26.htm, 22 1980 1990 1999 152.857 257.453 210.774 Support infrastructure DE2 Bayern Infrastructure (categories of streets)88 Road network Motorway 41.707 km 2.283 km Vehicles89 2002 8.865.295 Doctors and dentists (2000)90 Doctors 47.265 Dentists 9.789 87 http://www.statistik.bayern.de/daten/bayerndaten/d04.htm http://www.invest-in-germany.com/en/index.php?redirect=http://www.invest-in-germany.com/en/states/index.php?id_state=17 89 http://www.regierung.niederbayern.bayern.de/niederbay/strassenverk1.htm 90 http://www.destatis.de/jahrbuch/jahrtab52.htm 88 23 Designation for principal domestic policy support instruments (5 point scale): 2,5 2,8 0 (negative) 2,8 4,4 Territorial Policy Public sector transfer Employment policy Technology policy Rehabilitational grants Bremen and Saarland SFH total Transitional grants (west Germany) Fiscal Divergence resources from national after SHES average and Gap(balance filling measurement grants ) (= 100) 52.432 53.786 53.936 56.368 59.699 107.7 108.6 109.4 108.6 109.1 -2.532 -2.862 -3.102 -2.907 -3.188 49.901 50.925 50.834 53.461 56.511 102.5 102.8 103.1 103.0 103.3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 49.901 50.925 50.834 53.461 56.511 102.5 102.8 103.1 103.0 103.3 62.219 110.4 -3.749 58.470 103.7 0 0 0 0 0 0 58.470 103.7 59.946 112.3 -4.495 55.451 104.1 0 0 0 0 0 0 55.451 104.1 Gapfillin g grant s Compensations for special burdens (east Germany) 1995 1996 1997 1998 1999 * 2000 * 2001 Supplementary federal grants (in Mio. DM) Compensations for special political costs Bayern91 BY Fiscal Divergence Contributio Fiscal Divergence resources from national n/ resources from national before average assignment after SHES average SHES (in (balance within (in Mio. (balance Mio. DM) measurement SHES DM) measurement ) (in Mio. ) (= 100) DM) (= 100) *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 91 24 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3,3 2000-2006 (mio €) ERDF ESF Total Objective 2 Bavaria 2200.882 EU contribution 536.638 EU contribution 475.804 % 88.66% EU contribution 60.834 EAGGF % 11.34% EU contribution - % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3,7 Change in standing of region relative to national average in last five and ten years92 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate R+D expenditure (mio €)93 1991 22.178 11.526.400 5.976.600 214.780 1996 25.402 12.015.800 5.925.600 401.991 2001 29.379 12.280.400 6.295.200 332.417 4,4 7,9 6,0 1995 8.240 1997 8.527 1999 9.629 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 92 93 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 25 Berlin NUTS 1: DE3 BERLIN Berlin appears at several NUTS levels but only one code is assigned “DE3 Berlin (NUTS 1, NUTS 2)” GDP per head (2000) DE 3 Berlin94: 22.383 € (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €/ average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)95 Germany96: 24.700 € EU-15 = 100, DE3 = 95,697 GDP at current prices/in Million € DE 3 Berlin98 (mio €): 75.749 Germany99 (mio €): 2.030.000 EU-15100(mio €): 8 524 371 Employment rate (2000)101 1.561.900 (63,4%102) (German average = 68,8%) Unemployment rate (2002) 103 Unemployed persons: 288.319 (16,9 %) (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 3 Strengths104 [short description] The city-state Berlin – German capital and at a population of 3.382.000 inhabitants (2002) the largest city – covers a surface area of 892 km². Enlargement of the European Union has restored the location of the city in the centre of Europe at the heart of a major regional market and central Europe. Following the reunification of Germany and the instalment of the German government in Berlin, it has become one of the prime locations for new business sectors, high technology and modern services companies. Besides electrical engineering, pharmaceutics and mechanical engineering, high-tech industries like biotechnology, environmental technology, transport systems technology, information and communications technology, laser and medical technology are gaining in importance. Dominating sectors are the media, information and communication, transport engineering, biotechnology, medical technology and (financial) services. The tertiary sector generates 81% of Berlin's real net output, and the financial, rental and corporate services sector shows the strongest growth in employment, at 5%, i.e. 14,600 new jobs (2000). Furthermore, Berlin has a great research and scientific potential three 94 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 96: http://www.destatis.de/basis/d/vgr/vgrtab9.htm, http://www.destatis.de/indicators/d/vgr110ad.htm 97 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 98 http://www.statistik-berlin.de/framesets/berl1.htm 99: http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 100: http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 101 http://www.statistik-berlin.de/shop/D-Mikrozensus/mz.pdf (Denominator is total population, not working age population) 102 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 103 http://www.arbeitsamt.de/laa_bb/statistik/alozeitreihe.pdf 104: http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm and http://www.berlin.de/WirtschaftsfoerderungBerlinGmbH/e/BerlinBusinessNews/index.html 95 26 universities, 14 public institutes of higher education and more than 250 public and private research institutes. Also culture is an economically very important area, as the city houses 17 state museums, a multitude of theatres and operas as well as numerous libraries, cinemas, choirs and collections. With a view to the development of the media landscape. the TV station N24 (news channel) set up its news headquarters in Berlin, Universal Music and the newspaper Welt am Sonntag established headquarters in Berlin. Companies: Alcatel, Bally Wulf, Berlin Chemie, BMW Motorrad, Bombardier, DaimlerChrysler, Delphi, DETEWE, Deutsche Bahn, Dussmann, DWA, Ford, Gedas, GHH Borsig Turbomaschinen, Gillette, Herlitz AG, IBM, Krone, Orenstein und Koppel, Osram, Otis, Mercedes Benz, Motorola, Samsung, Schering AG, Schindler, Siemens, Sony, Axel Springer Verlag, Ullstein Verlag, Universal. (Gedas is building a software production plant and Gillette is investing in new Berlin based production facilities and in 2003 Delphi has opened a new vehicle safety centre and Corning Cable set up a new commercial centre in Berlin. Furthermore, Boeing announced in April 2003 to be coming to Berlin.) Weaknesses [short description] The city has a huge public debt (about 50 bn €), which is based on missing revenue from the processing industry. After WW II the economy and the budget of West-Berlin was strongly subsidised by federal grants covering more than 50% of the spending. Most of the person working in the service sector were public employees (Late 1980ies: 20% of all employees in the service sector; double of the west average). East Berlin was characterised by huge monopoly combines, which did not prove to be competitive after unification. The end of the planned economy in the East and the diminishment of federal grants in the west let to the reduction and breakdown of the processing industry. Berlin’s economic structure is still in a phase of fundamental structural change, which is expected to last until 2010, and nearly no producing industry got established in the surrounding countryside. With a view to its GDP development the city ranked penultimate state in 1999. Additionally the city faces a still divided situation: East: cheaper rents; West: better job situation. Like Brandenburg, Mecklenburg-Vorpommern, Sachsen, Sachsen-Anhalt, and Thüringen Berlin (East) still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds. Evolution in last decade [short description]105 Employment has been decreasing (1992: 1.639.300, 2002: 1.533.000) while at the same time the GDP/per capita (1992: 19.674€, 2002:22.756€) was growing.106 Berlin has largely overcome the repercussions of the division of Europe. Since the unification and with the transfer of the Federal Government it is increasingly becoming an international economic region, the principal place of business for many leading companies as well as industrial and commercial organisations. The service sector is becoming the most important economic sector with high growth rates, as Berlin is the seat of government, embassies, associations and lobbyists. Furthermore Berlin provides for good opportunities of contact with political and administrative Federal decision-makers. More and more companies were moving to Berlin over the past decade. In 2003 also the American Chamber of Commerce opened an office in Berlin. With its mixture of high technologies and modernised traditional industry, Berlin provides for a wide scale of business opportunities. A differentiated infrastructure and well-priced real are measures to promote investment in the city. 105 http://www.blc.berlin.de/en/div/frame1.html 106 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 27 Further indicators DE3 Berlin Public revenue and spending (mio €)107 1998 Revenue108 Spending109 1999 12.091 21.364 12.767 21.305 Employment per sector110 Agriculture: Industry (without building and construction trade): Building and construction trade: Trade, tourism, transportation: Public and private services111: 2000: 5.900 2001: 5.600 2000: 156.075 2001: 153.650 2000: 88.400 2001: 74.000 2000: 259.950 2001: 259.150 2000: 632.390 2001: 638.225 Industrial Structure The Manufacturing Sector in Berlin in September 2001: Economic Divisions and Workforce Size (Companies with ... employees)112 Economic Divisions Total Number of Compan ies 1 – 49 50 – 199 200 – 499 500 – 999 1 000 and more Coal mining, peat productiong 1 - 1 - - - Stone and earth, other extractive industry 4 4 - - - - 222 168 39 11 4 - 4 - 2 - 1 1 Textiles 68 63 5 - - - Clothing 96 88 8 - - Leather 6 6 - - - - Wood 46 41 5 - - - Paper 44 34 7 2 - 1 1 009 955 45 4 3 2 103 78 19 4 Food Tobacco processing Publishing, printing and duplication Chemicals 2 107 http://www.statistik-berlin.de/statistiken/oefffinanzen/ausgaben.htm, http://www.statistikberlin.de/statistiken/oefffinanzen/einnahmen.htm 108 Excluding payments from the public sphere (taxes,…) 109 Including education and special budgets 110http://www.statistik-berlin.de/framesets/daba.htm. 111 Including financial services, leasings/rentals and business consultants 112 http://www.blc.berlin.de/en/div/frame1.html 28 Rubber and plastics production 101 83 14 3 1 - Glass and ceramics, stone and earth processing 79 69 6 4 - - Prime metal production and processing 27 11 9 1 - - Metal products 261 221 32 7 - 1 Mechanical engineering 206 164 31 5 4 2 25 22 3 - - - Equipment for electricity generation, distribution etc 122 85 23 11 - 3 Radio, TV and communications technology 103 77 12 10 2 - Medical technology, measurement and quality assurance technology, optics 175 146 25 1 3 - Motor vehicles and components 16 4 7 2 2 1 Other vehicles 28 16 6 5 - 1 146 141 5 - - - 29 26 3 - - - 2 921 2 508 309 70 20 14 Office equipment, EDP equipment and installations Furniture, jewellery, musical instruments, sport equipment, toys and other products Recycling Total (Source: Statistisches Landesamt Berlin [Berlin Statistics Office] 2002) The Manufacturing Sector in Berlin: A Profile of the Key Groups in April 2002113 Key Groups Company Number of Total Workers Workforce Employed Completed Workers’ Working Hours in 1, 000s Turnover in million EUR Absolute Figures Upstream industry producers 380 41 805 24 752 3 165 518,1 Capital goods producers 281 29 512 15 713 2 016 320,8 113 http://www.blc.berlin.de/en/div/frame1.html 29 Consumer durables producers 21 5 039 3 958 500 121,1 Consumer disposables producers 219 32 850 14 289 1 898 1 513,6 Total 901 109 206 58 712 7 580 2 473,6 Upstream industry producers 1,3 -2,5 -4,6 -0,8 -5,0 Capital goods producers 1,4 -3,6 -5,7 1,5 5,1 -19,2 -11,3 -10,0 3,3 -20,0 Consumer disposables producers -2,2 -0,3 -1,1 5,2 4,0 Total -0,1 -2,6 -4,5 1,5 0,7 1999 127.690.000 2.503.000 2.483.000 1.632.000 22.594.000 100.658.000 65.863.000 37.765.000 18.408.000 10.043.000 145.055.000 67.110.000 3.434.000 Investments (€) 2000 124.086.000 34.723.000 2.485.000 1.349.000 1.737.000 19.813.000 99.950.000 84.146.000 62.148.000 20.594.000 6.239.000 90.873.000 74.563.000 2.042.000 2001 75.257.000 9.866.000 939.000 2.113.000 11.819.000 116.391.000 100.948.000 46.942.000 13.364.000 14.707.000 107.370.000 70.904.000 1.731.000 74.799.000 36.031.000 17.961.000 110.016.000 54.367.000 20.061.000 96.838.000 92.449.000 20.872.000 61.606.000 51.201.000 5.368.000 46.611.000 61.394.000 7.005.000 61.801.000 78.184.000 4.835.000 2.594.000 934.222.000 925.425.000 5.016.000 952.961.000 Changes vis-à-vis same month previous year in % Consumer durables producers Investments114 Branches of industry (processing industry) Branch Food Tobacco Textile Clothing Timber Paper Printing, publishing Chemical industry Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Production of hardware Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Production of electricity producing appliances Radio, TV, news technique Medical and optical techniques, measurement technology, control engineering Vehicles and supplying products Other vehicle engineering Furniture, jewellery, musical instruments, sports equipment, toys, recycling Recycling Total Research base Employment in education, higher education and research115 2001/02 73.658 114 http://www.statistik-berlin.de/statistiken/VerarbeitendesGewerbe/1113.htm http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 115 30 Spending on universities (€)116 1998 1999 2000 2.107.113.000 2.181.296.000 2.145.808.000 Students at universities117 Semester Beginners 1999/00 2000/01 2001/02 Total number of students 4.840 5.011 5.169 133.124 132.406 138.394 Support infrastructure Infrastructure 2001 (categories of streets)118 Road network Motorway 182,8 km 68,6 km Vehicles119 1998 1999 2000 2001 2002 2003 1.372.292 1.374.925 1.384.202 1.425.278 1.440.174 1.438.345 Doctors and dentists (2000)120 Doctors 17.481 Dentists 3.783 116 http://www.statistik-berlin.de/statistiken/oefffinanzen/H_Schul.htm http://www.statistik-berlin.de/statistiken/hochschulen/Stud-ZR.htm, http://www.statistik-berlin.de/statistiken/hochschulen/ErstZR.htm 118 http://www.statistik-berlin.de/statistiken/Verkehr/1408.htm 119 http://www.statistik-berlin.de/statistiken/Verkehr/1404.htm 120 http://www.destatis.de/jahrbuch/jahrtab52.htm 117 31 Designation for principal domestic policy support instruments (5 point scale): 4,3 4 5 3,8 4,2 Territorial Policy Public sector transfer Employment policy Technology policy Berlin121 BE 4.222 4.336 4.432 4.891 5.316 5.521 5.191 17.914 18.123 17.861 18.628 19.408 19.902 18.637 95.0 95.0 95.0 95.0 95.0 95.0 95.0 Supplementary federal grants (in Mio. DM) Gapfilling grants 849 858 846 882 919 943 883 219 219 219 219 219 219 219 2.662 2.662 2.662 2.662 2.662 2.662 2.662 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total 72.6 72.3 71.4 70.1 69.0 68.6 68.5 Divergence from national average (balance measurement) (= 100) Rehabilitational grants Bremen and Saarland 13.692 13.787 13.429 13.737 14.092 14.381 13.446 Contribution Fiscal / assignment resources within SHES after SHES (in Mio. DM) (in Mio. DM) Transitional grants (west Germany) Divergence from national average (balance measurement) (= 100) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 18.763 18.982 18.707 19.510 20.327 20.845 19.520 99.5 99.5 99.5 99.5 99.5 99.5 99.5 3.730 3.739 3.727 3.763 3.800 3.824 3.764 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 121 grants (SFG), Sources: 1995-2000: 32 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 4,3 2000-2006 (mio €) ERDF Total Objective 2 Objetive 1 Western part of Berlin Eastern part of Berlin 1179.189 EU contribution 384.449 EU contribution 244.125 2120.302 687.558 517.858 ESF % 63.50% EU contribution 140.324 75.32% 162.663 EAGGF % % 36.50% EU contribution - 23.66% 7.037 1.02% - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 6,4 Change in standing of region relative to national average in last five and ten years122 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate R+D expenditure (mio €)123 1991 17.851 3.438.800 1.662.700 179.953 1996 21.991 3.466.500 1.581.900 235.999 2001 22.507 3.385.100 1.556.200 272.307 10,6 15,2 17,9 1995 2.417 1997 2.588 1999 2.778 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 122 123 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 33 Brandenburg NUTS 1: DE4 BRANDENBURG GDP per head (2000) DE4 Brandenburg124;16.535 € (average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)125 Germany126: 24.700 € EU-15 = 100; DE 4= 69,4127 GDP at current prices/in million € Brandenburg128 (mio €): 43 000 Germany129 (mio €): 2.030.000 EU-15130 (mio €): 8 524 371 Employment rate (2000) Employed persons: 1.045.000 131 Working age population: 1.847.393 132 Employment rate (2000): 56,3 %133 (German average = 68,8%) Unemployment rate (2002)134 237.831 persons (all civil persons in gainful employment: 17,5%; civil employees: 19,1%)) (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 2,5 Strengths135 [short description] Brandenburg is the region surrounding the German capital city of Berlin. The surface area is 29.477 km², inhabited by a population of 2.583.457 (in 2002). Traditionally Brandenburg is characterised by a huge agricultural sector. One third of the surface (over 1 mio. hectare) is used for agricultural purposes. Alongside other traditional sectors such as vehicle manufacturing, timber, energy and chemicals, industries as biotechnology, the media, telecommunications and aerospace are gaining in importance. Biotechnologies have become a growth sector in recent years so that about 800 persons are employed in this field. Moreover, 50 medical technology companies have settled in Brandenburg. 124 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 126 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 127 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 128 http://www.lds-bb.de/sixcms/detail.php?id=16017&topic_id=51536&nav=51536 129 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 130 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 131 http://www.zab-brandenburg.de/erwerbstaetige.html 132 http://www.lds-bb.de/sixcms/detail.php?id=14953&topic_id=51525&nav=51525, http://www.lds-bb.de/sixcms/detail.php?id=14948&topic_id=51525&nav=51525 133 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 134 http://www.arbeitsamt.de/laa_bb/statistik/alozeitreihe.pdf 135 http://www.invest-in-germany.com, http://www.zab-brandenburg.de/engl/invest/investment_incentives.html, http://www.brandenburg.de/cms/detail.php?id=11417&_siteid=42, Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p.10. and http://www.bund.de/Verwaltung-in-Deutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm 125 34 The state is becoming attractive to the economy because of it modern transport and communications infrastructure and the closeness to Eastern European markets. Since 1990 circa 280 foreign companies set up business in Brandenburg. Moreover, Brandenburg offers investors investment incentives such as Capital Investment Grants, Federal tax allowances, Location Investment Grants, Technology & Innovation Grants (technology and innovation grant: research and development; introduction of new technology: up to € 204.000 per project; reduction techniques and renewable energy source grants: up to 20 percent of the project's cost), Infrastructure Grants, Interest Payment Grants, Loan guarantee program (for up to 80% of the contracted loan), Venture Capital (for hightech start-ups or SME with solid growth potential). SME are eligible for grants of up to 50 percent of the total capital investment. Moreover, companies will receive a one-time grant of up to 35 percent for the development, set up, extension, conversion purchase of plants in Brandenburg. Projects related to the economic infrastructure (business-parks, tourism or job retrainment) are eligible for a one-time grant of 25-80 percent (dependent on the development location). Potsdam-Babelsberg is a central location for movie and film production in Germany. Over 120 companies established offices here and investment in the location grew in the last years. 3 universities, 5 public institutes of higher education, , 15 technology centres, 3 Max-Planck institutes and 3 Fraunhofer installations are located here. In 1999 the state held rank 8 in investment per employee in the processing industry. 136 Companies: e.g. Altana, BASF, Bombardier, Daimler-Chrysler, Deutsche Bahn AG, Eberswalder Fleischwarenfabrik, Kronotex, Kunz Holding GmbH, Lufthansa Technik, Märkische Faser, MTU, Pneumant, Pratt & Whitney, Rolls Royce, Scannery Holztechnik N.V, Siemens, Spreewaldhof, Trevira, Tuffi, Werder Ketchup, ZF Friedrichshafen. Weaknesses137 [short description] Low density of population (88 inhabitants per km2; federal average: 230 inhabitants per km2). From 1989/90 to 1994 strongly affected by migration from the land. Since 1995 the only East German state with increase in population. Concentration in the Berlin-Brandenburg area. High unemployment (esp. in formerly agriculturally characterised areas). Like MecklenburgVorpommern, Berlin (East), Sachsen, Sachsen-Anhalt, and Thüringen the state still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds. High number of insolvencies. Evolution in last decade [short description]138 Employment has been decreasing (1992: 1.053.300, 2002: 1.023.300) while at the same time the GDP/per capita was growing significantly (1992: 9.426€, 2002:17.054€).139 Since 1995 the economy is characterised by constant growth and since 1998 the state has the largest GDP growth (+3,2%) of all new Länder. Nevertheless, this growth is not mirrored by the employment situation. Growth in employment can only be witnessed in the service sector. The processing industry is currently further expanding (+3,8%; federal average: -0,5%). On the other hand, tourisms constantly gained in importance. Growth sectors are mainly timber industry, 136 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 137 http://www.invest-in-germany.com, http://www.zab-brandenburg.de/engl/invest/investment_incentives.html, http://www.brandenburg.de/cms/detail.php?id=11417&_siteid=42, Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p.10, Blancke, Susanne / Lindlohr, Andrea / Schmid, Josef (2001): Wer führt? Ein Benchmarking der Bundesländer nach Arbeitsmarkt- und Wirtschaftsindikatoren, WIP Occasional Paper Nr. 14, Tübingen, p. 9. and http://www.bund.de/Verwaltung-in-Deutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm 138 http://www.brandenburg.de/cms/detail.php?id=20645, http://www.invest-in-germany.com, http://www.zabbrandenburg.de/engl/invest/investment_incentives.html, http://www.brandenburg.de/cms/detail.php?id=11417&_siteid=42, Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p.10. and http://www.bund.de/Verwaltung-in-Deutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm 139 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 35 engineering and vehicle production, Rubber and synthetic material, chemical industry, food and paper sectors. The shift within the economic structure from the dominance of agriculture (big factories; rye, linseed, flax seed production) towards processing industry (engineering, vehicle manufacturing, timber, energy and chemicals, industries as biotechnology, the media, telecommunications and aerospace) was accompanied and hindered by negative factors such as outdated production capacities, low productivity and a missing infrastructure. Areas, which were predominantly characterised by agriculture (northern part of the state) now show highest unemployment figures. Since 1993 the decrease was stopped and employment figures are stabilised. The mining sector (1991: 25% of the non agricultural production) and the building and construction trade were subject to structural change and constant decrease in economic relevance with a large number of closing down of companies). Further indicators Public revenue and spending (mill €)140 1999 9.177,8 9.834,0 Revenue Spending 2000 9.244,2 9.699,5 2001 9.353,4 9.915,9 2002 8.508,0 10.163,1 Employment per sector141 Agriculture: Industry (without building and construction trade): Building and construction trade: Trade, tourism, transportation: Public and private services142: 2002: 37.200 2002: 135.400 2002: 104.300 2002: 223.200 2002: 414.800 Industrial Structure Branches of industry 143 Branch Processing industry including mining and working of stone and earth Building and construction trade Trade and craft Total industry Employment figures 2002 135.400 104.300 223.200 462.900 Investments144 Branch Processing industry including mining and working of stone and earth Production of goods of preliminary work (Vorleistungsgüter) Production of items of capital expenditure Production of consumer items (consumer and utility goods) Production of consumer goods Total processing industry Investments in mill. € 2000 2001 2002 1.045 1.128 1.138 734 705 709 194 288 259 16 37 25 101 98 149 2.090 2.256 3.415 140 http://www.brandenburg.de/media/1379/eckdaten_der_haushalte_seit_1991.pdf http://www.statistik-berlin-brandenburg.de/s_erwerb_d.htm 142 Including financial services, leasings/rentals and business consultants 143 http://www.statistik-berlin-brandenburg.de/s_erwerb_d.htm 144 http://www.lds-bb.de/sixcms/detail.php?id=17062&topic_id=51895&nav=51895 141 36 Research base Employment in Education and, research145 1999 2000 2001 33.845 33.971 33.688 Public expenditure on science and research (€)146 1999 342.983.000 2000 327.690.000 2001 343.666.000 Students at universities 147 Wintersemester Beginners 1999/2000 2000: 4 812 2000/2001 2001: 5 310 2001/2002 2002: 5 254 2002/2003 - Total number of 19.896 21.649 22.721 25 086 Total number of public schools148 1999/2000 1.154 2000/2001 1.122 2001/2002 1.085 Computer equipment in private households (%)149 2000 2001 2002 38,6 44,0 51,1 Internet access or online services (%)150 2000 2001 2002 12,4 21,8 34,5 Telephone equipment of private households (%)151 2000 2001 ISDN 4,7 5,7 Mobil 31,6 54,7 Answering 36,1 39,2 machines Fax/PC fax cart 10,2 10,0 2002 (8,5) 70,4 44,1 (12,4) 145 http://www.lds-bb.de/sixcms/detail.php?id=15005&topic_id=51531&nav=51531 http://www.lds-bb.de/sixcms/detail.php?id=15000&topic_id=51531&nav=51531 147 http://www.lds-bb.de/sixcms/detail.php?id=15646&topic_id=51894&nav=51894 148 http://www.lds-bb.de/sixcms/detail.php?id=15579&topic_id=51891&nav=51891 149 http://www.lds-bb.de/sixcms/detail.php?id=49888&template=daten_detail_tab_l&nav=51520&topic_id=51520 150 http://www.lds-bb.de/sixcms/detail.php?id=49888&template=daten_detail_tab_l&nav=51520&topic_id=51520 151 http://www.lds-bb.de/sixcms/detail.php?id=49888&template=daten_detail_tab_l&nav=51520&topic_id=51520 146 37 Support infrastructure Infrastructure (categories of streets) 152 Category Motorway Federal road (Autobahn) (Bundesstraße) Kilometres 1999: 766 1999: 2.774 Provincial road (Landesstraße) 1999: 5.801 District road (Kreisstraße) 1999: 15.768 Total 1999: 25.109 Vehicles153 2001 1.615.564 1.639.823 2002 2003 1.653.624 Doctors and dentists (2000)154 Doctors Dentists 7.252 1.831 152 http://www.brandenburg.de/land/mswv/ministerium/kurzbilanz.html http://www.lds-bb.de/sixcms/detail.php?id=16958&topic_id=51542&nav=51542 154 http://www.destatis.de/jahrbuch/jahrtab52.htm 153 38 Designation for principal domestic policy support instruments (5 point scale): 4,2 4,3 4,7 4 3,5 Territorial Policy Public sector transfer Employment policy Technology policy Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 86.6 85.1 85.5 85.6 85.2 84.5 86.3 864 1.035 986 1.044 1.147 1.263 977 9.787 9.942 9.921 10.518 11.084 11.426 10.701 95.0 95.0 95.0 95.0 95.0 95.0 95.0 464 471 470 498 525 541 507 Gapfilling grants 164 164 164 164 164 164 164 1.985 1.985 1.985 1.985 1.985 1.985 1.985 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total 8.923 8.907 8.935 9.474 9.937 10.163 9.723 Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland 1995 1996 1997 1998 1999* 2000* 2001 Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs Brandenburg155 BB Fiscal resources before SHES (in Mio. DM) 2.613 2.620 2.619 2.647 2.674 2.690 2.656 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 10.250 10.413 10.391 11.016 11.609 11.967 11.208 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 155 39 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 6,5 2000-2006 (mio €) ERDF Total Objetive 1 Brandenburg 6733.047 EU contribution 3090.223 EU contribution 1639.26 ESF % 53.05% EU contribution 730.66 EAGGF % EU contribution 720.302 23.64% % 23.31% Impact on ex-ante divergence from national average of domestic policies (7 point scale): 6,3 Change in standing of region relative to national average in last five and ten years156 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate 1991 7.451 256200 1186900 141.172 1996 15.081 2547500 1066700 187.051 2001 16.787 2596200 1044900 233.588 10,3 16,2 18,8 1995 507 R+D expenditure (mio €)157 1997 584 1999 672 Estimated effect on regional circumstances of different domestic policies: Strongly positive: Territorial Policy Public sector transfer Employment policy Technology policy 156 157 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 40 Bremen DE5 Bremen GDP per head (2000) DE5 Bremen: 33.112 € 158 (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)159 Germany160: 24.700 € EU-15 = 100; DE5 = 142,9161 GDP at current prices/in Million € DE5 Bremen162: 21 887 Germany163 (mio €): 2.030.000 EU-15164(mio €): 8 524 371 Employment rate (2000) 388.000 persons in gainful employment165 = 85,1%166 (German average = 68,8%) Unemployment rate (2002) 40.532 persons: 12,6 % 167 (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 3,7 Strengths168 [short description] With a surface area of 404 km² and a population of 660.000 (in 2002) Bremen is (after Hamburg) the second-busiest port of Germany and trade centre for all kind of goods (rank 8 worldwide). Every third workplace is actually linked to the port, which is planned to be extended by a port of transshipment for cars. In addition to the Bremen ports, the state supports a mix of trade, shipbuilding, fishing and other industries such as vehicle construction, aerospace, mobile technologies, life science, logistics and tourism. Especially the food and semi-luxury foods and tobacco producing industry are major sectors of the economy. Beer, coffee, and Mercedes cars have made Bremen famous. The second-largest DaimlerChysler plant in Europe (workforce: 16,385 employees) is located here as well as EADS and Astrium (more than 5,000 employees), which make the city one of the German aerospace industry centres for the production of Airbus wings, the 158 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 160: http://www.destatis.de/basis/d/vgr/vgrtab9.htm, http://www.destatis.de/indicators/d/vgr110ad.htm 161 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 162 http://www.bremen.de/info/statistik/statistiken/12a.htm 163: http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 164: http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 165 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab15.asp 166 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 167 Bundesanstalt für Arbeit: Arbeitsmarkt in Zahlen 2002, Aktuelle Daten und Jahreszahlen 2002 und Zeitreihen http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (all civil persons in gainful employment) 168 http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.bigbremen.de/main.jsp?show=df_wichtige&rub=wirtschaft , http://www.bigbremen.de/main.jsp?show=df_wirtschaftsstandort&rub=wirtschaft 159 41 Space Lab and the Columbus Space Laboratory. Furthermore, Bremen and Bremerhaven hold a leading position in the food industry. Companies: Astrium, Atlanta AG, Atlas Elektronik, BakeMark, Beck & Co., BLG Logistics Group, Brewing STN, DaimlerChysler, EADS, Eduscho, Frosta, Hachez, Kelloggs, Klöckner, Könecke, Kraft Foods, Nordsee, Philips, Siemens, Stahlwerke Bremen GmbH, Vitakraft. 1 university, 4 public institutes of higher education, 1 Max-Planck institute and 1 Fraunhofer installation are located here. Weaknesses [short description] Strong dependency on the harbour (33% of the GDP), long-term establishing of companies was often not very successful Evolution in last decade [short description]169 Employment has been decreasing (1992: 409.300, 2002: 389.500) while at the same time the GDP/per capita (1992: 27.237€, 2002:34.753€) was growing.170 Unemployment is constantly decreasing (1997 16,8%, 2001: 13,6%) as well as the tax revenue (1997: 5.021.562 (thousand €); 2001: 4.640.343 (thousand €)). The turnover in proceeding industry has increased over the years (1997: 16.472 (mio. €), 2001: 20.799 (mio €)). In the early 1950ies the harbours released after the end of the post-war dismantling. The 1978 settlement of Mercedes Benz at Bremen stimulated the economy and created new jobs. The same holds true for the Airbus production sites. The 1983 break down of Großwerft AG Weser instead supported the need for restructuring the economy. Thus, Bremen underwent structural changes from a typical shipbuilding centre and port to a forward-looking business location boasting high levels of technological expertise, with the support of economic sectors such as aerospace, modern car production, mirco electronic and high-tech environmental technologies and life sciences. The strengthening of the education and research sector moreover Alfred Wegener Institute Foundation for Polar and Marine Research, Bremerhaven, the BIAS - Bremer Institut für Angewandte Strahltechnik GmbH or the Centre of European Law and Politics at the University of Bremen. promoted the establishment of research institutes such as the Further indicators: Public revenue and spending (mill €)171 Revenue Spending 1999 3.323 3.927 2000 3.023 3.931 2001 3.033 4.002 Employment per sector172 Agriculture: Industry (without Building and building and construction trade: construction trade): Trade, tourism, transportation: Public and private services:173 1999: 966 2000: 929 1999: 66.732 2000: 66.679 1999: 81.399 2000: 82.266 1999: 110.109 2000: 114.373 1999: 17.307 2000: 17.121 169 Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p.41, http://www.handelskammerbremen.de/servicemarken/ihk_aktuell/Versteckte%20Dateien/Statistischer%20Jahresbbericht%202001.pdf 170 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 171 http://www.handelskammer-bremen.de/produktmarken/standortpolitik/Versteckte%20Dateien/Seite% 20Steuern%20und%20Finanzen.pdf 172 http://www.bremen.de/info/statistik/biz/08-beschaeftigte.htm 173 Including financial services, leasings/rentals and business consultants 42 Industrial Structure Branches of industry174 Branch Employment figures 2000 2001 14.870 14.891 33.136 33.655 1.033 1.056 15.762 15.528 1.392 1.380 2.198 2.175 3.009 3.100 1.967 1.835 5.352 5.557 3.293 3.558 24.382 24.747 Production of goods of preliminary work (Vorleistungsgüter) Production of items of capital expenditure Production of consumer items (consumer and utility goods) Production of consumer goods Food and tobacco Paper, printing, publishing Fish processing Metal (production, working, ..) Mechanical engineering Production of equipment for the production of electricity Vehicle production Research base Employment in education, higher education and research175 2001/02 11.162 Public expenditure on science and research (€)176 2002 732.513.840 2003 740.756.780 Students at universities 177 Wintersemester Beginners 1995/1996 3 390 2000/2001 4 228 2001/2002 5 026 Total number of 26 369 26 538 28 220 Support infrastructure Infrastructure (categories of streets)178 Category Motorway Road Total (Autobahn) network Kilometres 59 98 157 Vehicles179 2000 331 392 337 252 2001 Doctors and dentists (2000)180 Doctors 3.155 Dentists 528 174 http://www.bremen.de/info/statistik/biz/10-prod_gewerbe.htm, http://www.bremen.de/info/statistik/biz/08-beschaeftigte.htm http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 176 http://www.bremen.de/finanzsenator/Kap3/pdf-haushalt/NH_Land2002.pdf, http://www.bremen.de/finanzsenator/Kap3/pdfhaushalt/NH_Land2003.pdf 177 http://www.bremen.de/info/statistik/statistiken/09a.htm 178http://www.invest-in-germany.com/en/index.php?redirect=http://www.invest-in-germany.com/en/states/index.php?id_state=17 179 http://www.destatis.de/jahrbuch/jahrtab37.htm 180 http://www.destatis.de/jahrbuch/jahrtab52.htm 175 43 Designation for principal domestic policy support instruments (5 point scale): 3,4 2,6 4,8 3,3 2,9 Territorial Policy Public sector transfer Employment policy Technology policy Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement ) (= 100) Supplementary federal grants (in Mio. DM) 80.9 79.2 86.4 71.8 79.3 73.9 74.9 562 635 350 912 665 872 787 3.510 3.552 3.494 3.636 3.801 3.862 3.618 96.3 96.4 96.0 95.8 96.1 95.5 95.8 121 120 130 142 139 164 144 Gapfillin g grant s 126 126 126 126 126 126 126 0 0 0 0 0 0 0 80 72 64 56 48 40 32 1.800 1.800 1.800 1.800 1.800 1.600 1.400 SFH total Contributio n/ assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Transitional grants (west Germany) 1995 2.948 1996 2.917 1997 3.144 1998 2.724 1999* 3.136 2000* 2.990 2001 2.830 *) preliminary Divergence from national average (balance measurement ) (= 100) Compensations for special burdens (east Germany) Compensations for special political costs Bremen181 HB Fiscal resources before SHES (in Mio. DM) 2.127 2.118 2.120 2.124 2.113 1.930 1.702 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 3.631 3.672 3.624 3.778 3.940 4.026 3.761 Divergence from national average (balance measurement ) (= 100) 99.6 99.6 99.6 99.6 99.6 99.5 99.6 (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 181 44 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3,8 2000-2006 (mio €) ERDF Objective 2 Bremen ESF EAGGF Total EU contribution EU contribution % EU contribution % EU contribution % 354.659 113.034 113.034 100% - - - - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 5 Change in standing of region relative to national average in last five and ten years182 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate R+D expenditure (mio €)183 1991 26.191 682.500 405.300 31.629 1996 29.107 678.800 383.100 44.374 2001 33.996 660.300 391.000 39.851 10,7 15,6 13,6 1995 583 1997 427 1999 452 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 182 183 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 45 Hamburg DE6 Hamburg GDP per head (2000) DE6 Hamburg184: 42.068 € (the highest in Germany) (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)185 Germany186: 24.700 € EU-15 = 100; DE6 = 181,5187 GDP at current prices/in Million € DE6 Hamburg (mio €): 71.947 188 Germany189 (mio €): 2.030.000 EU-15190 (mio €): 8.524.371 Employment rate (2000) Employment rate: 66,1 %191192 (86,2%193) (German average = 68,8%) People employed: 1.042.100194 Unemployment rate (2002) 9 % 195 (German average: 9,8%; West 7,9%, East: 18,0%) People unemployed: 76.518196 Technological standing (5 point scale): 4,3 Strengths197 [short description] The Hanseatic City-state of Hamburg is the second largest German city. Located on the river Elbe, about 100 km from the North Sea, it covers a surface area of 755 km² and has a population of 1.715.000 inhabitants (in 2002). Hamburg is one of the most important economic and foreign trade centres in Germany and Europe as it has become the leading foreign-trade centre for Northern Europe and a key crossing point for the Baltic countries' overseas trade (92 mio. tonnes of cargo (incl. 4.7 mio. TEU of containerised goods in 2001). The city is thus a centre of internal and global trading links with a logistics sector based on a state-of-the-art infrastructure (network of regular block-train services; direct train links to the port of Lübeck). The civil aviation and the shipbuilding industry play major roles in Hamburg’s economy, even if Hamburg's economic structure is also strongly characterised by the service sector (ca. 75% of the 184 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 186 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 187 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 188 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 189 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 190 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 191 http://www.hamburg.de/fhh/behoerden/behoerde_fuer_inneres/statistisches_landesamt/zeit/zeit3Tab1.htm 192 http://www.hamburg.de/fhh/behoerden/behoerde_fuer_inneres/statistisches_landesamt/zeit/zeit3Tab3.htm 193 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 194 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab15.asp 195 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf 196 http://www.hamburg.de/fhh/behoerden/behoerde_fuer_inneres/statistisches_landesamt/zeit/zeit10Tab3.htm 197 http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.hamburg-economy.de/ 185 46 work force employed here). Moreover, trade (23%) and transport (18%) are traditionally significant. Overseas trade via Germany’s largest seaport has made it Germany’s major doorway to foreign markets in Northern and Eastern Europe. Key areas of the economy are media and advertising (9%), publishing houses, consultancies, software suppliers, hotel and catering, food and consumeroriented trades, the banking and insurance sector (14%) (with the Hamburg's Stock Exchange founded in 1588; 1. in Germany), micro-electronics as well as information, telecommunication (70,000 employees; annual turnover: €10 bn), medical, pharmaceutical, environmental and biotechnologies (Hamburg's Innovative Medical Technology Center (imtc): interface to R&D). Print media form the backbone of the city's media landscape (over half of the newspapers and magazines sold in Germany are produced by Hamburg-based publishing companies; the majority of the 20 best-selling magazines are produced here). The city's publishing industry consists of about 1.000 companies with over 700 printing firms aside. This large media sector has made Hamburg become one of Germany’s leading media hubs with constant growth rates over the past years (over 10.000 firms; increase of over 50% since 1995; more than 60.000 employees; annual turnover in excess of € 25 bn). Thus the media industry (including also music (700 companies) and film production) in Hamburg is the 3. biggest industry sector in terms of annual turnover and the 4. biggest employer. Moreover, the multimedia sector is important. Outside Hamburg the Channel Harburg is one of Germany’s modern high-tech centres including IT, microelectronics and telecommunications industries. Nevertheless, Hamburg is still an industrial location. It is one of the centres of Europe’s civil aviation industry - based on aircraft construction and MRO maintenance/repair/overhaul. Companies: Airbus, Beiersdorf, Blohm & Voss shipyard, D'Arcy Group, EADS Airbus, Eppendorf, Fork Unstable, Hapag Lloyd, Helm, Hermes-Kreditversicherungs AG, IBM (first E-Business Innovation Center outside the USA), KNSK, Legas Delany,Lowe Lintas, Lufthansa Technik AG (Airbus production), Medienwerft, Mindworks Media Services, Montblanc, MMB, Norddeutsche Affinerie, Olympus, Otto Versand, Panasonic, Philips Medical Systems, SAP, Scholz & Friends, Slagmans, Spotmedia, Springer & Jacoby, Tchibo, Thyssen Group, Winter & Ibe., Young & Rubicum. With a view to the education sector 1 public university, 1 university of economy and politics, 1 university of the German Federal Armed Forces, 1 technical university, 5 public institutes of higher education, about 250 research and education institutes (among them the Bernhard Nocht Institute for Tropical Medicine) and 2 Max-Planck institutes are located here. Weaknesses [short description]: No special weaknesses Evolution in last decade [short description] Employment has been slightly growing (1992: 1.039.900, 2002: 1.045.700). The same holds true for the GDP/per capita (1992: 34.336 €, 2002:43.556€).198 Hamburg. like Bremen, underwent structural changes from a ship industry and row material dominated economy towards a modern ‘mixed’ economy with a huge service sector. Companies such as the Blohm & Voss shipyard (Thyssen Group) successfully managed this structural change and became a modernized company for repairing and modifying ships and building specialist vessels (frigates or cruise liners). With a view to other results of the restructuring, today nearly half of service-sector workers are employed in the media, consultancy firms, software suppliers (in 1999 Hamburg has been awarded "Digital City Europe at the International Emma Awards for Interactive Media; with over 18.000 employees Hamburg is one of Germany's leading multimedia centres), hotel and catering and consumer-oriented skilled trades. Banking and insurance is another key 198 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 47 sector. Future growth in the multimedia industry is projected in the fields programming, consulting, in project management and system administration. Moreover, since the move of the German government from Bonn to Berlin, the situation of Hamburg has changed insofar as the politicoeconomic interests have shifted to the north-east of the republic. Further Indicators Public revenue and spending (mio €)199 2001 7.797,8 9.366,7 Revenue Spending 2002 8.256,3 9.471,4 Employment (at workplace) per sector200 Agriculture: Industry (without building and construction trade): Building and construction trade: Trade, tourism, transportation: Public and private services:201 2000: 5.500 2001: 5.400 2002: 5.500 2000: 133.700 2001: 135.600 2002: 133.500 2000: 45.900 2001: 42.700 2002: 40.100 2000: 314.900 2001: 315.000 2002: 313.600 2000: 542.800 2001: 554.000 2002: 553.000 Research base Employment in education, higher education and research202 2001/02 34.712 Public expenditure on science and research (mio €)203 2001 846,5 2002 822,9 Students at universities204 Wintersemester 1999/2000 2000/2001 2001/2002 Total number of 65 115 64 084 66 514 Support infrastructure Infrastructure (categories of streets)205 Category Motorway Road Total (Autobahn) network Kilometres 59 98 157 Vehicles206 2003 947.472 199 http://fhh.hamburg.de/stadt/Aktuell/behoerden/finanzbehoerde/haushalt/haushalt-2002/finanzbericht-2002,property=source.pdf , http://fhh.hamburg.de/stadt/Aktuell/behoerden/finanzbehoerde/haushalt/haushalt-2003/finanzbericht-2003,property=source.pdf 200 http://www.hamburg.de/fhh/behoerden/behoerde_fuer_inneres/statistisches_landesamt/zeit/zeit12Tab6.htm 201 Including financial services, leasings/rentals and business consultants 202 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 203 http://fhh.hamburg.de/stadt/Aktuell/behoerden/finanzbehoerde/haushalt/haushalt-2002/finanzbericht-2002,property=source.pdf 204 http://www.hamburg.de/fhh/behoerden/behoerde_fuer_inneres/statistisches_landesamt/zeit/zeit5Tab6.htm 205 http://www.invest-in-germany.com/en/index.php?redirect=http://www.invest-in-germany.com/en/states/index.php?id_state=17 206http://www.destatis.de/jahrbuch/jahrtab37.htm 48 Doctors and dentists (2000)207 Doctors 9.046 Dentists 1.725 207 http://www.destatis.de/jahrbuch/jahrtab52.htm 49 Designation for principal domestic policy support instruments (5 point scale): 1,8 1,8 0 (negative) 3 2,5 Territorial Policy Public sector transfer Employment policy Technology policy Hamburg208 HH -117 -482 -273 -615 -665 -1.099 -520 9.453 9.618 9.480 10.054 10.577 11.079 10.322 102.2 102.8 102.3 103.5 103.7 105.5 104.1 Supplementary federal grants (in Mio. DM) Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total 103.5 107.9 105.2 109.8 110.2 116.0 109.3 Divergence from national average (balance measurement) (= 100) Rehabilitational grants Bremen and Saarland 9.553 10.099 9.753 10.669 11.242 12.178 10.843 Contribution Fiscal / assignment resources within SHES after SHES (in Mio. DM) (in Mio. DM) Transitional grants (west Germany) Divergence from national average (balance measurement) (= 100) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 9.453 9.618 9.480 10.054 10.577 11.079 10.322 102.2 102.8 102.3 103.5 103.7 105.5 104.1 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 208 50 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3 2000-2006 (mio €) ERDF Total Objective 2 Hamburg 12.384 EU contribution 6.192 EU contribution 6.192 ESF % 100% EAGGF EU contribution - % EU contribution - - % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3 Change in standing of region relative to national average in last five and ten years209 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate R+D expenditure (mio €)210 1991 33.057 1.660.700 1.024.400 63.013 1996 37.903 1.708.400 1.009.800 83.942 2001 42.749 1.721.000 1.052.600 70.648 8,7 11,7 9,3 1995 1.233 1997 1.309 1999 1.263 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 209 210 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 51 Hessen NUTS 1: DE7 Hessen NUTS 2: DE71 DARMSTADT DE72 GIEßEN DE73 KASSEL GDP per head (2000) DE7 Hessen211: 30.347 € (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)212 Germany213: 24.700 € EU-15 = 100; DE7 = 129,4, DE71 = 148,8, DE72 = 95,0, DE 73 = 101,3214 GDP at current prices/in Million € DE7 Hessen215 (mio €): 183.055 € Germany216 (mio €): 2.030.000 EU-15217 (mio €): 8.524.371 Employment rate (2000) DE7 Hessen: 72,5%218 (2.992.800 persons employed219) (German average = 68,8%) DE71 Darmstadt 1.946.500220 DE72 Gießen 453.600221 DE73 Kassel 588.300222 Unemployment rate (2002) DE7 Hessen 7,8223 (6,9 % 224) (German average: 9,8%; West 7,9%, East: 18,0%) DE71 Darmstadt 7,0 %225 DE72 Gießen 8,1 %226 DE73 Kassel 9,9 %227 Technological standing (5 point scale): 3,5 (2-3 in the north; 5 in the south) Strengths228 [short description] With a surface area of 21.114 km² and a population of 6.068.000 (in 2002), the State of Hessen is economically rather strong and has the highest GDP per employee among the German states in 2000 (over 60,000 €, a total GNP of about 185 bn € and a GNP per Capita of 30,347 €, GDP growth 211 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 213 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 214 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 215 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 216 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 217 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 218 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 219 http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 220 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 221 ibid. 222 ibid. 223 http://www.hsl.de/Abt-p/arbeitsmarkt/arbeitslose_jahr.htm (civil employees) 224 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (all persons in gainful civil employment) 225 http://www.hsl.de/Abt-p/kreiszahlen/hkr_Arbeitslose.htm (civil employees) 226 ibid. 227 ibid. 228http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.invest-in-hessen.de/she/index_js.htm 212 52 rate 1,5%). Almost a quarter (25,4%) of all foreign direct investments in Germany are made in Hessen. Behind Nordrhein-Westfalen with 30,6% of all foreign direct investments Hessen holds rank 2. Among foreign investors, the USA hold rank 1. Moreover, about 500 US companies have set up business sites here. The four major industrial branches are chemical industry (rank 1 by turnover, 64,000 employees, high share of pharmaceutical companies), car manufacturing (rank 2, 68,000 employees), mechanical engineering (paper and printing equipment manufacturers as most important subsectors) (rank 3, 64,000 employees) and electronics/electrical engineering (expertise in precision measurement, control and information technology, aerospace technology, household appliances) (rank 4) (70% of the exports). Other sectors with relevance for the economic structure of Hessen are advanced transport engineering (ICE, Transrapid, ICEMUS (innovation centre for mobility and rail technology) in Kassel), biotechnology (chemical and pharmaceutical industry with 96,000 employees; Hessen is the most important location of the manufacturing biotechnology in Germany; over 330 biotechnology companies employ around 15,000 people), call centres (30,000 jobs (mostly parttime; recruitment largely among unemployed) have been created in - financial services telecommunications - insurance companies - airlines and travel organizations - mail order business and tele shopping - technical services), environmental technology, media (33% of German’s economically strongest advertising agencies have headquarters or offices in the Frankfurt area, 400 book publishers, 60 newspaper publishers, 250 magazine publishers in Hessen, film and TV such as Hessischer Rundfunk, CNN, Bloomberg TV, n-tv Film), medical technology, software and IT (3.500 IT, software, electronic data processing, consulting and services companies, 3 of the 5 biggest German software companies (Software AG, Computer Associates, CSC Ploenzke); Frankfurt University: first chair for e-commerce in Germany). Moreover, the service sector is strong (76% of the GDP) with financial services, insurances, business services and new media as lead sub-sectors. Moreover, besides London, New York and Tokyo, Frankfurt is one of the world's major financial markets (European Central Bank, Deutsche Bundesbank, Deutsche Boerse (German stock exchange with over 90% of the total turnover of German stock exchanges), over 400 banks). Over 75,000 employees work in Hessen’s financial service sector. Since the introduction of the EURO in 1999, the European monetary policy is agree on by the ECB from Frankfurt. The city, which is also Europe‘s second city of ‘internet traffic’ behind London (85% of German internet traffic; 35% of European internet traffic are channeled via Frankfurt). 200 telecommunication service firms have set up sites here (Deutsche Telekom, Arcor, Colt, BT Ignite and Worldcom). The economic structure is characterised by a large number of SME (90% of all companies. Frankfurt, Hessen’s largest city, is furthermore an international centre of air, road and rail transport and holds a leading position in Europe. The city hosts also the world's largest consumer-goods trade fairs "Premiere" and "Ambiente" and the international book fair or the IAA international motor show. The Frankfurt Airport (60.000 employees) is one of the most important in the world (ca. 350,000 passengers per day, ca. 45 mio. passengers per year; nearly 160.000 connections to about 220 destinations). Frankfurt's main train station is Europe's largest. The "Frankfurter Kreuz" is Europe’s busiest motorway intersection. The Rhine-Main region is furthermore the heart of the economic activities (leading financial centre, dense transport network, high GDP) and both rivers link Hessen to the North Sea and other major European ports. Due to its location, Hessen is a ideal location for logistic centres in Germany. Particularly in the Frankfurt Region, firms take advantage of Europe´s largest cargo airport and the up-to-date facilities in the CargoCity (over 80 airlines, over 100 shipping agencies and express services such as FedEx, UPS and Schenker). The north (Kassel and Bad Hersfeld) has good access to the federal motorway system so e.g. amazon.de, the German subsidiary of amazon.com or RS Components (UK headquartered distributor of electronic, electrical and mechanical components European distribution centre), chose Bad Hersfeld for their central distribution facilities in Germany. 53 In Hessen many universities, polytechnics and research facilities have been set up. 5 universities, 2 art institutes, 5 universities of applied sciences (focus on practical training for engineers), 10 private institutions of higher education, 5 Max-Planck institutes and 6 Fraunhofer installations (e.g. Fraunhofer Institute for Graphic Data Processing (IGD)), 4 institutes of the Gottfried Wilhelm Leibnitz Scientific Community, 1 institute of the Helmholtz Community: heavy ion research centre, 3 federal institutes with research assignment and 5 further research institutions (e.g. GMD Research Institute for Information Technology, Darmstadt, Institute for Solar Power Kassel, Institute for Socio-ecological Research ISOE Frankfurt, Space Control Center of the European Space Agency ESA Darmstadt) are located here. In 1999 the state held rank 2 in investment per employee in the processing industry. 229 Companies: e.g. ABB, Abbott, Aventis, Biotest, Bombardier, Braun Melsungen,, Canon, Claraint, Commerzbank, Daewoo, Daimler-Chrysler, Danzas, Degussa, Deutsche Bank, Deutsche Lufthansa AG, Dresdner Bank, Dunlop, Emery Worldwide, Federal Mogul, Ferrero, Fraport, Fresenius, General Electric, General Motors Opel Division, German Post, German Parcel, Goldwell, Heraeus, Hoechst AG, Honda, Honeywell, ICI, ITT, Kühne & Nagel, Leybold Systems, Linde, Mannesmann, Merck, B. Motorola, Panalpina, Pepsi Cola, Philips, Pirelli, Proctor & Gamble, REWE, Röhm, Schenck, Siemens, Sirona, System Plus, Tenovis, Tyco, Volkswagen, Wella. Weaknesses [short description] 230 More insolvencies than Bayern and Baden-Württemberg. Northern Hessen is the ‘looser’ of the structural changes concerning the economy. Migration has thus influenced this region especially. Today, the density of population is half lower than the state average. Concentration of financial sector activities in the Rhine-Main area, concentration of biotechnologies in the south and in the middle of Hessen (Frankfurt/Darmstadt and Marburg/Giessen: 3/4 of the companies are located here) and thus structural discrepancy. Call centres are concentrated in the Frankfurt area and in the north of Hessen (Kassel). Evolution in last decade [short description] 231 Evolution: Employment has been growing (1992: 2.925.500, 2002:3.009.200) and the same holds true for the GDP/per capita (1992: 25.201 €, 2002: 31.496 €).232 The automotive industry underwent strong structural changes towards R&D. Moreover, one of the fastest growing industries in Hessen is the environmental technology sector (ca. 1,500 companies) with the development of techniques and plants for environmental and energy technology by Thyssen-Henschel, for catalyst technology by Degussa and Leybold and the centre for Environmental Technology and Recycling in Borken, the Institute for Solar Energy Supply Technology (ISET) in Kassel or the Institute for development methodology and production technologies for environmentally friendly products in Herborn-Seelbach. 229 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 230http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.invest-in-hessen.de/she/index_js.htm, Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p.52, Blancke, Susanne / Lindlohr, Andrea / Schmid, Josef (2001): Wer führt? Ein Benchmarking der Bundesländer nach Arbeitsmarktund Wirtschaftsindikatoren, WIP Occasional Paper Nr. 14, Tübingen,p.8. 231http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.invest-in-hessen.de/she/index_js.htm 232 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 54 Further indicators: Public revenue and spending (mio €)233 1999 14.343 17.930 Tax Revenue Spending DE7 Hessen Employment per sector234 Agriculture: Industry (without building and construction trade): Building and construction trade: Trade, tourism, transportation: Public and private services:235 1999: 47.500 2000: 47.700 2001: 48.000 1999: 792.500 2000: 787.200 2001: 780.200 1999: 64.329 2000: 62.714 2001: 59.116 1999: 770.300 2000: 794.400 2001: 802.800 1999: 1.315.500 2000: 1.363.600 2001: 1.391.700 DE71 DARMSTADT236 Total employment Employment per sector 2001 1,0% Agriculture 1.975.700 22,9% Proceeding Industry (including building and construction trade) 76,0% Public and private services:237 DE72 GIEßEN238 Employment per sector Total employment Employment per sector 2001 2,3% Agriculture 457.100 32,1% Proceeding Industry (including building and construction trade) 65,5% Public and private services:239 DE73 KASSEL240 Employment per sector241 Total employment Employment per sector 2001 2,9% Agriculture 590.000 30,5% Proceeding Industry (including building and construction trade) 66,5% Public and private services:242 233 http://www.hsl.de/Abt-6/oeff_haushalte/oef_hh03.htm http://www.hsl.de/Abt-p/arbeitsmarkt/sv_besch_wz.htm, http://www.hsl.de/Abt-4/prod_gewerbe/verarb01.htm, http://www.hsl.de/Abt-4/prod_gewerbe/bau01.htm, http://www.hsl.de/Abt-p/vgr/vgrETGZ.htm 235 Including financial services, leasing/rentals and business consultants 236 http://www.hsl.de/Abt-p/kreiszahlen/hkr_erwerbstaetige_2001.htm, http://www.hsl.de/Abtp/kreiszahlen/hkr_Sozialversicherungspflichtig%20.htm 237 Including financial services, leasing/rentals and business consultants 238 http://www.hsl.de/Abt-p/kreiszahlen/hkr_erwerbstaetige_2001.htm, http://www.hsl.de/Abtp/kreiszahlen/hkr_Sozialversicherungspflichtig%20.htm 239 Including financial services, leasing/rentals and business consultants 240 http://www.hsl.de/Abt-p/kreiszahlen/hkr_erwerbstaetige_2001.htm, http://www.hsl.de/Abtp/kreiszahlen/hkr_Sozialversicherungspflichtig%20.htm 241 http://www.hsl.de/Abt-p/arbeitsmarkt/sv_besch_wz.htm, http://www.hsl.de/Abt-4/prod_gewerbe/verarb01.htm, http://www.hsl.de/Abt-4/prod_gewerbe/bau01.htm, http://www.hsl.de/Abt-p/vgr/vgrETGZ.htm, http://www.hsl.de/Abtp/kreiszahlen/hkr_Sozialversicherungspflichtig%20.htm 242 Including financial services, leasing/rentals and business consultants 234 55 Industrial Structure DE7 Hessen Branches of industry243 Branch 1999 Employment figures 2000 2001 2002 (average of IV. quarter) Food and tobacco Paper, printing, publishing Chemical industry Rubber and synthetic material Metal (production, working, ..) Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Vehicle production 34.873 30.438 65.927 35.535 51.844 64.009 63.667 35.216 31.166 63.899 35.858 51.253 63.109 63.896 34.789 31.844 64.246 36.148 51.904 62.582 64.930 34.726 29.204 62.903 34.925 50.705 60.533 62.186 72.003 70.647 69.766 67.207 DE7 Hessen Investments244 Branch Investments (1000€) 2000 2001 Food and tobacco Paper, printing, publishing Chemical industry Rubber and synthetic material Metal (production, working, ..) Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Vehicle production 277.510 229.495 862.362 277.173 360.970 275.637 337.388 705.408 239.511 176.311 926.161 279.567 347.505 259.344 391.866 867.767 Research base Employment in education, higher education and research245 2001/02 92.963 Public expenditure on science and research (mio €)246 1999 4.437 DE7 Hessen Students at universities247 Wintersemester 1999/2000 2000/2001 2001/2002 Beginners 18.039 19.549 21.971 Total number of 149.046 150.868 156.414 DE7 Hessen Computer equipment per 100 private household s248 1993 24,6 1998 44,3 243 http://www.hsl.de/Abt-4/prod_gewerbe/verarb05.htm http://www.hsl.de/Abt-4/prod_gewerbe/invest01.htm 245 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 246 http://www.hsl.de/Abt-6/oeff_haushalte/oef_hh03.htm 247 http://www.hsl.de/Abt-3/Hochschulen/stud_zeit.htm 248 http://www.hsl.de/Abt-2/verbrauch/verbra01.htm 244 56 DE7 Hessen Internet access or online services per 100 private households249 1993 - 1998 8,5 DE7 Hessen Telephone equipment per 100 private households250 ISDN Telefons Mobil Answering machines Fax/PC fax cart 1993 97,5 - 1998 6,6 98,0 11,9 37,9 17,9 Support infrastructure DE7 Hessen Infrastructure (categories of streets)251 Category Motorway (Autobahn) Federal road (Bundesstraße) Provincial road District road (Kreisstraße) Total (Landesstraße) Kilometres 1998: 950 1999: 956 2000: 957 1998: 3.387 1999: 3.403 2000: 3.419 1998: 7.219 1999: 7.231 2000: 7.229 1998: 5.083 1999: 5.056 2000: 5.048 1998: 16.639 1999: 16.646 2000:16.652 Vehicles 1998252 1999253 2000254 2003255 3.919.120 3.970.485 4.095.245 4.198.953 Doctors and dentists (2000)256 Doctors Dentists 22.509 4.838 249 http://www.hsl.de/Abt-2/verbrauch/verbra01.htm http://www.hsl.de/Abt-2/verbrauch/verbra01.htm 251 http://www.hsl.de/Abt-5/verkehr/verkeh01.htm 252 http://www.hsl.de/Abt-5/verkehr/verkeh03.htm 253 http://www.hsl.de/Abt-5/verkehr/verkeh03.htm 254 http://www.hsl.de/Abt-5/verkehr/verkeh03.htm 255 http://www.destatis.de/jahrbuch/jahrtab37.htm 256 http://www.destatis.de/jahrbuch/jahrtab52.htm 250 57 Designation for principal domestic policy support instruments (5 point scale): 1,8 2 0 (negative) 2,3 2,8 Territorial Policy Public sector transfer Employment policy Technology policy Hessen257 Fiscal HE 25.292 25.883 25.749 27.150 28.877 29.901 28.137 103.4 104.1 104.2 104.3 105.6 106.3 106.4 Supplementary federal grants (in Mio. DM) Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total -2.153 -3.240 -3.148 -3.439 -4.744 -5.354 -5.129 Divergence from national average (balance measurement) (= 100) Rehabilitational grants Bremen and Saarland 112.2 117.2 116.9 117.6 123.0 125.3 125.7 Contribution Fiscal / assignment resources within SHES after SHES (in Mio. DM) (in Mio. DM) Transitional grants (west Germany) 1995 27.444 1996 29.122 1997 28.897 1998 30.589 1999* 33.621 2000* 35.254 2001 33.266 *) preliminary Divergence from national average (balance measurement) (= 100) Compensations for special burdens (east Germany) Compensations for special political costs resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants Divergence from national average (balance measurement) (= 100) 25.292 25.883 25.749 27.150 28.877 29.901 28.137 103.4 104.1 104.2 104.3 105.6 106.3 106.4 (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 257 58 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3 2000-2006 (mio €) ERDF Total Objective 2 Hesse 542.379 EU contribution 183.519 EU contribution 183.519 ESF % 100% EAGGF EU contribution - % - EU contribution - % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3 Change in standing of region relative to national average in last five and ten years258 1991 1996 2001 24.055 27.326 30.966 GDP/capita (€) 5.795.700 6.017.900 6.072.900 Population 2.890.800 2.870.900 3.022.800 Employment (persons) 123.264 254.050 200.533 Unemployment (persons) 5,1 9,3 7,4 Unemployment rate 1995 3631 R+D expenditure (mio €)259 1997 3755 1999 4482 Estimated effect on regional circumstances of different domestic policies: Strongly positive: Territorial Policy Public sector transfer Employment policy Technology policy 258 259 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 59 Mecklenburg-Vorpommern (Mecklenburg-West Pomerania) NUTS 1: DE8 MECKLENBURGVORPOMMERN GDP per head (2000) in € DE8 Mecklenburg-Vorpommern260: 16.240€ (average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)261 Germany262: 24.700€ EU-15 = 100; DE8 = 69,4263 GDP at current prices/in Million € Mecklenburg-Vorpommern264 (mio €): 28.643 Germany265 (mio €): 2.030.000 EU-15266(mio €): 8 524 371 Employment rate (2000) 59,7%267 (753.700 persons268) (German average = 68,8%) Unemployment rate (2002) 18,6 %269 (169.747 persons270) (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 3-3,5 Strengths271 [short description] Mecklenburg-Vorpommern is located in the north-eastern part of Germany. The longest coastline of all the German states accounts for its maritime character. Surface area is 23.173 km², with a population of 1.776.000 inhabitants (in 2002). Mecklenburg-Vorpommern is one of the former GDR states. With 1.712 km coastline the state has a strong maritime character with access to the Baltic Sea (Rostock). 8 ports, 5 airports, 5 commercial landing strips and 4 special purpose landing strips provide for traffic and transport opportunities. Combined with the motorway network and the freight traffic centre in Rostock the state has a well developed infrastructure and connection to Hamburg’s seaport. In its current political form the state has only been established with the German unification in 1990 (merger of the former GDR-districts Rostock, Schwerin and Neubrandenburg). The state’s economic structure traditionally is characterised by agriculture, food industry and shipbuilding. 260 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 262 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 263 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 264 http://www.statistik-mv.de/doku/1-22.pdf (1.22.2) 265 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 266 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 267 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 268 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab15.asp 269 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf 270 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf 271 http://www.invest-in-germany.com, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.gfw-mv.de/, http://www.investguide-mv.de/, Landeszentrale für politische Bildung Baden-Württemberg (Ed.): Die Bundesländer. 50 Jahre Bundesrepublik, Stuttgart, 1999, p.59. 261 60 The restructuring of the shipbuilding sector and the establishment of new high-tech shipyards are to be seen as examples of modernisation of the maritime industry (container-, passenger-, tanker, special purpose vessels, military shipbuilding, fishing trawlers, ship repairs and refitting). This sector plays a traditional key role in Mecklenburg-Vorpommern’s industry. Additionally the states has in the past years modernised its Baltic seaports. Other important industrial sectors are agriculture (pig and cattle breeding, chicken farming, grain, rape, sugar beets and potatoes), the food-processing and the tourism industry, which were growing over the years. Especially the tourism industry made the state second (behind Bavaria) of the most popular holiday destination for Germans. Nearly 42% of the total area of the state is arable land with a special agricultural belt from the northwest to the southeast corner of the state. The state is a traditional centre for the manufacturing industry (wood doors, wooden windows, furniture and furniture pieces for the upholstery industry) and wood industry, which is mainly composed by SME. Moreover, the Airbus A 3 XX and the Transrapid are built here. More recently, a telecommunications infrastructure has been established in the course of economic reconstruction in Mecklenburg-Vorpommern. This has created about 6.000 jobs in tele-working (33 major call-centres with over 6000 telephone agents) in the region. Also high-tech companies were set up in the last years, particularly in ICT, bio-tech and life-sciences. In the region GreifswaldRostock more than 70 bio-tech companies started business in the past years. More than 308 companies (2.000 employees) in different technology centres and the three specialised institutions have started business in medical technology, biomedicine, environment technology, maritime technology, electronics, communications technology, and food technology. The state hosts 2 universities (the oldest university in northern Europe; Rostock 1419) and many research and development enterprises (Technologie- und Gewerbezentrum Schwerin, Technologieund Gewerbezentrum Wismar, Rostocker Innovations- und Gründerzentrum, Technologiezentrum Warnemünde, Technologiezentrum Vorpommern Greifswald,Technologie-, Innovations- und Gründerzentrum Neubrandenburg) focussing on high technology, biotechnology and medical technology. Moreover, 4 public institutes of higher education, 1 Max-Planck institute, 2 Fraunhofer installations, 4 public institutes of higher education, over 80 vocational schools and advanced training programs are located here. Due to cost reasons plans for closing certain faculties at both universities for not offering the same range of studies were discussed recently. Companies: Aker MTW Wismar, A.P. Möller Group, CITRICO, Darguner Brauerei, Carl Kühne, Greifen-Fleisch, Kinderkost Nestlé, Kvaerner Warnow Werft, Meckl. Kartoffel, Meyer Shipyard, Neptune Shipyard, Peene-Shipyard, Stolle, Volkswerft, Warnow Werft. In 1999 the state held rank 12 in investment per employee in the processing industry.272 Weaknesses273 [short description] Very high unemployment rates, high numbers of insolvencies. Like Brandenburg, Berlin (East), Sachsen, Sachsen-Anhalt, and Thüringen the state still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds. Evolution in last decade [short description] Employment sinking (1992: 757.800 , 2002: 723.800), while the GDP/per capita been growing (1992: 9.180 €, 2002: 16.891 €).274 The economic focus of the region, which in 1990 became Mecklenburg-Vorpommern, was traditionally on agriculture, food industry and shipbuilding. The sort of ‘monoculture’ still today 272 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 273 Blancke/Hedrich/Schmid (2002): Bundesländer-Benchmarking, in: Wirtschaft und Politik, 19/2002 274 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 61 characterises the economy of this state causing the region’s economy being rather crisis-prone than stable.4 out of 6 shipyards have been privatised, restructured and modernised successfully since 1990. By this modernisation the remaining shipyards became the most modern and competitive in Europe. Nevertheless, since 1990 employment figure sank in this sector due to modernisation. Regardless of its access to the Baltic Sea in Rostock, the state has lost relevance for overseas traffic, which is mainly dealt with in Hamburg or Bremen. The trade and traffic between the East coast states could not compensate the losses in this area. More recently, the region has been modernised in view of the establishment of a modern telecommunications infrastructures. Nevertheless, these efforts could not break the economic monoculture and could not be established extensively. An independent upturn is not to be seen over the whole state area. Further indicators Public revenue and spending (mio €) 275 1999 6.734 7.236 Revenue Spending 2000 6.479 7.118 2001 6.508 7.058 Employment per sector276 (in 1000) Agriculture: 1999 2000 2001 38,3 35,9 32,5 Industry (without building and construction trade): 85,8 84,7 84,1 Building and construction trade: 103,7 96,5 84,0 Trade, tourism, transportation: Private and Public services277 196,8 196,4 191,5 336,7 338,7 338,8 Industrial Structure Branches of processing industry278 Branch Food and tobacco Textile, clothing, leather Timber Paper, printing, publishing Chemical industry Rubber and synthetic material Glas, ceramic, processing of stone and earth Metal (production, working, ..) Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys, recycling Employment figures 2000 2001 (June 2000) 16.813 14.714 1.093 263 (only textile) 2.924 2.412 3.839 3.139 950 1.712 1.371 3.888 2.623 11.741 11.626 6.584 2.707 6.370 4.359 7.461 7.446 7.522 3.969 Investments279 Branch Food and tobacco Investments (1000€) in 2000 Business Enterprises (Betrieb) (Unternehmen) 91.718 90.026 275 http://www.statistik-mv.de/doku/1-18.pdf (1.18.2.1), p.305 http://www.statistik-mv.de/doku/1-9.pdf (1.9.2), p. 138. 277 Including financial services, leasing/rentals and business consultants 278 http://www.statistik-mv.de/doku/1-12.pdf, p. 210, http://www.statistik-mv.de/doku/1-9.pdf, p. 146. 279 http://www.statistik-mv.de/doku/1-12.pdf, p. 219. 276 62 Textile, clothing, leather Timber Paper, printing, publishing Chemical industry Rubber and synthetic material Glas, ceramic, processing of stone and earth Metal (production, working, ..) Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Production of equipment for the production of electricity Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys, recycling 994 (only textile) 234.980 35.471 10.281 10.174 26.702 87.861 22.158 29.879 16.554 26.808 14.704 234.209 40.233 5.421 10.429 17.076 58.206 22.900 20.781 10.662 41.758 28.832 Employment in education, higher education and research280 2001/02 28.813 Public expenditure on science and research (1.000 €)281 2000 188.412 Students at universities282 Semester Beginners 1999/00 2000/01 2001/02 5.521 5.782 5.467 Total number of students 25.830 27.171 28.104 Computer equipment in private households (no. per 100 households)283 1998 30,4 Internet access or online services (no. per 100 households)284 1998 (3,8) Telephone equipment of private households (no. per 100 households)285 1998 ISDN Telefons Mobil Answering machines Fax/PC fax cart (2,3) 94,1 11,3 29,0 7,5 280 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 281 http://www.statistik-mv.de/doku/1-18.pdf (1.18.2.1), p.308 282 http://www.statistik-mv.de/doku/1-5.pdf, (1.5.5) 283 http://www.statistik-mv.de/doku/1-21.pdf, p. 342 284 http://www.statistik-mv.de/doku/1-21.pdf, p. 342 285 http://www.statistik-mv.de/doku/1-21.pdf, p. 342 63 Support infrastructure Infrastructure (categories of streets), in kilometres286 1999 2000 2001 Motorway (Autobahn) 262 336 354 Federal road (Bundesstraße) 2.072 2.077 2.081 Provincial road (Landesstraße) 3.239 3.242 3.246 District road (Kreisstraße) 4.130 4.123 4.124 Total 9.703 9.778 9.805 Vehicles287 2000 2001 2002 1.006.878 1.041.001 1.051.961 Doctors and dentists288 Total dentists 1 doctor per .... inhabitants 1 dentist per ... inhabitants 1999 5.982 1.533 300 1.170 2000 6.024 1.524 296 1.171 2001 6.031 1.522 292 1.156 286 http://www.statistik-mv.de/doku/1-15.pdf, (1.15.8) http://www.statistik-mv.de/doku/1-15.pdf, (1.15.9), p. 274 288 http://www.statistik-mv.de/doku/1-4.pdf (1.4.2) 287 64 Designation for principal domestic policy support instruments (5 point scale): 3,7 3,7 4,7 3,5 3 Territorial Policy Public sector transfer Employment policy Technology policy Mecklenburg-Vorpommern289 Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) Gapfilling grants 6.291 6.260 6.195 6.476 6.757 6.879 6.446 84.6 83.6 83.6 83.7 83.6 83.1 83.9 771 856 843 877 921 983 853 7.062 7.116 7.038 7.353 7.678 7.862 7.299 95.0 95.0 95.0 95.0 95.0 95.0 95.0 335 337 333 348 364 372 346 164 164 164 164 164 164 164 1.479 1.479 1.479 1.479 1.479 1.479 1.479 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Fiscal resources after SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Contribution / assignment within SHES (in Mio. DM) Transitional grants (west Germany) Divergence from national average (balance measurement) (= 100) Compensations for special burdens (east Germany) 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) Compensations for special political costs MV 1.978 1.980 1.976 1.991 2.007 2.015 1.989 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 7.397 7.453 7.371 7.701 8.042 8.234 7.645 Divergence from national average (balance measurement) (= 100) 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 289 65 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 6,6 2000-2006 (mio €) ERDF Total Objetive 1 MecklenburgWestern Pomerania 5493.088 EU contribution 2455.750 EU contribution 1100.19 ESF % 44.80% EU contribution 613.47 EAGGF % EU contribution 742.09 24.98% % 30.22% Impact on ex-ante divergence from national average of domestic policies (7 point scale): 5 Change in standing of region relative to national average in last five and ten years290 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate 1991 7.334 1.907.700 845.600 128.303 1996 14.888 1.820.300 773.600 171.106 2001 16.500 1.767.800 734.600 167.938 12,5 18,0 19,6 1995 249 R+D expenditure (mio €)291 1997 268 1999 291 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 290 291 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 66 Niedersachsen (Lower Saxony) NUTS 1: DE9 Niedersachsen NUTS 2 DE91 BRAUNSCHWEIG DE92 HANNOVER DE93 LÜNEBURG DE94 WESER-EMS GDP per head (2000) DE9 Niedersachsen292: 22.320 € (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)293 Germany294: 24.700 € EU-15 = 100; DE9 = 96,0; DE91 = 106,1; DE92 = 108,2; DE93 = 78,5; DE94 = 90,1295 GDP at current prices/in Million € (2000) DE9 Niedersachsen296: 176.579 Germany297: 2.030.000 EU-15298: 8 524 371 Employment rate (2000) DE9 Niedersachsen 3.479.900 persons299 (65,6%)300 (German average = 68,8%) DE91 BRAUNSCHWEIG: 752.000301 DE92 HANNOVER: 1.023.100302 DE93 LÜNEBURG: 629.300303 DE94 WESER-EMS: 1.081.400304 Unemployment rate (2002) DE9 Niedersachsen: 355.334 persons = 9,2%305 (German average: 9,8%; West 7,9%, East: 18,0%) DE91 BRAUNSCHWEIG: 86.073 persons DE92 HANNOVER: 101.983 persons DE93 LÜNEBURG: 67.353 persons DE94 WESER-EMS: 99.925 persons Technological standing (5 point scale): 3,7 292 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 294: http://www.destatis.de/basis/d/vgr/vgrtab9.htm, http://www.destatis.de/indicators/d/vgr110ad.htm 295 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 296 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 297: http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 298: http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 299 http://www.nls.niedersachsen.de/Tabellen/Wertschoepfung/Erwerb.html (all gainfully employed) 300 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 301 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 302 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 303 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 304 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 305 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf 293 67 Strengths [short description] 306 With a surface area of 47.616 km², Niedersachsen is the second-largest of the German states. In 2002, the region was inhabited by 7.926.000 people (4. most densely populated region). The state has many natural resources (Oil, natural gas (one fifth of German consumption), potash and salt, plaster, gravel and sand, peat and brown coal) and offers also good conditions for logistics companies as it hosts the international airport of Hanover, 9 seaports, and extensive road, rail and waterway networks, many freight centres. Furthermore, Niedersachsen already possesses seven locations for intermodal transshipment between rail, road and water. The international airport in Hanover Airport has developed into a leading air freight transshipment point and a major logistical competence center for northern Germany. Besides, Niedersachsen has a number of seaports and shipyards on the German North Sea coast, adding to the dense infrastructure network covering motorways, aviation, water- and railways. Real estate prices are about 20% below the average of the states of former West Germany (less than €5 to €150 per square meter for sites). In some regions of the state wage levels are below the national average. Moreover, generally wages and salaries in Niedersachsen are about 5% lower than the average for the former West Germany. The telecommunications infrastructure is well developed. Hannover benefits from high-speed networks, based on ISDN, ATM and in 1999 A-DSL, of Deutsche Telekom. Furthermore, Hannover is the focus of companies such as Mannesmann Arcor, o.tel.o, Viag Interkom and Worldcom. Vebacom, o.tel.o’s network provider, which hold headquarters here. Recently, the American Chamber of Commerce in Germany opened up a Hannover/Lower Saxony Chapter in Hannover. From food industry to computer production the state offers broad variety of economic sectors, even if it is very concentrated on the automotive industry. In recent years, branches like the automotive industry, telecommunications, medial technology and biotechnology (Bio-RegioN) have gained in importance. The largest car manufacturer in Europe (VW), significant computer and industrial trade fairs in the world, and a shipyard where luxury cruise liners are constructed have set companies in Niedersachsen. The trade-fair site Hanover is the location for many important international fairs such as the EXPO 2000 exhibition, CeBIT (world’s largest fair for information and communications technology) Hannover Fair (world’s biggest exhibition of industrial innovation), EMO (metal processing industry), Euro-Blech, DOMOTEX and IAA Commercial Vehicles. The automotive and automotive supplies industry is the sector, which employs most people in Niedersachsen (twice as many as the German average) and which is the most important sector of the economy. Production sites are located in Emden, Hannover, Osnabrück and Wolfsburg. Additionally, many domestic and foreign component suppliers have production facilities in Niedersachsen. Agriculture and food industry is the second largest and important economic sector in Niedersachsen (fruit production; cow-, pig- and chicken-breeding) followed by electrical engineering (3.rank with a large consumer electronics sector and Europe’s largest factory for CD production); mechanical engineering (4. rank with the Transrapid tested in the Emsland); rubber and plastics industry (5. rank); chemical (including biotechnology) industry (6. rank); medical technology, measurement technology, control engineering and optical industry (7.rank). Also the service sector is strongly developed with more than 66% of all persons in gainful employment working here. 80% of all business start up is in this sector. Furthermore the tourism industry employs 8% of all gainfully employed persons. Niedersachsen ranks fourth of the holiday regions for Germans. A broad research base (foci: environmental research, energy research) is supported by 80 nonuniversity research institutions. Niedersachsen has 11 universities and 13 public institutes of higher education, 6 Max-Planck institutes and 3 Fraunhofer installations as well as 120 non-university research institutions. Many are located in the Hannover-Braunschweig-Göttingen research triangle. 306 http://www.invest-in-germany.com/en/, http://www.ipa-niedersachsen.de/english_new/nieder_e/short_e.htm, http://www.ipaniedersachsen.de/english_new/kontakte/infoma.htm#fact, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.niedersachsen.de/master/0,,C429832_N15224_L20_D0_I198,00.html 68 Cooperation between industry and research is very close in the state (e.g. at the research airport Braunschweig). The newspaper sector is characterized by a broad variety of ca. 130 different papers (esp. at the local level) - with a circulation of about 2 mio. - like in nearly no other German state. 56 publishing house operate in the state. Companies: Alcatel Kabel AG & Co., AMAZONENWERKE, H. Dreyer GmbH &Co KG, BABCOCK Materials Handling Divisions GmbH, Bahlsen KG, Berentzen-Gruppe AG, Blaupunkt Werke GmbH, Robert Bosch Elektronik GmbH, Conti Tech Holding GmbH, Continental AG, DetaAkkumulatorenwerk GmbH, Faurecia GmbH &Co. KG, Haarmann und Reimer, Fritz Homann Lebensmittelwerke, Wilhelm Karmann GmbH, Lemförder Fahrwerktechnik AG & Co, Lohmann &Co.AG, MAN, Piepenbrock, Rockwell, Sealed Power Europe GmbH, Siemens AG, Solvay Automotive GmbH, Otis GmbH, H. C. Starck GmbH & Co. KG, Stiebel Eltron GmbH & Co.KG, Stöver Produktion GmbH & Co. KG, TUI, TRW Deutschland, Varta Batterie AG, Volkswagen AG, WABCO Fahrzeugbremsen, Wendeln GmbH & CO. KG, In 1999 the state held rank 4 in investment per employee in the processing industry.307 Weaknesses [short description] For a long period the unemployment rate was above the German average with high unemployment levels in costal cities such as Emden and Wilhelmshaven and in the eastern part (former border area) of the state. Evolution in last decade [short description] Employment has been slightly growing (1992: 3.337.500, 2002: 3.485.800) as also the GDP/per capita (1992: 19.412 €, 2002: 22.977 €).308 The (geopolitical and thus also economic) situation of Niedersachsen has been enhanced by the unification of Germany. Previously, the state had the longest border area to East Germany of any West German states, and today it has good access to the markets in the new eastern German states and of Eastern Europe. Nevertheless, the cancellation of the special funding as a border area created also demands for restructuring. The economic structure generally underwent a shift from a strongly agricultural focus towards an industrial focus with a strong high-tech/computer sector and important fairs (e.g. CeBIT) and at the same time from processing industry towards the service sector. The relevance of agriculture has thus been decreasing over the years. Moreover, the shipyards sector became modernized into a high-tech area. Further Indicators Public revenue and spending (mio €)309 Revenue Spending 2001 43.342.660.771,84 DM 45.229.079.111,55 DM 2002 18.195.700.000 € 21.685..000.000 € 307 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 308 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 309 http://www.mf.niedersachsen.de/master/0,,C1538389_N1537929_L20_D0_I617,00.html, http://www.mf.niedersachsen.de/master/0,,C159738_N10430_L20_D0_I617,00.html, http://www.mf.niedersachsen.de/functions/downloadObject/0,,c1657388_s20,00.pdf 69 Employment (at workplace) per sector Agriculture (including meat processing industry) DE9 Niedersachsen311 DE91 BRAUNSCHWEIG337 DE92 HANNOVER 338 DE93 LÜNEBURG: 339 DE94 WESER-EMS: 340 Industry (without building and construction trade) Building and construction trade: Trade, tourism, transportation: Public and private services:310 1999: 123.300312 2000: 123.500313 2001: 124.000314 1999: 1.410.000317 2000: 1.419.600318 2001: 1.419.000319 1999: 231.600322 2000: 230.500323 2001: 216.500324 1999: 916.100327 2000: 936.800328 2001: 935.700329 1999: 1.417.900332 2000: 1.463.200333 2001: 1.482.900334 2000: 31.111315 06/2001: 35.572316 2000: 678.521320 06/2001: 674.007321 2000: 189.647325 06/2001: 186.630326 2000: 589.445330 06/2001: 583.301331 2000: 1.409.196335 06/2001: 1.403.934336 06/2001: 5.147 06/2001: 197.954 06/2001: 33.037 06/2001: 109.348 06/2001: 319.087 06/2001: 6.363 06/2001: 9.617 06/2001: 14.445 06/2001: 119.931 06/2001: 90.942 06/2001: 207.100 06/2001:46.728 06/2001:41.615 06/2001:65.250 06/2001:182.769 06/2001: 113.532 06/2001: 177.652 06/2001: 451.245 06/2001: 236.071 06/2001: 397.531 Industrial Structure DE9 Niedersachsen Branches of industry341 Branch Mining, stones, coal, ore Food and tobacco Textile, clothing, leather Timber Paper, printing, publishing Mineral oil processing industry Employment figures 06/2000 DE9 DE91 DE92 DE93 Niedersachsen BRAUNSCH HANNOVER LÜNEBURG 342 (03/2003) WEIG 8.133 2.738 3.846 1.916 75.264 11.988 16.098 23.275 10.284 1.982 2.565 2.085 7.592 2.859 2.303 1.768 38.030 10.447 15.139 5.665 1.770 115 DE94 WESEREMS: 4.769 37.273 6.698 4.915 15.300 1.291 310 Including financial services, leasing/rentals and business consultants http://www.nls.niedersachsen.de/Tabellen/Wertschoepfung/Erwerbstaetigkeit/K7023214001.html 312 Persons gainfully employed 313 Persons gainfully employed 314 Persons gainfully employed 315 Employees obligated to pay social insurance at their residence 316 Employees obligated to pay social insurance at their residence 317 Persons gainfully employed 318 Persons gainfully employed 319 Persons gainfully employed 320 Employees obligated to pay social insurance at their residence 321 Employees obligated to pay social insurance at their residence 322 Persons gainfully employed 323 Persons gainfully employed 324 Persons gainfully employed 325 Employees obligated to pay social insurance at their residence 326 Employees obligated to pay social insurance at their residence 327 Persons gainfully employed 328 Persons gainfully employed 329 Persons gainfully employed 330 Employees obligated to pay social insurance at their residence 331 Employees obligated to pay social insurance at their residence 332 Persons gainfully employed 333 Persons gainfully employed 334 Persons gainfully employed 335 Employees obligated to pay social insurance at their residence 336 Employees obligated to pay social insurance at their residence 337 Employees obligated to pay social insurance at their residence 338 Employees obligated to pay social insurance at their residence 339 Employees obligated to pay social insurance at their residence 340 Employees obligated to pay social insurance at their residence 341 http://www.nls.niedersachsen.de/Tabellen/Erwerbstaetigkeit/K7023214001.html 342 http://www.nls.niedersachsen.de/Tabellen/Prod_Gewerbe/Inter1.html 311 70 Chemical industry Rubber and synthetic material Glas, ceramic, processing of stones and earth Metal (production, working, ..) Mechanical engineering Production of office machines, ICT techniques, optical equipment,… Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys, recycling 27.833 42.185 19.081 5.698 11.324 4.384 10.472 15.964 9.154 7.394 7.142 2.680 5.500 14.396 6.813 53.566 50.580 54.403 23.686 10.388 24..836 15.253 19.680 26.237 9.337 12.182 5.704 28.703 22.861 12.030 138.636 12.599 79.124 3.737 24.841 7.647 3.662 4.026 31.117 10.116 Research base Employment in education, higher education and research343 2001/02 58.798 Public expenditure on science and research344 2001 11.674.467.720,82 DM 2003 6.032,8 mio € Students at universities345 Wintersemester 1999/2000 2000/2001 2001/2002 Total number of 143.307 143.559 150.104 Support infrastructure Infrastructure (categories of streets)346 Category Kilometres Motorway (Autobahn) 1.352 Road network 26.722 Total 28.074 Vehicles 2001347 DE9 Niedersachsen: 4.940.598 DE91 BRAUNSCHWEIG: 1.030.390 2003348 DE92 HANNOVER: 1.350.072 DE93 LÜNEBURG: 1.090.102 DE94 WESER-EMS: 1.470.034 DE9 Niedersachsen: 5.328.738 Doctors and dentists (2000)349 Doctors Dentists 24.331 5.639 343 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 344 http://www.niedersachsen.de/master/0,,C1538389_N1537929_I617_L20_D0,00.html, http://www.mf.niedersachsen.de/master/0,,C159793_N10431_L20_D0_I617,00.html 345 http://www.mwk.niedersachsen.de/functions/downloadObject/0,,c357769_s20,00.pdf 346 http://www.destatis.de/jahrbuch/jahrtab36.htm 347 http://www.nls.niedersachsen.de/Tabellen/Verkehr/K760011101.html 348http://www.destatis.de/jahrbuch/jahrtab37.htm 349 http://www.destatis.de/jahrbuch/jahrtab52.htm 71 Designation for principal domestic policy support instruments (5 point scale): 3,1 3,5 2,3 3 3,5 Territorial Policy Public sector transfer Employment policy Technology policy Niedersachsen350 NI Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 30.413 30.739 30.312 31.772 32.889 33.793 30.972 96.2 95.4 94.4 93.8 92.2 92.0 89.6 0.452 0.553 0.672 0.788 1.037 1.113 1.864 30.866 31.292 30.984 32.560 33.926 34.906 32.837 97.6 97.1 96.5 96.1 95.2 95.0 95.0 678 830 1.008 1.182 1.556 1.637 1.556 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 507 456 406 355 304 253 203 0 0 0 0 0 0 0 SFH total Fiscal resources after SHES (in Mio. DM) Rehabilitation al grants Bremen and Saarland Transitional grants (west Germany) Compensatio Contribution / assignment within SHES (in Mio. DM) ns for special Divergence from national average (balance measurement) (= 100) Compensatio burdens ns for special political costs (east Germany) 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 1.185 1.286 1.414 1.537 1.860 1.890 1.759 Fiscal resources after SHES and Gapfilling grants Divergence from national average (balance measurement) (= 100) 31.544 32.121 31.992 33.742 35.482 36.543 34.393 99.8 99.7 99.6 99.6 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 350 72 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3,3 2000-2006 (mio €) ERDF Total Objective 2 Lower Saxony 1492.457 EU contribution 733.953 EU contribution 682.254 ESF % 92.96% EU contribution 51.699 EAGGF % 7.04% EU contribution - % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3,8 Change in standing of region relative to national average in last five and ten years351 1991 1996 2001 18.573 20.471 22.725 GDP/capita (€) 7.426.700 7.795.700 7.939.600 Population 3.294.900 3.330.600 3.483.900 Employment (persons) 244.283 386.244 350.110 Unemployment (persons) 8,1 12,1 10,0 Unemployment rate 1995 2772 R+D expenditure (mio €)352 1997 2859 1999 3962 Estimated effect on regional circumstances of different domestic policies: Strongly positive: Territorial Policy Public sector transfer Employment policy Technology policy 351 352 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 73 Regional profile: Nordrhein-Westfalen (North Rhine-Westfalia) DEA Nordrhein-Westfalen DEA1 DUESSELDORF DEA2 KOELN DEA3 MUENSTER DEA4 DETMOLD DEA5 ARNSBERG GDP per head (2000) DEA Nordrhein-Westfalen: 25.008 €353 (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)354 Germany355: 24.700 € EU-15 = 100; DEA = 108,6 DEA1 =121,2; DEA2 = 115,5; DEA3 = 87,7; DEA = 105,5; DEA= 99,7356 GDP at current prices/in Million € (2000) DEA Nordrhein-Westfalen357: 450.137 Germany358 : 2.030.000 EU-15359: 8 524 371 Employment rate (2000) DEA Nordrhein-Westfalen: 8.194.000 persons = 68,5%360 (15-64 years) (German average = 68,8%) DEA1 DÜSSELDORF: 2.502.200361 DEA2 KÖLN: 2.028.800362 DEA3 MÜNSTER: 1.118.000363 DEA4 DETMOLD: 986.500364 DEA5 ARNSBERG: 1.686.200365 Unemployment rate (2002, as of 30.06.) DEA Nordrhein-Westfalen: 9,9 %366 (Nordrhein-Westfalen: 9,2 %)367 (German average: 9,8%; West 7,9%, East: 18,0%) 353 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 355: http://www.destatis.de/basis/d/vgr/vgrtab9.htm, http://www.destatis.de/indicators/d/vgr110ad.htm 356 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 357 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 358: http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 359: http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 360 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 361 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 362 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 363 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 364 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 365 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 366http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=5520&SUCH=&FORT3=Recherche+start en 367 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (all employees) 354 74 DEA1 DÜSSELDORF: 10,0 %368 DEA2 KÖLN: 9,2 %369 DEA3 MÜNSTER: 9,8 %370 DEA4 DETMOLD: 9,7 %371 DEA5 ARNSBERG: 10,6 %372 Technological standing (5 point scale): 3,5-4 Strengths [short description]373 With a population of 18.010.000 inhabitants and in terms of economic output, Nordrhein-Westfalen (NRW) is Germany’s largest state. The state is the largest conurbation in Europe (ca. 40 % of the EU population live in a 500 km radius around Düsseldorf). 22.3% of the German GDP is generated in NRW. A GDP of 459.6 billion € (2001) places NRW 14 on international comparison (in front of Australia, the Netherlands, Switzerland, Sweden or Belgium). In 2001, 23 % of all available income in Germany is generated in Nordrhein-Westfalen and 21 % of all Germany's gainfully employed work here. The surface area adds up to 34.081 km². The infrastructure is well developed. It includes 6 international airports (Düsseldorf (Germany’s third-largest passenger airport), Mönchengladbach, Cologne/Bonn (Germany's number two airfreight centres behind Frankfurt), Dortmund, Münster/Osnabrück and Paderborn) and dense network (30.000 km) of expressways, roads and railroads. The rail network (6.100 km) is also well developed (incl. ICE) (830 mio. passengers per year) with about 678 railroad stations or stops. Europe's largest inland port in located at Duisburg and the state has 700 km waterways. NRW is Germany's strongest export state. 18 % of goods exported from Germany are "Made in NRW". NRW’s economic structure is a well-balanced mix of 'classic' and future-oriented sectors. The represented sectors range from advertising to yarn production, the range of products from abrasives to zoom lenses. The biggest sector is the manufacturing industry (23% of German industry generate 22% of German industrial sales and about 2.220 companies in NRW specialise in finished metal goods) and the biggest employers in NRW are the chemical industry and the mechanical engineering sector, followed by the electrical engineering and electronics industry, the metal products industry, and the food industry: ‘Ruhr’ region: ‘Rhineline’: financial and hard coal, iron and steel industry, automotive industry, electrical engineering, installation construction, environmental technology and recycling chemical industry, automotive industry, administrative centre, insurance services, media industry, logistics Aachen-Düren region: brown coal, paper industry, electronics West Lower Rhine: textile and clothing, food industry Bergisch-Märkisch region: high-specialised iron industry 368http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=051000000&SUCH=&FORT3=Recherche +starten 369http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=053000000&SUCH=&FORT3=Recherche +starten 370http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=055000000&SUCH=&FORT3=Recherche +starten 371http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=057000000&SUCH=&FORT3=Recherche +starten 372http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=059000000&SUCH=&FORT3=Recherche +starten 373 http://www.invest-in-germany.com/en/, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.gfw-nrw.de/gfw/GfW.nsf/contentByKey/BARN5B8CAY-EN-p, http://www.german-economics.de/ 75 ‘Siegerland’: rolling mills mechanical engineering ‘Ostwestfalen-Lippe’ region: Clothing industry, furniture and printing industry As to the relevance of the chemical and the plastics and rubber industry in NRW 2001 about one-infour of Germany's plastics or rubber processing machines were produced on assembly lines in NRW. NRW has gained international importance in this sector due to global players like Bayer, Degussa and Continental. Some 20 companies in NRW also specialise in plastic and rubber recycling. Düsseldorf's International Trade Fair for Plastics and Rubber Products - the "K" - is an important meeting point for the industry. Another major sector of NRW industry is the automotive industry. Companies like Ford and Opel have sites here. Others have important distribution centres, such as Toyota, Renault, Chrysler, and Volvo. The American company Alcoa Automotive Structures & Technology manufactures its aluminium chassis for Audi in Soest. Ford has established its European Research Centres here, and Toyota established its Formula 1 centre in Cologne in 2000. Also the clothing industry with its high-end products and Düsseldorf as a recognised fashion design centre is a relevant business sector. Moreover, the printing and publishing industry is strong in NRW. Five of Germany's Top Ten book shops are in NRW. In Alsdorf, Warner Music manufactures hundreds of thousands of CD, CD-ROMS and DVD's for worldwide distribution. NRW is home to the Bertelsmann company. The "Handelsblatt" produced in Düsseldorf is the world's biggest economic and financial newspaper in German. The variety of businesses in the service and manufacturing sector, international trade exhibitions (‘Popkomm’, "CPD" (fashion), "photokina", "boot" or "drupa" (print)), and the transportation infrastructure are very well developed. 6 international airports and a dense network of motorways, roads and railroads as well as Europe's largest inland port in Duisburg add up to this infrastructure. 22 of Germany's 50 largest companies have their headquarters in the state. Leading companies in NRW are e.on (energy), RWE (energy), Metro (trade), Deutsche Telekom (telecommunications) and ThyssenKrupp (steel, machinery). Over the last few years, NRW's share of foreign direct investment has risen consistently to more than 45 %. NRW is one of the leading German media locations with centres of the TV and radio sector (e.g. WDR, RTL, VIVA and VOW located at Cologne), (business) newspapers and the art scene. The multimedia Bertelsmann Group has it’s headquarter in Gütersloh. With the Deutsche Telekom’s headquarters as well as all German operators of cellular phone networks the state is also home to the telecommunication industry. The region is a major centre for the insurance industry, for finance, and for retail and trade. Europe’s highest concentration of research and higher education institutes can be found here since the early 1970ies. 5 of Germany's 10 largest universities are located here, among them Germany's largest university, the University of Cologne. About 500.000 students registered at the 16 universities, 37 public institutes of higher education in NRW. Moreover 11 Max-Planck institutes, 13 Fraunhofer installations, 8 Leibniz-institutes (formerly blue-list-institutes), 23 state-sponsored research institutes, 62 special fields of research, 69 technology centres and 31 technology transfer institutions are located here. Thus, there is also a wide range of research disciplines and subjects of research. Micro-technologies here and new technologies are developed here. NRW has meanwhile attained a leading role in the areas of life science and biotechnology. In 1999 the state held rank 6 in investment per employee in the processing industry. 374 Companies: Aldi Einkauf GmbH, Babcock Borsig Power GmbH, Bayer AG, BASF Coatings Aktiengesellschaft, Bertelsmann Aktiengesellschaft, Bertelsmann Arvato Aktiengesellschaft, Bertelsmann Lexikothek Verlag für Bildungssysteme GmbH, Coca-Cola GmbH, DAEWOO, Degussa AG, Deutsche Lufthansa AG, Deutsche Post AG, Deutsche Telekom AG, M. DuMont Schauberg Expedition der Kölnischen Zeitung GmbH & Co. KG, EMI Electrola GmbH, e.on AG, Ericsson GmbH, ExxonMobil Chemical Central Europe GmbH, FALKE-FASHION, Ford-Werke 374 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 76 AG, Fuji Photo Film, General Motors, Hanjin Shipping, HARIBO GmbH & Co. KG, Henkel KgaA, Hewlett-Packard, Hochtief, Humana Milchunion eG, Huvis, KarstadtQuelle AG, Klöckner-Werke Aktiengesellschaft, Lekkerland-Tobaccoland, LG Electronics, LG Technology Central Europe, Metro AG, Miele & Cie. GmbH & Co., Mitsubishi Electric, NIXDORF GmbH & Co. KG ,Nokia GmbH, Reinhard Mohn GmbH, Dr. August Oetker KG, PEACOCK AKTIENGESELLSCHAFT, Procter & Gamble, RAG AG, Rewe-Gruppe, Ruhrgas AG, RWE AG, Sammi Steel, Seidensticker GmbH, Sony, Stinnes AG, Klaus Steilmann GmbH & Co. KG, STOLLWERCK AKTIENGESELLSCHAFT, Tengelmann, ThyssenKrupp AG, Toshiba, Verlagsgruppe Handelsblatt GmbH, Vorwerk Co. KG, Warner Music Manufacturing Europe GmbH, Warsteiner Brauerei Haus Cramer GmbH & Co. KG, Westdeutsche Allgemeine Zeitungsverlagsgesellschaft E. Brost & J. Funke mbH & Co., WINCOR. Weaknesses [short description] For a long period the relatively high level of unemployment was above the German average. The modernisation of the economic sector is not yet completed, even if investment rose in recent year. In the university landscape the trend to run to a deficit in the spatial and personnel view is still not broken. Financially the sector is chronically underdeveloped. Evolution in last decade [short description] In the last 10 years alone, the gross added value of the service sector grew by 44%, while that of company-related services rose by 57%. Employment has been growing (1992: 8.030.600, 2002:8.344.100) and the same holds true for the GDP/per capita (1992: 21.648 €, 2002: 25.690 €).375 The successful (and sometimes painful) economic transformation (from resources related industry/ energy producing industry to services) changed the entire economic structure of the state. Thus, the contribution of the secondary sector (industry) to gross added value was almost 56% in 1970. By 2001, the secondary sector in NRW fell to 29%, while the tertiary sector rose from 42% (1970) to 70% (services) and the contribution of the primary sector meanwhile became less than 1%. The relationship between industry and services was therefore reversed and also the relevance of future oriented industries increased and the transfer between research and industry is gaining in importance for the structural change. Mining – once the backbone of NRW's economy – is constantly declining in importance and today only ranks 14th economic sector. Traditionally, the largest sectors in terms of employment are mechanical engineering (225.000 employees) followed by the metal processing industry (194,000) and the electrical engineering/electronics sector (159.000). In the past also a centre of coal and steel, NRW is now largely influenced by its media and service sector that make up two thirds of the gross value added. Companies such as Bayer, Deutsche Telekom, ThyssenKrupp and the media giant Bertelsmann are based in NRW. Nevertheless, the state economy is still characterised by SME and of young and innovative companies. Especially biological engineering and medical technology as well as logistics have experienced a real start-up boom. Further Indicators Public revenue and spending (mio €)376 Revenue Spending 2001 49.160,8 54.929,5 2002 48.558,4 54.551,8 375 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 376 http://fm.fin-nrw.de/info/fachinformationen/haushalt/havinfo/hh2002.ges/doku/eaa/uebers.pdf , http://www.presseservice.nrw.de/pub/docs/reden/download/einbringungsrede.pdf 77 Employment (at workplace) per sector Agriculture DEA NordrheinWestfalen378 DEA1 DUESSELDORF379 DEA2 KOELN380 DEA3 MUENSTER381 DEA4 DETMOLD382 DEA5 ARNSBERG383 Industry 1999: 123.000 2000: 122.900 2001: 123.000 1999: 27.300 2000: 27.700 2001: 28.100 1999: 2.425.500 2000: 2.413.300 2001: 2.367.600 1999: 688.00 2000: 678.300 2001: 664.400 Trade, tourism, transportation 1999: 2.139.500 2000: 2.206.700 2001: 2.231.700 1999: 685.100 2000: 699.900 2001: 707.400 1999: 22.800 2000: 22.800 2001: 22.600 1999: 28.800 2000: 29.000 2001: 29.500 1999: 22.900 2000: 22.600 2001: 22.200 1999: 21.200 2000: 20.700 2001: 20.600 1999: 495.100 2000: 496.500 2001: 490.100 1999: 330.700 2000: 327.700 2001: 318.800 1999: 343.00 2000: 345.400 2001: 341.400 1999: 568.700 2000: 565.400 2001: 553.000 1999: 514.000 2000: 534.300 2001: 542.200 1999: 286.300 2000: 297.400 2001: 300.800 1999: 241.600 2000: 248.000 2001: 250.100 1999: 412.600 2000: 427.000 2001: 431.100 Public and private services377 1999: 3.434.600 2000: 3.598.700 2001: 3.674.700 1999: 1.060.900 2000: 1.103.100 2001: 1.127.000 1999: 926.900 2000: 973.100 2001: 996.700 1999: 450.800 2000: 470.000 2001: 477.100 1999: 357.100 2000: 371.900 2001: 379.200 1999: 648.900 2000: 680.500 2001: 694.700 377 Including financial services, leasing/rentals and business consultants http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=5520&SUCH=&FORT3= Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE= 5520&SUCH=&FORT3=Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST (DWWZEIT)'?P%23J=01, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWZEIT)'?P%23J=00, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWZEIT)'?P%23J=99 379 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=051000000&SUCH=&FORT3= Recherche+starten 380 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=053000000&SUCH=&FORT3= Recherche+starten 381 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=055000000&SUCH=&FORT3= Recherche+starten 382 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=059000000&SUCH=&FORT3= Recherche+starten 383 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=059000000&SUCH=&FORT3= Recherche+starten. 378 78 Industrial Structure Branches of industry384 Branch DEA NordrheinWestfalen385 2000 2001 DEA1 DUESSELDORF386 2000 2001 Employment figures DEA2 DEA3 KOELN387 MUENSTER388 2000 2001 2000 2001 DEA4 DETMOLD389 2000 DEA5 ARNSBERG390 2001 2000 2001 Food and tobacco 116.536 114.320 29.752 28.588 24.106 23.994 21.516 21.386 21.307 21.240 19.856 19.112 Textile, clothing, leather Timber 53.875 51.626 13.917 14.585 6.767 6.035 16.011 16.202 9.429 9.097 5.319 4.838 25.060 23.454 2.247 2.200 1.701 1.424 5.623 5.296 11.108 10.023 4.381 4.510 Paper, printing, publishing Mineral oil processing industry Chemical industry 90.288 91.607 24.969 25.074 27.236 27.771 7.781 8.166 17.104 17.020 13.198 13.574 5.501 4.978 - 568 694 - - 3.474 - - - - 134.098 131.813 47.919 46.945 55.345 53.619 15.985 16.363 5.421 5.412 9.429 9-474 71.504 72.763 11.068 11.035 22.178 22.769 10.901 10.942 12.600 12.920 14.757 15.097 44.251 43.046 10.498 9.703 12.600 12.521 9.336 9.073 5.513 5.240 6.304 6.510 315.472 314.828 110.927 109.409 31.815 30.793 19.987 19.626 26.288 26.943 136.456 128.058 228.314 25.295 59.936 58.318 36.734 36.813 31.250 29.709 41.379 42.234 59.016 58.221 158.104 159.879 37.222 37.910 28.452 29.499 11.247 11.153 23.709 25.038 57.474 56.280 102.750 102.384 25.541 25.036 34.761 35.028 6.204 6.486 9.843 9.998 26.401 25.836 Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Production of equipment for the production of electricity, office machines, ICT techniques, optical equipment tv,… Vehicle production 384 Employees obligated to pay social insurance at their residence on 30 June 385http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=01&BE=5520&SUCH=&FORT3=Rec herche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=00&BE=5520&SUCH=&FORT3=Reche rche+starten 386 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=01&BE=051000000&SUCH= &FORT3=Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=00&BE=051000000&SUCH=&FORT3= Recherche+starten 387 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=01&BE=053000000&SUCH= &FORT3=Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=00&BE=053000000&SUCH=&FORT3= Recherche+starten 388 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=01&BE=055000000&SUCH= &FORT3=Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=00&BE=055000000&SUCH=&FORT3= Recherche+starten 389 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=01&BE=057000000&SUCH= &FORT3=Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=00&BE=057000000&SUCH=&FORT3= Recherche+starten 390 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=00&BE=059000000&SUCH=& FORT3=Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=01&BE=059000000&SUCH=&FORT3= Recherche+starten 79 Furniture, jewellery, musical instruments, sports equipment, toys Recycling 58.991 57.417 5.2115 4.016 4.540 4.507 8.540 8.745 30.854 30.365 9.843 9.784 779 775 335 289 195 214 132 148 - - 117 - Research base Employment in education, higher education and research391 2001/02 264.433 Public expenditure on science and research (mio. €)392 12.807,5 2002 Students at universities393 Wintersemester 1999/2000 2000/2001 2001/2002 Total number of 492.772 492.701 504.687 Computer equipment in private households (%)394 1999 2000 45,3 47,4 Internet access or online services (%)395 1999 2000 Ca. 12,5 Ca. 20 Telephone equipment of private households (%)396 1999 2000 ISDN Telefons Mobil Ca. 12,5 Ca. 33,3 Answering 45 machines Fax/PC fax cart 18 391 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 392 http://fm.fin-nrw.de/info/fachinformationen/haushalt/havinfo/hh2002.ges/doku/eaa/quer.pdf, http://www.fm.nrw.de/cgibin/fm/lib/all/lob/return_download.cgi/Eckdaten_HHPl_2002.xls?ticket=guest&bid=577&no_mime_type=0 393 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=01&BE=5520&SUCH=&FORT3= Recherche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=00&BE=5520&SUCH=&FORT3=Reche rche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=99&BE=5520&SUCH=&FORT3=Reche rche+starten, http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWMIX)'?P%23J=98&BE=5520&SUCH=&FORT3=Reche rche+starten, 394 http://www.lds.nrw.de/aktuelles/pressemitteilungen/2000/pres_191.html 395 http://www.lds.nrw.de/aktuelles/pressemitteilungen/2000/pres_191.html 396 http://www.lds.nrw.de/aktuelles/pressemitteilungen/2000/pres_191.html 80 Support infrastructure Infrastructure (categories of streets)397 Category Kilometres Vehicles 1999398 2000399 2001400 2003401 Motorway (Autobahn) 2.180 Road network 27.448 Total 29.628 10.606.152 10.741.517 10.969.936 11.255.936 Doctors and dentists (2000)402 Doctors Dentists 62.944 12.473 397 http://www.destatis.de/jahrbuch/jahrtab36.htm http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=5520&SUCH=&FORT3= Recherche+starten 399 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=5520&SUCH=&FORT3= Recherche+starten 400 http://www.ldb.lds.nrw.de/QKS/DO=EXEC+'D2300.IWWW.CLIST(DWWGES)'?BE=5520&SUCH=&FORT3= Recherche+starten 401http://www.destatis.de/jahrbuch/jahrtab37.htm 402 http://www.destatis.de/jahrbuch/jahrtab52.htm 398 81 Designation for principal domestic policy support instruments (5 point scale): 3,3 3,5 0 (negative) 3,3 4,3 Territorial Policy Public sector transfer Employment policy Technology policy Nordrhein-Westfalen403 Supplementary federal grants (in Mio. DM) 1995 1996 1997 1998 1999* 2000* 2001 107.0 106.4 106.4 106.3 105.3 104.6 101.7 -3.449 -3.125 -3.059 -3.096 -2.578 -2.201 -0.525 74.999 76.128 75.795 79.835 83.664 85.871 79.876 102.3 102.2 102.3 102.3 102.1 101.9 101.1 0 0 0 0 0 0 0 78.448 79.253 78.854 82.931 86.242 88.071 80.402 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Divergence from national average (balance measurement) (= 100) Rehabilitational grants Bremen and Saarland Fiscal resources after SHES (in Mio. DM) Transitional Contribution / assignment within SHES (in Mio. DM) grants Divergence from national average (balance measurement) (= 100) Compensations for special burdens Germany) (west (east Germany) Compensations for special political costs NRW Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants Divergence from national average (balance measurement) (= 100) 74.999 76.128 75.795 79.835 83.664 85.871 79.876 102.3 102.2 102.3 102.3 102.1 101.9 101.1 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 403 82 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3,3 2000-2006 (mio €) ERDF Total Objective 2 North RhineWestphalia 3598.623 EU contribution 970.361 EU contribution 823.62 ESF % 84.88% EU contribution 146.741 EAGGF % 15.12% EU contribution - % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 4,9 Change in standing of region relative to national average in last five and ten years404 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate R+D expenditure (mio €)405 1991 20.774 17.426.200 7.970.800 561.331 1996 22.964 17.913.700 7.801.800 826.959 2001 25.411 1.702.700 8.397.000 766.277 7,9 11,4 9,6 1995 6729 1997 7101 1999 7792 Estimated effect on regional circumstances of different domestic policies: Strongly positive: Territorial Policy Public sector transfer Employment policy Technology policy 404 405 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 83 Rheinland-Pfalz (Rhineland-Palatinate) DEB Rheinland-Pfalz DEB1 KOBLENZ DEB2 TRIER DEB3 RHEINHESSEN-PFALZ GDP per head (2000) DEB Rheinland-Pfalz: 22.188 €406 (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637)407 Germany408 24.700 € EU-15 = 100; DEB = 96,7; DEB1 = 89,5; DEB2 = 85,4; DEB3 = 105,0409 GDP at current prices/in Million € (2000) DEB Rheinland-Pfalz410: 89.427 Germany411: 2.030.000 EU-15412: 8.524.371 Employment rate (2000)413 DEB Rheinland-Pfalz: 1.722.000 persons in gainful employment = 63,9% (German average = 68,8%) Unemployment rate (2002) 414 DEB Rheinland-Pfalz: 8,0 %415 (all persons in gainful employment) (Rheinland-Pfalz: 7,2 % 416 (all civil employees)) (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 4 Strengths [short description]417 Rheinland-Pfalz, situated in the centre-west of Germany, covers an area of 19.847 km² and had a population of 4.035.000 inhabitants in 2002. The infrastructure is well developed with a motorway network and efficient railway links to the rest of the Republic. 2 airports connect the state to international traffic and transport. Additionally the waterways Rhine and Mosel are important in this context. Rheinland-Pfalz’s export quota is 41%, ranking it first among the German territorial states. Important industrial sectors are the chemical and pharmaceutical industry (BASF), automotive industry, timber processing industry and viniculture (largest wine-growing region in Germany). Moreover, mechanical engineering, high technology companies (the state rank 4th in the top ten European regions with the highest numbers of employees in advanced technology; every eighth 406 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 408 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 409 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 410 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 411 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 412 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 413 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 414 http://www.statistik.rlp.de/erwerbstaetigkeit/erwarbeitslose.html 415 http://www.statistik.rlp.de/erwerbstaetigkeit/erwarbeitslose.html 416 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (alle abhängigen EPs) 417 http://www.invest-in-germany.com/en/, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.isb.rlp.de/fakten_rheinland-pfalz.html?id=14, http://www.isb.rlp.de/branchen_rheinland-pfalz.html?id=1, http://www.mwvlw.rlp.de/start/jframes.asp 407 84 employee works in high-tech sector, which includes companies with high R&D budgets) and the predominance of SME characterise the economic structure of the state. According to Eurostat, the state ranks No. 1 among European regions in terms of the number of employees in state-of-the-art technologies. The infrastructure is enhanced by efficient waterways like the rivers Rhine and Mosel. Freight terminals at Koblenz, Trier, Ludwigshafen/Germersheim, Wörth and Mainz-Bingen support transshipment between road, rail and waterway carriers. The chemical industry is the largest sector as far as sales in manufacturing (40%) and employment (25% of the workforce in manufacturing, 75.000 employees in 2001) are concerned (plastics production and processing is the largest chemical manufacturing sector). It is – like the mechanical engineering sector - characterised by a 90%-SME-structure. The automotive industry is the second largest industry (50.000 employees) after chemicals. It includes companies such as GM's Opel (Kaiserslautern) and DaimlerChrysler as well as about 120 automotive suppliers. The metals and electrical industry holds more than 41% of all industrial employment (122.000 employees). In 2000 sales in this sector made up 37% of total industry sales in the state, even if companies in this sector are smaller compared to other German states. Geographically, the automotive industry is concentrated in the southern part of the Palatinate, around Kaiserslautern and in Koblenz-Neuwied, the mechanical engineering companies and automotive industry suppliers in the Ludwigshafen-Frankenthal are, the electrical engineering and IT companies in Rheinhessen, suppliers of automotive components, steel fabricators, hardware manufacturers as well as builders of steel and light metal structures in Westerwald, Hunsrueck, Eifel and Trier. Biotechnology is a growing sector of the state’s economy thanks also to the biotechnological know-how of universities and research institutes. Also the media sector increased in Rheinland-Pfalz with the ZDF (Zweites Deutsches Fernsehen), Europe's largest TV network, the SAT1 management and SWR (SüdWest Rundfunk), the state-wide network (both Mainz), the RPR radio (Ludwigshafen), Tecmath AG (Kaiserslautern), RZ-online (Koblenz), SER (Neustadt/Wied), 1&1 Internet AG (Montabaur). Several state sponsored programmes furthermore support the development of the multimedia sector. Moreover, the service sector is the fastest growing industry in the state and tourism is also an important sector of the state’s economy with 130.000 employees (every 12th workplace is directly or indirectly guaranteed by this sector). With a view to agriculture 43% of the state’s land (of which 1.67 million hectares are dedicated to agriculture and forestry) sustains nearly 40.000 enterprises/farms and a certain agricultural diversity, (meadowlands, harvests of cereals, primarily wheat and barley, wines, vegetables and tobacco). With 6.000 hectares the state ranks third in German fruit production. Nearly 200.000 people (ca. 5 % of the state's population; 85.000 as fulltime employees) work in the agricultural sector. Moreover, Rheinland-Pfalz is the biggest wineproducing region in Germany (over 20.000 wine-growers produce around 70% of the total German vintage in six of the 13 German wine-growing regions, 100.000 employees). The ranking in relevance of the economic sectors in terms of their share of gross value-added in 2001 is manufacturing industries (28,2 mio €), public and private services (20,2 mio €); finance, real estate leasing and corporate services (21 mio €); trade, tourism and transportation (e.g. ‘German wine route’, 14,8 mio €) and agriculture, forestry, fishery (1,2 mio €). In terms of employment the chemical industry ranks first, metal production second, mechanical engineering third, automotive industry fourth and the food and tobacco industry fifth in 2001. 4 universities, 7 public institutes of higher education, 2 Max-Planck institutes, 2 Fraunhofer installations, 20 application and industry-oriented transfer centres, technology agencies associated with chambers of commerce are located here. In 1999 the state held rank 10 in investment per employee in the processing industry.418 418 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 85 Companies: BASF AG, Bitburger Brewery, Boehringer, Joh. A. Bensicker GmbH, DaimlerChrysler AG, IBM, Keiper GmbH & Co., Adam Opel AG, Pfaff, Schott Glas, IBM, SGE Deutsche Holding, TRW, Michelin Reifenwerke KgaA, Rasselstein Hoesch GmbH Weaknesses [short description] Few natural resources Evolution in last decade [short description] Employment has been (slightly) growing (1992: 1.684.200, 2002: 1.761.700) and the same holds true for the GDP/per capita (1992: 19.403 €, 2002: 23.038 €).419 Rehinland-Pfalz was traditionally characterised by agriculture and was among the economically weakest German Länder. The structural transformation of the economy has created a rather balanced mix of different economic sectors. Nevertheless, agriculture is still predominant n rural areas. The move of the Adam Opel AG into the south of the state had a great impact on the development of the entire region as the company is now one of the largest employers in the Pfalz. The transformation of the state into a service oriented economy is well underway. While other businesses were downsizing, the service sector created 64.000 jobs from 1997 to 1999. Moreover, the predominance of SME has contributed to the stable economic development of the state. Due to the rapid development of new and high-technologies sector the challenges confronting companies, especially manual crafts, in the state have changed significantly in the past years. IT continues to play an ever-growing role. With former allied forces and German armed forces withdrawing from their previous quarters in the state, circa 500 properties became available for civilian use, but also problems for the economic structure in areas affected by this withdrawing were created with the loss of about 100.000 civil and military posts. Many companies have already exploited the option of acquisition of new properties (e.g. at the former military airports in Hahn, Zweibrücken and Bitburg; at the Ökom Park in Birkenfeld; in the information and communications-oriented PRE-Park in Kaiserslautern). In some of these restructured sites, jobs are being created particularly in the new media sector. Biotechnology, genetic engineering and ICT are prospering sectors as well. Moreover, after NATO withdrew from Frankfurt-Hahn, its facilities were transformed into the first international airport in Rheinland-Pfalz. Hahn has already become one of Germany’s largest air cargo hubs. Ryanair carrier as well as charter lines provide service to European destinations through its newly-created European hub at Hahn. Further indicators Public revenue and spending (mio €)420 Revenue Spending 2000 10.598,0 11.075,7 2001 10.624,6 11.277,1 2002 (draft) 10.530,9 11.379,5 2003 (draft) 10.817,5 11.598,7 419 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 420 http://www.fm.rlp.de/index2.htm?/050haushalt/haushaltsrede/Anlage1.htm, http://www.fm.rlp.de/050haushalt/finanzplan/Seite3642.pdf, http://www.fm.rlp.de/index2.htm?/050haushalt/haushaltsrede/Anlage1.htm, http://www.fm.rlp.de/index2.htm?/050haushalt/haushaltsrede/Anlage1.htm, http://www.fm.rlp.de/index2.htm?/050haushalt/haushaltsrede/Anlage1.htm, http://www.fm.rlp.de/index2.htm?/050haushalt/haushaltsrede/Anlage1.htm, http://www.fm.rlp.de/index2.htm?/050haushalt/haushaltsrede/Anlage1.htm 86 Employment (at workplace) per sector DEB Rheinland-Pfalz 421 Agriculture: Industry (without Building and building and construction construction trade: trade): Trade, tourism, transportation: Public and private services:422 2000: 52.800 2001: 53.800 2002: 54.100 2000: 396.700 2001: 393.000 2002: 385.600 2000: 891.000 2001: 902.600 2002: 908.000 2000: 1.089.600 2001: 1.098.800 2002: 1.110.100 2000: 116.200 2001: 115.400 2002: 110.500 Industrial Structure Branches of industry423 Branch Food and tobacco Textile, clothing, leather Timber Paper, printing, publishing Mineral oil processing industry Chemical industry Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Production of equipment for the production of electricity, office machines, ICT techniques, optical equipment tv,… Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys, recycling Employment figures 2002 24.958 9.339 7.932 17.787 332 60.017 23.400 19.281 37.862 36.130 19.183 29.425 9.588 Research base Employment in education, higher education and research424 2001/02 55.669 Public expenditure on science and research)425 2000 5.744,9 mio DM Students at universities426 Wintersemester 1996/97 2001/2002 Total number of 81.227 85.881 Support infrastructure Infrastructure (categories of streets)427 Category Kilometres Motorway (Autobahn) 839 Road network 17.649 Total 18.488 421 http://www.statistik.rlp.de/erwerbstaetigkeit/erwerbstaetige.html Including financial services, leasing/rentals and business consultants 423 http://www.statistik.rlp.de/prodgewerbe/verarbgewerbe01.html, http://www.statistik.rlp.de/erwerbstaetigkeit/erwerbstaetige.html 424 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.statistik.rlp.de/prodgewerbe/baugewerbe01.html, http://www.destatis.de/basis/d/biwiku/schultab24.htm 425 http://www.fm.rlp.de/050haushalt/landeshaushalt/010HPL0203/10_GP/201_00_Frame.htm 426 http://www.statistik.rlp.de/bildung/bilstudierende.html, http://www.statistik.rlp.de/bildung/fachhochschulen.html 427 http://www.destatis.de/jahrbuch/jahrtab36.htm 422 87 Vehicles 2002428 2.861.809 2003429 2.885.533 Doctors and dentists (2000)430 Doctors Dentists 428 10.751 2.023 http://www.statistik.rlp.de/verkehr/verkehrkfzbestand.html 429http://www.destatis.de/jahrbuch/jahrtab37.htm 430 http://www.statistik.rlp.de/gesundheit/gesaerzte.html 88 Designation for principal domestic policy support instruments (5 point scale): 2,5 2,5 2,8 2 2,5 Territorial Policy Public sector transfer Employment policy Technology policy Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measuremen t) (= 100) Supplementary federal grants (in Mio. DM) 96.2 96.3 95.2 93.4 94.5 90.8 93.2 229 231 296 429 379 780 451 15.773 16.056 15.924 16.598 17.578 17.782 16.828 97.6 97.7 97.0 95.9 96.5 95.0 95.7 343 347 444 644 568 842 676 Gapfillin g grant s 219 219 219 219 219 219 219 0 0 0 0 0 0 0 451 406 361 316 271 226 180 0 0 0 0 0 0 0 SFH total Contributio n/ assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Transitional grants (west Germany) 1995 15.545 1996 15.824 1997 15.628 1998 16.169 1999* 17.199 2000* 17.002 2001 16.377 *) preliminary Divergence from national average (balance measurement ) (= 100) Compensations for special burdens (east Germany) Compensations for special political costs Rheinland-Pfalz431 RP Fiscal resources before SHES (in Mio. DM) 1.013 972 1.024 1.179 1.058 1.287 1.075 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement ) (= 100) 16.116 16.403 16.368 17.242 18.146 18.624 17.504 99.8 99.8 99.7 99.6 99.7 99.5 99.6 (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 431 89 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 2,8 2000-2006 (mio €) ERDF Total Objective 2 RhinelandPalatinate 1402.927 EU contribution 170.677 ESF EAGGF EU contribution % EU contribution % EU contribution % 158.877 93.09% 11.8 6.91% - - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3,7 Change in standing of region relative to national average in last five and ten years432 1991 1996 2001 18.887 20.507 22.529 GDP/capita (€) 3.788.700 3.985.800 4.041.200 Population 1.675.300 1.667.400 1.761.800 Employment (persons) 82.334 149.782 134.801 Unemployment (persons) 5,4 9,4 7,6 Unemployment rate 1995 1457 R+D expenditure (mio €)433 1997 1766 1999 1948 Estimated effect on regional circumstances of different domestic policies: Strongly positive: Territorial Policy Public sector transfer Employment policy Technology policy 432 433 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 90 Regional profile: Saarland DEC Saarland GDP per head (2000) DEC Saarland: 22.668 €434 (average of old Länder incl. Berlin: 26.426 € and excl. Berlin: 26.637 €)435 Germany436 24.700 € EU-15 = 100; DEC = 96,8437 GDP at current prices/in Million € (2000) DEC Saarland438: 24.248 Germany439: 2.030.000 EU-15440: 8.524.371 Employment rate (2000)441 450.200 person in gainful employment = 68,6% (German average = 68,8%) Unemployment rate (2002) DEC Saarland: 10,8 % 442 (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 3,3 Strengths [short description]443 The Saarland is, at 2.570 km², the smallest German (non-city) state with regard to surface area. Located in the centre-west, the region is populated by 1.065.082 (in 2002) inhabitants. Regarding its infrastructure the state benefits from its railroad network (rapid rail lines along with the new generation of fast trains) and the direct connection with the French railway system in Saarbrücken. The state has one airport (incl. air freight services) and a dense motorway and road network. Additionally, the river Saar provides for waterway traffic and transport. The state is often referred to as a bridge to other European states such as France and Luxembourg and for trans-European business in general. Thus, a large percentage of the workforce is employed in trans-border activities. 87% of the employees (for which social insurance contributions are paid) live in the state. Over 25.000 persons from other German States (esp. Rhineland-Palatinate), come to work in Saarland each day. Also 21.000 commuters from abroad, especially France, are working in the state. With a view to its commuters´ balance there is still a surplus of commuters into Saarland (more than 23.000 jobs to people from neighbouring regions). 434 http://www.statistik-baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 436 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 437 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 438 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 439 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 440 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 441 http://www.statistik.saarland.de/medien/inhalt/stala_ET01(1).pdf, http://de.osha.eu.int/docs/uvb2000/tab05.pdf, http://de.osha.eu.int/docs/uvb2000/tab05.pdf 442 http://www.statistik.saarland.de/medien/inhalt/stala_AMARKT1.htm 443 http://www.invest-in-germany.com/en/, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.gwsaar.com/ 435 91 Besides traditionally important branches like logistics or the automotive industry (Ford AG), the Saarland pays particular attention to emerging high-technology sectors like pharmaceuticals and biotechnology. Given Saarland´s special cultural and tourist attractions, also the tourism sector is a relevant business area. The largest economic sector in terms of employment is the service sector, followed by production, processing industry, trade and commerce, production of motor vehicles and components, regional corporations and social insurances, the building sector, communications and ICT, metal production and –processing as well as mechanical engineering. Saarland’s industrial area follows the river Saar, while the more rural northern part of Saarland is covered by wood and forests. This area serves as a short-distance leisure zone of the densely populated industrial zones. Its centrality as well as the low cost structure, the financial assistance and technology transfer strengthens the economic development of the state. Moreover, it supported the development of "European skills", which additionally facilitate trans-border business activities. Especially the SaarLor-Lux region is a good example in this context (agriculture: 2%; commerce and communications: 20%; production: 31%; services: 47%). The trend towards the establishment of trans-border co-operation between universities and research institutions in the Saar-Lor-Lux region is increasing. Thus, over 5.000 scientists are integrated in such co-operations. The French-German University, 5 public institutions of higher education (University of the Saarland, University of the Saarland/Medical School, Polytechnic College, Conservatory of Music, and Academy of Arts College of Social Work), 1 Max-Planck institute and 2 Fraunhofer installations are located here. In 1974, the Saarland University started the enlargement of application-oriented fields of research. Out of this an attractive environment for the relocation of numerous research institutes close to the university has developed. In 1999 the state held rank 13 in investment per employee in the processing industry.444 Companies: AlliedSignal, AOL, Chamberlain, DePuy, FiberTechGroup, Ford, Intermet, Johnson Controls, Lands’ End, Scott, Whirlpool. Weaknesses [short description]445 Small size; high dependence on commuters from other regions; relatively high unemployment rate, low employment rate; low degree of investments Evolution in last decade [short description] Employment has been slightly growing with constant ups and downs during this period (1992: 482.300, 2002: 505.600) and the same holds true for the GDP/per capita (1992: 19.539 €, 2002: 23.878 €).446 The structural changes initiated during the 1980ies concentrated on the creation of sectors like Energy technology, food industry, automotive industry, ICT and tourism. Employment decreased significantly in the mining as well as in the iron and steel processing industry. Meanwhile two third of all workplaces in the Saarland belong to the service sector. Especially the economy of the SAAR-LOR-LUX region, but also the rest of the state, is characterised by a structural change from a region formerly dominated by coal and steel towards a service-oriented economy. Especially the relevance of the steel producing sector decreased. During the 1990ies the Völklinger Saarstahl AG (a large employer) went bankrupt. The Saarstahl AG (originating in the bankrupt) went into state property to secure the further existence of the steel industry. In view of the mining sector (esp. hard coal) production circumstances changed a lot due to the ‘Artikelgesetz’ (article law) and the coal compromise (successive decrease of state subventions for coal form ca. 5 bio. € to ca. 2.7 bio. € in 444 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 445 Blancke, Susanne / Lindlohr, Andrea / Schmid, Josef (2001): Wer führt? Ein Benchmarking der Bundesländer nach Arbeitsmarktund Wirtschaftsindikatoren, WIP Occasional Paper Nr. 14, Tübingen, p. 9. 446 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 92 2005) in 1997. These instruments will cause the loss of about 6.000 workplaces. To compensate these losses the state is subsidised by the Federal government (ca. 1.4 bio €) until 2005. A structural university reform has been finalised in 2000 closing down some not very prominent areas, concentrating on interdisciplinary fields and strengthening the cooperation with neighbouring universities. Further indicators Public revenue and spending (€)447 2001 3.193.407.200 3.356.084.200 Revenue Spending 2002 3.146.288.500 3.364.793.100 2003 3.004.060.500 3.382.473.200 Employment (at workplace) per sector448 Agriculture: Industry (without Building and building and construction construction trade: trade): Trade, tourism, transportation: Public and private services:449 2002: 77.186 2002: 137.973 2002: 115.314 2002: 1.564 2002: 21.390 Industrial Structure Branches of industry450 Branch Food and tobacco Textile Timber Paper, printing, publishing Chemical industry Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Production of equipment for the production of electricity Production of office machines, ICT techniques, optical equipment tv,… Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys, recycling Recycling Employment figures 2002 8.100 398 774 2.241 794 5.486 4.246 43.932 12.925 3.463 3.065 225.007 1.155 134 Research base Employment in education, higher education and research451 2001/02 17.679 447 http://www.finanzen.saarland.de/medien/inhalt/hhpl/04-uebers.pdf, http://www.finanzen.saarland.de/medien/inhalt/hhpl/05finkre.pdf, http://www.finanzen.saarland.de/medien/inhalt/haushaltsplan_2003/Start.pdf 448 http://www.statistik.saarland.de/medien/inhalt/stala_ETWIBER(1).pdf, http://www.statistik.saarland.de/medien/inhalt/stala_SOZVERSW(1).pdf 449 Including financial services, leasing/rentals and business consultants 450 http://www.statistik.saarland.de/medien/inhalt/stala_TAB3.pdf, http://www.statistik.saarland.de/medien/inhalt/stala_TAB1.pdf 451 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 93 Public expenditure on science and research (mio. €)452 2001 826,6 2002 847,2 2003 876,8 Students at universities453 Beginners (included in total number) 3.004 307 3.270 355 Wintersemester 2000/01 Summersemester 2002 Wintersemester 2001/02 Summersemester 2002 Total number of 19.970 18.857 20.150 18.954 Support infrastructure Infrastructure (categories of streets)454 Category Kilometres Vehicles 1999455 2000456 2001457 2001458 2003459 Motorway (Autobahn) 236 Road network 1.795 Total 2.031 690.338 701.288 728.338 741.922 746.185 Doctors and dentists (2000)460 Doctors 4.020 Dentists 658 452 http://www.finanzen.saarland.de/medien/inhalt/hhpl/10-quer.pdf, http://www.finanzen.saarland.de/medien/inhalt/hhpl/09funkt.pdf, http://www.finanzen.saarland.de/medien/inhalt/haushaltsplan_2003/Start.pdf 453 http://www.statistik.saarland.de/medien/inhalt/stala_STUD0102.pdf, http://www.statistik.saarland.de/medien/inhalt/stala_STUSS02.pdf 454 http://www.destatis.de/jahrbuch/jahrtab36.htm 455 http://www.statistik.saarland.de/medien/inhalt/KFZ.PDF 456 http://www.statistik.saarland.de/medien/inhalt/KFZ.PDF 457 http://www.statistik.saarland.de/medien/inhalt/KFZ.PDF 458 http://www.statistik.saarland.de/medien/inhalt/KFZ.PDF 459http://www.destatis.de/jahrbuch/jahrtab37.htm 460 http://www.destatis.de/jahrbuch/jahrtab52.htm 94 Designation for principal domestic policy support instruments (5 point scale): 2,5 2,5 2,5 3 2 Territorial Policy Public sector transfer Employment policy Technology policy Saarland461 Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) Gapfilling grants 4.019 4.017 4.010 4.185 4.315 4.402 4.134 90.9 89.8 90.4 90.1 88.9 88.4 88.9 180 234 204 228 294 329 286 4.199 4.251 4.214 4.413 4.609 4.731 4.420 95.0 95.0 95.0 95.0 95.0 95.0 95.0 199 201 200 209 218 224 209 153 153 153 153 153 153 153 0 0 0 0 0 0 0 80 72 64 56 48 40 32 1.600 1.600 1.600 1.600 1.200 1.050 900 SFH total Fiscal resources after SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Contribution / assignment within SHES (in Mio. DM) Transitional grants (west Germany) Divergence from national average (balance measurement) (= 100) Compensations for special burdens 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) (east Germany) Compensations for special political costs SL 2.032 2.026 2.017 2.018 1.619 1.467 1.294 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 4.398 4.452 4.414 4.622 4.827 4.955 4.629 Divergence from national average (balance measurement) (= 100) 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 461 95 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 2,9 2000-2006 (mio €) ERDF Total Objective 2 Saarland 981.785 EU contribution 171.089 EU contribution 130.841 ESF % 76.48% EU contribution 40.248 EAGGF % 23.52% EU contribution - % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3,7 Change in standing of region relative to national average in last five and ten years462 1991 1996 2001 18.965 20.532 23.218 GDP/capita (€) 1.074.700 1.083.500 1.067.300 Population 481.100 477.200 511.500 Employment (persons) 35.981 52.065 44.906 Unemployment (persons) 8,6 12,4 9,8 Unemployment rate 1995 204 R+D expenditure (mio €)463 1997 219 1999 227 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 462 463 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 96 Sachsen (Saxony) NUTS 1: DED SACHSEN NUTS 2: DED 1 Chemnitz464 DED 2 Dresden465 DED 3 Leipzig466 GDP per head (2000) DED SACHSEN467: 16.283€ (average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)468 Germany469 24.700 € EU-15 = 100; DEC =70,4; DEC1 = 65,9; DEC2 = 71,6; DEC3 = 75,0470 GDP at current prices/in Million € DED SACHSEN471: 72.340 Germany472 (mio €): 2.030.000 EU-15473 (mio €): 8.524.371 Employment rate (2000)474 DED SACHSEN 64,7 % (German average = 68,8%) DED 1 Chemnitz 63,9 % DED 2 Dresden 65,4 % DED 3 Leipzig 64,7 % Unemployment rate (2002) DED SACHSEN: 17,8 %475 (German average: 9,8%; West 7,9%, East: 18,0%) DED 1 Chemnitz: 148.900 persons DED 2 Dresden: 169.900 persons DED 3 Leipzig: 112.500 persons Technological standing (5 point scale): 3,3 Strengths [short description]476 464 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=1999&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2001&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14100000 465 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=1999&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2001&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14200000 466 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=1999&Ags=14300000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14300000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2001&Ags=14300000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14300000 467 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 468 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 469 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 470 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 471 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 472 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 473 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 474 http://www.statistik.sachsen.de/Index/22kreis/unterseite22.htm, own calculations. 475 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (alle abhängigen EPs) 97 Sachsen, one of the “new” German territorial states, has a population of 4.426.000 (in 2002) inhabitants and covers an area of 18.413 km². It has three completely modernised inland ports in Dresden, Riesa and Torgau, which increased their trans-shipment between 1992 and 1998 (from 884.233 t to 1.865.629 t). Moreover, the Dresden airport, the Leipzig-Halle international airport (connected with the logistics centre of Leipzig), and 17 other regional airstrips provide air services and transportation opportunities. A new terminal with an integrated railway station (incl. Inter-CityExpress connection) as well as a new motorway approach is to be built. Saxony’s economic structure is strongly influenced by mechanical engineering (average annual growth rates since 1996: turnover: 9%; exports: 19%; productivity: 9%). Besides traditional sectors like the electronics and automotive industries, also new high-technologies, including microelectronics, telematics, biotechnology, new materials, and processing engineering are relevant business sectors. Nevertheless, also the tertiary sector (financial and business services, trade, hotels and restaurants, transport, public and private services) is growing. Another traditional sector is the textile industry. Like before the existence of the GDR, the region occupies a leading position in the automobile industry (380 companies; 1991: 19.000 EUR/employee, 2001: 381.000 EUR/employee; annual turnover rose: 1991: 0.4 bill. €; 2001: 7 bill. €). The sites of Volkswagen (Zwickau (Golf, Passat), Chemnitz (engines), Dresden (Phaeton)), Porsche and BMW are supplied by some 500 small and medium-sized firms within Saxony. The processing industry is another core industry (contributing 16% to the state’s domestic gross output). The building and construction sector is twice higher than the German average in terms of its contribution to the domestic gross output. Even the contribution by mining, energy, and water supply is 1% point higher than the German average. The financial and business services sector became the first in the state’s service sector (since 1992 real growth in this sector has always been above Saxony’s real growth of GDP). The service sector has kept up with the German average (Saxony: 67.9 % contribution to the gross output; Germany: 68.9), while tourism, trade and transportation have lost in importance. Saxony’s telecommunication network ranks next to worldwide developments. The Schkeuditz teleport (one of Europe’s largest network nodes) was established in 1997. ISDN and DSL are standard and available throughout the state as well as GSM-technology, covering the whole Saxon area. Almost 700 access lines link the state’s universities and research centres with the newly launched science network “Internet 2” (2.5 gigabit). In July 2000, the most modern television broadcasting station in Europe (completely digitalised image and sound equipment) was established at Leipzig. International companies like AMD, Infineon and DuPont have turned Saxony into a spot for microelectronics, the second important industrial branch of the state. Other new flourishing branches include also biotechnology (biomedicine, molecular biotechnology, bio-material science and environmental biotechnology). Currently, bio-innovation centres are set up in Dresden and Leipzig with financial assistance from the state. The Dresden University of Technology hosts 16 biotechnological faculties (research from foodstuff biotechnology to medical technology). 20 research institutions are dealing with environmental biotechnology and 18 research institutions with medical biotechnology. Also the fluid dynamics and material research by method of electromagnetic forces is a prominent sector. The Dresden University of Technology and at the Chemnitz University of Technology high-performance training and research institutions are established. 20 research institutions throughout the state provide for product, process and material research. As to the energy industry the first German power exchange, Leipzig Power Exchange (LPX) has been established in Saxony and according to Saxony’s government is the most successful in Europe. 476 http://www.invest-in-germany.com/en/, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.sachsen.de/en/wu/smwa/economy/index.html, http://www.sachsen.de/de/wu/wirtschaftsfoerderung/investoreninfo/download/InvestinSaxony.pdf, http://www.sachsen.de/en/wu/wirtschaftsfoerderung/investoreninfo/erfolgsstories/index.html 98 It will join with the Frankfurt European Energy Exchange (EEX), to set up a common energy exchange with headquarters in Leipzig. According to Saxony’s government the rate of absenteeism from the workplace is below the German average. Also overtime, shift-work and timekeeping were never an issue. 4 universities, 16 public institutes of higher education (senior technical colleges; art academies), 22 research institutes, over 50 non-university research facilities, 1 Helmholtz Center for Environmental Research, 6 Max-Planck institutes, 7 Leibniz institutes and 10 Fraunhofer installations are located here. Dresden University of Technology and / other institutes are engaged in training IT-specialists. In 1999 the state held rank 5 in investment per employee in the processing industry.477 Companies: AMD, BMW, Freiberger Compound Materials, Gläserne Manufaktur, Görlitz Fleece, Gruppo Antolin, Infineon Technologies AG, Johnson Controls, Malden Mills Industries, Neoplan, Porsche, Southwall Technologies Inc., TAKATA, Tower Automotive, Toyota, UNION Werkzeugmaschinen GmbH Chemnitz, VW, Wacker Siltronic AG Freiberg Weaknesses [short description] Like Brandenburg, Mecklenburg-Vorpommern, Berlin (East), Sachsen-Anhalt, and Thüringen the state still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds (over 4.8 billion € are at the disposal of the Free State for the subsidization period from 2000 to 2006. Together with public and private resources this makes a total of 11.2 billion €). Evolution in last decade [short description] Employment has been decreasing (1992: 1.950.200, 2002: 1.925.100) while the GDP/per capita increased (1992: 9.399 €, 2002: 17.358 €).478 The economic growth of 11% in 1994 decreased over the past years to 2% in 1997. This severely hinders the economic catch-up process of the eastern Länder and of the state itself. Unemployment – like in all eastern Länder - is one of the biggest problems for the economic upturn, even if the rate in Sachsen was slightly below the new Länder average. The capacity for entrepreneurship quickly recovered in Saxony after the socialist period with a growing relevance of SME. The number of companies rose from 1990 to 1996 around 216.500 (incl. 50.000 craft firms). Due to its location, Saxony became an important location for trans-border business with Poland and the Czech Republic. This will increase after their access to the EU and once the state will realise its infrastructure programme in 2012 (extension of the traffic and telecommunication network throughout the state). Saxony has a growing industrial structure with the manufacturing sector as a motor of growth. The gross value added in this sector 2001 increased by 7.8 % over 2000. Turnover in industry grew by 10.1 %. Also, the research potential of the industry and service sector has increased by 5% per year since 1994 and the high-tech as well as the service sector is becoming more relevant. Further indicators 477 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 478 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 99 Public revenue and spending (€)479 2001 15.395.600 15.908.991,20 Revenue Spending 2002 15.902.000 16.081.046,60 2003 17.586.500 17.977.671,9 Employment (at workplace) per sector Agriculture, forestry, fishery: DED Sachsen481 DED 1 Chemnitz482 DED 2 Dresden483 DED 3 Leipzig484 2000: 55.300 2001: 52.600 2002: 49.700 2000: 20.900 2000: 22.400 2000: 11.300 Industry (including processing industry without building and construction trade): 2000: 353.800 2001: 357.000 2002: 363.400 2000: 152.000 2000: 135.300 2000: 64.000 Building and construction trade: Trade, tourism, transportation: Public and private services:480 2000: 260.700 2001: 229.500 2002: 204.800 2000: 98.300 2000: 97.500 2000: 64.800 2000: 460.600 2001: 460.400 2002: 457.000 2000: 162.900 2000: 178.100 2000: 117.900 2000: 842.800 2001: 847.400 2002: 850.300 2000: 269.800 2000: 341.200 2000: 233.900 Industrial Structure Branches of processing industry Branch Mining Intermediate goods industry Capital goods industry Persons employed 2000485 DED 1 Chemnitz: 98.348 DED 2 Dresden: 82.212 DED 3 Leipzig: 38.417 DED 1 Chemnitz: 40.931 DED 2 Dresden: 36.558 DED 3 Leipzig: 16.859 DED 1 Chemnitz: 36.228 DED 2 Dresden: 25.189 DED 3 Leipzig: 12.831 Persons employed 2001486 DED 1 Chemnitz: 101.626 DED 2 Dresden: 84.003 DED 3 Leipzig: 39.062 DED 1 Chemnitz: 43.426 DED 2 Dresden: 38.945 DED 3 Leipzig: 16.947 DED 1 Chemnitz: 36.856 DED 2 Dresden: 25.306 DED 3 Leipzig: 182 479 http://www.sachsen.de/de/bf/staatsregierung/ministerien/smf/haushalt/uebersichten/einnahmen_ausgaben/euro/ einnahmen_2001_ist/index.html, http://www.sachsen.de/de/bf/staatsregierung/ministerien/smf/haushalt/uebersichten/ einnahmen_ausgaben/euro/einnahmen_2002_soll/index.html, http://www.sachsen.de/de/bf/staatsregierung/ministerien/smf/haushalt/ uebersichten/einnahmen_ausgaben/euro/einnahmen_2003_soll/index.html, http://www.sachsen.de/de/bf/staatsregierung/ministerien/smf/haushalt/haushaltsplaene/haushaltsplan_2001_2002/files/gesamtplan_2 001_2002.pdf, http://www.sachsen.de/de/bf/staatsregierung/ministerien/smf/haushalt/haushaltsplaene/haushaltsplan_2003_2004/files/gesamtplan_2 003_2004.pdf 480 Including financial services, leasing/rentals and business consultants 481http://www.statistik.sachsen.de/Index/44fachstat/unterseite44.htm?main=http://www.statistik.sachsen.de/Inhalt/44fachstat/erwerbs taetigkeit/Erwerb_2001.htm 482 Employees obligated to pay social insurance at their residence on 30 June, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2001&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14100000 483 Employees obligated to pay social insurance at their residence on 30 June, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2001&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14200000 484 Employees obligated to pay social insurance at their residence on 30 June, , http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14300000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2001&Ags=14300000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14300000 485 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14300000, 486 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14300000 100 Durable goods industry DED 1 Chemnitz: 3.495 DED 2 Dresden: 2.863 DED 3 Leipzig: 689 DED 1 Chemnitz: 17.693 DED 2 Dresden: 17.603 DED 3 Leipzig. 8.038 Non-durable goods industry DED 1 Chemnitz: 4.061 DED 2 Dresden: 3.078 DED 3 Leipzig: 695 DED 1 Chemnitz: 17.282 DED 2 Dresden: 16.774 DED 3 Leipzig: 8.219 Research base Employment in education, higher education and research487 2001/02 69.911 Public expenditure on science and research (mio. €)488 2001 2002 2003 4.119,6 4.325,9 4.333,0 Students at universities489 Year Beginners (included in total number) 16.985 18.013 19.158 1999 2000 2001 Total number of 80.171 84.516 90.162 Support infrastructure Infrastructure 2001 (categories of streets) 490 Category Motorway (Autobahn) Kilometres 452 km Federal Road network 2.421 km State Road network County Roads Total 4.731 km 5.946 km 13.550 km Vehicles DED Sachsen491 2.500.826 1999 2.551.545 2000 2.610.153 2001 2.622.529 2002 492 2.630.844 2003 487 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 488 http://www.sachsen.de/de/bf/staatsregierung/ministerien/smf/haushalt/haushaltsplaene/haushaltsplan_2001_2002/files/gesamtplan_2 001_2002.pdf, http://www.sachsen.de/de/bf/staatsregierung/ministerien/smf/haushalt/haushaltsplaene/haushaltsplan_2003_2004/files/gesamtplan_2 003_2004.pdf 489 http://www.statistik.sachsen.de/Index/42zeitr/unterseite42.htm?main=http://www.statistik.sachsen.de/Inhalt/42zeitr/ref23/hoch/shul-133.htm, http://www.statistik.sachsen.de/appsl1/Bildung/hochschulen/insgesamt/zeitreihen/studenten.html, http://www.statistik.sachsen.de/appsl1/Bildung/hochschulen/insgesamt/zeitreihen/studenten_1hs.html 490 http://www.sachsen.de/en/wu/smwa/transport/road/index.html 491 http://www.statistik.sachsen.de/Index/42zeitr/unterseite42.htm?main=http://www.statistik.sachsen.de/Inhalt/42zeitr/ref-32/kfz.htm 492http://www.destatis.de/jahrbuch/jahrtab37.htm 101 Vehicles NUTS 2 level 2000493 1.009.280 1.002.790 598.083 DED1 Chemnitz DED2 Dresden DED3 Leipzig 1.1.2002494 1.015.966 1.006.514 600.049 Doctors and dentist DED Sachsen 497 DED1 Chemnitz DED2 Dresden DED3 Leipzig 1999495 Doctors: 13.775 Dentists: 3.748 2001496 Doctors: 13.825 Dentists: 3.771 Doctors: 4.428 Dentists: 1.283 Doctors: 5.503 Dentists: 1.533 Doctors: 3.894 Dentists: 932 Doctors: 4.418 Dentists: 1.305 Doctors: 5.518 Dentists: 1.538 Doctors: 3.897 Dentists: 934 493 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14300000, 494 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14300000 495 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2000&Ags=14300000, 496 http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14100000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14200000, http://www.statistik.sachsen.de/appsl1/servlet/KreisDatenEngl?Daten=Kreis&Jahr=2002&Ags=14300000 497 http://www.statistik.sachsen.de/Inhalt/44fachstat/Querschnitt2000/Aerzte.pdf 102 Designation for principal domestic policy support instruments (5 point scale): 4,5 5 5 4 3,5 Territorial Policy Public sector transfer Employment policy Technology policy Sachsen498 Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) Gapfilling grants 15.938 15.890 15.714 16.436 17.053 17.344 16.234 85.5 84.6 84.7 84.7 84.4 83.8 84.5 1.773 1.965 1.918 1.994 2.149 2.328 2.026 17.711 17.855 17.632 18.430 19.202 19.672 18.260 95.0 95.0 95.0 95.0 95.0 95.0 95.0 839 846 835 873 910 932 965 0 0 0 0 0 0 0 3.658 3.658 3.658 3.658 3.658 3.658 3.658 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) Compensations for special burdens (east Germany) Compensations for special political costs SN 4.497 4.504 4.493 4.531 4.568 4.590 4.623 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 18.550 18.700 18.467 19.303 20.112 20.604 19.125 Divergence from national average (balance measurement) (= 100) 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 498 103 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 6,7 2000-2006 (mio €) ERDF Total Objetive 1 Saxony 11240.40 EU contribution 4858.610 EU contribution 3057.598 ESF % 62.93% EU contribution 1098.191 EAGGF % 22.60% EU contribution 702.821 % 14.47% Impact on ex-ante divergence from national average of domestic policies (7 point scale): 6,5 Change in standing of region relative to national average in last five and ten years499 1991 1996 2001 7.379 15.278 16.855 GDP/capita (€) 4.721.600 4.556.200 4.404.700 Population 2.240.500 1.997.600 1.946.800 Employment (persons) 241.227 322.322 399.328 Unemployment (persons) 9,1 15,9 19,0 Unemployment rate 1995 1.312 R+D expenditure (mio €)500 1997 1.533 1999 1.743 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 499 500 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 104 Sachsen-Anhalt (Saxony-Anhalt) DEE Sachsen-Anhalt DEE1 Dessau DEE2 Halle DEE3 Magdeburg GDP per head (2000) DEE Sachsen-Anhalt 501: 15.896 € (average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)502 Germany503 24.700 € EU-15 = 100; DEE = 68,4; DEE1 = 64,2; DEE2 = 70,0; DEE3 = 69,1504 GDP at current prices/in Million € DEE Sachsen-Anhalt505: 41.843 Germany506: 2.030.000 EU-15507: 8.524.371 Employment rate (2000) 508 DEE Sachsen-Anhalt 1.049.000 persons in gainful employment = 58,5% (German average = 68,8%) DEE1 Dessau: 202.600509 DEE2 Halle: 365.200510 DEE3 Magdeburg: 489.800511 Unemployment rate (2002) 512 DEE Sachsen-Anhalt 20,8 (2001: German average: 9,8%; West 7,9%, East: 18,0%) 2001 as 2002 not avaliable for NUTS 2 level DEE1 Dessau: 21,9% DEE2 Halle: 21,8% DEE3 Magdeburg: 19,7% Technological standing (5 point scale): 3 501 http://www.stala.sachsen-anhalt.de/Internet/Home/Daten_und_Fakten/8/82/821/82111/Bruttoinlandsprodukt__in_SachsenAnhalt_.html sowie http://www.stala.sachsenanhalt.de/Internet/Home/Daten_und_Fakten/1/12/122/12211/Bevoelkerung_nach_der_Beteiligung_am_Erwerbsleben.html, eigene Berechnungen. 502 http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 503 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 504 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 505http://www.stala.sachsen-anhalt.de/Internet/Home/Daten_und_Fakten/8/82/821/82111/Bruttoinlandsprodukt_nach_Kreisen.html 506 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 507 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 508 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 509 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 510 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 511 Statistische Ämter des Bundes und der Länder (Eds.) (2002): Statistik regional 2002. Daten für die Kreise und kreisfreien Städte Deutschlands. 512 http://www.stala.sachsen-anhalt.de/Internet/Home/Daten_und_Fakten/1/13/132/13211/Arbeitslosenquoten_nach_Kreisen.html 105 Strengths [short description]513 Sachsen-Anhalt, one of the former GDR states, is located in the center of Germany and covers an area of 357.022 km². At a number of 2.571.500 inhabitants (in 2002), population density is rather low. The state has been re-established 8after its existence between 1947 and 1952) with the German unification. Sachsen-Anhalt shares its international airport with Leipzig (Leipzig/Halle) and has several regional airports and commercial airports. The three largest cities (Landes, Halle, Magdeburg, Dessau) are connected to the Intercity-Network of the Deutsche Bahn. With the rivers Elbe, Saale, Havel, Elbe-Havel-Channel and the Midlandchannel, the state is integrated into the European waterway network. Sachsen-Anhalt is constituted by 5 regions: Altmark: food and wood processing industry; processing of renewable resources and plastic production Magdeburg: food and wood processing industry; mechanical engineering; logistics Harz: tourism; automotive industry; pharmaceutical industry; phyto-biotechnology Anhalt: chemical industry; pharmaceutical industry; mechanical engineering; logistics Halle: chemical industry; plastic production; biotechnology, IT and media Important economic branches thus are chemical industry (‚chemical triangle’), mechanical engineering (traditionally strong sector) and food industry (cultivation of grain, potatoes and sugar beets). In the south of the state Leuna-Merseburg, Schkopau and Bitterfeld-Wolfen form the socalled ‚chemical triangle’ with large foreign companies such as Dow Chemical or TotalFinaElf established sites here. The chemical industry is one of the most relevant sectors of the state’s economic structure. Regarding the turnover in 2001 it was the second largest sector of the processing industry (just behind the food sector). Sachsen-Anhalt (with 12.000 employees) produces the highest turnover in the chemical industry within the new Länder. In the first half of 2002 turnover grew about 6.7% to about € 2 billion. Also employment grew in this sector. Within the chemical industry the pharmaceutical industry is one of the most important sub sectors (turnover in 2002 (515 mio €) four times of that in 1991). Global players such as Bayer or Hexal as well as SME like Carl Hoernecke GmbH are important pillar of this sub sector. Nevertheless, this southern region like the whole state, predominantly characterised by chemical industry also hosts a large food industry. This sector is the largest one in terms of turnover in 2001 (22.5% of the processing industry) and employment in 2001. In this context also the highly productive agricultural sector should be mentioned. The metal producing and processing industry is the third largest sector in terms of turnover in 2001 (209.600 € per employee) and the second largest in terms of employment. One quarter of all employees in this sector in the new Länder are employed in Sachsen-Anhalt. The mechanical engineering sector is a traditionally strong sector. In 2001 it ranked fourth in employment (also about ca. 11.200 in 2002) and sixth in turnover. This sector is mainly characterised by SME. A special advantage of this sector is the high level of quality secured by the certification according to DIN EN ISO 9001:2000 and DIN ISO 9000 ff. New economic sectors with a high growth potential are the automotive-supplies and woodprocessing industries and also new technologies such as the information and communications technology, biotechnology and medical technology. The automotive-supplies sector (about 10.000 employees) is concentrated in Magdeburg and Dessau. The development in this area has always been characterised by innovations and thus the sector has a certain growth potential. Also the biotechnology industry is booming and the ‘biotech’ region Halle-Leipzig-Jena is growing in importance (esp. in the area of phyto-biotechnology 513 http://www.invest-in-germany.com/en/, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.sachsenanhalt.de/rcs/LSA/pub/Ch2/pg9751011973146536/index.jsp , http://www.wisa.de/sa_start.htm 106 network ‘InnoPlanta’ awarded by the federal ministry for education and research; biocentre Halle, biocentre Gatersleben, financial support by the state government for start up in this area). The single economic sectors develop quite differently with the highest growth rates to be found within the processing industry. Recently investments focused on the automotive-supplies, mechanical engineering and wood-processing industries. Among the “new Bundesländer”, Sachsen has the greatest volume of direct investments, especially due to the chemical industry and the mechanical engineering. Among the new Länder the state ranks second as business location and eighth among all German states. Regarding the education and research field 2 universities, 8 public institutes of higher education, 4 Max-Planck institutes and 2 Fraunhofer installations are located here. The Martin-Luther-University Halle offers an interesting programme for highly talented pupils (‘Audimax’), which allows pupils to be especially supported in special schools. The scope of support for highly talented is very broad in the state (compared to other German states). In 1999 the state held rank 1 in investment per employee in the processing industry.514 Companies: Abtshof Magdeburg GmbH, Bayer (Bitterfeld), Bishop, Bombardier Transportation, Bosch Telekom, Brandt AG, Burger Knäcke AG Burg, Campbell’s, Chemiedreieck, Danzas, Deutsche Post AG, Domo-Group, Doppstadt, Dow Chemical (Schkopau), DaimlerChrysler, EEG Erdöl Erdgas GmbH Enercon-Group, esco - european salt company, FAM Magdeburger Förderanlagen und Baumaschinen GmbH, Guardian Industries, Gas AG, Halko Halberstädter Würstchen- und Konservenfabrik GmbH, Halloren Schokoladenfabrik GmbH Halle, Hasseröder Brauerei GmbH, Hellmann Nicolai, HEXAL, Carl Hoernecke GmbH, K + S Kali GmbH, KATHI Rainer Thiele GmbH Halle, Kühne & Nagel, Libehna Fruchtsaft GmbH Raguhn, Linde AG, Manuli Stretch, Mercer (Stendal), MIBRAG mbH, MITTELDEUTSCHE ERFRISCHUNGSGETRÄNKE GMBH & CO KG (Leisslinger), Nestlé, Nordlam, Otto Versand GmbH, Probiodrug. Propapier GmbH, Radici Chimica GmbH, Regiocom, Rhodia Syntech, Röstfein Kaffee GmbH Magdeburg, ROMONTA GmbH - Tagebau Amsdorf, Rotkäppchen Sektkellerei GmbH & Co., Salzwedler Baumkuchen, Schönebeck und Calbe (windpower stations), Schwan’s-Group, Stöver, TotalFinaElf (Leuna), Transcom Europe, Varioboard, Walter Telemedien, Zörbiger Konfitüren GmbH, Weaknesses [short description] Very high unemployment rate. Like Brandenburg, Mecklenburg-Vorpommern, Berlin (East), Sachsen, and Thüringen the state still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds. Evolution in last decade [short description] Employment has been decreasing (1992: 1.125.900, 2002: 1.021.000) and the same holds true for the GDP/per capita (1992: 8.999 €, 2002: 16.886 €).515 For a long period the state had the highest unemployment rate in Germany, even if the terrific loss of workplaces was stopped after the first period after the unification. Economic catch up processes will thus probably last longer than in the rest of the federal state. During the GDR the state was the main spot for food production; agriculture was thus one of the most important sectors. The state, like all new Länder, has gone through a difficult period of restructuring and concentration on core competencies (chemical industry, mechanical engineering, food industry) in the early 1990ies. Especially the mining sector (coal, copper) was subject to grave 514 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 515 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 107 changes and restructuring. Because of the natural resources, mining is also today still important, but concentrates on potash and salt production, natural gas and storage mining (‘Speicherbergbau’). Furthermore, great parts of former mining areas were transformed into tourism and leisure areas. Because of the growing investments in this period, especially the mechanical engineering sector has become strong. Contrary to this the construction industry and related areas like glass; ceramics and processing of stones and earth are decreasing in importance. Employment was decreased by 3.1% from 2000 to 2001. The problems of restructuring of the construction industry prevail also in 2002 as in 2002 17.2% less employment have to be noted and one fifth less companies compared to 2001. Also turnover decreased (2002: 7% less than 2001) The automotive-supplies sector became boosting since the competence network MAHREGAutomotive won the InnoRegio competition of the federal ministry for education and research. This network brings together about 100 companies and research institutes in this area. Further indicators for DEE Sachsen-Anhalt Public revenue and spending (mio €)516 Revenue Spending 2001 7.960,59 8.046,27 2002 8.000,00 8.282,00 Employment (at workplace) per sector517 Agriculture: Industry Building and construction trade: Trade, tourism, Public and transportation: private services:518 1999: 40.500 2000: 38.300 2001: 36.800 1999: 161.900 2000: 159.600 2001: 158.000 1999: 166.700 2000: 148.700 2001: 128.300 1999: 251.600 2000: 255.700 2001: 253.100 1999: 462.200 2000: 454.800 2001:461.800 Industrial Structure Branches of processing industry519 Branch Timber Paper, printing, publishing Chemical industry Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys Employment figures 2000 2001 1.689 1.668 3.413 3.628 11.676 11.896 5.641 6.480 9.492 9.198 5.755 6.022 11.031 11.142 7.703 7.337 2.748 2.768 Research base Employment in education, higher education and research520 2001/02 43.180 516 http://www.mf.sachsen-anhalt.de/public_finance/budgetary_overview.htm http://www.stala.sachsenanhalt.de/Internet/Home/Daten_und_Fakten/1/13/133/13311/Erwerbst__tige_und_Arbeitnehmer_mit_Arbeitsort_im_Land_Sachsen_ Anhalt_und_Wirtschaftsabschnitten.html 518 Including financial services, leasing/rentals and business consultants 519 http://www.sachsen-anhalt.de/pdf/pdf10107.pdf 520 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 517 108 Public expenditure on science and research (€)521 2001 2002 1.509.873.506 1.478.522.400 Students at universities522 Wintersemester 1999/2000 2000/2001 2001/2002 Total number of 35.353 37.992 40.709 Support infrastructure Infrastructure (categories of streets)523 Category Kilometres Motorway (Autobahn) 320 Road Total network 10.574 10.894 Vehicles 2000524 1.517.164 2001525 1.522.925 2003526 1.523.812 Doctors and dentists (2000)527 Doctors Dentists 8.073 2.009 521 http://www.sachsen-anhalt.de/pdf/pdf10604.pdf http://www.stala.sachsen-anhalt.de/Internet/Home/Daten_und_Fakten/2/21/213/21311/Statistik_der_Studierenden__ Studierende_insgesamt.html 523 http://www.destatis.de/jahrbuch/jahrtab36.htm 524 http://www.stala.sachsenanhalt.de/Internet/Home/Daten_und_Fakten/4/46/462/46251/Bestand_an_Kraftfahrzeugen_insgesamt.html 525 http://www.stala.sachsenanhalt.de/Internet/Home/Daten_und_Fakten/4/46/462/46251/Bestand_an_Kraftfahrzeugen_insgesamt.html 526http://www.destatis.de/jahrbuch/jahrtab37.htm 527 http://www.destatis.de/jahrbuch/jahrtab52.htm 522 109 Designation for principal domestic policy support instruments (5 point scale): Total: 4 Territorial Policy Public sector transfer Employment policy Technology policy 4 5 4 2,5-3 Sachsen-Anhalt528 ST Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 9.510 9.447 9.358 9.775 10.108 10.247 9.590 85.0 84.0 84.4 84.6 84.2 83.5 84.7 1.123 1.241 1.175 1.207 1.300 1.407 1.164 10.633 10.688 10.533 10.982 11.408 11.654 10.754 95.0 95.0 95.0 95.0 95.0 95.0 95.0 504 506 499 520 540 552 509 Gapfilling grants 164 164 164 164 164 164 164 2.208 2.208 2.208 2.208 2.208 2.208 2.208 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 2.876 2.878 2.871 2.892 2.912 2.924 2.881 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 11.137 11.194 11.032 11.502 11.948 12.206 11.263 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 528 110 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 5,7 2000-2006 (mio €) ERDF Total Objetive 1 Saxony-Anhalt 8697.414 EU contribution 3360.445 EU contribution 1908.342 ESF % 56.89% EU contribution 715.254 EAGGF % 21.32% EU contribution 730.849 % 21.79% Impact on ex-ante divergence from national average of domestic policies (7 point scale): 6,2 Change in standing of region relative to national average in last five and ten years529 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate R+D expenditure (mio €)530 1991 6998 2849100 1274100 167.127 1996 14189 2731500 1113500 234.451 2001 16367 2598400 1038100 264.493 10,3 18,8 20,9 1995 503 1997 513 1999 523 Estimated effect on regional circumstances of different domestic policies: Strongly positive: Territorial Policy Public sector transfer Employment policy Technology policy 529 530 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 111 Schleswig-Holstein DEF Schleswig-Holstein GDP per head (2000) DEF Schleswig-Holstein: 22.815 € Berlin: 26.637 €)532 Germany533 24.700 € EU-15 = 100; DEF = 96,2534 531 (average of old Länder incl. Berlin: 26.426 € and excl. GDP at current prices/in Million € DEF Schleswig-Holstein: 63.478€ 535 Germany536: 2.030.000 EU-15537: 8.524.371 Employment rate (2000) 1.211.000 persons in gainful employment = 65,7% 538 (German average = 68,8%) Unemployment rate (2002) DEF Schleswig-Holstein 8,7 % 539 (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 3,5 Strengths540 [short description] Schleswig-Holstein is the northernmost German Federal state and the only one to border on both the North and the Baltic Sea. A population of 2.790.000 inhabits a surface area of 15.763 km². Schleswig-Holstein benefits from a beneficial location concerning world markets. The state has good access to western Europe, Scandinavia, and eastern Europe The state’s location offers optimum conditions for successful trade within the entire Baltic region, one of Europe's most important growth markets. As too its infrastructure the state, like all other coastal countries profits from a broad range of options. With a view to air travel, the state is depending on the Hamburg airport, even if there are also regional airports in Kiel-Holtenau and Lübeck's Blankensee (also some international flights) offering inner German flights. Moreover there are some smaller airports for private flights. Ports in Lübeck, Kiel, Brunsbüttel, Flensburg, Husum and Puttgarden offer access to the maritime transport and manage 40 mio. t per year. Corporations engaged in environmental and power engineering, medical technology, electrical engineering and electronics, and biotechnology are rather active in Schleswig-Holstein. ICT has gained in importance as well, becoming a significant economic factor next to traditional sectors like shipbuilding and marine technology industries, food industry, health service and tourism. 531 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 533 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 534 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 535 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 536 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 537 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 538 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 539 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (alle abhängigen EPs) 540 http://www.invest-in-germany.com/en/, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.wsh.de/GB/facts/index.html 532 112 The trade and commerce sector is very relevant. 15.5% of all employees were working in this sector in 2000. This is caused by the high number of trading companies, which have established business in the state. Nevertheless, the economic structure is characterised by a mixture of relevant sectors. In terms of employment the manufacturing sector (even if employment figure with 20% is below the German average) was the strongest in 1999 followed by the sector trade, repair and maintenance of vehicles and consumer goods (18.9%) and health, veterinary and social services (12.3%). Moreover, employment in the trade, repair and maintenance of vehicles and consumer goods sector as well as in the guest sector, in public administration and in the health, veterinary and social services is above the German average. Areas below the German average are real estate and rental of property and possessions. With a view to the gross added value the service sector has become the strongest in 2000 surpassing the manufacturing sector. With 23.6% share the manufacturing sector and construction industry (German average of 30.1%) rank below the financing, renting and business services sector’s share of 31.6% (German average = 30.4%) followed by public and private services with 23.5% (German average 21.1%) and the trade, tourism and transport sector with 19% (German average 17.2%). Looking at the processing industry of the state, mechanical engineering is the strongest sector (22.2% of processing industry). The food and tobacco sector is the second with 18.8% followed by the chemical industry (12.6%). The high-tech sectors (instrumentation and control, optics (11.8%); and printing and publishing (10.9%)) are above the German average. In terms of turnover of industrial sectors, the food and tobacco sector ranks first with 19.3% of the total Schleswig-Holstein industry turnover. It is followed by chemical industry (17.7%) and mechanical engineering (16%). Contrary to this the automotive industry is weaker represented than compared to the German average. The tourism sector has also turned into an important economic area caused by the quality of the environment and sport opportunities (golf courses, marinas, swimming pools, horse riding opportunities, the Schleswig-Holstein music festival). Behind Mecklenburg-Vorpommern the state is the second most chosen holiday destinations in Germany. Schleswig-Holstein hosts 22 technology centres, which support new developments in the high-tech sector and business start-ups in this area. Moreover, the multimedia campus in Kiel and Lübeck’s Media Docks (incl. business start-up centre, business park, media centre) provide for link between research and business in this branch. In view of the number of technology centres per head the state ranks second after Nordrhein-Westfalen. Moreover, 3 universities, 4 public institutes of higher education, 1 Max-Planck institute and 1 Fraunhofer installation are located here. In 1999 the state held rank 11 in investment per employee in the processing industry.541 Companies: Acer Computer GmbH, Danfoss Compressors GmbH, Ethicon GmbH & Co. KG, Motorola GmbH, Hydro Agri Brunsbüttel GmbH, MaK Motoren GmbH & Co. KG, Matsushita Communication Deutschland GmbH, Sysmex Europa GmbH, Weaknesses [short description]: No special weaknesses Evolution in last decade [short description] Employment has been (slightly) growing (1992: 1.212.200, 2002:1.233.900) and the same holds true for the GDP/per capita (1992: 19.630 €, 2002: 23.362 €).542 541 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 542 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm 113 The economic structure of the state changed from the predominance of agriculture and fishery to a modern technology location. Structural changes are also very evident in the manufacturing sector as high-technology-based sectors (medical technology) became growth sectors in the past years. Agriculture used to be a strong sector of the state’s industry and supported the development and relevance of the food sector. Thus, agricultural industries, food and tobacco industries and also mechanical engineering (e.g. manufacturing machines for the food industry) developed stronger than in the rest of Germany. Additionally, the financing, renting and business services field and wind energy (with 1.500 wing energy parks largest in Germany) became important economic sector. The shipbuilding sector overcame structural crisis with the concentration of he construction of special vessels. Further indicators Public revenue and spending (€)543 Revenue Spending 2002 9.537.030.600 9.570.974.400 Employment (at workplace) per sector544 Agriculture: Industry (without building and construction trade): Building and construction trade: Trade, tourism, Public and transportation: private services:545 2000: 44.000 2001: 44.000 2002: 44.000 2000: 196.000 2001: 195.000 2002: 190.000 2000: 84.000 2001: 80.000 2002: 75.000 2000: 358.000 2001: 358.000 2002: 355.000 2000: 559.000 2001: 565.000 2002: 569.000 Industrial Structure Branches of processing industry Branch Food and tobacco Textile, clothing, leather Timber Paper, printing, publishing Mineral oil processing industry Chemical industry Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Production of equipment for the production of electricity, office machines, ICT techniques, optical equipment tv,… Vehicle production Employment figures 2000546 2001547 19.557 19.235 1.361 2.385 15.564 11.326 897 13.128 13.255 7.211 7.330 5.859 10.000 10.420 23.064 22.897 23.071 13.610 4.278 543 http://landesregierung.schleswig-holstein.de/coremedia/generator/Aktueller_20Bestand/FM/Gesetz_20_2F_20 Erlass_20_2F_20Verordnung/PDF/Allgemein,property=pdf.pdf 544 http://www.statistik-sh.de/M4/m4_06pi1.htm 545 Including financial services, leasing/rentals and business consultants 546 http://landesregierung.schleswigholstein.de/coremedia/generator/Aktueller_20Bestand/MWAV/Brosch_C3_BCre_20_2F_20Publikation/pdf/WB2001_20mit_20Anla gen,property=pdf.pdf 547 http://www.statistik-sh.de/M4/PDF/13Produzierendes%20Gewerbe/m4_8k13T3.pdf 114 Research base Employment in education, higher education and research548 2001/02 40.787 Public expenditure on science and research (€)549 2000 2.281.282.800 Students at universities550 Wintersemester 1999/2000 2000/2001 Total number of 41.405 41.387 Support infrastructure Infrastructure (categories of streets)551 Category Motorway Road Total (Autobahn) network Kilometres 485 9.402 9.887 Vehicles552 2003 1.870.492 Doctors and dentists (2000)553 Doctors 10.009 Dentists 2.161 548 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 549 http://landesregierung.schleswigholstein.de/coremedia/generator/Aktueller_20Bestand/FM/Gesetz_20_2F_20Erlass_20_2F_20Verordnung/PDF/Allgemein,property =pdf.pdf 550 http://www.statistik-sh.de/ 551 http://www.destatis.de/jahrbuch/jahrtab36.htm 552http://www.destatis.de/jahrbuch/jahrtab37.htm 553 http://www.destatis.de/jahrbuch/jahrtab52.htm 115 Designation for principal domestic policy support instruments (5 point scale): 2,3 2,1 2 2,2 2,9 Territorial Policy Public sector transfer Employment policy Technology policy Schleswig-Holstein554 Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) Gapfilling grants 11.317 11.201 11.293 11.890 12.024 11.932 11.811 102.5 99.6 100.6 100.2 96.3 92.8 97.5 -141 16 -5 0 174 358 115 11.175 11.217 11.288 11.890 12.198 12.291 11.926 101.2 99.8 100.5 100.2 97.7 95.6 98.4 0 24 0 0 261 513 173 164 164 164 164 164 164 164 0 0 0 0 0 0 0 227 204 182 159 136 114 91 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) Compensations for special burdens (east Germany) Compensations for special political costs SH 391 392 346 323 561 791 428 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 11.175 11.240 11.288 11.890 12.459 12.804 12.099 101.2 100.0 100.5 100.2 99.8 99.6 99.8 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG). Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 554 116 Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 3,5 2000-2006 (mio €) ERDF Total Objective 2 SchleswigHolstein 831.107 EU contribution 258.319 EU contribution 221.747 ESF % 85.84% EU contribution 36.572 EAGGF % EU contribution - 14.16% % - Impact on ex-ante divergence from national average of domestic policies (7 point scale): 3,4 Change in standing of region relative to national average in last five and ten years555 GDP/capita (€) Population Employment (persons) Unemployment (persons) Unemployment rate 1991 18.771 2.635.800 1.205.200 80.524 1996 21.423 2.732.400 1.203.700 113.083 2001 23.071 2.795.900 1.244.000 116.149 7,3 10,0 9,4 1995 639 R+D expenditure (mio €)556 1997 648 1999 674 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 555 556 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 117 Thüringen NUTS 1: DEG THUERINGEN NUTS 2: Thüringen appears at several NUTS levels but only one code is assigned “DEG Thüringen (NUTS 1, NUTS 2)” GDP per head (2000) DEG THUERINGEN557: 36.688€ (average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)558 Germany559 24.700 € EU-15 = 100; DEG = 69,6560 GDP at current prices/in Million € DEG THUERINGEN (mio €)561: 39.304 Germany562 (mio €): 2.030.000 EU-15563 (mio €): 8.524.371 Employment rate (2000) 1.058.000 = 62,5% (German average = 68,8%)564 Unemployment rate (2002) 565 DEG Thüringen 15,9% (German average: 9,8%; West 7,9%, East: 18,0%) Technological standing (5 point scale): 3,5 Strengths [short description] 566 With a surface area of 16.172 km², Thueringen is one of the smaller German territorial states. Located in the centre of Germany, the former GDR-state has a population of 2.431.000 inhabitants (in 2002). Concerning its infrastructure the state has access to major west-east and north-south motorway connections including the centre for goods traffic Thüringen (GVZ) near Erfurt (the largest in the new Länder with 300 ha). Moreover, the train network is good developed (1.750 km) and is further developed (ICE/Interregio). The state has an international airport in Erfurt (493.731 passengers in 2001), three regional airports (Altenburg-Nobitz, Eisenach-Kindel und ObermehlerSchlotheim) and 19 minor civil airports. In 2002 Erfurt became awarded because of the high level of security standards "Airport of the Year 2002" by the Pilot’s federation ‘Cockpit’. Thus, Thüringen is a good location for logistic companies. 557 http://www.tls.thueringen.de/seite.asp?aktiv=dat01&startbei=datenbank/default2.asp http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 559 http://www.destatis.de/basis/d/vgr/vgrtab9.htm 560 http://personal.lse.ac.uk/begg/private/documents/regional%20data.xls 561 http://www.tls.thueringen.de/seite.asp?aktiv=dat01&startbei=datenbank/default2.asp 562 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp 563 http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=Freeselect3EN&mode=download 564 http://de.osha.eu.int/docs/uvb2000/tab05.pdf 565 http://www1.arbeitsamt.de/hst/services/statistik/200212/iiia4/multijz_heftd.pdf (all persons in gainful employment) 566 http://www.invest-in-germany.com/en/, http://www.bund.de/Verwaltung-inDeutschland/Bund/Anschriftenverzeichnis/Bundeslaender-.5571.htm, http://www.leg.thueringen.de/, http://www.invest-inthueringen.org/en/ 558 118 Regarding its labour conditions many enterprises in the state choose new models offering flexible working hours. In addition, special wage agreements between employers and employees (partly the pay and wage agreements (‘Flächentarifvertrag’) is not valid here) offer cost advantages in comparison to most other regions in Germany. The diversity of the economic structure is very high. Traditional branches are mechanical engineering (14.300; core competencies: automation technology, special machines), plastics and metal processing and automotive industry. New field are high-tech areas (computer manufacturing, optics, semiconductor manufacturing, solartechnology (core competencies: silicon wafers, solar cells, thin-film technology, sensor technology and microsystems technology) or bio-technology (centred around Jena)). Thüringen ranked first in Germany as employment increased with over 7% in 2000. Turnover per employee was 7 times higher in 2001 compared to 1991. Automotive and automotive supplier sectors are the largest employers in Thüringen (30.000 employees ((24% of industrial employees); core competencies: precision components, mechatronics, automation). In the high technology sector, main branches are electrical engineering, microelectronics, ICT and the production of semiconductors. Jena glass and optical instruments have built up a reputation throughout the world for decades. Biotechnology and instrument making, manufacture of bio-instruments and the medial/pharmaceutical industry has emerged as a new industrial sector in Jena. Regarding solartechnology the German first solar village is built in Kettmannshausen. With a view to the high-technology sector, a network of research centres and firms working in biotechnological research, development and production have been set up. The ICT sector (14.000 employees; core competencies: hardware, software, business solutions) is largely constituted by SME. Also the call-centre sector is a flourishing industry in the state as flexible working methods such as 24 hour, Sunday, public holiday working services are possible here without public authorisation. In terms of turnover in 2001 the food and tobacco industry ranks first with 2.591 mio € followed by the automotive industry with 1.910 mio €. Next relevant sectors are production of metal products (1.597 mio €), mechanical engineering (1.577 mio €) and electricity production device (1.488 mio. €). 5 universities, 5 public institutes of higher education, 3 Max-Planck-institutes, 3 Fraunhofer installations, 20 economic-oriented institutes, 8 technology centres, 5 industry-oriented transfer centres are located in the state. Several research institutes are integrated into nation-wide networks for competency. At 32 patent applications per 100.000 inhabitants, Thueringen ranks first among the new Länder. In 1999 the state held rank 9 in investment per employee in the processing industry. 567 Companies: Adam-Opel-AG, Analytik AG, Antec Solar GmbH, Asclepion-Meditec AG, BMW, Robert Bosch GmbH, Chema Balke-Dürr Verfahrenstechnik GmbH, csg Computer Service GmbH, Cybio AG, Babcock Borsig AG, Bluechip Computer GmbH, DaimlerChrysler, Deutsche Post AG, ErSol Solar Energy AG, FER Fahrzeugelektrik GmbH, Fiege Group, Fujitsu Siemens Computer, Gebr. Becker GmbH & Co. KG, Geratherm Medical AG, Paul Günther Logistik AG, HELPBYCOM, Ibykus AG, IKEA,, Intershop Communications, Jenapharm, Jenoptik AG, LDT, Logatec GmbH, LSR GmbH recycling center, Mannesmann Engineering Group's Demag Ergotech Wiehe GmbH, Mitsubishi Motor Corporation, Mühl AG, MSG MediaServices GmbH, Motex Mode-Textil-Service GmbH, MüCom Systeme, Panopa Logistik GmbH & Co. KG, P&O Trans European GmbH, PV Crystalox Solar AG, R+S Textil Handels GmbH, Schott, Swedish Sandvik Group, Thesys GmbH, Thesycon System Software & Consulting, VEKA Umwelttechnik GmbH, X-FAB Semiconductor Foundries GmbH, VIAG Interkom, Zeiss, ZF Friedrichshafen AG 567 Blancke, S./Hedrich, H./ Schmid, J.: Bundesländer-Benchmarking 2002, WIP Occisional Paper Nr. 19-2002, Tübingen, 2002, p. 39. 119 Weaknesses [short description] Like Brandenburg, Mecklenburg-Vorpommern, Berlin (East), Sachsen and Sachsen-Anhalt the state still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds. Unemployment level for a long time above the German average. Evolution in last decade [short description] Employment has been slightly (but relative stable over the years) (1992: 1.055.100, 2002: 1.047.000) while the GDP/per capita was growing (1992: 8.901 €, 2002: 16.929 €).568 Nevertheless, unemployment remains higher than in the rest of Germany. In the course of economic restructuring, the traditional industrial sector of automotive production and the optical industry have been flanked by modern sectors, as the industry has gone through enormous restructuring since the early 1990ies. Thus, most relevant sectors today are the automotive industry, optoelectronics, and science-based branches (telecommunications and microelectronics). With a view to environmental industries, Thüringen was already in 1996 concentrate on the use of plants as raw materials. Thus, innovative applications are promoted, especially for wood and fiber plants. Over the past years, the high-tech sector has been constantly growing. Over 30 new companies have been established in the bio-tech industry in Jena since 1996 alone. Additionally, the service sector grew in importance as well as the processing industry while the construction trade decreased its relevance. Further indicators Public revenue and spending (€)569 2003 (draft) Revenue 8.725.219.900 Spending 9.082.732.700 Employment (at workplace) per sector in 1000570 Agriculture: Industry (without building and construction trade): Building and construction trade: Trade, tourism, Public and transportation: private services:571 2000: 35,8 2001: 33,7 2000: 205,6 2001: 209,6 2000: 139,4 2001: 125,7 2000:254,3 2001: 250,1 2000: 441,3 2001: 437,3 Industrial Structure Branches of industry572 Branch Food and tobacco Rubber and synthetic material Glas, ceramic, working of stone and earth Metal (production, working, ..) Mechanical engineering Employment figures 2000 2001 15.441 15.732 10.530 10.956 11.284 11.083 265 273 14.284 15.229 568 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab01.asp, http://www.hsl.de/erwerbstaetigenrechnung/erwerbst%E4tige.htm, 569 http://www.thueringen.de/imperia/md/content/tfm/haushalt/haushalt03-04/1.pdf 570 http://www.th-online.de/download/jawi2002.pdf 571 Including financial services, leasing/rentals and business consultants 572 http://www.th-online.de/download/jawi2002.pdf 120 Production of equipment for the production of electricity, office machines, ICT techniques, optical equipment tv,… Vehicle production Furniture, jewellery, musical instruments, sports equipment, toys 18.658 20.084 9.006 7.940 9.594 8.116 Research base Employment in education, higher education and research573 2001/02 40.231 Public expenditure on science and research (thousand €)574 2002 (draft) 2.429.752 2003 (draft) 2.279.213 Students at universities575 Wintersemester 1999/2000 2000/2001 2001/2002 Total number of 36.299 39.752 43.302 Support infrastructure Infrastructure (categories of streets)576 Category Motorway Road Total (Autobahn) network Kilometres 299 9.951 10.250 Vehicles577 2003 1.497.447 Doctors and dentists (2000)578 Doctors 7.692 Dentists 2.076 573 http://www.destatis.de/basis/d/biwiku/hochtab7.htm, http://www.destatis.de/basis/d/biwiku/schultab26.htm, http://www.destatis.de/basis/d/biwiku/schultab24.htm 574 http://www.thueringen.de/imperia/md/content/tfm/haushalt/haushalt03-04/1.pdf 575 http://www.tls.thueringen.de/datenbank/TabAnzeige.asp?tabelle=kr001305%7C%7CHochschulen+und+Studierende +nach+Kreisen 576 http://www.destatis.de/jahrbuch/jahrtab36.htm 577http://www.destatis.de/jahrbuch/jahrtab37.htm 578 http://www.destatis.de/jahrbuch/jahrtab52.htm 121 Designation for principal domestic policy support instruments (5 point scale): 4 4 4,7 3,9 3,3 Territorial Policy Public sector transfer Employment policy Technology policy Thüringen579 Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) Gapfilling grants 8.673 8.629 8.507 8.909 9.289 9.444 8.870 85.0 84.0 83.9 84.0 84.0 83.4 84.3 1.019 1.127 1.123 1.164 1.218 1.320 1.125 9.692 9.757 9.630 10.073 10.507 10.764 9.994 95.0 95.0 95.0 95.0 95.0 95.0 95.0 459 462 456 477 498 510 473 164 164 164 164 164 164 164 2.008 2.008 2.008 2.008 2.008 2.008 2.008 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) Compensations for special burdens (east Germany) Compensations for special political costs TH 2.631 2.634 2.628 2.649 2.670 2.682 2.645 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 10.151 10.219 10.086 10.550 11.005 11.274 10.468 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG), Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 579 122 Public sector transfers Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 6,0 2000-2006 (mio €) ERDF Total Objetive 1 Thuringia EU contribution 2886.137 10018.45 EU contribution 1480.29 ESF % 51.29% EU contribution 866.7 EAGGF % EU contribution 539.147 30.03% % 18.68% Impact on ex-ante divergence from national average of domestic policies (7 point scale): 6,2 Change in standing of region relative to national average in last five and ten years580 1991 1996 2001 6.444 14.173 16.580 GDP/capita (€) 2.591.400 2.496.500 2.421.000 Population 1.237.900 1.056.400 1.069.200 Employment (persons) 147.963 191.013 194.078 Unemployment (persons) 10,2 16,7 16,5 Unemployment rate 1995 542 R+D expenditure (mio €)581 1997 628 1999 630 Estimated effect on regional circumstances of different domestic policies: Strongly positive Territorial Policy Public sector transfer Employment policy Technology policy 580 581 Slightly positive Neutral Slightly negative Strongly negative X X X X http://www.statistik.baden-wuerttemberg.de/VolkswPreise/ArbeitskreisVGR/ Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 161. 123 Public sector transfers Part B: Specific policies and their effect on cohesion 1 Macroeconomic policy How has the approach to macroeconomic policy changed in recent years, and especially since the advent of EMU? The German economy is undergoing complicated economic times as the economic stagnation is going into its third year582. Its growth rate is among the lowest in the Euro area, unemployment is rising and government finances are problematic in view of the Stability and Growth Pact (SGP) (deficits of 3.6% and 3.4% of GDP forecast for 2002 and 2003). Monetary policy is tight in Germany as the lowest rate of inflation in the Euro area (1.3% in 2002) combines with interest rates set by the ECB for the area as a whole 3.3% to give a comparatively high real rate of interest of 2.0%. Also the rise in the value of the Euro and the World economic slowdown caused mayor problems for the German economy. Fiscal policy needs to be revised to obey the SGP, even if much of the public deficit is related to continuing problems in Eastern Germany. So the improvement of national and regional economies from the fiscal deficit has been taciturn. Main Features of country forecast – GERMANY GDP at constant prices Private consumption Public consumption GFCF of which: equipment Change in stocks as % of GDP Exports (goods and services) Final demand Imports (goods and services) GNI at constant prices (GDP deflator) Contribution to GDP growth: Employment Unemployment (a) Compensation of employees/head Unit labour costs Real unit labour costs Savings rate of households (b) GDP deflator Private consumption deflator Harmonised index of consumer prices Trade balance (c) Balance on current transactions with ROW (c) Net lending(+) or borrowing(-) vis à vis ROW (c) General government balance (c)(d) General government gross 2001 (bn €) Curr. prices % GDP 2071.2 100.0 1232.2 59.5 393.5 19.0 416.3 20.1 2.0 2.0 1.4 1.5 166.3 -9.4 8.0 -0.5 2.0 0.0 7.2 -0.3 9.5 -0.1 726.9 2759.5 688.3 2055.8 35.1 133.2 33.2 99.3 5.2 2.5 4.3 2.0 5.6 3.4 8.5 2.1 1.7 Domestic demand Stockbuilding Foreign balance 1981-1998 Annual percentage change 1999 2000 2001 2.0 2.9 0.6 3.7 1.4 1.5 1.0 1.2 0.8 4.1 2.5 -5.3 2002 0.2 -0.6 1.5 -6.7 2003 0.4 0.2 0.5 0.0 2004 2.0 1.5 0.8 3.1 -5.8 -0.8 -9.4 -0.7 2.2 -0.5 5.8 -0.2 13.7 4.6 10.5 3.1 5.0 0.7 1.0 0.3 2.6 -0.4 -2.1 0.5 3.4 1.3 3.9 0.4 6.4 3.2 6.7 2.1 3.2 1.6 -0.2 -1.5 0.2 1.6 0.0 0.4 -0.4 -0.7 0.2 1.0 -0.6 1.4 0.1 1.6 0.2 0.0 0.2 0.2 0.3 3.7 1.2 8.4 1.2 1.8 7.8 2.0 0.4 7.7 1.7 -0.6 8.2 1.6 -0.8 8.9 2.2 0.2 8.9 2.3 1.9 -0.7 - 0.4 -0.1 15.4 1.0 1.2 15.4 1.5 0.1 15.7 0.8 -0.8 16.0 0.9 -0.3 16.0 0.5 -0.3 15.8 2.7 2.6 - 0.5 0.4 0.6 0.3 1.5 1.5 1.4 1.9 2.1 1.6 1.4 1.3 1.2 1.3 1.3 0.8 1.1 1.2 3.8 1.2 3.4 -0.8 3.1 -1.0 4.8 0.2 6.2 2.4 6.2 2.5 6.2 2.4 1.0 -0.8 -0.3 0.1 2.4 2.6 1.8 2.4 -1.5 1.1 -2.8 -3.6 -3.4 -2.9 46.0 61.2 60.2 59.5 60.8 62.7 63 582 0.6% in 2001 and forecast of 0.2% in 2002 (European Commission, 2003, Spring Economic Forecasts 2003, European Economy, pp. 49-51. All statistics from this source unless otherwise stated. 124 Public sector transfers 2001 (bn €) Curr. prices % GDP 1981-1998 Annual percentage change 1999 2000 2001 2002 2003 2004 debt (c) (a) as % of civilian labour force. (b) gross saving divided by gross disposable income. (c) as a percentage of GDP. (d) Including proceeds relative to UMTS licences in 2000. The UMTS amount as a % of GDP would be : 2.5%. Source: European Commission, 2003, Spring Economic Forecasts 2003, European Economy, p. 50. Benchmark figures of macroeconomic development in the Federal Republic of Germany1) 2000 INDUSTRIAL ORIGIN of gross domestic product (GDP) GDP at 1995 prices Gainfully employed persons GDP per gainfully employed person GDP per gainfully employed person Unemployment rate in % (Federal Labour Office definition)2) (figures for earlier years see below) GDP by expenditure at current prices Consumption spending Private households and private organisations w/o income General government Gross fixed capital formation Changes in inventories and the like ( K bn ) Domestic demand External balance of goods and services ( K bn ) (in % of GDP) Gross domestic product (nominal) GDP by expenditure at 1995 prices Consumption spending Private households and private organisations w/o income General government Gross fixed capital formation Equipment Buildings Other plant Changes in inventories and the like (GDP growth contribution)3) Domestic demand Exports Imports External balance of goods and services (GDP growth contribution)3) Gross domestic product (real growth) Price trend (1995 = 100) Consumption spending by private households4) Domestic demand Gross domestic product5) DISTRIBUTION of gross national income (residence concept) Compensation of employees Income from self-employment and property National income Gross national income For information (residence concept): Employees Total gross wages and salaries Per employee Disposable income of private households Savings ratio in %6) 2001 2002 Annual Projection: 2003 2,9 1,8 1,1 0,6 0,4 0,1 0,2 -0,6 0,8 1 -0,5 1,5 9,7 9,4 9,8 10 3,0 2,2 3,0 5,2 3,0 7,8 0,4 2,6 3,5 1,6 -5,1 -9,4 0,5 38,6 1,9 2,0 0,9 2,3 - 6,2 -8,0 -0,2 83,8 4,0 2,0 2,5 1,5 0 -6 2 103 5 2,75 1,4 1,2 2,5 9,5 -2,6 8,4 0,2 1,8 13,7 10,5 1,5 0,8 -5,3 -5,8 - 6,0 5,0 -0,6 -0,8 5,0 1,0 -0,5 1,5 -6,4 - 8,4 -5,9 2,5 0,0 - 1,3 2,9 -1,3 0,75 1 -0 1 -1 3,5 0 0,5 4,5 4 1,0 2,9 1,4 0,6 1,5 0,2 0,5 1 1,5 1,2 -0,3 1,9 1,4 1,4 1,4 1,1 1,8 1,5 1,5 1,75 3,9 - 0,2 2,7 2,8 1,9 0,2 1,5 1,7 1,0 4,2 1,8 2,1 2 3,5 2,5 3 1,8 3,5 1,7 2,9 9,8 0,3 2,2 1,9 3,8 10,1 -0,8 0,9 1,7 1,0 10,3 -0,5 2 2,5 2 10 1) Up to 2002 provisional results of the Federal Statistical Office; National Accounts status: January 2003 2) In relation to all gainfully-employed persons 3) Absolute change (inventories/external balance) in per cent of pre-year GDP (= GDP growth rate contribution) 4) Cost of living: 2002 + 1,3 %; 2003: around + 11/2 % 5) Unit labour costs 2002: + 0,9 %; 2003: + 1 % 6) Saving in per cent of private households' disposable income including occupational pension claims Source: Federal Ministry for Economics and Labour (2003): Annual Economic Report 2003, Berlin/Bonn, p. 8. 125 Public sector transfers 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 7.7 8.9 9.6 9.4 10.4 11.4 11.1 10.5 9.6 9.4 9.8 Unemployment rate Source: Federal Ministry for Economics and Labour (2003): Annual Economic Report 2003, Berlin/Bonn, p. 31. In 2001 (2. half) the GDP fall had been greater than expected (decline of - 0.3 % rather than 0.1 %). The first half of 2002 witnessed a slight lift in economic performance also driven by the recovery in the world economy. Nevertheless, late that year, the improvement in growth had failed to go on. Reasons were according to the German government the Middle East crisis and the deterioration in the outlook in the USA. Shares dropped over the past two years and the fiscal stabilisation efforts had a depressing effect on the economic cycle. Additionally, the expenditure of GDP in terms of consumer spending decreased by 0.5 %; while the projection for 2002 had supposed a rise of around 1 %. Higher prices in certain sectors (esp. hotels, catering and services) were perceived as a result of the introduction of euro notes. Thus, consumer purchase fell notably. Wages rose less and employment developed less favourably than expected by the 2002 forecasts. Thus also purchasing power of private households expanded less than foreseen. A decline in investment in plant and equipment and a continuation of the recession in the construction sector were to be witnessed too (decline in investment in plant and equipment of 8.4 %; decline in construction of 5.9 %). The fall of investments in construction was caused by the decrease in overcapacities in the Eastern Länder and the weak domestic economic performance. The growth of exports was more favourable (2.9 %). Parallel to this development the imports fell (- 1.3 %) caused by the weak domestic demand. The net foreign demand (contribution of foreign trade to GDP growth) was higher than expected beforehand (1.5 %).583 “Germany’s strengths … important advantages enjoyed by Germany include: – German companies are internationally competitive. This can be seen from the rise in world market shares in real terms. Germany’s market share of global exports has risen from 9 % in the mid-1990s to 10 %. 1 – Prices are stable in Germany. At an annualised rate of 1.3 %, Germany had one of the lowest inflation rates in the eurozone in 2002. 2 – Unemployment amongst young people remains comparatively low in Germany. In 2002, the unemployment rate of the under-20s stood at 5.4 %, well below the figure for the eurozone. 3 One reason for this is the dual system of vocational training, which enjoys an exemplary international reputation. – Much progress has been made in Germany on the deregulation of the network industries (telecommunications, electricity and gas). Germany is leading the way on this in Europe. This process results in substantial welfare gains for the consumer in the form of price cuts and quality improvements. – Environmental protection has emerged over the last two decades as an important business and competitiveness factor in Germany. In 1998, at least 1.3 million jobs were related to environmental protection (around 3.6 % of all employees). The expansion of renewable energy in particular has resulted in the development of new branches of industry and the safeguarding of existing and the creation of new jobs. – Germany is a pioneer on protecting the climate. In the 1990 to 2001 period, Germany cut its greenhouse gas emissions by 18 %. Only three more percentage points separate Germany from the climate protection objective of 21 % as agreed under the Kyoto Protocol. Sources: 1 Deutsche Bundesbank, 2 Federal Statistical Office, 3 Federal Labour Office“ 584 Show the impact of these changes on macroeconomic variables that influence competitiveness (real and nominal interest rates; etc.) for the last 20 quarters. The interest rates sank from 2.57 % in January 2002 to 1.22% in July 2003. Interest payments/taxation rate at Federal level witnessed an increase from 12.5% in 1991 to 583 584 Federal Ministry for Economics and Labour (2003): Annual Economic Report 2003, Berlin/Bonn. Federal Ministry for Economics and Labour (2003): Annual Economic Report 2003, Berlin/Bonn. 126 Public sector transfers approximately 19.0% in 2003 underlining the general economic trend. The labour rose by an average of 2.8% from 1992 to 2001 and the real unit labour were relatively unstable (varying from -0.1 in 1999 to 1.2 in 2000, cf. table Main Features of country forecast GERMANY585). “Comparing the growth rates of collectively agreed pay and actual pay, since the 1990s Germany has constantly been affected by 'negative wage drift' …. The main reasons for the negative wage drift are a reduction in the level of extra payments awarded at company level and a decline in collective bargaining coverage”586. Interest Rates Changes in relation to the previous year in % % 2003 Jul 1,22 -50,6 2003 Jun 1,97 -23,3 2003 May 1,97 -23,3 2003 Apr 1,97 -23,3 2003 Mar 2003 Feb 1,97 1,97 -23,3 -23,3 2003 Jan 1,97 -23,3 2002 Dec 2,47 2002 Nov 2,47 2002 Oct 2,47 2002 Sep 2,47 2002 Aug 2,47 2002 Jul 2,47 2002 Jun 2,57 2002 May 2,57 2002 Apr 2002 Mar 2,57 2,57 2002 Feb 2,57 2002 Jan 2,57 Period: Jan. 2002 bis Jul. 2003 (last up-date: 27.06.2003) Development of interest payments / taxation rate at Federal level (%) 1 Estimate 2 Projection 1991 12,5 1992 12,4 1993 12,9 1994 14,0 1995 13,6 1996 15,0 1997 16,1 1998 16,4 1999 21,4 2000 19,7 2001 19,4 20021 19,3 Source: Federal Ministry for Economics and Labour (2003): Annual Economic Report 2003, Berlin/Bonn, p. 28. 20032 19,0 585 European Commission, 2003, Spring Economic Forecasts 2003, European Economy, p. 50 Thorsten Schulten (2002): Development of pay and labour costs in 2001 examined, european industrial relations observatory on-line, DE0201201F, http://www.eiro.eurofound.ie/2002/01/feature/DE0201201F.html 586 127 Public sector transfers Germany interest rates composite leading indicator from 1971 Date 12.02 01.03 02.03 03.03 04.03 05.03 96.5 98.4 99.3 99.1 98.3 97.1 Y/Y % 10.6 9.5 7.4 5.0 1.1 -1.4 Copyright © SYZ & CO Bank 2001-03 Germany interest rates composite leading indicator from 1986 Date 12.02 01.03 02.03 03.03 04.03 05.03 96.5 98.4 99.3 99.1 98.3 97.1 Y/Y 10.6 9.5 7.4 5.0 1.1 -1.4 128 Public sector transfers % Copyright © SYZ & CO Bank 2001-03 Components . Date 12.02 01.03 02.03 03.03 04.03 05.03 Germany business cycle Y/Y % 9.2 12.6 12.6 10.5 7.8nbs 100.8 p; 100.6 6.4 98.2 102.0 103.0 102.7 Germany industrial prices cycle Y/Y % Y/Y % 95.1 7.1 94.6 8.8 95.4 7.5 99.3 8.5 95.4 7.0 100.9 9.5 95.3 6.2 101.1 7.7 labor market and costs demand of capital world business competitive cycle environment 100.7 103.7 103.3 103.0 Y/Y % 1.0 3.3 2.7 2.2 90.5 91.9 92.8 93.3 Y/Y % 12.9 15.5 16.5 17.3 95.2 97.8 95.4 95.4 Y/Y % 4.3 5.0 -3.6 -5.3 90.1 87.6 86.7 85.9 Y/Y % -4.5 -9.4 -9.9 -11.0 95.0 3.3 98.5 3.1 103.1 2.1 93.0 19.4 95.6 -13.2 87.7 -8.4 95.1 3.2 97.0 1.1 102.8 1.9 92.1 17.4 96.5 -7.6 87.8 -8.4 Copyright © SYZ & CO Bank 2001-03 German business cycle Copyright © SYZ & CO Bank 2001-03 129 Public sector transfers Germany industrial cycle Copyright © SYZ & CO Bank 2001-03 Prices Copyright © SYZ & CO Bank 2001-03 130 Public sector transfers Labour market and costs Copyright © SYZ & CO Bank 2001-03 Demand of capital Copyright © SYZ & CO Bank 2001-03 131 Public sector transfers Competitive environment Copyright © SYZ & CO Bank 2001-03 Source for all graphs above: http://www.fog-lights.ch/germany_interest_rates.html Actual annual pay and labour costs per employee by sector, 2001 Gross wages and salaries Employers' social security contributions Total labour costs Agriculture, forestry and fishing EUR 17,100 EUR 3,600 EUR 20,700 Industry EUR 32,800 EUR 7,600 EUR 40,400 Construction EUR 23,100 EUR 5,500 EUR 28,600 Trade and transport EUR 21,500 EUR 4,700 EUR 26,200 Financial, renting and business activities EUR 27,400 EUR 6,000 EUR 33,400 Other public and private services EUR 24,300 EUR 6,100 EUR 30,400 In total EUR 25,900 EUR 6,000 EUR 31,900 . Source: Federal Statistical Office 2002. Found in: http://www.eiro.eurofound.ie/2002/01/feature/DE0201201F.html Development of collectively agreed and actual pay, total labour costs and unit labour costs, 1992-2001* Year Collectively agreed pay Actual pay per employee Consumer prices Total labour costs per employee Unit labour costs 1992 11.0% 10.4% 5.0% 10.5% 6.4% 1993 6.5% 4.4% 4.5% 4.1% 3.8% 1994 2.9% 2.0% 2.7% 3.0% 0.5% 1995 4.6% 3.2% 1.7% 3.6% 2.1% 1996 2.4% 1.4% 1.4% 1.3% 0.2% 1997 1.5% 0.3% 1.9% 0.8% -0.7% 1998 1.8% 1.0% 1.0% 1.0% 0.2% 1999 3.0% 1.4% 0.6% 1.2% 0.6% 2000 2.4% 1.6% 1.9% 1.2% -0.2% 2001 2.1% 1.8% 2.5% 1.6% 1.2% * Increases against the previous year. Source: WSI Collective Bargaining Archive (column 2); Federal Statistical Office (columns 3-6). Found in: http://www.eiro.eurofound.ie/2002/01/feature/DE0201201F.html 132 Public sector transfers How well does the macroeconomic policy of the Member State reflect the economic circumstances of the region? Answer in terms of judgements on the appropriateness of the principal instruments of policy, i.e. the interest rate, the fiscal policy stance and the development of wages and prices. The factors outlined above vary according to the economic situation of the Länder, so in low unemployment regions, the current policy may be justified, but not in more high unemployment regions. In addition even previously prosperous regions seem to be having problems at the moment. The German macroeconomic policy did not have positive effects on the economic circumstances of the country and the Länder (esp. Eastern Länder here esp. the construction sector and the high unemployment rate (twice as high as in the rest of the Republic)), as the economic growth has over a long period been extremely low. Thus, structural change and economic competitiveness is hampered. The constantly high level of non-wage labour costs enduringly hampers job creation and economic growth. Also the increase in actual pay per employee in some years only covered the increase in consumer prices, so that private consumption could not be stimulated. Even national tax reforms, which are still ongoing, could not change the bad economic performance. Germany faced a sharp tax decline and tax estimates for 2002 and 2003 had to be revised downwards and thus the general government deficit has reached 3.6% of GDP in 2002. This sharp tax decline and the high number of persons receiving social benefit payments, which are financed exclusively by the communes/municipalities, thus worsens the financial situation of these lower tiers of government in Germany. The planned advanced start of the second step of the tax reform (1 January 2004) will impact the situation of the Länder and communes/municipalities insofar as it is supposed to offer relief to the tense financial situation of the German communes communes/municipalities with the so called municipal finance reform (‘Gemeindefinanzreform’), which was actually foreseen for 2005. This reform focuses on the areas enlargement of the basis for the trade tax (supposed increase: 3,9 bn. €) o extension on freelancers, such as lawyers, etc. o extension of the calculation base for trade tax to more independent factors of calculation such as tenures, rentals, leasing fees, interests etc. tax burden on SME to be reduced.587 Nevertheless, Länder politicians emphasise that the advancement of the tax reform will also negatively impact on the financial situation of the municipalities as it will offer also other tax relieves, which will reduce communal budgets (e.g. cuts in state aid for hard coal to cofinance tax relieves will negatively impact on Nordrhein-Westfalen). Also the Agenda 2010 is supposed to strengthen the financial situation of the communes with the merger of unemployment and social benefit, which will then be covered by the Federal budget via the Federal Employment Service (‘Bundesanstalt für Arbeit’). Relief is supposed to make up several (ca. 7) bn. €. Part of this relief is already foreseen to increase child care facilities at regional level. For meeting the targets of the Stability and Growth pact, the Federal government in March 2002 set up a national stability pact with the Länder, which aims at guaranteeing the obedience to budget discipline by the all state levels. The change of the act on budgetary 587 Even though a commission was set up to present reform proposals for the municipal finance reform no agreement could be found and on 3th July 2003 talks terminated without any result. Nov the government has to present their own law proposal without the suggestions of the experts of the commission. The proposal is foreseen to be submitted to parliament in August 2003. 133 Public sector transfers principles adopted in December 2001, which was necessary because of the reform of the financial equalisation system, imparts a procedure for the domestic implementation of the European Stability and Growth Pact and thus transfers responsibility in this sector also to the Länder. The different state levels thus “…agreed in particular that the expenditure of the Federal Government for 2003 and 2004 should be cut by an average of 0,5 % a year. The Länder and municipalities will restrict the annual growth in their expenditure to an annual average of 1 % in the two years. The Financial Planning Council expressly confirmed this policy in November 2002. The Federal Government, the Länder and the municipalities agree on the shared objective of cutting the overall budget deficit to back below 3 % of GDP in 2003 and on presenting a balanced state budget by 2006.” 588 As inflation is rather low in Germany (1.4% in 2002: expected to fall to 1.3% in 2003 and 1.2% in 2004) the real interest rates remain below the Euro area average. Nevertheless, the recent decrease in interest rates could support economic growth by a possible increase of consumption. The stimulation of economic growth will depend largely on domestic stimuli. “However, domestic impulses are likely to remain weak, because, as a result of the prolonged three-year stagnation and the strong fall in stock market values, many companies need to consolidate their balance sheets before being able to embark on major investment programmes. The situation is aggravated by rising levels of bad debt and losses in the German financial sector, which limit its lending capacity, in particular to small and medium-size enterprises. As a result, an economic recovery in Germany is likely to again lag behind those of other European countries.”589 588 589 Federal Ministry for Economics and Labour (2003): Annual Economic Report 2003, Berlin/Bonn, p. 36. European Commission, 2003, Spring Economic Forecasts 2003, European Economy, p.49. 134 Public sector transfers 2 Public expenditure For those central government policies which have an identifiable regional incidence, supply data on the amount spent in each region. Please try to construct a table showing flows by policy area and by region for a recent ‘benchmark’ year and for an earlier year (five to ten years previously). [Note: Typically, national policies with an identifiable regional incidence will include areas such as social protection, infrastructure development and education. It is recognised that there will not be a meaningful breakdown of the likes of defence or overseas aid spending.] Most public expenditure for national policies have also an identifiable regional incidence even if the impact of those policies sometimes cannot be related to a special regional action or target plan. Federal public expenditure thus covers different aspects that influence regional development. Most important areas are budget headings for economic development, infrastructure, agriculture and education/research.590 Nevertheless, given the multitude of public expenditure implications one single table is hard to be constructed. (1) Labour market policy o Measure have an financially balancing impact, as structurally strong Länder with a huge number of contributor support areas with structural problems and a the number of recipients of unemployment compensation Federal budget for the overall national policy area (mio €):591 Labour market policy 2001 15 106 2002 (planned) 15 316 2003 (planned) 11 781 Budget of the Federal Employment Service in 2002 (1000 €)592 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 4.757.212 6.392.711 3.281.299 3.172.460 539.506 1.075.271 3.085.652 2.362.119 4.533.744 10.247.968 1.967.644 588.552 5.313.406 3.536.816 1.798.227 2.917.971 590 Bundesamt für Bauwesen und Raumordnung (2000): Indikatoren und Karten zur Raumentwicklung, Berichte, p. 226. Bundesministerium der Finanzen (2001): Finanzplan des Bundes 2002 bis 2006, Berlin, p. 13. 592 Bundesanstalt für Arbeit (2003): http://www.pub.arbeitsamt.de/hst/services/statistik/detail/i.html 591 135 Public sector transfers This heading includes also the GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’) 593 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Approved funds by GA in mio € 1998 1999 2000 19,6 7,1 1 42,2 27,8 5,3 133,1 186,5 66,2 3,4 4,9 0,3 17,6 10,1 6,8 114,4 110,4 1,5 43,6 75,3 43,2 35,3 11,7 28,2 4,8 3,4 355 184,5 3 341 4,3 4,3 225,2 110,8 4 94,9 3,4 28,5 9 2 23,2 (2) Research and development policy o High relevance for regional and national competitiveness o Therefore Federal level and Länder share financial support under art. 91b GG (see chapter on technology policy) Federal budget for the overall national policy area (mio €):594 Research and development policy 2001 10 667 2002 (planned) 11 025 2003 (planned) 11 573 Actual Federal R&D expenditure by Land / performance of R&D595 1997 1998 1999 2000 mio € % mio € % mio € % mio € % Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg 1 144.4 1 570.3 721.4 243.0 157.8 314.4 15.5 21.3 9.8 3.3 2.1 4.3 1 288.5 1 345.8 706.6 249.2 179.0 295.7 17.5 18.3 9.6 3.4 2.4 4.0 1 181.5 1 287.7 716.3 246.7 198.1 312.3 16.3 17.7 9.9 3.4 2.7 4.3 1 185.4 1 269.2 738.8 245.3 202.3 324.0 15.9 17.1 9.9 3.3 2.7 4.4 593 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.225. 594 Bundesministerium der Finanzen (2001): Finanzplan des Bundes 2002 bis 2006, Berlin, p. 13. 595 Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p- 161. 136 Public sector transfers Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 376.8 99.4 5.1 1.3 349.6 126.4 4.8 1.7 361.4 127.3 5.0 1.8 383.9 126.8 5.2 1.7 514.6 1 237.0 115.7 38.4 360.0 150.0 206.9 124.5 7.0 16.8 1.6 0.5 4.9 2.0 2.8 1.7 539.8 1 250.2 122.1 48.8 352.4 151.4 219.0 134.9 7.3 17.0 1.7 0.7 4.8 2.1 3.0 1.8 543.1 1 236.6 118.7 36.4 394.4 156.9 211.2 138.0 7.5 17.0 1.6 0.5 5.4 2.2 2.9 1.9 613.4 1 285.3 127.7 41.0 398.0 158.9 202.2 136.3 8.2 17.3 1.7 0.6 5.4 2.1 2.7 1.8 Federal financial aid to the Länder in this area (mio €)596 Baden Württemberg Bavaria Berlin Berlin (West) Berlin (East) Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Education/Research acc. to Art 91b GG 2001 2002 17,5 7,1 20,7 7,9 41,6 17,8 46,7 1,1 4,1 10,0 39,2 12,6 26,0 6,0 1,6 58,4 30,7 3,6 31,1 21,5 0,6 1,7 4,2 18,6 4,9 12,4 2,6 0,7 25,8 18,8 1,6 16,1 Support for research institutes (1000 €) 2001 2002 23.139 13.701 23.894 13.346 22.836 36.735 43.148 1.177 16.713 12.932 16.313 15.237 24.113 3.299 5.243 50.404 23.760 26.482 5.021 23.189 41.599 35.158 1.229 18.573 14.026 17.153 19.086 26.445 3.436 5.410 51.993 24.223 24.972 4.401 This budget heading includes also the GA for building and maintenance of Universities (GA ‘Hochschulbau’) GA for building and maintenance of Universities (GA ‘Hochschulbau’) Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Federal grants for building and maintenance of Universities, etc (mio €)597 1998 1999 2000 2001 142 157 140 162 155 182 176 167 56 49 50 49 42 40 33 40 7 13 13 17 28 33 27 34 32 40 41 46 596 Data provided by the central data collection archive of the Länder finance ministries / Zentrale Datenstelle der Landesfinanzminister 597 Planungsausschuss für den Hochschulbau (2002): 32. Rahmenplan für den Hochschulbau nach dem Hochschulbauförderungsgesetz 2003–2006, Berlin, p. 29. 137 Public sector transfers Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 38 41 36 44 53 133 43 147 69 173 78 185 40 11 69 53 26 36 40 12 96 59 27 44 36 15 88 58 26 40 42 17 109 63 29 50 (3) Different infrastructure policy related to cities o Targeted Federal support for the structural development of cities o Total volume of 433 mio €, of which 92 mio € are earmarked fort he old Länder (2000: 41 mio €) 265 mio € fort he new Länder (2000: 265 mio €) 76 mio € earmarked for the programme ‚city districts with special need for renovation – the social city’ Federal budget for 2001598 1000 € Baden Württemberg Bavaria Berlin (East) Berlin (West) Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 13519,9 15937,2 23413,2 4002,6 44027,2 1240,0 2556,7 8265,1 30387,3 10607,2 24179,8 5756,9 1567,9 79779,3 46255,5 4297,2 41714,2 % of the budget for East / West German Länder 14,7 17,3 8,8 4,4 16,6 1,4 2,8 8,9 11,4 11,5 26,3 6,3 1,7 30,1 17,4 4,7 15,7 598 http://www.raumplanung.uni-dortmund.de/fhp/folien%20blockseminar.pdf, Source: Verwaltungsvereinbarung über die Gewährung von Finanzhilfen des Bundes an die Länder nach Artikel 104a Absatz 4 des GG zur Förderung städtebaulicher Maßnahmen, 27.04./01.08.2001. 138 Public sector transfers Federal financial aid to the Länder in this area (mio €)599 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia General financial support law acc. to Art 104a Abs.3 GG 600 2001 2002 228,2 271,0 263,1 304,8 222,8 259,0 120,5 126,7 48,3 53,9 100,3 102,0 178,8 221,4 99,4 108,3 311,6 347,0 711,1 803,7 110,1 116,3 35,6 40,1 238,2 250,5 132,8 135,0 116,3 132,0 109,7 113,8 General financial support law acc. to Art 104a Abs.4 GG 601 2001 2002 306,6 272,4 354,5 361,8 806,7 223,7 640,2 198,5 21,4 25,6 55,6 48,2 150,0 141,7 699,9 220,6 204,9 186,4 465,4 484,3 107,6 97,5 41,2 27,1 444,7 731,1 314,9 72,0 67,7 663,5 214,4 (4) Agricultural policy o Special responsibility for the rural area Federal budget for the overall national policy area (mio €):602 Agricultural policy 2001 1 483 2002 (planned) 1 450 2003 (planned) 1 364 599 Data provided by the central data collection archive of the Länder finance ministries / Zentrale Datenstelle der Landesfinanzminister 600 This headline covers rental support for social housing, financial support for students and pupils, etc. 601 This headline covers support for social housing, city infrastructure, communal traffic support measures, etc. 602 Bundesministerium der Finanzen (2001): Finanzplan des Bundes 2002 bis 2006, Berlin, p. 13. 139 Public sector transfers This heading includes also the GA for the support of agricultural structure and coastal protection (‚Förderung der Agrarstruktur und des Küstenschutzes’) Approved funds by GA603 (1998: entire grants, to be split. 60% Federal level, 40% Länder; 2002: mio € only planned Federal Grants) 1998 (mio DM) 2000 (mio €)604 2002 (mio € ) 605 Baden Württemberg Bavaria Berlin West East Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 255,730 480,927 166, 276 313, 522 0, 367 89,832 167,730 0,326 2,654 301,333 7,275 25,310 109,852 255,379 153, 721 1, 898 25, 075 60, 429 130, 766 76,887 1,714 9,934 41,197 69,143 359,133 170,453 137,204 17,342 189,908 193,700 136,067 174,584 240, 919 111, 013 84, 440 10, 562 95, 262 91, 238 85, 289 88, 298 111,681 61,041 47,905 5,771 51,089 52,595 36,300 46,100 Public expenditure impacting on regional development nevertheless mainly relate to the different common competencies/tasks (‘Gemeinschaftsaufgaben’). Thus, central government support instruments which have an identifiable regional incidence in Germany are: GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’) (see chapter on territorial policies) (see above) GA for the support of agricultural structure and coastal protection (‚Förderung der Agrarstruktur und des Küstenschutzes’) (see chapter on territorial policies) (see above) GA for building and maintenance of Universities (GA ‘Hochschulbau’) (see above) GA special programme ‘flood’ (‘Hochwasser’) (see chapter on territorial policies) 2002-2003 1.75 mio € 5% 0.35 mio € 1% Bayern Brandenburg 603 Ministerium für Landwirtschaft, Ernährung und Verbraucherschutz: Gemeinschaftsaufgabe "Verbesserung der Agrarstruktur und des Küstenschutzes" (o.Sonderrahmenplan) Verteilung der Ist-Ausgaben auf Maßnahmengruppen sowie nach Ländern in Mio DM in den Jahren 1973 – 1998, http://bmvel.zadi.de/gak/strukturbericht/tab-31.pdf 604 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005. 605 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005, p.89. 140 Public sector transfers MecklenburgVorpommern Niedersachsen Sachsen Sachsen-Anhalt Thüringen Riserve 0.35 mio € 1% 0.35 mio € 21 mio € 5.25 mio € 0.35 mio € 5.6 mio € 1% 60% 15% 1% 16% Other Federal financial aid to the Länder (mio €)606 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Other financial support607 2001 2002 272,3 250,7 511,8 501,6 356,7 342,5 66,0 68,5 23,5 20,4 71,1 79,9 250,7 240,4 57,4 49,7 267,7 433,3 873,5 711,5 433,3 417,5 22,7 20,4 65,0 110,8 54,9 49,8 100,4 102,9 39,6 32,9 The so called Supplementary federal grants within the financial equalisation scheme (see chapter on public sector transfer) Baden-Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg-Western Pomerania Lower Saxony North Rhine-Westphalia Rhineland-Palatinate Saarland Saxony Saxony-Anhalt Schleswig-Holstein Thuringia Supplementary federal grants (mio €) 2000 2001 1 955 1 925 1 375 1 358 987 870 1 030 1 017 970 658 750 2 345 1 493 406 1 370 899 550 612 2 313 1 473 219 1 352 606 Data provided by the central data collection archive of the Länder finance ministries / Zentrale Datenstelle der Landesfinanzminister 607 Including consequences of war, special support for Eastern Länder, special support for Berlin, other special financial measures 141 Public sector transfers 13 339 Total 12 637 Different state aid instruments (see chapter on state aid) 608 Title of financial aid Planned budget 2002 in mio € Marketing of German hard coal GA agricutltural structure (without coastal protection) Social housing Interest subsidies for housing modernisation in the framework of the ‚KfW’ for the Eastern Länder Subsidies for the Eastern Länder for investments in industrial companies, GA of the development of the regional economic structure Premium according to housing/house construction premium law Subsidies for providers of agricultural accidents insurance Interest subsidies to the ‚KfW’ for building modernisation / renovation to avoid C O2emissions Subsidies to take on agricultural employees Indirect support of research and start ups Adaptation support for employees in hard coal mining sector Measures to support SME and freelancers as well as to strengthen vocational training Subsidies to the Federal monopoly administration for spirits Subsidies for the West Länder for investments in industrial companies, GA of the development of the regional economic structure Research and development in the Eastern Länder Interest subsidies and reimbursement of loss in loans in the framework of the own capital support programme for self-employment Support of single measures fort he use of renewable energies Support of the industrial common research and development Pension for handing over land (‚Landabgaberente ‘) Financial support for selling of civil air plains including power plants Total in % of financial aid of the federal level 2.929 708 675 614 595 500 256 205 171 137 121 117 108 105 103 101 99 88 87 78 7.796 94,9 Also the co-financing (by national, Länder and district funds) of European funds 2000-2006 (regional development programmes) falls within the area of public expenditure/public sector transfer, even though it cannot attributed directly to the national budget:609 2000-2006 (mio €) ERDF Objective 2 Objective 2 Objective 2 Objetive 1 Objetive 1 BadenWürttemberg Bavaria Western part of Berlin Eastern part of Berlin Brandenburg ESF EAGGF Total EU contribution EU contribution % EU contribution % EU contribution % 1160.366 97.769 97.769 100% - - - - 2200.882 1179.189 536.638 384.449 475.804 244.125 88.66% 63.50% 60.834 140.324 11.34% 36.50% - - 2120.302 687.558 517.858 75.32% 162.663 23.66% 7.037 1.02% 6733.047 3090.223 1639.26 53.05% 730.66 23.64% 720.302 23.31% 608 Bundesministerium der Finanzen (2001): Achtzehnter Subventionsbericht. Bericht der Bundesregierung über die Entwicklung der Finanzhilfen des Bundes und der Steuervergünstigungen für die Jahre 1999 –2002 Achtzehnter Subventionsbericht, http://www.bundesfinanzministerium.de/Anlage11114/18-th-Subsidies-report-of-the-FederalGovernment-Summery.pdf, http://www.bundesfinanzministerium.de/Anlage6737/18.-Subventionsbericht-derBundesregierung.pdf, p 19. 609 http://europa.eu.int/comm/regional_policy/country/prordn/search.cfm?gv_pay=DE&gv_reg=ALL&gv_obj= ALL&gv_the=ALL&LAN=EN 142 Public sector transfers Objective 2 Objective 2 Objective 2 Objective 2 Objetive 1 Objective 2 Objective 2 Objective 2 Objetive 1 Objetive 1 Objective 2 Objetive 1 Bremen Hamburg Hesse Lower Saxony MecklenburgWestern Pomerania North RhineWestphalia RhinelandPalatinate Saarland Saxony SaxonyAnhalt SchleswigHolstein Thuringia 354.659 12.384 542.379 1492.457 113.034 6.192 183.519 733.953 113.034 6.192 183.519 682.254 100% 100% 100% 92.96% 51.699 7.04% - - 5493.088 2455.750 1100.19 44.80% 613.47 24.98% 742.09 30.22% 3598.623 970.361 823.62 84.88% 146.741 15.12% - - 1402.927 170.677 158.877 93.09% 11.8 6.91% - - 981.785 11240.40 8697.414 171.089 4858.610 3360.445 130.841 3057.598 1908.342 76.48% 62.93% 56.89% 40.248 1098.191 715.254 23.52% 22.60% 21.32% 702.821 730.849 14.47% 21.79% 831.107 258.319 221.747 - - 10018.45 2886.137 539.147 18.68% 1480.29 85.84% 51.29% 36.572 866.7 14.16% 30.03% 143 Public sector transfers 3 Territorial policies General description610 German territorial or regional policy (‘Regionalpolitik’) is part of the overall economic and spatial structural policy (‘Raumordnungspolitik’). The main tasks are to support the development of economically weak regions, the optimal development of all German regions, equalisation of the different technological standings, support optimal living and working conditions in Germany. Its main aims are state influence in the economic structure and development of the German territory, support of the regional economic power and optimal use of production resources, support of structural change as well as equalisation of the differences on the different economic areas and development of economically weak regions. According to art. 30 of the German constitution regional economic support falls under the competence of the Länder. Thus, the Länder implement their own regional policies. Nevertheless, since the 1969 the Federal level and the Länder have also shared responsibilities according to Art 91a with a view to territorial policy, the so called common tasks (‘Gemeinschaftsaufgaben’, GA). The following GA are the principal policy instruments used to support ‘territorial’ economic development: GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’) GA for the support of agricultural structure and coastal protection (‚Förderung der Agrarstruktur und des Küstenschutzes’) GA special programme ‘flood’ (‘Hochwasser’) In the context of these GA the Federal and the Länder level share costs (50%-50%). The framework programme (3 year duration) for the implementation of these GA is set up jointly each year by the Federal and the Länder level. The responsible ministry at the Federal level is the Ministry for Economics and Labour. GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’) Complementary to EU target 2 regions Based on Art. 91 a German constitution The federal level contributes within this GA to the regional development of the Länder The Länder set their own funding priorities Supported areas have to set up integrated regional development concepts including most important measures for the regional development o On the base of these development concepts the Länder decide about the overall funding priorities Supported fields: o Investments in producing and processing industries (‘gewerbliche Wirtschaft’) For: Setting up or enlarging company sites Modernisation of company sites Acquisition of lying idle company sites 610 http://www.bmwi.de/Navigation/Wirtschaft/Wirtschaftspolitik/regionalpolitik.html, Andrea Hoppe (2000): Die Implementation der europäischen Regionalpolitik im Vergleich Deutschland und Großbritannien. Das Beispiel der Informations- und Beratungsleistungen für kleine und mittlere Unternehmen in NRW und der englischen Region North West, Bochum. 144 Public sector transfers Development of business related infrastructure (up to 90% of eligible costs) Partly: o Counselling services o Training measure o Investments in human capital o Applied research and development company level with ‘supra-regional’ performance Including tourism Support for the creation of tele-workplaces Obligation to secure or/and create employment, which has to last for at least five years after the termination of financial support improvement of the income levels aims of the spatial structure (‘Raumordnung’) have to be obeyed to projects have to avoid harmful emission and correct waste treatment has to be guaranteed o Development of the ‘economy supporting’ infrastructure (‘wirtschaftsnahe Infrastruktur’ in weak regions) LIMITED support for: o Processing industry concerning agriculture and fishery o Iron and steel processing industry o Shipyards o Automotive industry NOT supported fields: o Agriculture, fishery (if not processing) o Mining, processing of stones, earth o Energy and water supply o Building trade o Transport and storage business o hospitals Supported areas (since 2000) o Have to be below the German average o Defined alongside 170 labour market regions o To be distinguished between different areas: o A-areas (A-Fördergebiete) Strong development disparity According to art. 87, 3a TEC Maximum support levels for: SME: 50% Others: 35% o B-areas (B-Fördergebiete) Very serious structural problems Labour market region Berlin According to art. 87, 3a TEC Maximum support levels for: SME: 43% Others: 28% o C-areas (C-Fördergebiete) Very serious structural problems According to art. 87, 3c TEC Maximum support levels for: 145 Public sector transfers SME: 28% Others: 18% o D-areas (D-Fördergebiete) Very serious structural problems Based on the EU framework of state aid for SME According to art. 87, 3c TEC Maximum support levels for: SE: 15% ME: 7,5% Others: max. 100.000 € for three years Duration of support: max. 36 months Procedure611: o Financial means are granted as additional funding on application o The Länder decide on granting the financial support control the adherence to funding principles can set regional support priorities o The Federal Ministry for Economics and Labour has to be informed on the grants on a monthly base. Implementation lies with the Länder General overview on GA grants 1998 - 2002612: Industrial branch Processing industry Tourism Trade Service sector Building trade Others 26.131 mio € 2.302 mio € 880 mio € 892 mio € 247 mio € 2.031 mio € 80% 7% 3% 3% 1% 6% Business/industry supporting infrastructure (1991-2001) Totally For tourism For Industrial sites For traffic links For vocational training, For supply services For the restructuring of lying idle sites Other infrastructure measures 16,4 mio € 33% 20% 18% 8% 3% 2% 16% 611 32. GA Framework programme, part II, to be downloaded under http://www.bmwi.de/Navigation/Wirtschaft/Wirtschaftspolitik/regionalpolitik.html 612 http://www.bmwi.de/Navigation/Wirtschaft/Wirtschaftspolitik/regionalpolitik.html 146 Public sector transfers Results of the regional economic support 1991 until 2000 under the GA - Number of projects (funded by GA budget for industrial sector and infrastructure; Federal funding)613 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 1991 54 336 482 8 52 289 1992 40 338 406 25 46 571 1993 36 279 1133 13 29 902 Number of projects 1994 1995 1996 1997 48 54 35 34 256 253 279 282 873 632 663 674 6 8 3 9 27 25 15 28 680 605 420 394 1998 10 300 430 3 48 285 1999 12 241 602 4 49 432 2000 4 92 29 2 36 17 395 467 316 390 270 182 156 142 176 114 149 131 218 232 176 96 183 75 55 139 99 118 1191 664 48 536 127 96 1802 737 28 1014 84 95 1694 492 20 1928 97 82 1442 322 9 2307 93 74 1324 388 5 735 58 71 1274 383 19 917 86 61 1107 417 9 1000 49 11 1228 416 15 930 30 9 1275 388 9 613 24 277 52 10 241 Results of the regional economic support 1991 until 2000 under the GA - Investments in mio € (funded by GA budget for industrial sector and infrastructure; Federal funding)614 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 1991 424 716,4 2752,9 7,9 78,2 961,6 1992 392,9 339,2 1125,4 52,5 95,8 1384,5 1993 155,3 734,6 2084,6 48,6 37,8 1203,8 Investments in mio € 1994 1995 1996 199,7 209,9 155,5 824,9 274,9 245,9 2686,7 918,7 1276,3 34,1 22,3 7,3 30,3 40,6 15,5 1200,8 621 632,2 1997 272,7 606,0 880,8 77,9 424,7 538,5 1998 169,2 172,8 477,6 27,3 137,4 417,1 1999 160 144,5 742,2 4,6 80,9 425,7 2000 10,4 26,8 251,6 2,1 45,7 5,1 952,4 1997,4 804,8 805,6 545,6 555,4 482,4 477,2 592,8 524,6 333,5 414,9 574,4 682,3 792,1 735,5 398,6 275,7 95,1 201,8 232,9 232,4 2749 2670,5 169,8 2650,1 347 392,2 4467,9 2376,9 52,3 1979,6 168,5 249,7 2456,2 3586,9 71,2 2722,1 221,9 301,6 4564,0 1050,9 82,8 2513,6 153,1 112,4 1818,8 1325,1 34,5 192,6 100,6 275,3 1577,9 1862,2 136,9 1171,6 178,2 114,1 1406,9 617,8 68 752,1 38,1 22,6 1243,6 635,3 23,9 1283,8 34,6 32,1 878,1 423 35,3 498,8 28,8 107,2 33,4 15,7 121,5 613 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.225. 614 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.225. 147 Public sector transfers Results of the regional economic support 1991 until 2000 under the GA - Approved funds by GA in mio € (funded by GA budget for industrial sector and infrastructure; Federal funding)615 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Approved funds by GA in mio € 1994 1995 1996 1997 22,7 12,9 18,9 24,3 139,7 51,7 70,6 100,9 576,3 153,1 267,8 214,3 4,8 3,1 1,3 9 2,6 4,8 2,1 10,7 229,6 126,6 167,5 153,8 1991 47,9 134,8 538,4 1 6,2 168,5 1992 31,3 59,1 220,3 4,9 5,6 270,7 1993 12,5 121,3 383,1 6 2,9 189,5 1998 19,6 42,2 133,1 3,4 17,6 114,4 1999 7,1 27,8 186,5 4,9 10,1 110,4 2000 1 5,3 66,2 0,3 6,8 1,5 80,1 121,4 62,3 70,7 44 62,5 38,8 50,5 44,4 61,7 40,9 39,4 62,7 66,2 43,6 75,3 43,2 35,3 11,7 28,2 25,4 29,2 29,5 61,9 17,1 33 18 45,2 13,9 16,3 6,9 38,9 16,7 18 4,8 3,4 4,3 4,3 3,4 464,9 477,9 9,6 538,3 608,9 446,6 2,6 368,6 380,2 489,6 5,6 491 707,7 193,5 9,7 428 392.6 291.4 3 250.6 467,5 523,3 17,1 375 396,9 189,2 8,4 252,6 355 184,5 3 341 225,2 110,8 4 94,9 28,5 9 2 23,2 Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Results of the regional economic support 1991 until 2000 under the GA (funded by GA budget for industrial sector and infrastructure; Federal funding)616 Industrial Branch Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Infrastructure Investments in mio € Number of projects Approved funds by GA in mio € Investments in mio € Number of projects Approved funds by GA in mio € 514,9 1 846,8 2 962,9 73,7 438,9 1 691,5 61 1 244 1 418 22 243 881 63,3 326,1 755,6 12,9 61,3 472,8 3,8 203,0 378,3 42,6 49,8 567,1 10 103 102 11 50 268 1,1 159,0 248,6 32,5 27,2 423,3 1 710,3 1 558,5 825 366 201,5 195,1 229,1 117,6 113 14 110,8 53,7 168,9 257,6 7 655,1 5 007,2 92 103 3 502 1 501 25,4 36,4 1 529,2 1 122,9 6,2 1,8 528,2 604,9 3 2 402 107 1,8 1,3 382, 7 414,5 615 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.225. 616 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.29. 148 Public sector transfers Industrial Branch Infrastructure 166,0 60 19,4 103,0 38 53,5 4 742,7 23 906,2 2 405 10 951 1 015,6 5 222,2 357,5 2 639,0 145 1 127 278,0 1 906,1 Schleswig Holstein Thuringia Total Results of the regional economic support 2000 to 2002 under the GA (funded by GA budget for industrial sector and infrastructure; Federal funding)617 City/District Industrial Branch Investments in mio € Bad Kissingen Cham Freyung-Grafenau Hof Hof city Passau Passau city Regen Tirschenreuth Wunsiedel i. Fichtelgebirge Total Berlin (Ost) Berlin (West) Total Barnim Brandenburg St Cottbus St Dahme-Spreewald Elbe-Elster Frankfurt/Oder St Havelland Märkisch-Oderland Oberhavel OberspreewaldLausitz Oder-Spree Ostprignitz-Ruppin Potsdam St. Potsdam-Mittelmark Prignitz Spree-Neiße Teltow-Fläming Uckermark Total Bremen St. Bremerhaven St. 90.1 25.7 59,2 24,3 170,6 12,7 49,4 49,3 33,6 514,9 732,3 1 114,5 1 846,8 89,5 145,6 53,1 117,2 129,7 18,8 133,9 138,9 320,4 423,6 146,7 207,9 115,0 155,4 100,9 162,6 387,8 115,9 2 962,9 10,2 63,5 Number of projects Infrastructure Approved funds by GA in mio € Investments in mio € Regional programme Bayern 11 9.1 4 2.6 10 9,1 7 4,3 11 20,4 4 1,7 3 4,9 5 6,4 6 4,8 Number of projects Approved funds by GA in mio € 1 4 2 1 2 - 0.1 0, 0.1 0,3 0,3 - 10 1,1 73 30 103 114,5 44,5 159,0 12 2 1 3 13 1 4 1 6 9 26,2 16,9 0,1 13,6 33,0 34,6 2,4 0,7 9,5 33,7 20,0 1,1 2,8 9,1 11,9 30,7 49,3 14,9 378,3 11 3 2 9 7 4 6 8 102 13,5 0,7 1,9 6,4 4,8 10,1 30,2 10,3 248,6 27,0 15,6 5 6 20,6 11,9 0.3 9.1 0.3 1,7 0,5 - 61 63,3 3,8 Regional programme Berlin 562 128,6 146,8 682 197,5 56,2 1 244 326,1 203,0 Regional programme Brandenburg 89 23,0 41,2 36 39,1 23,1 53 18,2 0,2 67 31,5 19,4 103 29,1 46,5 34 6,8 43,3 69 35,1 3,5 78 28,9 1,4 95 65,5 15,1 78 119,8 44,8 148 45,2 79 51,6 62 41,4 95 35,3 68 22,4 91 44,1 114 75,2 59 43,4 1 418 755,6 Regional programme Bremen 9 1,7 13 11,2 617 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.216. 149 Public sector transfers Total 73,7 22 City/District 12,9 42,6 Industrial Branch Investments in mio € Number of projects 11 32,5 Infrastructure Approved funds by GA in mio € Investments in mio € Number of projects Approved funds by GA in mio € Hersfeld-Rotenburg Kassel Kassel St. Schwalm-Eder-Kreis Vogelsbergkreis Waldeck-Frankenberg Werra-MeissnerKreis Total 46,8 74,0 54,5 106,3 27,9 49,2 Regional programme Hessen 23 6,1 35 12,6 41 10,9 42 14,0 33 3,2 37 4,5 2,3 11,5 0,6 8,5 13,9 6,3 5 9 1 16 4 10 1,5 4,0 0,4 4,9 8,7 3,9 80,2 32 6,7 5 3,8 50 27,2 Bad Doberan Demmin Greifswald St. Güstrow Ludwigslust MecklenburgStrelitz Müritz Neubrandenburg St. Nordvorpommern Nordwestmecklenburg Ostvorpommern Parchim Rostock St. Rügen Schwerin St. Stralsund St. Uecker-Randow Wismar St. Total 116,8 121,2 39,0 120,2 219,7 20,1 13 13 1 13 21 9 21,5 7,5 3,1 16,9 19,6 3,6 23,1 14,6 21,4 10,4 16 8 26 18 16,3 10,7 16,1 6,3 101,0 48,9 238,2 72,2 48,9 27,6 18,2 28,6 1 691,5 32 12 25 24 14 5 8 10 268 54,1 16,8 68,5 30,5 43,9 20,3 5,9 61,7 423,3 Ammerland Aurich Braunschweig St. Celle Cloppenburg Cuxhaven Delmenhorst St. Emden St. Emsland Friesland Goslar Göttingen Grafschaft Bentheim Hameln-Pyrmont Helmstedt Hildesheim Holzminden Leer Lüchow-Dannenberg Lüneburg Nienburg (Weser) Northeim 32,2 44,5 49,2 131,2 104,4 52,4 18,0 18,4 68,8 73,2 80,0 185,4 54,7 95,6 20,7 77,7 12,5 77,7 13,3 37,3 14,8 53,9 83 35,7 65,6 50 11,7 22,6 70 67,8 98,2 45 26,7 42,5 39 11,8 57,5 14 8,0 26,0 29 5,5 7,7 16 6,0 77,8 881 472,8 567,1 Regional programme Niedersachsen 18 4,6 0,7 28 7,0 12,4 33 5,7 10,2 46 16,0 2,0 38 13,5 9,8 30 7,5 26,5 12 1,8 5,4 5 2,7 4,2 28 6,9 48,5 10 4,7 3,7 34 11,4 5,6 45 21,1 9,8 30 7,4 6,3 34 8,2 3,9 16 3,3 78 7,7 11,9 12 1,4 1,0 34 10,0 10,6 14 2,0 0,4 36 3,5 6,0 14 1,3 2,3 35 6,8 0,7 1 5 1 4 4 10 3 2 16 2 4 5 6 1 0,3 4,4 5,7 1,0 4,3 13,9 2,5 2,0 29,0 1,6 2,7 4,6 2,5 1,8 438,9 118,8 65,3 94,9 191,9 10,0 243 61,3 49,8 Regional programme Mecklenburg-Vorpommern 75 31,4 28,6 27 40,0 9,6 25 15,5 4,1 56 35,7 23,7 84 41,4 28,0 42 6,4 5,7 75 48 47 56 39,7 14,8 27,6 47,1 - - 9 2 5 1 7 3 2 4,8 0,5 5,0 0,1 2,5 0,7 0,3 150 Public sector transfers Oldenburg Oldenburg St. 5,0 36,9 City/District Bottrop St. Dortmund St. Duisburg St. Gelsenkirchen St. Hagen St. Hamm St. Heinsberg Herne St. Krefeld St. Mönchengladbach St. Oberhausen St. Recklinghausen Unna Wesel Summe 19,5 137,6 6,7 18,1 20,6 27,7 80,6 18,1 14,0 9,6 1 710,3 10,6 189,0 295,7 48,2 73,8 142,0 145,2 21,6 - - - 6,9 1 1,4 Number of projects Infrastructure Approved funds by GA in mio € Investments in mio € 24 2,4 4,7 37 18,0 15 0,7 12 1,9 0,6 20 2,2 2,5 24 3,4 2,2 18 10,4 23,5 15 2,9 5,8 3 1,1 0,5 6 1,1 0,5 825 201,5 229,1 Regional programme Nordrhein-Westfalen 9 1,3 63 22,8 16,3 23 32,3 21,5 20 6,1 3,9 16 11,4 15 17,9 15,5 37 23,1 2,2 11 3,5 - - - - 7,0 7 0,6 - - - - 67,1 383,1 170,5 1 558,5 Bad Kreuznach Birkenfeld Donnersbergkreis Kaiserslautern Kaiserslautern St. Kusel Pirmasens St. Südwestpfalz Zweibrücken St. Total 168,9 Merzig-Wadern Neunkirchen Saarlouis City Saarbrücken Total 77,5 19,6 93,9 66,6 257,6 Annaberg Aue-Schwarzenberg Bautzen Chemnitz St. Chemnitzer Land Delitzsch Döbeln Dresden St. Freiberg 0,4 2,5 Industrial Branch Investments in mio € Osterholz Osterode (Harz) Peine Salzgitter St. Soltau-Fallingbostel Uelzen Wesermarsch Wilhelmshaven St. Wittmund Wolfenbüttel Total 6 15 11,6 7,1 7,6 17,2 36,1 - - - 7 14 13,8 0,8 - - - 165,5 272,5 191,7 224,9 224,8 80,0 127,2 1 143,0 793,9 92 25,4 Regional programme Saarland 15 10,9 16 2,4 30 13,4 42 9,7 103 36,4 Regional programme Sachsen 157 46,0 208 99,7 127 58,3 174 47,9 104 46,0 51 17,1 87 45,5 234 178,6 198 123,3 Approved funds by GA in mio € 2 1,8 - - 1 3 4 6 1 1 1 113 0,2 1,1 1,1 11,5 2,9 0,3 0,3 110,8 - - 1 2 1 10,2 10,2 1,2 - - 2 2 6,6 0,3 - - - - 2 1 3 14 20,5 0,1 4,6 53,7 1 0,5 - - 1 1 0,1 1,2 - - - 6,2 3 1,8 57 10,6 44,6 69 48,0 2,7 32 16,9 10,9 366 195,1 117,6 Regional programme Rheinland-Pfalz 9 1,0 4,1 16 0,9 10 1,1 10 2,2 0,2 20 5,2 1,9 80,1 6,4 Number of projects - - - 0,9 0,9 1 1 0,7 0,6 - - - 1,8 2 1,3 8,9 12,4 29,9 11,1 28,3 10,9 10,6 58,1 18,1 25 20 21 10 9 14 6 16 14 6,9 8,9 23,2 5,6 24,3 8,2 7,7 34,1 16,0 151 Public sector transfers Görlitz St. Hoyerswerda St. Leipzig St. Leipziger Land Löbau-Zittau Meißen-Radebeul Mittlerer Erzgebirgskreis Mittweida Muldentalkreis 34,7 6,5 1 572,8 144,1 227,1 237,2 140,7 20 9 153 67 130 113 228 18,8 1,8 112,7 33,1 67,7 56,3 43,1 3,0 3,6 121,0 39,3 8,9 15,1 2,7 2 1 25 24 14 11 10 2,6 2,9 82,8 32,2 7,7 9,8 2,0 197,2 85,9 140 72 50,4 23,6 5,3 5,1 12 19 4,1 3,1 City/District Niederschlesischer Oberlausitzkreis Plauen St. Riesa-Großenhain Sächsische Schweiz Stollberg Torgau-Oschatz Vogtlandkreis Weißeritzkreis WestlausitzDresdner Land Zwickau St. Zwickauer Land Total Altmarkkreis Salzwedel Anhalt-Zerbst AscherslebenStaßfurt Bernburg Bitterfeld Bördekreis Burgenlandkreis Dessau St. Halberstadt Halle (Saale)St. Jerichower Land Köthen Magdeburg St. Mansfelder Land Merseburg-Querfurt Ohrekreis Quedlinburg Saalkreis Sangerhausen Schönebeck Stendal Weißenfels Wernigerode Wittenberg Total Dithmarschen Flensburg St. Kiel St. Lübeck St. Neumünster St. Nordfriesland Industrial Branch Infrastructure Investments in mio € Number of projects Approved funds by GA in mio € Investments in mio € Number of projects Approved funds by GA in mio € 49,5 39 13,2 15,6 17 11,7 105,9 148,1 119,1 159,9 80,0 361,4 117,5 312,5 54 76 165 122 61 266 139 161 25,5 42,3 37,3 44,3 22,0 91,9 33,8 76,6 7,2 19,8 33,8 24,1 2,3 18,8 6,6 1,7 3 14 34 23 9 21 16 6 5,9 14,5 24,2 19,2 1,8 13,2 4,6 1,4 43 34,3 3,4 104 38,1 2,6 3 502 1 529,2 528,2 Regional programme Sachsen-Anhalt 76 50,7 26,0 2 4 402 2,3 1,8 382,7 6 14,8 4 4 3,9 3,5 3 2 2 15 2 6 1 1 4 4 7 8 7 2 4 7 5 2 9 2 107 1,4 9,8 0,6 12,6 9,7 72,4 0,5 2,1 13,4 8,3 181,2 3,6 6,5 1,9 0,8 23,7 29,5 10,7 3,1 0,5 414,5 1 1 7 5 4 2 0,1 0,1 8,8 13,9 5,9 0,7 156,4 175,1 7 655,1 183,3 105,3 157,9 112,2 830,4 95,0 91,4 61,6 122,6 102,2 125,4 88,7 172,9 80,6 335,4 194,4 127,0 103,9 98,7 152,3 957,6 61,0 367,9 279,5 5 007,2 24,3 72,0 11,5 51 66 23,5 39,1 5,5 6,1 25 28,6 2,9 89 194,2 16,5 34 14,8 1,0 57 24,9 17,9 50 20,4 10,4 63 32,5 74 28,5 90,0 74 31,9 0,9 34 23,6 2,1 91 43,3 28,2 36 21,4 11,6 77 76,5 273,7 65 42,7 6,3 81 33,1 9,3 32 18,0 2,8 47 18,5 1,5 60 31,4 38,1 68 139,6 33,3 35 14,3 14,6 115 125,4 5,7 101 46,0 0,5 1 501 1 122,9 604,9 Regional programme Schleswig-Holstein 0,1 9 3,3 0,2 12,4 16 7,4 28,5 8,5 9 1,5 2,8 152 Public sector transfers Ostholstein Plön RendsburgEckernförde Schleswig-Flensburg Total 22,9 9 2,6 - - - 27,4 166,0 Altenburger Land Eichsfeld Eisenach St. 182,6 208,7 41,8 13 3,7 60 19,4 Regional programme Türingen 72 38,1 161 50,5 24 7,2 City/District Erfurt St. Gera St. Gotha Greiz Hildburghausen Ilm-Kreis Jena St. Kyffhäuserkreis Nordhausen Saale-HolzlandKreis Saale-Orla-Kreis Saalfeld-Rudolstadt SchmalkaldenMeiningen Sömmerda Sonneberg Suhl St. Unstrut-HainichKreis Wartburgkreis Weimar St. Weimarer Land Total Total Federal level 9,5 25,4 12,3 7 4 5 4,6 12,7 4,9 3,3 103,0 2 38 1,8 53,5 17,8 6,2 - 11 5 - 14,3 3,9 - Industrial Branch Infrastructure Investments in mio € Number of projects Approved funds by GA in mio € Investments in mio € Number of projects Approved funds by GA in mio € 228,8 108,5 358,5 165,7 188,8 266,2 318,7 130,1 128,4 345,5 87 66 133 98 89 217 84 77 74 74 51,6 26,9 68,0 34,5 47,5 62,5 49,6 29,8 38,0 77,0 23,5 4,4 21,2 1,7 8,0 28,8 15,0 6,0 14,7 11,9 6 4 4 2 5 11 1 5 9 6 18,6 2,6 13,3 0,6 7,1 23,8 11,8 4,7 11,7 7,4 125,8 140,7 316,7 112 119 322 30,3 32,6 70,7 4,4 101,4 16,7 4 14 14 3,3 82,3 13,5 370,8 256,7 90,8 111,0 73 116 51 105 83,8 48,1 24,4 24,8 30,0 17,6 1,9 13,3 11 9 3 8 24,0 13,3 1,6 9,9 446,2 16,6 195,1 4 742,7 155 21 75 2 405 78,9 2,8 38,0 16 938 7,7 4,6 0,7 357,5 6 1 6 145 6,2 3,5 0,6 278,0 28 795,0 12 723 115 284 3 192,9 1 368 2 187,8 2000-2003:618 A-areas Brandenburg Mecklenburg-Vorpommern Sachsen Brandenburg, Cottbus, Frankfurt/Oder, Barnim, Berlin, Dahme-Spreewald, Berlin, ElbeElster, Havelland, Berlin, Märkisch-Oderland, Berlin, Oberhavel, Berlin, OberspreewaldLausitz, Oder-Spree, Berlin, Ostprignitz-Ruppin, Prignitz, Spree-Neiße, Teltow-Fläming, Berlin Uckermark Greifswald, Neubrandenburg, Rostock, Stralsund, Wismar, Bad Doberan, Demmin, Güstrow, Mecklenburg-Strelitz, Müritz, Nordvorpommern, Nordwestmecklenburg, Ostvorpommern, Parchim, Rügen, Uecker-Randow Görlitz, Hoyerswerda, Plauen, Annaberg, Aue-Schwarzenberg, Bautzen, Döbeln, Freiberg,, Kamenz, ohne die Gemeinden Arnsdorf Dresden, Ottendorf-Okrilla,Stadt Radeberg,Wachau b.Radeberg, Löbau-Zittau, Mittlerer Erzgebirgskreis, Niederschlesischer Oberlausitzkreis, ,Riesa-Großenhain, Sächsische Schweiz , Stadt BadGottleuba-Berggießhübel,Stadt Bad Schandau,Bahretal,Dohma,Stadt, 618 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, Annex 14. 153 Public sector transfers Sachsen-Anhalt Thüringen Dohna,Dürröhrsdorf-Dittersbach,Gohrisch,Stadt, Hohnstein,Hohwald,Kirnitzschtal,Stadt Königstein/Sächs.Schweiz,Stadt Liebstadt,Lohmen, Müglitztal,Stadt Neustadt i.Sa.,Porschdorf, Rathen,Rathmannsdorf,Reinhardtsdorf-Schöna, Rosenthal-Bielatal,Stadt Sebnitz,Stadt Wehlen Stadt,Stadt Stolpen,Struppen, Stollberg Torgau-Oschatz, Vogtlandkreis, Weißeritzkreis, Stadt Altenberg,Stadt Bärenstein, Stadt Dippoldiswalde, Stadt Geising,Stadt Glashütte,HartmannsdorfReichenau,Hermsdorf/Erzgeb.,Höckendorf,Malter,Obercarsdorf, Pretzschendorf,Reinhardsgrimma,Schmiedeberg, Zwickauer Land Dessau, Anhalt-Zerbst, Aschersleben-Staßfurt, Bernburg, Bitterfeld, Burgenlandkreis, Halberstadt, Jerichower Land, Köthen, Mansfelder Land, Merseburg-Querfurt, Östliche Altmark, Quedlinburg, Sangerhausen, Schönebeck, Weißenfels, Wernigerode, Westliche Altmark, Wittenberg Gera, Suhl, Altenburger Land, Eichsfeld, Gotha, Ballstädt,Brüheim,Bufleben, Crawinkel,Dachwig,Döllstädt,Emsetal,Eschenbergen,Finsterbergen,Stadt Friedrichroda,Friedrichswerth,Georgenthal/Thüringer Wald,Gierstädt, Goldbach,Großfahner,Haina,Hochheim,Luisenthal,Remstädt,Sonneborn,Tabarz/Thüringer Wald,Stadt Tambach-Dietharz/Thüringer Wald, Tonna,Wangenheim,Warza,Westhausen,Wölfis Greiz, Hildburghausen Ilmkreis, Kyffhäuserkreis, Nordhausen, Saale-Orla-Kreis, Saalfeld-Rudolstadt, Schmalkalden-Meiningen, Sömmerda, Beichlingen,Bilzingsleben, Büchel,Stadt Buttstädt,Ellersleben,Eßleben-Teutleben,Frömmstedt,Gangloffsömmern,Griefstedt, Großbrembach,Großmonra,Großneuhausen, Günstedt,Guthmannshausen,Hardisleben, Henschleben,Herrnschwende,Kannawurf,Stadt Kindelbrück,Kleinbrembach, Kleinneuhausen, Stadt Kölleda,Mannstedt,Olbersleben,Ostramondra,Stadt Rastenberg,Riethgen,Rudersdorf, Schillingstedt,Schwerstedt,Stadt Sömmerda, Sprötau,Straußfurt,Vogelsberg,Stadt Weißensee, Werningshausen,Wundersleben, Unstrut-Hainich-Kreis, Weimarer Land Stadt Apolda,Auerstedt,Stadt Bad Sulza,Eberstedt,Flurstedt,Gebstedt,Großheringen,Kapellendorf,Ködderitzsch,Liebstedt, Mattstedt,Niederreißen,Niederroßla,Niedertrebra, Nirmsdorf,Oberreißen,Obertrebra, ßmannstedt, Pfiffelbach,Rannstedt,Reisdorf,Saaleplatte, Schmiedehausen,Wickerstedt, illerstedt B-areas Berlin ad Brandenburg MecklenburgVorpommern Sachsen Labour market region Berlin and regions in Brandenburg, Potsdam, Barnim, Ahrensfelde,Basdorf,Stadt Bernau,Blumberg,Eiche,Hirschfelde, Klosterfelde,Krummensee,Lanke,Lindenberg, Mehrow,Prenden,Rüdnitz,Schönerlinde, Schönfeld,Schönow,Schönwalde,Schwanebeck,Seefeld,Stolzenhagen (Amt Wandlitz), Tiefensee,Wandlitz,Stadt Werneuchen,Willmersdorf,Zepernick, Dahme-Spreewald, Bestensee,Bindow,Blossin, Brusendorf,Dannenreich,Diepensee,Dolgenbrodt, Eichwalde,Friedersdorf,Gallun,Gräbendorf,Großziethen,Gussow,Kablow,Kiekebusch,Kolberg,Stadt Königs Wusterhausen, Stadt Mittenwalde,Motzen,Niederlehme, Pätz,Prieros,Ragow,Schenkendorf,Schönefeld,Schulzendorf,Selchow,Senzig,Streganz, Telz,Töpchin,Waltersdorf (Amt Schönefeld), Waßmannsdorf,Wernsdorf,Wildau,Wolzig, Zeesen,Zernsdorf,Zeuthen Havelland, Berge,Bergerdamm,Börnicke, Bredow,Brieselang,DallgowDöberitz,Etzin, Falkenrehde,Stadt Falkensee,Groß Behnitz, Grünefeld,Stadt Ketzin,Kienberg,Klein Behnitz,Lietzow,Markee,Stadt Nauen,Paaren im Glien,Pausin,Perwenitz, Retzow,Ribbeck, Schönwalde,Selbelang,Tietzow,Tremmen, Wachow,Wansdorf,Wustermark,Zachow, Zeestow, Märkisch-Oderland, Stadt Altlandsberg,Dahlwitz-Hoppegarten,FredersdorfVogelsdorf,Hennickendorf,Herzfelde,Hönow,Lichtenow,Münchehofe,Neuenhagen bei Berlin,Petershagen/Eggersdorf,Rüdersdorf near Berlin, Oberhavel, Birkenwerder,Freienhagen, Friedrichsthal,Germendorf,Glienicke/Nordbahn,Stadt Hennigsdorf,Hohen Neuendorf, Stadt Kremmen,Leegebruch,Lehnitz,Malz, Mühlenbeck,Nassenheide,Oberkrämer,Stadt Oranienburg,Schildow,Schmachtenhagen, Schönfließ,Stolpe,Stadt Velten,Wensickendorf,Zehlendorf,Zühlsdorf, Oder-Spree, Stadt Erkner,Gosen,Grünheide (Mark),Hangelsberg,Markgrafpieske, Mönchwinkel,Neu Zittau,Rauen,Schöneiche near Berlin,Spreeau,Spreenhagen,Woltersdorf, Potsdam-Mittelmark, Stadt Beelitz,BergholzRehbrücke,Bochow,Deetz,Derwitz,Fahlhorst, Fahrland,Fresdorf,Golm,Groß Glienicke, Groß Kreutz,Kleinmachnow,Krielow, Langerwisch,Marquardt,Michendorf,Neu Fahrland,Nudow, Philippsthal,Plötzin,Saarmund,Satzkorn,Schmergow,Schwielowsee, Seddiner See,Seeburg,Stahnsdorf,Stücken, Stadt Teltow,Töplitz,Tremsdorf,UetzPaaren,Stadt Werder (Havel),Wildenbruch, Wilhelmshorst. Teltow-Fläming, Blankenfelde,Dahlewitz, Glienick,Groß Kienitz,Groß Machnow,Groß, Schulzendorf,Großbeeren,Jühnsdorf,Kallinchen,Lüdersdorf,Stadt Ludwigsfelde, Mahlow,Nächst Neuendorf,Nunsdorf,Rangsdorf,Schöneiche,Schönhagen,Thyrow, Stadt Trebbin, Stadt Zossen, Potsdam-Mittelmark, Labour market region Berlin Schwerin, Ludwigslust Chemnitz, Dresden, Leipzig, Zwickau, Chemnitzer Land, Delitzsch, Kamenz, Arnsdorf 154 Public sector transfers Sachsen-Anhalt Thüringen Dresden,Ottendorf-Okrilla,Stadt Radeberg,Wachau bei Radeberg, Leipziger Land, Meißen, Mittweida, Muldentalkreis, Sächsische Schweiz, Stadt Heidenau,Stadt Pirna, Weißeritzkreis, Bannewitz,Dorfhain,Stadt Freital,. Kesselsdorf,Kreischa, Mohorn,Stadt Rabenau, Stadt Tharandt,Stadt Wilsdruff Halle (Saale), Magdeburg, Bördekreis, Ohrekreis, Saalkreis Eisenach, Erfurt, Jena, Weimar, Gotha: Apfelstädt,Aspach,Bienstädt, Ebenheim,Emleben, Ernstroda,Friemar,Fröttstädt,Gamstädt,Stadt Gotha,Grabsleben,Gräfenhain,GüntherslebenWechmar,Herrenhof,Hörselgau,Hohenkirchen,Ingersleben,Laucha,Leinatal, Mechterstädt, Metebach, Molschleben, Mühlberg, Nauendorf,Neudietendorf,Nottleben,Stadt Ohrdruf,Petriroda,Pferdingsleben,Schwabhausen, Seebergen,Teutleben,Tröchtelborn, Trügleben, Tüttleben,Stadt Waltershausen,Wandersleben, Weingarten, Zimmernsupra, Saale-Holzland-Kreis, Sonneberg, Wartburgkreis, Weimarer Land: Stadt Bad Berka,Ballstedt, Bechstedtstraß,Berlstedt,Stadt Blankenhain, Buchfart,Stadt Buttelstedt,Daasdorf a.Berge, Döbritschen,Ettersburg,Frankendorf,Großobringen,Großschwabhausen, Gutendorf,Hammerstedt,Heichelheim,Hetschburg,Hohenfelden, Hohlstedt,Hopfgarten,Hottelstedt,Isseroda, Kiliansroda,Kleinobringen,Kleinschwabhausen, Klettbach,Stadt Kranichfeld,Krautheim,Kromsdorf,Lehnstedt, Leutenthal,Stadt Magdala, Mechelroda,Mellingen,Mönchenholzhausen, Nauendorf,Stadt Neumark,Niederzimmern, Nohra,Oettern,Ottstedt a.Berge,Ramsla,Rittersdorf,Rohrbach,Sachsenhausen,Schwerstedt, Tonndorf,Troistedt, Umpferstedt,Utzberg, Vippachedelhausen,Vollersroda,Wiegendorf, Wohlsborn, Sömmerda: Alperstedt,Andisleben, Eckstedt,Elxleben,Stadt Gebesee,Großmölsen, Großrudestedt,Haßleben,Kleinmölsen,Markvippach,Nöda,Ollendorf, Riethnordhausen,Ringleben,Schloßvippach,Udestedt,Walschleben, Witterda C-Areas Bayern Bremen Hessen Niedersachsen NordrheinWestfalen Rheinland-Pfalz Saarland Schleswig-Holstein Hof, Passau, Cham, Freyung-Grafenau, Hof, Passau. Regen, Wunsiedel, Tirschenreuth Bremerhaven Kassel, Hersfeld-Rotenburg, Kassel, Werra-Meißner-Kreis, Schwalm-Eder-Kreis Emden, Wilhelmshaven, Ammerland, Aurich, Celle. Cloppenburg. Cuxhaven. Friesland, Göttingen, Goslar, Grafschaft Bentheim, Hameln-Pyrmont, Helmstedt, Holzminden, Leer. LüchowDannenberg, Northeim, Osterode am Harz. Uelzen, Wesermarsch, Wittmund Bottrop, Dortmund, Duisburg, Hagen, Hamm, Herne, Oberhausen, Heinsberg, Recklinghausen, Unna. Wesel Kaiserslautern, Pirmasens, Zweibrücken, Birkenfeld, Donnersbergkreis, Kaiserslautern, Kusel, Südwestpfalz Saarbrücken, Merzig-Wadern, Neunkirchen, Saarlouis Flensburg, Lübeck, Dithmarschen, Nordfriesland, Ostholstein, Schleswig-Flensburg, D-Areas Bayern Bad Kissingen, Kronach, Kulmbach, Rhön-Grabfeld Bremen Bremen Waldeck-Frankenberg, Vogelsbergkreis Hessen Niedersachsen NordrheinWestfalen Rheinland-Pfalz Schleswig-Holstein Braunschweig, Delmenhorst, Oldenburg, Salzgitter (with Baddeckenstedt),. Emsland, Hildesheim, Lüneburg, Nienburg, Oldenburg, Osterholz, Peine, Soltau-Fallingbostel, Wolfenbüttel (ohne Baddeckenstedt) Mönchengladbach, Krefeld Bad Kreuznach Kiel, Neumünster, Plön, Rendsburg-Eckernförde 155 Public sector transfers GA for the support of agricultural structure and coastal protection (‚Förderung der Agrarstruktur und des Küstenschutzes’)619 Close link to EU regulation 1257/99 ‚Support of the rural area’ Complementary to EU target 2 regions Regulation request development plan for the rural areas Close co-ordination with the GA for regional economic development Developed by the Länder Länder and Federal level set up a joint framework programme Reponsible ministries at the Federal Level: Agriculture, food and consumer protection as well as finances GA for co-financing and support for equalisation of living conditions in Germany Aims: o Improvement of competitiveness and performance of agriculture and forestry (incl. processing and selling) o Support of specific environmentally sustainable economics practices in agriculture and forestry o Support and strengthening the performance of the structures of the rural area Instruments: o Support of industrial investments in agriculture and forestry o Support of competitive processing and selling companies o Support of areas, which are disadvantaged in terms of natural and economic aspects o Environmental measures in agriculture o Improvement of the agricultural and forestry environment (village development, etc.) Support levels: o Investments in agriculture: o Total sum of 10.000 – 50.000 € = support: up to 35% o Total sum of 50.000 – 1.25 mio € = support: 10% (max. 30.000€) Extension of the support for market and location adjusted agriculture and use of land in 1988, 1993, 1997 and 2002 Focal points 2000-2003: o Equal standing of farmers, who primarily work in agriculture and those who have other primary jobs in terms of support for investment o Concentration of support for huge investments that save livelihood (improved granting conditions from 100.000 € upwards) o Support of processing and selling of agricultural goods produced at the regional levelConcentration and graduation of equalisation payments compared to earlier plans Implementation lies exclusively with the Länder Budget: 619 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005. 156 Public sector transfers Approved funds by GA in mio DM620 (1973-1998: entire grants, to be split appr. 50% Federal level, 50% Länder; 2002: mio € only planned Federal Grants) 19731991 1992 1993 1994 1995 1996 1997 1998 2000621 2002622 mio € 1990 5.539,0 372,11 366,76 353,72 331,87 331,22 325,77 271,93 255,73 Total: 277, 127 Total: 149, 720 Baden 58 9 2 2 1 9 5 8 0 Fed.: 166, 276 Fed.: 89,832 Württemberg 9.940,3 704,77 689,23 665,21 629,07 643,88 604,48 511,43 480,92 Total: 522, 534 Total: 279, 550 Bavaria 92 2 9 6 9 3 9 2 7 Fed.: 313, 522 Fed.: 167,730 Total: 0, 611 Total: 0, 544 Berlin Fed.: 0, 367 Fed.: 0,326 15,032 0,248 0,286 0,515 0,380 0,598 0,904 West 3,560 6,251 4,296 0,463 0,478 0,643 2,654 East 180,77 465,31 501,41 494,42 381,78 454,83 356,86 301,33 Total: 256, 202 Total: 128, 145 Brandenburg 7 1 5 9 7 7 2 3 Fed.: 153, 721 Fed.: 76,887 221,30 9,984 9,992 8,207 7,735 4,853 5,463 7,446 7,275 Total: 3, 163 Total: 2, 798 Bremen 7 Fed.: 1, 898 Fed.: 1,714 276,52 25,267 24,469 27,003 34,844 26,251 26,050 24,231 25,310 Total: 36, 299 Total: 14, 424 Hamburg 8 Fed.: 25, 075 Fed.: 9,934 2.618,7 169,05 164,92 155,89 146,78 151,13 148,95 123,40 109,85 Total: 100, 716 Total: 68, 662 Hesse 98 6 4 6 7 8 7 8 2 Fed.: 60, 429 Fed.: 41,197 270,24 438,47 459,70 452,06 418,11 410,41 300,90 255,37 Total: 212, 726 Total: 112, 165 Mecklenburg 9 6 3 3 4 9 5 9 Fed.: 130, 766 Fed.: 69,143 Western Pomerania 8.286,5 532,60 525,43 506,93 501,79 470,78 465,03 386,31 359,13 Total: 370, 369 Total: 177, 691 Lower Saxony 46 4 7 0 7 5 8 0 3 Fed.: 240, 919 Fed.: 111,681 4.142,5 249,18 246,06 237,48 222,49 220,22 205,27 182,65 170,45 Total: 185, 022 Total: 101, 735 North Rhine 04 7 2 4 0 9 5 3 3 Fed.: 111, 013 Fed.: 61,041 Westphalia 3.123,1 90 360,65 0 199,10 1 28,507 196,84 2 26,428 189,71 4 24,953 177,68 3 22,447 177,96 3 22,354 174,85 1 22,050 146,07 4 18,373 137,20 4 17,342 Total: 140, 735 Fed.: 84, 440 Total: 17, 603 Fed.: 10, 562 Total: 79, 842 Fed.: 47,905 Total: 9, 618 Fed.: 5,771 Saxony - Saxony Anhalt - 194,81 9 190,61 1 215,15 4 176,45 2 304,12 0 288,28 5 212,00 4 289,34 4 332,60 1 319,91 4 205,29 5 306,41 0 313,40 2 315,70 0 192,92 0 276,36 3 292,23 4 293,00 1 191,63 7 258,15 9 265,80 5 264,66 1 177,72 3 247,90 5 222,22 3 227,76 2 130,84 6 203,92 2 189,90 8 193,70 0 136,06 7 174,58 4 Total: 158, 768 Fed.: 95, 262 Total: 152, 062 Fed.: 91, 238 Total: 131, 174 Fed.: 85, 289 Total: 147, 166 Fed.: 88, 298 Total: 85, 148 Fed.: 51,089 Total: 87, 658 Fed.: 52,595 Total: 55, 551 Fed.: 36,300 Total: Fed.: 76, 833 46,100 Total: 1 430,084 Fed.: 869,245 Rhineland Palatinate Saarland 3.767,6 85 - Schleswig Holstein Thuringia Total: 2. 712, 277 Fed.: 1. 659, 075 Total GA special programme ‘flood’ (‘Hochwasser’) 620 Ministerium für Landwirtschaft, Ernährung und Verbraucherschutz: Gemeinschaftsaufgabe "Verbesserung der Agrarstruktur und des Küstenschutzes" (o.Sonderrahmenplan) Verteilung der Ist-Ausgaben auf Maßnahmengruppen sowie nach Ländern in Mio DM in den Jahren 1973 – 1998, http://bmvel.zadi.de/gak/strukturbericht/tab-31.pdf 621 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005. 622 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005, p.89. 157 Public sector transfers This programme has been set up as an addition to the GA of the development of the regional economic structure for securing and compensating employment in districts, which have been strongly affected by the 2002 flood. The duration of the programme is 11. August 2002 until 31. December 2003. Supported fields: o Industrial investments o Infrastructure supporting measure related to industry o Reconstruction of industrial goods and infrastructure, destroyed by the flood Funds ‘Aufbauhilfe’ (reconstruction support): o Joint funds of the Federal level and the Länder o Budget: 170 mio € o Financial contribution of the Federal level: 85mio € (in 2002: 35 mio €) Distribution of Federal grants 2002-2003 among the affected Länder 1.75 mio € 5% 0.35 mio € 0.35 mio € 0.35 mio € 21 mio € 5.25 mio € 0.35 mio € 5.6 mio € 1% 1% 1% 60% 15% 1% 16% Bayern Brandenburg Mecklenburg-Vorpommern Niedersachsen Sachsen Sachsen-Anhalt Thüringen Riserve o Max. support levels: SME: 75% of eligible costs Other: 50% of eligible costs Supported regions: Bayern Landkreis Passau Landkreis FreyungGrafenau Landkreis Regen Bad Füssing, Büchlberg, Hauzenberg, Hofkirchen, Hutthurm, Neuhaus, Obernzell, Pocking, Rotthalmünster, Ruderting, Salzweg, Sonnen, Thyrnau, Tiefenbach, Untergriesbach, Vilshofen, Windorf Freyung, Mauth, Röhrnbach, Waldkirchen Arnbruck, Bayrisch Eisenstein, Bodenmais, Böbrach, Drachselsried, Langdorf, Regen, Viechtach, Zwiesel, Passau, Stadt Landkreis Cham Brandenburg Landkreis Prignitz Landkreis OstprignitzRuppin Landkreis Havelland Landkreis Elbe-Elster MecklenburgVorpommern Landkreis Ludwigslust Arnschwang, Arrach, Blaibach, Cham, Chamerau, Eschlkam, Furth i.Wald, Grafenwiesen, Hohenwart, Kötzting, Lam, Lohberg, Miltach, Pemfling, Pösing, Reichenbach, Rimbach, Roding, Runding, Stamsried, Walderbach, Weiding, Zandt, Zell Wittenberge, (OT Lütjenheide, Schadebeuster,, Zwischendeich, Hinzdorf, , Gasedow, Wallhöfe), Lenzen, (OT Gandow, Eldenburg, Moor,, Seedorf), Breese, Cumlosen, (OT Müggendorf), Lanz, OT Bernheide, Jagel, , Lütkenwisch, Wustrow), Lenzerwische, (OT Besandten, Unbesandten), Rühstädt, (OT Abbendorf, Bälow, , Gnevsdorf), Quitzöbel, Weisen (teilweise), Wootz, (OT Kietz, Mödlich) Neustadt (Dosse), Sieversdorf-Hohenofen, Dreetz, Zernitz-Lohm, Breddin, Stüdenitz-Schönemark Stadt Rhinow , (OT Kietz, Buchhorst, Florienshof), Strodehne, Gülpe, Hohennauen, Stadt Rathenow, (Gemeinde Semlin) Mühlberg/Elbe, Bad Liebenwerda, Elsterwerda, Herzberg/Elster, UebigauWahrenbrück, Haida, Reichenhain, Saathain, Stolzenhain a.d.Röder Besitz, Boizenburg, Brahlstorf, Dersenow, Dömitz, Garlitz, Heidhof, Jessenitz, Lübtheen, Neu Gülze, Neu Kaliß, Polz, Pritzier, Rüterberg, Teldau, Vielank, Woosmer 158 Public sector transfers Niedersachsen Gartow, Hitzacker Landkreis LüchowDannenberg Sachsen Landkreis Delitzsch Landkreis Döbeln Landkreis Leipziger Land Landkreis Muldentalkreis Landkreis Torgau-Oschatz Bad Düben, Doberschütz, Eilenburg, Jesewitz, Laußig, Löbnitz, Zschepplin Bockelwitz, Döbeln, Ebersbach, Großweitzschen, Hartha, Leisnig, Niederstriegis, Roßwein, Waldheim, Ziegra-Knobelsdorf Borna, Espenhain, Eulatal, Frohburg, Geithain, Groitzsch, Großlehna, Großpösna, Kitzscher, Kohren-Sahlis, Lobstädt, Markranstädt, Narsdorf, Regis-Breitingen, Rötha, Wyhratal Bad Lausick, Bennewitz, Colditz, Grimma, Großbardau, Großbothen, Hohburg, Kühren-Burkhardtshain, Machern, Naunhof, Nerchau, Parthenstein, Thallwitz, Trebsen/Mulde, Wurzen, Zschadraß Arzberg, Beilrode, Belgern, Cavertitz, Dommitzsch, Elsnig, GroßtrebenZwethau, Liebschützberg, Mügeln, Naundorf, Oschatz, Pflückuff, SornzigAblass, Torgau, Wermsdorf Dresden, Stadt Weißeritzkreis Landkreis Sächsische Schweiz Landkreis Meißen Landkreis RiesaGroßenhain Landkreis Annaberg Landkreis AueSchwarzenberg Landkreis Chemnitzer Land, Landkreis Freiberg Landkreis Mittlerer Erzgebirgkreis Landkreis Mittweida Landkreis Stollberg Landkreis Vogtlandkreis Landkreis Zwickauer Altenberg, Bannewitz, Bärenstein, Dippoldiswalde, Dorfhain, Freital, Geising, Glashütte, Hartmannsdorf-Reichenau, Hermsdorf/Erzgeb., Höckendorf, Kreischa, Malter, Pretzschendorf, Rabenau, Reinhardtsgrimma, Schmiedeberg, Tharandt, Wilsdruff Bad Gottleuba-Berggießhübel, Bad Schandau, Bahretal, Dohma, Dohna, Gohrisch, Heidenau, Hohnstein, Hohwald, Kirnitzschtal, Königstein/Sächs.Schw., Liebstadt, Lohmen, Müglitztal, Pirna, Porschdorf, Rathen, Rathmannsdorf, Reinhardtsdorf-Schöna, Rosenthal-Bielatal, Sebnitz, Stadt Wehlen, Struppen Coswig, Diera-Zehren, Heynitz, Käbschütztal, Ketzerbachtal, Klipphausen, Leuben-Schleinitz, Lommatzsch, Meißen, Moritzburg, Niederau, Nossen, Radebeul, Radeburg, Triebischtal/Taubenhain, Weinböhla Diesbar-Seußlitz, Ebersbach, Großenhain, Hirschstein, Lampertswalde, Nauwalde, Nünchritz, Priestewitz, Riesa , Röderaue, Schönfeld, Stauchitz, Strehla, Tauscha, Thiendorf, Weißig a.R., Wildenhain, Wülknitz, Zabeltitz, Zeithain Annaberg-Buchholz, Bärenstein, Crottendorf, Ehrenfriedersdorf, Elterlein, Gelenau/Erzgeb., Geyer, Jöhstadt, Königswalde, Mildenau, Oberwiesenthal, Scheibenberg, Schlettau, Sehmatal, Tannenberg, Thum, Wiesa Aue, Beierfeld, Bernsbach, Bockau, Breitenbrunn, Eibenstock, Erlabrunn, Grünhain, Johanngeorgenstadt, Lauter/Sa., Lößnitz, Markersbach, Pöhla, Raschau, Rittersgrün, Schlema, Schneeberg, Schönheide, Schwarzenberg/Erzgeb., Sosa, Stützengrün, Zschorlau, Bernsdorf, Callenberg, Gersdorf, Glauchau, Hohnstein-Ernstthal, Lichtenstein, Limbach-Oberfrohna, Meerane, Niederfrohna, Oberlungwitz, Oberwiera, Remse, Schönberg, St. Egidien, Waldenburg, Augustusburg, Bobritzsch, Brand Erbisdorf, Dorfchemnitz b. Sayda, Eppendorf, Falkenau, Flöha, Frankenstein, Frauenstein, Freiberg, Gahlenz, Großhartmannsdorf, Großschirma, Halsbrücke, Hilbersdorf, Leubsdorf, Lichtenberg/Erzgeb., Mulda/Sa., Neuhausen/Erzgeb., Niederschöna, Niederwiesa, Oberschöna, Oederan, Rechenberg-Bienenmühle, Reinsberg, Sayda, Siebenlehn, Weißenborn/Erzgeb., Amtsberg, Borstendorf, Deutschneudorf, Drebach, Gornau, Großrückerswalde, Grünhainichen, Heidersdorf, Hirtstein, Lengefeld, Marienberg, Olbernhau, Pfaffroda, Pobershau, Pockau, Scharfenstein, Seiffen/Erzgeb., Venusberg, Waldkirchen, Wolkenstein, Zschopau Altmittweida, Burgstädt, Claußnitz, Erlau, Frankenberg, Gehringswalde, Hainichen, Hartmannsdorf, Königsfeld, Königshain-Wiederau, Kriebstein, Langensteinbach, Lichtenau, Lunzenau, Mittweida, Mühlau, Penig, Rochlitz, Rossau, Seelitz, Striegistal, Taura, Tiefenbach, Wechselburg, Zettlitz Auerbach, Burkhardtsdorf, Erlbach-Kirchberg, Gornsdorf, Hohndorf, Hormersdorf, Jahnsdorf/Erzgeb., Lugau/Erzgeb., Neukirchen/Erzgeb., Niderwürschnitz, Niederdorf, Oelsnitz/Erzgeb., Stollberg/Erzgeb., Thalheim/Erzgeb., Zwönitz Adorf, Auerbach, Ellefeld, Falkenstein, Grünbach, Hammerbrücke, Heinsdorfergrund, Klingenthal/Sa., Lengenfeld, Morgenröthe-Rautenkranz, Mylau, Neumark, Rodewisch, Schöneck, Steinberg , Tannenbergsthal/Vogtl., Treuen, Zwota Crinitzberg, Fraureuth, Hartenstein, Hartmannsdorf b. Kirchberg, Hirschfeld, 159 Public sector transfers Land, Landkreis Kamenz, Stadt Chemnitz Stadt Leipzig Sachsen-Anhalt Stadt Plauen Stadt Zwickau Landkreis Anhalt-Zerbst Landkreis Bitterfeld, Landkreis Köthen Dessau, Stadt Landkreis Wittenberg Kirchberg, Langenbernsdorf, Langenweißbach, Mülsen, Reinsdorf, Wildenfels, Wilkau-Haßlau Ottendorf-Okrilla, Pulsnitz, Radeberg, Wachau VG Coswig (Anhalt), Buko, Cobbelsdorf, Coswig, Düben, Griebo, Klieken, Köselitz, Möllensdorf, Roßlau (Elbe), Senst, Wörpen, Zieko, VG Rosseltal, Brambach, Bräsen, Hundeluft, Jeber-Bergfrieden, Mühlstedt, Ragösen, Rodleben, Serno, Stackelitz, Thießen, VG Wörlitzer Winkel, Gohrau, Rehsen, Riesigk, Vockerode, Wörlitz, VG Zerbster Land, Bias, Dornburg, Gehrden, Gödnitz, Güterglück, Hohenlepte, Jütrichau, Leps, Lübs, Luso, Moritz, Nutha, Prödel, Steutz, Walternienburg VG Raguhn, Altjeßnitz, Marke, Raguhn, Retzau, Schierau, Thurland, Tornau vor der Heide, Bitterfeld, Greppin, VG Jeßnitz-Bobbau, Bobbau, Jeßnitz (Anhalt) Aken Jessen (Elster), VG Elbe-Heideland-Gemeinden, Globig-Bleddin, Meuro, Pretzsch (Elbe), Priesitz, Schnellin, Trebitz, VG Elser-Seyda-Klöden, Elster (Elbe), Gadegast, Gentha, Klöden, Listerfehrda, Mellnitz, Morxdorf, Naundorf bei Seyda, Rade, Schützberg, Seyda, Zemnick, VG HeideckPrettin, Axien, Labrun, Lebien, Plossig, Prettin, VG Kemberg, Ateritz, Dabrun, Dorna, Eutzsch, Kemberg, Rackith, Wartenburg, VG Mühlengrund, Abtsdorf, Bülzig, Dietrichsdorf, Mühlanger, Zörnigall, Wittenberg, Lutherstadt Magdeburg, Stadt Biederitz, Burg, Gübs, Hohenwarthe, Jerichow, Königsborn, Lostau, Menz, Landkreis Jerichower Land Niegripp, Parchau, Schartau, Elbe-Parey, Wahlitz Ohrekreis LK Stendal LK Schönebeck Thüringen Kreis Altenburger Land Gößnitz Barleben, Bertingen, Glindenberg, Heinrichsberg, Loitsche, Rogätz, Zielitz Altenzaun, Arneburg, Aulosen, Bömenzien, Behrendorf, Beuster, Bittkau, Bölsdorf, Buch, Demker, Elversdorf, Geestgottberg, Grieben, Hämerten, Havelberg, Hohengöhren, Kehnert, Klietz, Kuhlhausen, Kümmernitz, Losenrade, Neuermark-Lübars, Neukirchen, Pollitz, Ringfurth, Sandau, Sandauerholz, Schelldorf, Schönberg, Schönfeld, Schönhausen, Storkau, Tangermünde, Uetz, Wahrenberg, Wanzer, Wendemark, Werben, Werder, Wulkau Barby, Breitenhagen, Glinde, Lödderitz, Plötzky, Pömmelte, Pretzien, Ranies, Schönebeck Haselbach, Lödla , Lucka, Meuselwitz, Nobitz, Remsa, Rositz, Saara, Treben, Windischleuba, Ziegelheim Infrastructure policy related to cities o Targeted Federal support for the structural development of cities o Total volume of 433 mio €, of which 92 mio € are earmarked fort he old Länder (2000: 41 mio €) 265 mio € fort he new Länder (2000: 265 mio €) 76 mio € earmarked for the programme ‚city districts with special need for renovation – the social city’ 160 Public sector transfers Federal budget for 2001623 1000 € Baden Württemberg Bavaria Berlin (East) Berlin (West) Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 13519,9 15937,2 23413,2 4002,6 44027,2 1240,0 2556,7 8265,1 30387,3 10607,2 24179,8 5756,9 1567,9 79779,3 46255,5 4297,2 41714,2 % of the budget for East / West German Länder 14,7 17,3 8,8 4,4 16,6 1,4 2,8 8,9 11,4 11,5 26,3 6,3 1,7 30,1 17,4 4,7 15,7 Problems of the multilevel approach of German territorial policy Conflicts in view of subsidiarity o Allocation of competencies and influence of the national level Social dialogue principle of the EU touches upon regional autonomy o Reservations of the Länder Due to co-financing the financial power of the Länder is part of the regional policy Funds ‚German Unification’ (Fonds Deutsche Einheit) The Funds ‚German Unification’ (Fonds deutsche Einheit), since 1990 principally is a structural funds for the support of Eastern German Länder. De facto the funds represents financial transfers from the West to the Eastern German Länder. The West German Länder finance the funds with about 50% of their share in turnover tax plus an additional annual sum of 107.372.950,51 €.624 The fund is jointly financed by the Federal level, the Länder and the districts. It covers budgets that were not integrated into the public budgets of the Federal level and the Länder. They were thus part of the so called ‘side budget’. From 1990 to 1994 the funds was the most important instruments for supporting German unification with a final budget of 160 bio DM, which were supposed to cover the budget deficits of the East German Länder. The transfers were not assigned to special purposes, but in the beginning were meant to cover the deficits in the East German social security insurance (45% of the funds) and gap in tax revenue (by 27%). The federal level should support the funds with 20 bio DM (deriving from restructuring the Federal budget) and the rest of 95 bio DM should be funded by the West German Länder 623 http://www.raumplanung.uni-dortmund.de/fhp/folien%20blockseminar.pdf, Source: Verwaltungsvereinbarung über die Gewährung von Finanzhilfen des Bundes an die Länder nach Artikel 104a Absatz 4 des GG zur Förderung städtebaulicher Maßnahmen, 27.04./01.08.2001. 624 Gesetz über die Errichtung eines Fonds "Deutsche Einheit" vom 25. Juli 1990 (BGBl. II S. 518, 533), I S. 944). 161 Public sector transfers and districts by borrowing (with the credits being paid within 30 years). Bremen and Saarland did not have to contribute to the finds because of their own weak budget performance. Due to the high level of financial demands in the Eastern Länder, these Länder were in 1991 fully integrated into the German turnover tax distribution system. Since 1995 the East German Länder participate in the horizontal financial equalisation system.625 Budget 1990-1994626 Borrowing Subsidy Länder Subsidy Federal level Total 1990 bio DM 20,000 2,000 - 1991 bio DM 31,000 4,000 - 1992 bio DM 24,000 9,900 - 1993 bio DM 15,000 14,245 5,960 1994 bio DM 5,000 19,477 10,123 Total bio DM 95,000 49,622 16,083 22,000 35,000 33,900 35,205 34,600 160,705 The fund will from 1. 1. 2005 onwards be integrated into the German financial equalisation system. From 2005 until 2019 the Federal level will cover the remaining payments out of the funds. This will be compensated by an annual fix share of the turnover tax.627 With the so called ‘Solidarpakt II ’ (see part on public sector transfer) the support of the Eastern Länder is getting a stabile financial base. The budget from 2005 to 2019 will be 156 bio . € for the compensation of special burdens caused by the unification. In 2019 the funds will finally end.628 625 Liv K. Jacobsen: Die Finanzierung der Deutschen Einheit 1990-1998, http://www.studienforumberlin.de/finanzierung_deutsche_einheit.htm 626 http://www.bundesfinanzministerium.de/fach/abteilungen/bundhaus/bundhaus2001/daten/_private/daten /ep60/60920000.pdf 627 Bundesergierung (2001): Finanzplan des Bundes 2001 bis 2005, Berlin. 628 Bundesergierung (2002): Finanzplan des Bundes 2002 bis 2006, Berlin. 162 Public sector transfers 4 Public sector transfers The principal channels through which money is transferred between the Länder and between the Federal level and the Länder in Germany is the German Financial equalisation system.629 The financial equalisation system in its current form exists since 1995 when the separate systems in East and West Germany were merged under the Solidarpakt. I. Legal basis • Ambivalence of the constitutional background: Art. 30 GG: Sovereignty of the German Länder vs. • • • Art. 72 GG: Equality of living conditions Art. 106 and 107 GG: Principles of the financial relation/equalisation between federal and Länder level and among the Länder (Art. 104a – 106 GG) Law on fiscal equalisation (Finanzausgleichsgesetz (FAG)) II. Tax revenues Tax revenue is divided between federal government and the Länder as well as between the Länder themselves. a) Exclusively federal taxes, e.g. consumption taxes. (2001: 155,1 Billion DM) b) Exclusively “Länder”-taxes, e.g. motor vehicle tax, death duties. (2001: 38,4 Billion DM) c) “Gemeinschaftssteuern” (shared taxes), e.g. income tax and other profit taxes, turnover tax. These represent the biggest part of total tax yield. (2001: 605,8 Billion DM) Income tax Corporate tax Capital gains tax BUND 42,5 % 50 % 50 % LÄNDER 42,5 % 50 % 50 % KOMMUNEN 15 % - d) Other (2001: 73,5 Billion DM) 629 Source: Lenk, Thomas: Aspekte des Länderfinanzausgleichs, Frankfurt/M., 2001; http://www.bundesregierung.de/artikel,45447/Der-Laenderfinanzausgleich-und.htm. 163 Public sector transfers III. Financial equalisation scheme 1. ‘Primary’ financial equalisation: distribution of “Gemeinschaftssteuern” (shared taxes) between federal level and Länder and among the Länder a) Federal level and Länder are outfitted with a certain share of tax revenues 1. Stage: DISTRIBUTION OF INCOME TAX AND CORPORATE TAX Income tax and corporation tax are being distributed according to their point of origin. Income tax: “Domicile principle” Corporate tax: “Production site principle” 2. Stage: DISTRIBUTION OF TURNOVER TAX (“BEFOREHAND-EQUALISATION”) Turnover tax revenues are being split up between federal government, Länder, and local districts (“Kommunen”). Local districts receive 2,2 % of total revenues, the rest is split up as follows: Federal government: 50,5 %. Länder: 49,5 %. ¾ of the states share is apportioned by population, ¼ is reserved for “financial frail” states. This shall ensure that the fiscal resources of each Land are raised to at least 92 % of the average. (Since 1995 the new Länder got 12,6 billion DM by horizontal turnover tax distribution. Source: http://www.bundesregierung.de/artikel,-35816/Laenderfinanzausgleich-und-Sol.htm) [Scale of redistribution under this “beforehand-equalisation” in 2001: About 15 Billion DM (=12 %) of the states’ share of total turnover tax yield of 124,8 Billion DM.] 2. ‘Secondary’ financial equalisation: real financial equalisation; corrects the primary tax distribution to guarantee equal per capita tax distribution among the Länder In power since 1995 (so called Solidarpakt). Before this date, separate systems were applied in East and West Germany. Financial power measurement number (Finanzkraftmesszahl) = Länder revenue from taxation after beforehand turnover tax equalisation plus 50 % local district tax revenue minus harbour charges (Hafenlasten) of coastal Länder (Hamburg, Bremen, Mecklenburg-Vorpommern, Niedersachsen). The result is compared with the so called equalisation measurement number (Ausgleichsmesszahl), which serves the determination of financial requirement (defined as the average financial equipment of all Länder per capita, which is multiplied with the population number of the respective Land. Because of the special requirement of the city states, their population is taken into account with the factor 1,35. If in the end the equalisation measurement number id higher than the financial power measurement number the Land is entitled to get financial equalisation. It financial power is lift to 95% of the average financial power. 164 Public sector transfers b.) Federal level and Länder compensate deviations of their fiscal capacities 3. Stage: SPECIFIC HORIZONTAL EQUALISATION SCHEME (“LÄNDER-LÄNDERFINANZAUSGLEICH”) The “rich” states compensate the “poor” through financial transfers. Compensation of shortfalls: Percentage of average fiscal capacity Up to 92 % 92 to 100 % Compensation Full 37,5 % Compulsory redistribution of surpluses: Percentage of average fiscal capacity 100 – 101 % 101 – 110 % > 110 % Redistribution 15 % 66 % 80 % [Scale of redistribution under the specific equalisation scheme in 2001: About 15 billion DM. More than ¾ were assigned to Berlin and the eastern Länder.] 4. Stage: VERTICAL FINANCIAL EQUALISATION / SUPPLEMENTARY FEDERAL GRANTS (“BUNDESERGÄNZUNGSZUWEISUNGEN” OR „BUND-LÄNDER-FINANZAUSGLEICH“) “Gap-filling grants” (Fehlbedarfsbundesergänzungszuweisungen): Guarantee the poor Länder the lifting up of their financial power to at least 99, 5 % of average financial capacity of all Länder Compensations for special burdens (Sonderbedarfsbundesergänzungszuweisungen) to relieve small Länder of the costs of “political management” and new Länder of special costs arising from unification (teilungsbedingte Sonderkosten) as well as Bremen and Hamburg for budgetary crisis (high public depths) Transitional grants (Übergangsbundesergänzungszuweisungen) for the poorer west German Länder since 1995. Designed degressively (minus 10% per year). Widely used after unification, previously insignificant. [Scale of redistribution under the supplementary federal grants in 2001: About 24,7 Billion DM.] Total yield of redistribution under the federal equalisation scheme in 2001630 Purpose Distribution of turnover tax, deviating from apportionment by population Specific horizontal equalisation scheme Total yield, in Billion DM +/+/- 15,3 14,8 630 Source: Bayrisches Staatsministerium der Finanzen (Ed.): Informationen und Argumente. Der bundesstaatliche Finanzausgleich, München 2002. 165 Public sector transfers “German Unification Fund” 5,0 Supplementary federal grants + 24,7 Federal equalisation scheme total about 59,8 Results of specific horizontal equalisation scheme ( stage 3), in Billion DM (Positive: received; negative: paid) Hessen Baden-Württemberg Bayern Nordrhein- Westfalen Hamburg Schleswig- Holstein Saarland Rheinland-Pfalz Bremen Mecklenburg- Vorpommern Niedersachsen Brandenburg Thüringen Sachsen-Anhalt Sachsen Berlin Total yield of balancing 1990 1994 -1,4 -2,5 0 -0,1 0 0,6 0,4 0,5 0,6 1,9 4,0 -1,8 -0,4 -0,7 0,2 0,1 0,1 0,4 0,7 0,6 0,0 1,0 0,0 0,1 0,1 -0,1 2,9 1995 -2,2 -2,8 -2,5 -3,4 -0,1 -0,1 0,2 0,2 0,6 0,8 0,5 0,9 1,0 1,1 1,8 4,2 11,2 1999 -4,7 -3,4 -3,2 -2,6 -0,7 0,2 0,3 0,4 0,7 0,9 1,0 1,1 1,2 1,3 2,1 5,3 14,6 2000 -5,4 -3,9 -3,7 -2,2 -1,1 0,4 0,3 0,8 0,9 1,0 1,1 1,3 1,3 1,4 2,3 5,5 16,3 2001 -5,1 -4,2 -4,5 -0,5 -0,5 0,1 0,3 0,4 0,8 0,8 1,9 1,0 1,1 1,2 2,0 5,2 14,8 Trend since 1995 o o o o o + + + + + + + + + IV. Recent developments631 In its November 1999 ruling the German constitutional court (Bundesverfassungsgericht) asked the government to revise the German financial equalisation system (BverfG, 2 BvF 2/98 vom 11.11.1999, Absatz-Nr. (1-347)). On the legal proceedings brought to ask for judicial review to the constitutional court by Baden-Württemberg, Bayern, and Hessen the Bundesverfassungsgericht decided that parts of the law on financial equalisation were not in compliance with § 107 of the German Constitution (Grundgesetz). The appealing Länder Baden-Württemberg, Bayern, and Hessen stated among others, that the integration of the ‘new’ Länder constituted a fundamental change of the law on the financial equalisation system and that thus a new law had to be drafted instead of the amendment of the old law in 1993 and 1998. Furthermore the law on financial equalisation would partly be not in compliance with the Grundgesetz, especially concerning the German Unification Fund (‘Fonds Deutsche Einheit’). Old and financially weaker Länder due to the chosen amendments over proportionally suffered from the extension of the system on the new Länder. Moreover, the consideration of harbour charges (Hafenlasten) and the special treatment of the city states (their population is taken into account with the factor 1,35) would need revision. Facts, which Bremen, Niedersachsen and 631 Sources: http://www.bundesregierung.de/artikel,-35816/Laenderfinanzausgleich-und-Sol.htm; http://www.bundesregierung.de/artikel,-45819/Bundesregierung-und-Laender-ei.htm 166 Public sector transfers Schleswig-Holstein still underlined as necessary to be considered within the future financial equalisation scheme. The government, according to the ruling, was asked to adopt the new financial equalisation system until 1st January 2005. Until 1st January 2003 the government in a twostep procedure had to adopt a law on budgetary principles (the so called Maßstäbegesetz) with clear principles of distribution. Based onthis law the new financial equalisation system should be adopted until 2005. Also until 2005 a follow-up regulation (Solidarpakt II) has to be adopted for the terminating Solidarpakt with the new Länder, which has to be closely interlinked with the new financial equalisation system. In February 2001 the German federal government adopted its draft new Maßstäbegesetz. The draft presents the principles for the vertical and horizontal distribution of turnover tax, the horizontal financial equalisation scheme (Länderfinanzausgleich) and the supplementary federal grants (Bundesergänzungszuweisungen). The draft thus laid down abstract principles for the concrete distribution and equalisation, which will be laid down in the new law on the financial equalisation system. On 23rd June 2001 the Federal government and the Länder agreed the new financial equalisation system (in power from 2005 to 2020) and the Solidarpakt II scheme (in power from 2005 to 2020; financial volume: ca. 156 billion €). Key elements of the new financial equalisation system are: The Federal level will take over the German Unification Fund (‘Fonds Deutsche Einheit’: comprises 25,5 billion € remaining debts (Altschulden) of the Länder) o From 2020 on the Federal level will take over the remaining debts of then about 6,5 billion € The federal level will pay ca. 0,77 billion € to guarantee a fair financial equalisation among the Länder Financially stronger Länder will be allowed to keep more over their tax revenue surplus (Steuermehreinnahmen) than before (now: 12%) The Solidarpakt II includes: Ca. 156 billion € transfer to the Eastern Länder o Ca. 105 billion € due to the investment support measures act (Investitionsfördergesetz) and supplementary federal grants (Bundesergänzungszuweisungen) o Ca. 51 billion € due to the general economy support measures of the Federal budget Equalisation Payments * 632 Supplementary federal grants 2000 Volume of equalisation payments Baden-Württemberg Bavaria Brandenburg Hesse Mecklenburg-Western Pomerania Lower Saxony 632 13 339 1 375 1 030 970 2001 12 637 1 358 1 017 899 Länder receiving equalisation payments 2000 2001 Mio € 8 273 7 588 644 500 500 436 568 954 Länder making equalisation payments 2000 2001 8 273 1 957 1 884 2 734 - 7 587 2 132 2 298 2 622 - http://www.destatis.de/basis/e/fist/fisttab023.htm 167 Public sector transfers North Rhine-Westphalia Rhineland-Palatinate Saarland Saxony Saxony-Anhalt Schleswig-Holstein Thuringia Berlin Bremen Hamburg * Preliminary results. 658 750 2 345 1 493 406 1 370 1 955 987 - 550 612 2 313 1 473 219 1 352 1 925 870 - 392 167 1 182 711 185 670 2 812 442 - 231 146 1 036 595 59 575 2 654 402 - 1 141 556 269 266 168 Public sector transfers (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Baden-Württemberg633 BW Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 46.016 46.432 46.211 49.879 52.398 54.453 51.958 109.7 108.8 108.7 111.3 111.0 112.0 113.3 -2.803 -2.521 -2.410 -3.477 -3.426 -3.873 -4.170 43.212 43.911 43.801 46.402 48.972 50.581 47.787 103.0 102.9 103.0 103.5 103.7 104.0 104.2 0 0 0 0 0 0 0 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 43.212 43.911 43.801 46.402 48.972 50.581 47.787 103.0 102.9 103.0 103.5 103.7 104.0 104.2 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 633 169 Public sector transfers Bayern634 BY Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 52.432 53.786 53.936 56.368 59.699 62.219 59.946 107.7 108.6 109.4 108.6 109.1 110.4 112.3 -2.532 -2.862 -3.102 -2.907 -3.188 -3.749 -4.495 49.901 50.925 50.834 53.461 56.511 58.470 55.451 102.5 102.8 103.1 103.0 103.3 103.7 104.1 0 0 0 0 0 0 0 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants Divergence from national average (balance measurement) (= 100) 49.901 50.925 50.834 53.461 56.511 58.470 55.451 102.5 102.8 103.1 103.0 103.3 103.7 104.1 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 634 170 Public sector transfers Berlin635 BE Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 13.692 13.787 13.429 13.737 14.092 14.381 13.446 72.6 72.3 71.4 70.1 69.0 68.6 68.5 4.222 4.336 4.432 4.891 5.316 5.521 5.191 17.914 18.123 17.861 18.628 19.408 19.902 18.637 95.0 95.0 95.0 95.0 95.0 95.0 95.0 849 858 846 882 919 943 883 Gapfilling grants 219 219 219 219 219 219 219 2.662 2.662 2.662 2.662 2.662 2.662 2.662 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 3.730 3.739 3.727 3.763 3.800 3.824 3.764 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 18.763 18.982 18.707 19.510 20.327 20.845 19.520 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 635 171 Public sector transfers Brandenburg636 BB Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 8.923 8.907 8.935 9.474 9.937 10.163 9.723 86.6 85.1 85.5 85.6 85.2 84.5 86.3 864 1.035 986 1.044 1.147 1.263 977 9.787 9.942 9.921 10.518 11.084 11.426 10.701 95.0 95.0 95.0 95.0 95.0 95.0 95.0 464 471 470 498 525 541 507 Gapfilling grants 164 164 164 164 164 164 164 1.985 1.985 1.985 1.985 1.985 1.985 1.985 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 2.613 2.620 2.619 2.647 2.674 2.690 2.656 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 10.250 10.413 10.391 11.016 11.609 11.967 11.208 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 636 172 Public sector transfers Bremen637 HB Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 2.948 2.917 3.144 2.724 3.136 2.990 2.830 80.9 79.2 86.4 71.8 79.3 73.9 74.9 562 635 350 912 665 872 787 3.510 3.552 3.494 3.636 3.801 3.862 3.618 96.3 96.4 96.0 95.8 96.1 95.5 95.8 121 120 130 142 139 164 144 Gapfilling grants 126 126 126 126 126 126 126 0 0 0 0 0 0 0 80 72 64 56 48 40 32 1.800 1.800 1.800 1.800 1.800 1.600 1.400 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 2.127 2.118 2.120 2.124 2.113 1.930 1.702 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 3.631 3.672 3.624 3.778 3.940 4.026 3.761 Divergence from national average (balance measurement) (= 100) 99.6 99.6 99.6 99.6 99.6 99.5 99.6 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 637 173 Public sector transfers Hamburg638 HH Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 9.553 10.099 9.753 10.669 11.242 12.178 10.843 103.5 107.9 105.2 109.8 110.2 116.0 109.3 -117 -482 -273 -615 -665 -1.099 -520 9.453 9.618 9.480 10.054 10.577 11.079 10.322 102.2 102.8 102.3 103.5 103.7 105.5 104.1 0 0 0 0 0 0 0 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 9.453 9.618 9.480 10.054 10.577 11.079 10.322 102.2 102.8 102.3 103.5 103.7 105.5 104.1 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 638 174 Public sector transfers Hessen639 HE Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 27.444 29.122 28.897 30.589 33.621 35.254 33.266 112.2 117.2 116.9 117.6 123.0 125.3 125.7 -2.153 -3.240 -3.148 -3.439 -4.744 -5.354 -5.129 25.292 25.883 25.749 27.150 28.877 29.901 28.137 103.4 104.1 104.2 104.3 105.6 106.3 106.4 0 0 0 0 0 0 0 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants Divergence from national average (balance measurement) (= 100) 25.292 25.883 25.749 27.150 28.877 29.901 28.137 103.4 104.1 104.2 104.3 105.6 106.3 106.4 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 639 175 Public sector transfers Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement ) (= 100) Supplementary federal grants (in Mio. DM) 1995 6.291 84.6 771 7.062 95.0 335 164 1.479 0 0 1996 6.260 83.6 856 7.116 95.0 337 164 1.479 0 0 1997 6.195 83.6 843 7.038 95.0 333 164 1.479 0 0 1998 6.476 83.7 877 7.353 95.0 348 164 1.479 0 0 1999 6.757 * 2000 6.879 * 2001 6.446 83.6 921 7.678 95.0 364 164 1.479 0 0 83.1 983 7.862 95.0 372 164 1.479 0 0 83.9 853 7.299 95.0 346 164 1.479 0 0 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 1.97 7.397 8 1.98 7.453 0 1.97 7.371 6 1.99 7.701 1 2.00 8.042 7 2.01 8.234 5 1.98 7.645 9 SFH total Gapfillin g grant s Rehabilitational grants Bremen and Saarland Transitional grants (west Germany) Contributio n/ assignment within SHES (in Mio. DM) Compensations for special burdens (east Germany) Compensations for special political costs Mecklenburg-Vorpommern640 MV Fiscal Divergence resources from national before average SHES (in (balance Mio. DM) measurement ) (= 100) Divergence from national average (balance measurement ) (= 100) 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 640 176 Public sector transfers Niedersachsen641 NI Contribution / assignment within SHES (in Mio. DM) Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 30.413 30.739 30.312 31.772 32.889 33.793 30.972 96.2 95.4 94.4 93.8 92.2 92.0 89.6 0.452 0.553 0.672 0.788 1.037 1.113 1.864 30.866 31.292 30.984 32.560 33.926 34.906 32.837 97.6 97.1 96.5 96.1 95.2 95.0 95.0 678 830 1.008 1.182 1.556 1.637 1.556 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 507 456 406 355 304 253 203 0 0 0 0 0 0 0 SFH total Divergence from national average (balance measurement) (= 100) Rehabilitation al grants Bremen and Saarland Transitional grants (west Germany) Compensatio ns for special burdens (east Compensatio Germany) ns for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 1.185 1.286 1.414 1.537 1.860 1.890 1.759 Fiscal resources after SHES and Gapfilling grants Divergence from national average (balance measurement) (= 100) 31.544 32.121 31.992 33.742 35.482 36.543 34.393 99.8 99.7 99.6 99.6 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 641 177 Public sector transfers Nordrhein-Westfalen642 Contribution / assignment within SHES (in Mio. DM) Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 1995 1996 1997 1998 1999* 2000* 2001 107.0 106.4 106.4 106.3 105.3 104.6 101.7 -3.449 -3.125 -3.059 -3.096 -2.578 -2.201 -0.525 74.999 76.128 75.795 79.835 83.664 85.871 79.876 102.3 102.2 102.3 102.3 102.1 101.9 101.1 0 0 0 0 0 0 0 78.448 79.253 78.854 82.931 86.242 88.071 80.402 Gapfilling grants 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Divergence from national average (balance measurement) (= 100) Rehabilitational grants Bremen and Saarland Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs NRW Fiscal resources before SHES (in Mio. DM) 0 0 0 0 0 0 0 Fiscal resources after SHES and Gapfilling grants Divergence from national average (balance measurement) (= 100) 74.999 76.128 75.795 79.835 83.664 85.871 79.876 102.3 102.2 102.3 102.3 102.1 101.9 101.1 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 642642 178 Public sector transfers Rheinland-Pfalz643 RP Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 15.545 15.824 15.628 16.169 17.199 17.002 16.377 96.2 96.3 95.2 93.4 94.5 90.8 93.2 229 231 296 429 379 780 451 15.773 16.056 15.924 16.598 17.578 17.782 16.828 97.6 97.7 97.0 95.9 96.5 95.0 95.7 343 347 444 644 568 842 676 Gapfilling grants 219 219 219 219 219 219 219 0 0 0 0 0 0 0 451 406 361 316 271 226 180 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 1.013 972 1.024 1.179 1.058 1.287 1.075 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 16.116 16.403 16.368 17.242 18.146 18.624 17.504 99.8 99.8 99.7 99.6 99.7 99.5 99.6 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 643 179 Public sector transfers Saarland644 SL Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 4.019 4.017 4.010 4.185 4.315 4.402 4.134 90.9 89.8 90.4 90.1 88.9 88.4 88.9 180 234 204 228 294 329 286 4.199 4.251 4.214 4.413 4.609 4.731 4.420 95.0 95.0 95.0 95.0 95.0 95.0 95.0 199 201 200 209 218 224 209 Gapfilling grants 153 153 153 153 153 153 153 0 0 0 0 0 0 0 80 72 64 56 48 40 32 1.600 1.600 1.600 1.600 1.200 1.050 900 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 2.032 2.026 2.017 2.018 1.619 1.467 1.294 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 4.398 4.452 4.414 4.622 4.827 4.955 4.629 Divergence from national average (balance measurement) (= 100) 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 644 180 Public sector transfers Schleswig-Holstein645 SH Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 11.317 11.201 11.293 11.890 12.024 11.932 11.811 102.5 99.6 100.6 100.2 96.3 92.8 97.5 -141 16 -5 0 174 358 115 11.175 11.217 11.288 11.890 12.198 12.291 11.926 101.2 99.8 100.5 100.2 97.7 95.6 98.4 0 24 0 0 261 513 173 Gapfilling grants 164 164 164 164 164 164 164 0 0 0 0 0 0 0 227 204 182 159 136 114 91 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 391 392 346 323 561 791 428 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 11.175 11.240 11.288 11.890 12.459 12.804 12.099 101.2 100.0 100.5 100.2 99.8 99.6 99.8 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 645 181 Public sector transfers Sachsen646 SN Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 15.938 15.890 15.714 16.436 17.053 17.344 16.234 85.5 84.6 84.7 84.7 84.4 83.8 84.5 1.773 1.965 1.918 1.994 2.149 2.328 2.026 17.711 17.855 17.632 18.430 19.202 19.672 18.260 95.0 95.0 95.0 95.0 95.0 95.0 95.0 839 846 835 873 910 932 965 Gapfilling grants 0 0 0 0 0 0 0 3.658 3.658 3.658 3.658 3.658 3.658 3.658 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 4.497 4.504 4.493 4.531 4.568 4.590 4.623 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) 18.550 18.700 18.467 19.303 20.112 20.604 19.125 Divergence from national average (balance measurement) (= 100) 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 646 182 Public sector transfers Sachsen-Anhalt647 ST Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 9.510 9.447 9.358 9.775 10.108 10.247 9.590 85.0 84.0 84.4 84.6 84.2 83.5 84.7 1.123 1.241 1.175 1.207 1.300 1.407 1.164 10.633 10.688 10.533 10.982 11.408 11.654 10.754 95.0 95.0 95.0 95.0 95.0 95.0 95.0 504 506 499 520 540 552 509 Gapfilling grants 164 164 164 164 164 164 164 2.208 2.208 2.208 2.208 2.208 2.208 2.208 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 2.876 2.878 2.871 2.892 2.912 2.924 2.881 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 11.137 11.194 11.032 11.502 11.948 12.206 11.263 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 647 183 Public sector transfers Thüringen648 TH Fiscal resources after SHES (in Mio. DM) Divergence from national average (balance measurement) (= 100) Supplementary federal grants (in Mio. DM) 8.673 8.629 8.507 8.909 9.289 9.444 8.870 85.0 84.0 83.9 84.0 84.0 83.4 84.3 1.019 1.127 1.123 1.164 1.218 1.320 1.125 9.692 9.757 9.630 10.073 10.507 10.764 9.994 95.0 95.0 95.0 95.0 95.0 95.0 95.0 459 462 456 477 498 510 473 Gapfilling grants 164 164 164 164 164 164 164 2.008 2.008 2.008 2.008 2.008 2.008 2.008 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SFH total Contribution / assignment within SHES (in Mio. DM) Rehabilitational grants Bremen and Saarland Divergence from national average (balance measurement) (= 100) Transitional grants (west Germany) Compensations for special burdens (east Germany) Compensations for special political costs 1995 1996 1997 1998 1999* 2000* 2001 Fiscal resources before SHES (in Mio. DM) 2.631 2.634 2.628 2.649 2.670 2.682 2.645 Fiscal resources after SHES and Gapfilling grants (in Mio. DM) Divergence from national average (balance measurement) (= 100) 10.151 10.219 10.086 10.550 11.005 11.274 10.468 99.5 99.5 99.5 99.5 99.5 99.5 99.5 *) preliminary (“Länderfinanzausgleich”): Specific horizontal equalization scheme (SHES), (“Bundesergänzungszuweisungen”): Supplementary federal grants (SFG) Sources: 1995-2000: http://www.bundesfinanzministerium.de/Anlage1512/Steuern-und-Bundesergaenzungszuweisungen.pdf, 2001: http://www.laenderfinanzausgleich.com 648 184 Grants from central government to lower tiers of government Results of the regional economic support 1991 until 2000 under the GA GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’) (funded by GA budget for industrial sector and infrastructure; Federal funding)649 Approved funds by GA in mio € 1991 - 2000 Industrial Infrastructure Branch Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Total 63,3 326,1 755,6 12,9 61,3 472,8 1,1 159,0 248,6 32,5 27,2 423,3 201,5 195,1 110,8 53,7 25,4 36,4 1 529,2 1 122,9 19,4 1 015,6 5 222,2 1,8 1,3 382, 7 414,5 53,5 278,0 1 906,1 GA for the support of agricultural structure and coastal protection (‚Förderung der Agrarstruktur und des Küstenschutzes’)650 2000651 Baden Württemberg Bavaria Berlin Brandenburg Total: 277, 127 Fed.: 166, 276 2002 (only planned Federal contribution) 652 Total: 149, 720 Fed.: 89,832 Total: 522, 534 Fed.: 313, 522 Total: 0, 611 Fed.: 0, 367 Total: 256, 202 Fed.: 153, 721 Total: 279, 550 Fed.: 167,730 Total: 0, 544 Fed.: 0,326 Total: 128, 145 Fed.: 76,887 649 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.29. 650 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005. 651 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005. 652 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005, p.89. 185 Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Total Total: 3, 163 Fed.: 1, 898 Total: 36, 299 Fed.: 25, 075 Total: 100, 716 Fed.: 60, 429 Total: 212, 726 Fed.: 130, 766 Total: 2, 798 Fed.: 1,714 Total: 14, 424 Fed.: 9,934 Total: 68, 662 Fed.: 41,197 Total: 112, 165 Fed.: 69,143 Total: 370, 369 Fed.: 240, 919 Total: 185, 022 Fed.: 111, 013 Total: 140, 735 Fed.: 84, 440 Total: 17, 603 Fed.: 10, 562 Total: 158, 768 Fed.: 95, 262 Total: 152, 062 Fed.: 91, 238 Total: 131, 174 Fed.: 85, 289 Total: 177, 691 Fed.: 111,681 Total: 101, 735 Fed.: 61,041 Total: 79, 842 Fed.: 47,905 Total: 9, 618 Fed.: 5,771 Total: 85, 148 Fed.: 51,089 Total: 87, 658 Fed.: 52,595 Total: 55, 551 Fed.: 36,300 Total: 147, 166 Fed.: 88, 298 Total: 2. 712, 277 Fed.: 1. 659, 075 Total: Fed.: 76, 833 46,100 Total: 1 430,084 Fed.: 869,245 GA special programme ‘flood’ (‘Hochwasser’) 2002-2003 2002-2003 1.75 mio € 0.35 mio € 0.35 mio € 0.35 mio € 21 mio € 5.25 mio € 0.35 mio € 5.6 mio € Bayern Brandenburg Mecklenburg-Vorpommern Niedersachsen Sachsen Sachsen-Anhalt Thüringen Riserve 5% 1% 1% 1% 60% 15% 1% 16% GA for building and maintenance of Universities (GA ‘Hochschulbau’) Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony Federal grants for building and maintenance of Universities, etc (mio €)653 1995 1996 1997 1998 1999 2000 2001 143 149 131 142 157 140 162 100 108 125 155 182 176 167 86 56 56 56 49 50 49 44 40 43 42 40 33 40 14 10 10 7 13 13 17 22 26 26 28 33 27 34 51 48 46 32 40 41 46 25 29 37 38 41 36 44 66 82 62 53 43 69 78 653 Planungsausschuss für den Hochschulbau (2002): 32. Rahmenplan für den Hochschulbau nach dem Hochschulbauförderungsgesetz 2003–2006, Berlin, p. 29. 186 North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 118 146 145 133 147 173 185 39 21 32 16 34 10 40 11 40 12 36 15 42 17 83 38 30 38 57 44 37 47 66 52 37 43 69 53 26 36 96 59 27 44 88 58 26 40 109 63 29 50 Total volume of Federal financial aid to the Länder (mio €)654 Education/Researc h acc. to Art 91b GG Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 2001 17,5 20,7 41,6 46,7 1,1 4,1 10,0 39,2 12,6 26,0 6,0 1,6 58,4 30,7 3,6 2002 7,1 7,9 17,8 21,5 0,6 1,7 4,2 18,6 4,9 12,4 2,6 0,7 25,8 18,8 1,6 31,1 16,1 General financial support law acc. to Art 104a Abs.3 GG 655 2001 2002 228,2 271,0 263,1 304,8 222,8 259,0 120,5 126,7 48,3 53,9 100,3 102,0 178,8 221,4 99,4 108,3 311,6 347,0 711,1 803,7 110,1 116,3 35,6 40,1 238,2 250,5 132,8 135,0 116,3 132,0 109,7 113,8 General financial support law acc. to Art 104a Abs.4 GG 656 2001 2002 306,6 272,4 354,5 361,8 806,7 223,7 640,2 198,5 21,4 25,6 55,6 48,2 150,0 141,7 699,9 220,6 204,9 186,4 465,4 484,3 107,6 97,5 41,2 27,1 444,7 731,1 314,9 72,0 67,7 663,5 Other financial support657 2001 272,3 511,8 356,7 66,0 23,5 71,1 250,7 57,4 267,7 873,5 433,3 22,7 65,0 54,9 100,4 2002 250,7 501,6 342,5 68,5 20,4 79,9 240,4 49,7 433,3 711,5 417,5 20,4 110,8 49,8 102,9 39,6 32,9 214,4 Infrastructure policy related to cities o Targeted support for the structural development of cities o Total volume of 433 mio €, of which 92 mio € are earmarked fort he old Länder (2000: 41 mio €) 265 mio € fort he new Länder (2000: 265 mio €) 76 mio € earmarked for the programme ‚city districts with special need for renovation – the social city’ Federal budget for support measures for city infrastructure 2001658 654 Data provided by the central data collection archive of the Länder finance ministries / Zentrale Datenstelle der Landesfinanzminister 655 This headline covers rental support for social housing, financial support for students and pupils, etc. 656 This headline covers support for social housing, city infrastructure, communal traffic support measures, etc. 657 Including consequences of war, special support for Eastern Länder, special support for Berlin, other special financial measures 187 1000 € Baden Württemberg Bavaria Berlin (East) Berlin (West) Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 13519,9 15937,2 23413,2 4002,6 44027,2 1240,0 2556,7 8265,1 30387,3 10607,2 24179,8 5756,9 1567,9 % of the budget for East / West German Länder 14,7 17,3 8,8 4,4 16,6 1,4 2,8 8,9 11,4 11,5 26,3 6,3 1,7 79779,3 46255,5 4297,2 41714,2 30,1 17,4 4,7 15,7 Funds German Unification Budget 1990-1994659 Borrowing Subsidy Länder Subsidy Federal level Total 1990 bio DM 20,000 2,000 22,000 1991 bio DM 31,000 4,000 35,000 1992 bio DM 24,000 9,900 33,900 1993 bio DM 15,000 14,245 5,960 35,205 1994 bio DM 5,000 19,477 10,123 34,600 Total bio DM 95,000 49,622 16,083 160,705 Total gross expenditure in regions (Länder budgets only)660 1995 27.242 1996 27.804 1997 26.929 1998 28.731 1999 28.620 2000 30.264 29.641 22.085 9.750 3.982 9.064 15.586 7.149 31.153 21.812 9.855 4.006 9.455 16.590 7.606 30.713 21.423 9.657 4.024 9.420 16.533 7.308 31.078 21.192 9.749 4.055 9.361 16.658 7.330 31.677 21.081 9.834 4.100 9.490 17.755 7.237 32.410 20.895 9.700 4.115 9.729 18.213 7.118 19.719 19.803 19.746 20.101 20.261 20.848 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony 658 http://www.raumplanung.uni-dortmund.de/fhp/folien%20blockseminar.pdf, Source: Verwaltungsvereinbarung über die Gewährung von Finanzhilfen des Bundes an die Länder nach Artikel 104a Absatz 4 des GG zur Förderung städtebaulicher Maßnahmen, 27.04./01.08.2001. 659 http://www.bundesfinanzministerium.de/fach/abteilungen/bundhaus/bundhaus2001/daten/_private/daten /ep60/60920000.pdf 660 Bundesministerium der Finanzen (2002): Bund – Länder Finanzbeziehungen auf der Grundlage der geltenden Finanzverfassungsordnung, Berlin. 188 North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Total 42.488 10.330 3.129 15.535 10.393 7.148 43.886 10.983 3.230 16.103 10.326 7.240 45.112 10.853 3.158 15.665 10.809 7.135 45.033 10.947 3.193 15.375 10.470 7.279 45.502 11.080 3.204 15.549 10.302 7.442 46.179 11.219 3.266 16.123 10.454 7.551 9.044 237.239 9.630 243.121 9.604 241.561 9.680 243.218 9. 794 245.268 9.687 249.338 Financial balance of public budgets by Länder 661 1* 2000 2001 Mio € Baden-Württemberg +139 -3 467 +1 091 -1 574 Brandenburg -475 -714 Hesse +230 -1 081 Mecklenburg-Western Pomerania -592 -648 Lower Saxony -836 -4 308 -1 914 -7 862 -647 -1 559 -3 -101 Saxony -173 -169 Saxony-Anhalt -854 -1 170 Schleswig-Holstein -328 -416 Thuringia -688 -777 -2 546 -5 235 Bremen -140 -305 Hamburg -675 -1 413 Bavaria North Rhine-Westphalia Rhineland-Palatinate Saarland Berlin * Difference between expenditure and revenue incl. internal offsetting (result in the negative = net borrowing; result in the positive = net lending); not identical with the government budget deficit in national accounting. 1 As for 2000 and 2001, excluding hospitals with a commercial accounting system and special-purpose associations. Debt of public budgets* 1 by Länder662 2001 2002 Mioi € Baden-Württemberg Bavaria Brandenburg Hesse Mecklenburg-Western Pomerania Lower Saxony North Rhine-Westphalia Rhineland-Palatinate Saarland 661 662 39 505 40 359 32 069 33 755 15 326 16 453 31 173 33 131 10 256 10 815 44 770 47 959 111 341 116 603 23 960 25 358 7 103 7 469 http://www.destatis.de/basis/e/fist/fisttab021.htm http://www.destatis.de/basis/e/fist/fisttab024.htm 189 Saxony 16 239 16 513 Saxony-Anhalt 17 748 19 015 Schleswig-Holstein 18 518 19 550 Thuringia 14 639 15 195 Berlin 38 350 44 647 Bremen 8 894 9 584 Hamburg 17 624 18 183 * Credit market debt in the broader sense ( = securities debt, indebtedness to banks, saving banks, insurance companies or other domestic/foreign institutions, and equalisation claims). 1 Land, communities/local authorities and special-purpose associations. Debt of the public budgets 1 of the Länder in EUR per resident*663 2001 2002 Baden-Württemberg 3 741 3 796 Bavaria 2 612 2 732 Brandenburg 5 901 6 360 Hesse 5 134 5 446 Mecklenburg-Western Pomerania 5 798 6 170 Lower Saxony 5 639 6 017 North Rhine-Westphalia 6 178 6 456 Rhineland-Palatinate 5 929 6 262 Saarland 6 657 7 012 Saxony 3 686 3 782 Saxony-Anhalt 6 826 7 413 Schleswig-Holstein 6 626 6 958 Thuringia 6 044 6 325 Berlin 11 332 13 172 Bremen 13 465 14 505 Hamburg 10 251 10 535 * Credit market debt in the broader sense ( = securities debt, indebtedness to banks, saving banks, insurance companies or other domestic/foreign institutions, and equalisation claims). 1 Land, communities/local authorities and special-purpose associations. Net borrowing of public budgets by Länder664 1 2000 2001 Mio € Baden-Württemberg 474 2 537 Bavaria -267 374 503 560 -1 333 -494 60 375 -355 1 087 North Rhine-Westphalia 426 3 103 Rhineland-Palatinate 420 671 Saarland -65 -222 Saxony 216 161 Brandenburg Hesse Mecklenburg-Western Pomerania Lower Saxony 663 664 http://www.destatis.de/basis/e/fist/fisttab025.htm http://www.destatis.de/basis/e/fist/fisttab022.htm 190 Saxony-Anhalt 808 755 Schleswig-Holstein 457 585 Thuringia 729 708 1 937 4 896 -53 40 -261 -153 Berlin Bremen Hamburg * Borrowing minus debt repayments in the credit market. 1 As for 2000 and 2001, excluding hospitals with a commercial accounting system and special-purpose associations. Tax revenue by the Länder (Länder participation at common taxes and original Länder taxes) in mio € 665 1995 14.108 1996 13.518 1997 13.092 1998 14.868 1999 15.695 2000 16.342 2001 15.375 16.102 3.874 1.628 914 3.191 8.437 996 15.814 3.789 1.252 849 3.265 8.812 767 15.656 3.668 1.217 967 3.078 8.505 755 16.817 3.866 1.329 760 3.496 9.329 812 17.890 3.963 1.334 940 3.706 10.523 831 18.915 4.095 1.247 881 4.043 11.128 805 17.908 3.544 1.202 804 3.507 10.216 628 8.811 24.135 4.608 1.081 2.702 1.430 3.430 8.431 23.012 4.451 1.010 2.110 1.105 3.161 8.020 22.312 4.218 1.004 2.013 1.038 3.148 8.703 24.362 4.525 1.011 2.211 1.149 3.431 8.903 25.572 4.931 1.028 2.225 1.139 3.391 8.825 26.340 4.818 1.068 1.946 1.008 3.337 8.328 22.714 4.502 1.042 1.781 919 3.292 1.298 96.744 981 92.327 959 89.648 1.080 97.749 1.107 103.177 959 105.757 876 96.638 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Total 665 Bundesministerium der Finanzen, homepage. 191 5 State aid Investigating and obtaining figures from a broader range of sources of state aid (regional and local authorities as well as central authorities) A broader range of figures was investigated and only the central data collection archive of the Länder finance ministries / Zentrale Datenstelle der Landesfinanzminister could provide some additional data on the distribution of Federal state aid among the Länder (see below). Furthermore the European Commission, DG Competition nevertheless provides data on state aid cases registered by the Commission (http://europa.eu.int/comm/competition/ state_aid/register/State Aid Register). Moreover, data on Commission Decisions on Germany, Regions/provinces, by aid instrument and by sector/activity, including aid intensity and amount can be downloaded at: http://europa.eu.int/comm/competition/state_aid/ register/ii/by_region_3.html. State aid in Germany is divided between the different state levels, thus the national level as well as the Länder level can grant state aid from their own budgets. The figures presented below represent only the Federal share in state aid and thus vary from the Commission data, which represent the entire state aid of all state levels. “Legal basis and definition of „subsidies“ The subsidies concept of the Federal Government concentrates, as specified by law, on aid from the Federal Budget to private enterprises and economic sectors. Section 12 of the Law to promote economic stability and growth (StWG) expressly refers to aid provided by the government to enterprises and economic sectors for adjustment, support and for increasing productivity. Account is also taken of other aid which in key sectors of the economy reduces the cost of specific goods and services to private households which can at the same time be directly assigned to the sphere of economic activity; this relates predominantly to aid for housing construction. … Allocations, grants, capital increases in federal undertakings and Federal Government guarantees are not included.. . In accordance with its specific mandate the subsidies report reflects only those aspects of government activity that have a direct and indirect impact on the economy. ... Due to the fact that there are many concepts under which to define the term subsidy, at international level subsidies are looked at under aspects which differ from those considered in the subsidies report of the Federal Government. In April 2000 the EU Commission submitted its eighth subsidies report, which lists national aids of EU countries in the areas of manufacturing, agriculture, fisheries, coal, transport, financial services, training, tourism, media and culture. The reduction of subsidies in EU countries in the years 1996 to 1998 was largely characterised by declining aids in Germany and Italy.”666 “The total volume of subsidies in Germany [incl. aid provided by the Länder as well as market organisation spending of the European Union and the ERP financial aid] decreased from € 58.1 bn in 1999 to € 57.8 bn in 2001. The decrease is mainly attributable to lower financial aid by the Federal Government (by € 1.4 bn) and lower ERP financial aid (by € 0.4 bn).”667 The overall reduction of German national subsidies is in line with the multi-annual plan of the Federal Government according to which financial aids from 1999 to 2005 will decline from € 10.9 bn to € 6.5 bn. Vis-à-vis 2001 this indicates a reduction by ca. 31.6 %. State aid is cut in the mining sector (decline from € 4.3 bn in 1999 to € 2.2 bn in 2005) and in the housing sector 666 http://www.bundesfinanzministerium.de/Anlage11114/18-th-Subsidies-report-of-the-Federal-Government-Summery.pdf, p- 6-7. 667 http://www.bundesfinanzministerium.de/Anlage11114/18-th-Subsidies-report-of-the-Federal-Government-Summery.pdf, p. 4. 192 (decline from € 2 bn in 1999 to € 912 million in 2005). Federal tax policy will ensure Federal tax relief measures (which are another instrument of financial support for the regional development besides direct state aid) becoming increasingly less attractive beyond 2005.668 The most important beneficiary of state aid is the industry (including mining) with 9.9 bn € in 2002 (46% of total state aid and Federal tax relieves). Nevertheless, also here the general trend of reduction of state aid (around 322 mio € since 1999) can be witnessed. Most important institutions and agencies that are involved in granting state aid are: Arbeitsgemeinschaft industrieller Forschungsvereinigungen "Otto von Guericke" e.V. (AiF) Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. (AUMA) Bundesagentur für Außenwirtschaft (bfai) BINE Informationsdienst Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA) Bundesanstalt für Arbeit (BA) Bundesinstitut für Berufsbildung (BIBB) Bundesministerium für Bildung und Forschung (BMBF) Bundesministerium für Verkehr, Bau- und Wohnungswesen (BMVBW) Bundesministerium für Wirtschaft und Arbeit (BMWA) Bundesverband Deutscher Kapitalbeteiligungsgesellschaften e.V. Deutsche Ausgleichsbank (DtA) Deutsche Bundesstiftung Umwelt (DBU) DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH Deutsches Zentrum für Luft- und Raumfahrt e.V. Fachagentur Nachwachsende Rohstoffe e.V. (FNR) Forschungszentrum Jülich GmbH - Projektträger Jülich (PTJ) Forschungszentrum Karlsruhe GmbH Fraunhofer Services GmbH Gesellschaft für Anlagen- und Reaktorsicherheit (GRS) mbH gbb Beteiligungs-AG GSF-Forschungszentrum für Umwelt und Gesundheit GmbH HERMES Kreditversicherungs-AG Institut der deutschen Wirtschaft Köln (IW) iXPOS - Das Außenwirtschaftsportal Kreditanstalt für Wiederaufbau (KfW) Mittelstandsbank Netzwerk elektronischer Geschäftsverkehr Stiftung für wirtschaftliche Entwicklung und berufliche Qualifizierung (SEQUA) TÜV Akademie Rheinland GmbH - Projektträger Mobilität und Verkehr, Bauen und Wohnen (PT MVBW) tbg Technologie-Beteiligungs-Gesellschaft VDI/VDE-Technologiezentrum Informationstechnik GmbH VDI-Technologiezentrum Physikalische Technologien Verband der Bürgschaftsbanken e.V. Development of State aid of the Federal Government from 1999 to 2002 (mio €)669 Designation 1999 2000 2001 2002 668 http://www.bundesfinanzministerium.de/Anlage11114/18-th-Subsidies-report-of-the-Federal-Government-Summery.pdf, p. 7. 669 http://www.bundesfinanzministerium.de/Anlage11114/18-th-Subsidies-report-of-the-Federal-Government-Summery.pdf, p- 2. 193 1. Consumer protection, food and agriculture 2. Trade and industry (without transport) 1.827 1.754 1.510 1.347 2.1. Mining including sales and set-aside subsidies for the hardcoal industry 4.308 3.972 3.696 3.050 3.894 3.712 3.380 2.929 38 67 181 123 2.3. Technology and innovation subsidies 419 394 416 398 2.4. Aid for specific sectors of industry 134 139 219 192 999 896 812 2.2. Efficient use of energy and renewable energy sources 2.5. Regional structural measures 700 2.6. Trade and industry in general 3. Traffic 4. Housing 5. Savings incentives and asset formation Total 647 467 283 267 16 2.081 423 4 1.922 451 6 1.908 511 36 1.605 500 10.892 10.065 9.542 8.219 Total volume of state aid by Federal Government, Länder und local authorities (bn €)670 Federal Government Länder Local authorities 1970 4,0 1975 5,2 1980 6,4 1985 6,1 1990 7,3 1995 9,4 1996 12,4 1997 11,7 1998 11,4 1999 10,9 2000 10,1 2001 9,5 3,0 0,5 3,7 0,5 6,2 0,5 6,2 0,5 7,2 1,1 10,7 1,5 10,9 1,6 11,7 1,7 11,0 1,6 11,3 1,6 11,2 1,6 11,2 1,6 The main areas, in which state aid is relevant, are:671 670 Ibid., p.4 Bundesministerium der Finanzen (2001): Achtzehnter Subventionsbericht. Bericht der Bundesregierung über die Entwicklung der Finanzhilfen des Bundes und der Steuervergünstigungen für die Jahre 1999 –2002 Achtzehnter Subventionsbericht, http://www.bundesfinanzministerium.de/Anlage11114/18-th-Subsidies-report-of-the-FederalGovernment-Summery.pdf, http://www.bundesfinanzministerium.de/Anlage6737/18.-Subventionsbericht-derBundesregierung.pdf, p 19. 671 194 Planned budget 2002 in mio € Title of state aid Marketing of German hard coal Subsidies for the Eastern Länder for investments in industrial companies, GA of the development of the regional economic structure Subsidies for providers of agricultural accidents insurance Interest subsidies to the ‚KfW’ for building modernisation / renovation to avoid C O2emissions Subsidies to take on agricultural employees Adaptation support for employees in hard coal mining sector Measures to support SME and freelancers as well as to strengthen vocational training Subsidies to the Federal monopoly administration for spirits Subsidies for the West Länder for investments in industrial companies, GA of the development of the regional economic structure Interest subsidies and reimbursement of loss in loans in the framework of the own capital support programme for self-employment Support of the industrial common research and development Pension for handing over land (‚Landabgaberente ‘) Financial support for selling of civil air plains including power plants Total 2.929 595 256 205 171 121 117 108 105 101 88 87 78 4.961 National state aid in figures 2001 The Commission figures include Federal as well as Länder and local authorities’ state aid and do not distinguish between the different levels. If we would like to draw conclusions on the impact of national/Federal state aid we will have to distinguish between these different categories as presented above. The figures above concern state aid from the Federal level to the Länder level. 2001 23,3 Total state aid in billion € 11,9 Total state aid less agriculture, fisheries and transport in billion € 1,14 Total aid as % of GDP 0,58 Total aid less agriculture, fisheries and transport as % of GDP Source: European Commission (2003): State Aid Scoreboard, spring 2003 update COM(2003)225 final, p. 10. State aid as a % of GDP in 2001 Trend in the share of aid to GDP, 1997-2001, % points Share of aid to horizontal objectives as a % of total aid, 2001 Trend in the share of aid to horizontal objectives as % of total aid 1,23 -0,26 46 +14,4 Source: DG Competition, http://europa.eu.int/comm/competition/state_aid/scoreboard/key_indicators.html. State aid by sector %of total Manufacturing Services Transport Agriculture & Fisheries Coal Not elsewhere classified Total 40 9 18 0 23.274 (including tourism, financial, media and culture) 2001 33 0 Million euro Source: European Commission (2003): State Aid Scoreboard, spring 2003 update COM(2003)225 final, p. 13. 195 Share of State aid by sector Manufacturing Services Transport (including tourism, financial, media and culture) Agriculture & Fisheries Coal Not elsewhere classified 38 1 37 6 18 1 1997-2001 35 0 39 7 18 1 1999-2001 Source: European Commission (2003): State Aid Scoreboard, spring 2003 update COM(2003)225 final, p. 14. State aid to the manufacturing sector by type of aid instrument, 1999 -2001 % Type of aid Grants Tax Equity Soft loans Tax Guarantees exemptions participations deferrals 49,9 35,8 0,2 7,2 0,9 6,1 Source: European Commission (2003): State Aid Scoreboard, spring 2003 update COM(2003)225 final, p. 26. State aid for horizontal objectives and particular sectors, 2001 Horizontal Objectives Research and Development Environment SME Commerce Energy saving Employment aid Training aid Other Objectives Particular sectors Shipbuilding Other Manufacturing Sectors Other Non-manufacturing Sectors Coal Tourism Financial Services Media, Cultural sector & services Percentage of total aid less agriculture, fisheries and transport 63 13 27 4 0 1 1 0 18 37 0 1 35 1 0 0 11.853 Total aid less agriculture, fisheries and transport in million € Source: European Commission (2003): State Aid Scoreboard, spring 2003 update COM(2003)225 final, p. 18. State aid to coal mining, 1997 – 2001 Yearly average of aid destined to current production 1997 - 1999 1999 - 2001 Yearly average of aid not destined to current production (in million €) 1999 - 2001 1997 - 1999 in million € € per employee in million € per employee € 441,6 951,4 4.540,7 62.977 3.541,6 60.922 Source: European Commission (2003): State Aid Scoreboard, spring 2003 update COM(2003)225 final, p. 19. 196 Distinguishing under the general heading of ‘regional state aid’ how much is spent on particular categories of policy assistance [e.g. aid for regional employment that may also be classified as general employment aid] (see also part on public sector transfer and territorial policy) Identifying the regional breakdown of state aid by recipient regions. Given the progress of the German unification process, German statistics on state aid increasingly neglect the differentiation of measures and/or payments between Eastern and West German Länder. A complete overview on measures for the new Länder is not provided for even in the 18th German report on state aid which does not offer a concrete list of state aid distribution between the Länder, as also the Federal budget is structured alongside thematic items and not regional distribution.672 Thus, no exact breakdown of the state aid for the different items to the Länder can be provided. Moreover, also officials of the Federal Ministry for Finances contacted (in charge of the state aid policy) confirmed that neither this ministry nor the Länder ministries collect or aggregated these data with a view to the Länder level. Total volume of Federal state aid to the Länder (bn. DM)673 West Länder Eastern Länder 1970 7,8 1975 10,1 1980 12,5 1985 11,9 1990 14,2 1991 13,0 1993 11,8 1995 10,2 1996 17,1 1997 15,8 1998 15,5 1999 15,2 - - - - - 6,7 7,5 8,2 7,2 7,0 6,7 6,6 Federal State aid for regional infrastructure and development in the ‘old’ and ‘new’ Länder (in mio €)674 Länder Old Länder: Bayern, Bremen, Hessen, Saarland, Niedersachsen, Schleswig- Holstein, RheinlandPfalz, Nordrhein- Westfalen New Länder: Mecklenburg- Vorpommern, Sachsen, Sachsen- Anhalt, Brandenburg, Thüringen und Berlin Targets -Subsidies for company related investments -support for regional investment activities under the GA of the development of the regional economic structure -Subsidies for company related investments in economically weak regions of the new Länder -support for regional investment activities under the GA of the development of the regional economic structure Total Regional infrastructural measures 1999 2000 95,6 Planned budget 2001 115,0 Planned budget 2002 105,1 99,9 898,7 800,1 697,4 594,8 998,6 895,7 812,4 699,9 Federal state aid granted only to the Eastern Länder675 672 Bundesministerium der Finanzen (2001): Achtzehnter Subventionsbericht. Bericht der Bundesregierung über die Entwicklung der Finanzhilfen des Bundes und der Steuervergünstigungen für die Jahre 1999 –2002 Achtzehnter Subventionsbericht, http://www.bundesfinanzministerium.de/Anlage6737/18.-Subventionsbericht-der-Bundesregierung.pdf, p. 9. 673 Deutscher Bundestag (1999): Drucksache 14/1500, p. 23. 674 Bundesministerium der Finanzen (2001): Achtzehnter Subventionsbericht. Bericht der Bundesregierung über die Entwicklung der Finanzhilfen des Bundes und der Steuervergünstigungen für die Jahre 1999 –2002 Achtzehnter Subventionsbericht, http://www.bundesfinanzministerium.de/Anlage6737/18.-Subventionsbericht-der-Bundesregierung.pdf, p 64. 675 Bundesministerium der Finanzen (2001): Achtzehnter Subventionsbericht. Bericht der Bundesregierung über die Entwicklung der Finanzhilfen des Bundes und der Steuervergünstigungen für die Jahre 1999 –2002 Achtzehnter Subventionsbericht, http://www.bundesfinanzministerium.de/Anlage11114/18-th-Subsidies-report-of-the-Federal- 197 Title of state aid Subsidies for social housing, modernisation and renovation for the Eastern Länder Relief of housing companies acc. to the regulation concerning the ‘old debt support act’ (‘Altschuldenhilfegesetz’) Interest subsidies in the framework of the housing modernisation programme II of the ‘KfW’ Support of marketing and selling of Eastern German products Subsidies for the reduction of costs for interests for loans for the support of company related investments Allocation for interest support from ‘old debts’ concerning the housing sector 1999 in mio € 376,9 2000 in mio € 352,1 Planned budget 2001 in mio € 284,8 Planned budget 2002 in mio € 238,5 - - 30,7 25,0 - - 5,1 12,8 9,0 9,2 10,2 9,0 0,5 0,3 0,2 0,1 0,6 0,9 - - Government-Summery.pdf, http://www.bundesfinanzministerium.de/Anlage6737/18.-Subventionsbericht-derBundesregierung.pdf, p 28. 198 6 Employment policies Basic outline of the German employment policy676 OECD Employment Outlook (table on ‘public expenditure and participant inflows in labour market programmes in OECD countries’)677 Public employment services and administration Labour market training Training for unemployed adults and those at risk Training for employed adults Youth measures Measures for unemployed and disadvantaged youth Support of apprenticeship and related form of general youth training Subsidised employment Subsidies to regular employment in the private sector Support of unemployed persons starting enterprises Direct job creation (public and nonprofit) Measures for the disabled Vocational rehabilitation Work for the disabled Unemployment compensation Early retirement for labour market reasons TOTAL Active measures (1-5) Passive measures (6-7) Public expenditure as % of GDP 2000 2001 0.23 0.23 Participants inflows as % of the labour force 2000 2001 0.34 0.34 0.34 0.34 1.49 1.49 1.22 1.22 0.08 0.07 0.09 0.08 1.02 0.66 0.66 0.01 0.01 0.36 - 0.32 0.03 0.25 0.03 1.24 0.11 1.04 0.12 0.04 0.04 0.23 0.24 0.25 0.19 0.90 0.68 0.27 0.11 0.15 1.89 0.01 0.29 0.12 0.16 1.90 0.02 0.30 0.30 - 0.30 0.30 - 3.14 1.24 1.90 3.13 1.20 1.92 4.04 - - In 2002 the German employment “growth was ... very limited (0.2%). Unemployment (7.9%) was stagnant and not expected to fall until 2003. The number of jobs declined in the Eastern Länder where unemployment remains high. Long-term unemployment (3.9%) remains above the EU average, even if a decreasing trend can be discerned. The overall employment rate rose by 2 % since 1997. The rate for women has been increasing even faster (+3.5 %) and is higher than the 2005 interim EU-target. Although the employment rate for older workers (5564 years) is close to the EU average, it remains below the very low starting level of 1997” Based on Umbach, Gaby (2003): Employment Policies in Germany and the United Kingdom – The impact of Europeanisation, AGF-Project report – Political Sciences, Cologne. 677 http://www.oecd.org/pdf/M00032000/M00032007.pdf. 676 199 (Council/European Commission 2003:65). These trends are supported by the still low level of economic growth in Germany. 2002 Council recommendations Main points of the 2002 recommendations of the Council of the EU to Germany were: to dedicate further efforts on preventing the increase of long-term unemployment to remove work disincentives for older workers (esp. the German early retirement practice) to invest further more efforts to make work contracts and work organisation more flexible to tackle skills gaps in the labour market including incentives for continuous education, training and apprenticeship to reduce taxes on labour and social security contributions for the lowest level of the wage scale to reduce the gender pay gap and to promote childcare provisions should be strengthened (Council of the EU 2002:73). Overall reform activities 2002 In 2002, various reform activities were launched including two most relevant initiatives: the Job-Aqtiv Act and the proposals of the Committee “Modern Services on the Labour Market” (a.k.a. Hartz concept). Moreover, the modernisation of the Federal Employment Service was subject to reforms. Given the general economic slowdown the 2002 German NAP underlined the priority of improving the overall economic performance in order to promote employment and to support job creation. The reduction of the public debt and the creation of a reasonable tax system were thus priority targets. Special attention was to be paid to the enhancement of equal opportunities and to the reintegration of women and older workers into the labour market. Besides, investing in the quality of work together with efforts to increase lifelong learning activities were major points of the planned German employment policy reforms in 2002 (Federal Republic of Germany 2002:10). The German employment policy development paid furthermore tribute to the regional dimension of the EES by introducing the programme ‘Promotion of Job-Creating Infrastructure’ (‘Beschäftigung schaffende Infrastrukturförderung’ should ensure that the regional policies on infrastructure were to be taken into account), which together with the JobAqtiv act more closely when employment policies were planned (Federal Republic of Germany 2002). Employment policy initiative in 2002 As most important the Job-Aqtiv act entered into force in January. It re-orientated the general orientation of the German employment policy and focuses e.g. on the employment of older workers, on training measures and lifelong learning aspects. With this orientation it could be interpreted as a response especially to guidelines 1, 2, 3, 6 and 9 of the EES (also as the EES is referred to in the preamble of the law). The act supports preventive/active employment policy approach and intends to modernise different labour market instruments especially related to job placement measures. It thus provides for supplementary instruments (e.g. reintegration agreements, job rotation) for the re-integration of unemployed persons into work and for training measures for those in work. On the basis of local employment offices’ decisions, private agencies are allowed to take part in job placement activities. Furthermore, employment offices have to provide applicants with a job profile including the assessment of 200 employability. Active job placement measures have to be offered directly when a person has reported unemployed. In this context, the new government approach ‘Encouraging and Motivating’ (‘Fördern und Fordern’) is applied. Gender equality is characterised as the universal principle of the law to promote employment, supported by measures to support the reconciliation of work and family life and gender-mainstreaming. The law aims at improving monitoring of effectiveness of the existing instruments of the German labour market policy (Federal Republic of Germany 2002:90ff.). In March 2002, the Committee “Modern Services on the Labour Market” (“Moderne Dienstleistungen am Arbeitsmarkt”, the so called ‘Hartz Commission’ named after its chairman Peter Hartz) was set up to prepare the reform the German employment policy and the federal Employment Service (FES). The German FES in February 2002 became focus of the public attention because of the revelation of wrong placement figures and considerable mismanagement (Thiel 2002:14). The Hartz Commission presented its report (the so called ‘Hartz Concept’), which is considered as the core concept of the German employment policy reform, on 16th August 2002. The concept is based on the main aims to reduce the number of unemployed people from nearly 4 millions to nearly 2 millions until 2005, to diminish the period of job placement from 33 weeks to 22 weeks and to decrease spending on earnings-related benefit and unemployment benefit from 40 to 13 thousand million €. The instruments to achieve these aims are: (1) stronger incentives for a quick job placement, (2) targeted support for self-employment and (3) a stronger use of temporary employment. Concerning temporary employment, so-called ‘personnel agencies’ (‘Personalagentur’) will be connected to the 181 job centres, lending unemployed people for a restricted period to companies. After a period of 6 months unemployment unemployed persons not willing to work will suffer cutbacks in earnings-related benefit (by this means unemployment shall decrease by 780.000). With a view to job placement, employed persons have to announce unemployment as soon as they are under notice to leave their current job. Missing this duty will indicate cuts in earnings-related benefit. Companies who avoid dismissals will get discounts for their contributions to the unemployment insurance. The principle of reasonableness to accept jobs will be tightened. Unemployed have to make evident that a job is unreasonable for them and not the other way around (as it currently is). Young singles additionally can be obligated to move within Germany to find jobs. They will also have to accept lower wages. In the future, earnings-related benefit will be paid in three rates during the first 6 months of unemployment, based on the income during the period of employment. As to low wages, the current € 325,- ‘mini-jobs’ will be restructured. Employees earning no more then € 500,- will get state subsidies to their health and pensions insurance. Social security contribution will be decreased to 10 % and these compulsory contribution to the social security will start with an income of € 200,-. Self employment will become less bureaucratic and more simply to achieve for unemployed people. If the profit does not exceed € 25.000,- in the first three years, it can be kept together with the state subsidy for unemployment. A tax flat rate of 10% will be kept (unemployment shall decrease by 500.000 through the instruments of ‘Ich-AG’ and of ‘Familien-AG’). Older persons can be removed from job placement on their own request. Instead of earnings-related benefit they would receive a payment, which would take also into consideration their social security contributions. The Hartz concept proposes 13 modules of innovation to decrease unemployment and to reform the FES (Schmitthenner 2002; Bundesregierung 2002): 201 Family-friendly job placement (‘Quick-placement’) for families and lone parents New reasonableness and voluntariness Job Centre as integral organisation form/ bringing together of all actors Young unemployed / ‘share certificates for education’ Personnel service agencies as business unit / Neutralisation of the protection against wrongful dismissal / in-house training / integration of those, who are difficultly placeable Service for customers, employers and increase of job placements Merger of unemployment benefit and unemployment assistance / multi function cards Restructuring of the Länder employment services into competence centres for new jobs and employment development, market research and support for development New employment and decrease moonlighting by the introduction of ‘Ich-AG’ (‘I-Inc.’) and of ‘Familien-AG’ (‘Family-Inc.’) with social security contributions and a 10 % tax Job balance / ‘Discount system’ for employees ‘Bridge system’ for older people Transparent Controlling and efficient IT-support of all processes Contribution of ‘Professionals of the Nation’, Master plan, project coalition following the Alliance for Jobs. On 21st August the government decided the ‘1:1’ implementation of the Hartz concept. In October 2002, Hans Eichel, Minister of Finance, announced to transfer 2.8 thousand million € to the FES for the implementation of the Hartz concept. The Bundestag in November 2002 approved the implementation of the concept by 1st January 2003. The reform was split into two draft bills in order to avoid problems resistance of the opposition (CDU/CSU) dominated Bundesrat. The first part of the law (not subject to consent of the Bundesrat) integrated the rules concerning reasonableness, support for training as well as framework conditions for temporary employment. The second part of the draft bills (need for consent of the Bundesrat), included measures with a view to mini-jobs and self employment. Further new policies The ‘Immediate Programme for the Reduction of Youth Unemployment’ was further extended until 2003 with another 1.02 billion € available. The main “objective for 2002 is to achieve another balance between in-company vacancies and young applicants” (Federal Republic of Germany 2002:29). Other policies were directed to the implementation of the Equality Law for Disabled People (the act to combat unemployment of disabled persons/‘Gesetz zur Bekämpfung der Arbeitlosigkeit Schwerbehinderter’) and the action programme ‘Reducing Youth Unemployment (‘Abbau der Jugendarbeitslosigkeit’). To generally improve the situation of immigrants in Germany, the partners of the Alliance for Jobs jointly launched the action programme ‘Improving Training Opportunities for Migrants’ (‘Verbessung der Bildungssituation von Migrantinnnen und Migranten’) to provide advice and help. The new initiative ‘A New Quality of Work’ (‘Neue Qualität der Arbeit’) reacted to the recommendations of the Council in 2001 and should guarantee the equilibrium of flexibility and social security (ibid.:11f.). With a view to early retirement, the average retirement age was increased to 65 years and the revised pension law provides for additional incentives to stay in work. The federal programme ‘Vocational Skill-building for Young People with a Special Need for Promotion’ was continued with a budget of about € 55 million until 2005, while the programme ‘An Enhanced Culture of Learning’ (‘Lernkultur Kompetenzentwicklung’) concentrated on improving in-house training. The 202 overall tax reform was to refine the corporate tax law (‘Gesetz zur Fortentwicklung des Unternehmenssteuerrechts’) to relieve tax burdens on SME’s. 2002 Joint Employment Report Commenting on the 2002 activities the Council and the Commission in 2003 advised Germany to enhance activities to increase the employment rate of older workers. Moreover, the activities under the employability pillar would need to be enhanced and structural reforms in Eastern Germany should further be advanced. Further efforts were also needed to reduce taxation and non-wage labour costs and concerning childcare facilities. Finally, Germany was asked to re-start talks of the Alliance of Jobs (Council/European Commission 2003). 2003 Council recommendations (1) (2) (3) (4) (5) Improve efficiency of job search assistance and active labour market programmes Systematic review and removal of regulatory barriers; ma work contracts and work organisation more flexible Develop and implement life-long learning strategy Reform of the tax-benefit system; reduction of non-wage labour costs Strengthen efforts to reduce the gender pay gap; promote child care provisions The Council and the European Commission still underlined that child care facilities and the gender pay gap were to be tackled. As in 2002 the employment rate of older people was criticised as too low. The Council asked Germany to further concentrate on active and preventive labour market measures. Taxation, high non-wage labour costs and the conditions for earnings-related benefit were to be seen as disincentives to create new jobs and to re-enter labour market. Additionally the degree of regulation (incl. institutions to govern wage formation (‘Flächentarifvertrag’ and the ‘Günstigkeitsprinzip))’ have been criticised for inhibiting job creation (Council of the EU/European Commission 2003:8). Both European institutions suggested to improve job search assistance and labour market programmes, to focus on job creation in the Eastern Länder, to review and remove regulatory barriers to create new jobs, to support flexible work organisation schemes, to further promote and implement life-long learning measures as well as to reform the taxbenefit system to make work pay (ibid:8-9). Overall reform activities 2003 In March 2003 German chancellor Gerhard Schröder presented his Agenda 2010 to promote far reaching structural reforms in Germany. With this agenda the government presents reforms suggestions for the three most pressing problems of the country: labour market reform, restructuring of social security systems and promoting economic growth. The Agenda 2010 thus not only focuses on labour market and employment policies reforms, but also on restructuring social security systems, reforms of the industry law (new crafts law and promotion of SME), new investment programmes and the local financial reform (‘Gemeindefinanzreform’) and further initiatives in the education and research sector (Bundesregierung 2003). Concerning labour market reform the Agenda 2010 proposes to reform the protection against wrongful dismissal by (1) especially flexibilising the threshold value for small enterprises (up to 5 employees), 203 (2) explicitly defining the indicators for social decisions in the case of dismissals caused by restructuring and (3) adding compensation options in order to promote job creation. Furthermore the period for receiving earnings-related benefit will be substantially shortened to 12 months. For older workers a period of 18 months (currently 32 months) is foreseen. Additionally unemployment benefit and income support should be merged in order to remove disincentives to work. A new structure of the Federal employment services and its job centres with a privatised management structure should support a stronger service and costumer orientation (e.g. closer relations to companies). Job creation measures in eastern Germany will continue to be active labour market instruments for this region (Bundesregierung 2003). These flexibilisation measures are largely inspired by the Hartz concept and should enter into force in January 2004. The European Commission assessed the Agenda 2010 as positive even though not far enough reaching steps to consolidate the national budget (Frankfurter Allgemeine Zeitung 2003a). The Agenda 2010 has initiated a vivid discussion and has been criticised especially by the left wing of the SPD and the federal trade union federation DGB, which presented its own counter programme (Focus Magazin 2003), while the coalition partner BÜNDNIS 90/DIE GRÜNEN approved the programme at a spcial party convention in June 2003. At the same time, the opposition parties asked for stricter reforms than presented by the government. Major points of critique are the flexibilisation of the threshold value for small enterprises, the cut in social services, the reduction of period for receiving earnings-related benefit and the merger of unemployment benefit and income support. Nevertheless, leading economic research institutes cautiously welcomed the positive impact the proposed reforms could potentially exert on economic upturn and job creation, even if they were perceived as not far reaching enough (Frankfurter Allgemeine Zeitung 2003b). Further new policies Additionally the Jump programme was further extended until the end of 2004 by the ‘Jump plus’ programme presented by the government in May 2003. Assessment So far, the German employment policy reform does not seem to be a huge success in terms of job creation and increase in employment. Main reform priorities were reduction of youth and long-term unemployment, enhancement of training efforts, promotion of the dual apprenticeship. On the other hand the reduction of non-wage labour costs, even if it was aspect to several tax reform initiatives, has not been implemented so far. Therefore, areas such as tax and pension reform and decreasing social security contributions were not as successful as necessary to promote job creation. The high level of early retirement still creates problems for the German social security system and for the reduction of non-wage labour costs. Moreover, reforms in the entrepreneurship pillar seem hesitant and late. Germany reacted also quite late to the necessities of higher flexibility within the labour market. Repeated critique from the European level was also directed to the problems of the high degree of early retirement and the low activity rate of older people in the country, the tax burden on labour, the gender equality issue as well as overall high level of unemployment. Nevertheless, a trend for the transition for passive to active labour market measures can be witnessed early in 1998/99, when the social-democratic/green coalition entered into office. Indicate to what degree regional issues are relevant in national employment policies? 204 A core instrument of regional economic development by the Federal Government and the Länder is the common task “Verbesserung der regionalen Wirtschaftsstruktur” (GA) (Improvement of Regional Economic Structures) (see ‘territorial policy’) adds to the national employment policy. The GA promotes industry initiatives and business-related infrastructure and also supports regional development concepts. A variety of regional co-operations between industry boards, unions, chambers of commerce, labour administration, and vocational schools exist to increase training capacities. The Länder created full-time schools, e.g., a vocational preparatory year, a vocational elementary school year, and vocational schools for those youths who did not find an apprenticeship in the dual system with the goal to improve the apprenticeship situation and outlook for the future of young people (German NAP 2001). Generally the education policy and thus the training and skills sector is dominated by Länder policies as education policy is falling within the competencies of the German Länder. As outline below, regional issues are integrated in the German NAP. Moreover, one of the most important aspects with regional relevance is the division of labour market performance and partly labour regimes (longer working hours in industry in the eastern part, wage differentiation and working hours flexibility, subsidised wages, etc.) between the western and eastern Länder. The eastern Länder are characterised by an unemployment rate well above the German average and by huge problems of job creation and economic restructuring. Thus, employment policy in the eastern Länder strongly focuses on publicly funded direct job creation measures and subsidised employment measures. Also needs for structural changes (such as the closing down of ships yards or the mining sector in several Länder) are responded to with national employment measures such as the Job-Aqutiv Act. The German employment policy moreover also pays tribute to the regional dimension of the EES by introducing the programme ‘Promotion of Job-Creating Infrastructure’ (‘Beschäftigung schaffende Infrastrukturförderung’), which together with the JobAqtiv act should ensure that the regional policies on infrastructure were to be taken into account more closely when employment policies were planned (Federal Republic of Germany 2002). With the Job-Aqtiv Act the Federal government also took into account different regional developments of youth unemployment by allocating half of the funds to the new Länder. The Job-Aqtiv act also established the aim that measures to promote employment should also make a contribution towards boosting employment and improving infrastructure on the regional level. Moreover, as outlined in the 2001 and 2002 German NAP, one main objective was the reduction of the persisting regional disparities between the old and the new Länder. Furthermore, nine territorial employment pacts have been set up in 1998 (see below). Example of regional aspects relevant to the national employment policy: Regional training alliances local and regional projects to fully utilise and increase the number of in-company apprenticeships “Regional Networks for Further Training“ regional co-operation between schools and businesses Initiative on School-Business/World of Work to promote improved co-operation between schools and regional businesses The support programmes of the federal government within the framework of a policy for SMEs, regional policy and labour market policy are a major factor in the financial support of employment initiatives on a local level 205 “Improvement of the Regional Economic Structure”, regional development concepts initiative called the “Regional Economic Assistance via Citizenship Participation” by the federal government regional networks for the development and recruitment of skilled workers, analysis of needs, exchange of experience, and general co-operation Regional initiatives develop ideas and solutions will be developed which will improve the transition of young people from school to work In the Länder, concepts are developed for the labour market and the economy to expand regional co-operation, to create additional qualifications through vocational schools, and to utilise intercultural competence, especially in young people of foreign origin On the regional level, “Alliances for Jobs” are implemented by co-ordinating regional and labour market policy The Federal Government took account of the differing regional trends in youth unemployment by increasing the share for the new Länder in the Immediate Action17-Programme by DM 200 million to DM 1 billion in 2001. Together with the new Länder, the Federal Government will also initiate special programmes for training places in the coming years. 16,000 places are planned in 2001. The Länder are also initiating their own programmes (roughly 8,000 places). The Länder are promoting the expansion of the vocational school system to become a system of locations for acquiring vocational competence. regional expansion of its “EXIST-Seed” portion in 2001 regional innovation programmes InnoRegio (Regional Innovation) and Innovative regionale Wachstumskerne (Innovative Regional Centres of Growth) provide SMEs with enhanced access to aid programmes and boost innovation in the new Länder promotional measure Netzwerkmanagement-Ost (NEMO) (Network Management East) will establish regional networks of research establishments in the new Länder integration between regional policy and other areas of policy, particularly labour market policy, in order to promote employment on the regional level more efficiently Describe national policies with different regional coverage; their aim and coverage678 The amount of subsidised employment measures is higher in Eastern Germany than in the western Länder. The same holds true for structural change. Subsidised employment creating measures Expenditure in 2002 (in 1000 €) Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse 36.182 59.784 260.306 218.422 26.690 20.223 32.306 678 Bundesanstalt für Arbeit (2003): Aktuelle Arbeitsmarktdaten, http://www.pub.arbeitsamt.de/hst/service/statistik/detail/a.html 206 Expenditure in 2002 (in 1000 €) Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 218.456 103.656 203.065 23.963 13.991 568.732 297.687 32.374 215.310 Support for mobility is higher in the East than in the West Expenditure in 2002 (in 1000 €) Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 1.538 2.754 3.239 16.227 368 231 1.484 16.206 5.276 6.024 1.577 279 33.925 27.281 2.294 12.671 The support for apprenticeship and related forms for disadvantaged young people varies among the Länder. Expenditure in 2002 (in 1000 €) Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 53.658 64.172 64.075 100.073 10.516 15.841 44.648 94.640 77.994 156.985 36.353 14.360 153.618 83.028 26.272 72.550 207 Differences are also to be found in the support for reintegration of disadvantaged persons into the labour market. Expenditure in 2002 (in 1000 €) Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 37.432 26.797 15.215 13.087 2.808 6.100 26.840 8.536 25.300 72.587 12.419 4.230 19.374 13.916 8.509 14.819 What is the role of regional and local governments in employment policies (if any)?679 (see also next sub-heading on Alliances for work) Regional and local government have a certain potential of fine-tuning national employment policies to counter balance differences in economic structures and labour markets. Thus, esp. Länder with huge problems in this area have developed own strategies. An important intervening factor is the composition of the regional government and their opposition to the national one. Regional and local governments are also involved in the territorial employment pacts integrating also Federal Office for Special Aspects of Unification, the Labour promotion, Employment and structural development agency, companies, research institutes and educational establishments, trade unions, local chambers of industry, commerce and crafts, local authorities and employment service, clubs and job-creation enterprises, environmental organisations Territorial employment pacts680 Territorial employment pacts have been launched at 9 pilot sites (approved by the Commission in 1998) Amberg-Sulzbach (Bavaria) (Objective 3,4,5(b) under the European Structural Fund) o Incorporation of business restructuring measures into e regional development strategy Neukölln (Berlin) (Objective 2,3,4 under the European Structural Fund) o Greater emphasis on the creation of sustainable employment and apprenticeship in SMEs Bremen (Objective 2,3,4 under the European Structural Fund) 679 European Commission, Directorate-General for Employment, and Social Affairs, Unit EMPL/A.1, Employment and European Social Fund, Brussels 2001. 680 European Commission, Regional Policy, Territorial employment pacts, homepage 208 o To pool the experience and skills of all persons responsible for and active on the labour market to develop a new, joint approach to employment policy Hamburg (Objective 3,4 under the European Structural Fund) o Management of structural change in the metropolitan region o Secure future prospects for young people Güstrow (Mecklenburg-Western Pomerania) (Objective 1 under the European Structural Fund) o Improvement in employment situation by mobilising regional development reserves and innovation Braunschweig-Peine (Lower Saxony) (Objective 2,3,4 under the European Structural Fund) o Safeguarding existing jobs and opening up new sources of employment The Ruhr (North Rhine-Westaflia) (Objective 2,3,4 under the European Structural Fund) o Ongoing development of regional structural and labour market policy involving all local players Chemnitz (Saxony) (Objective 1 under the European Structural Fund) o Overcoming the structural problems of the traditional mechanical engineering industry in the area, safeguarding the region as a location for business and enterprise reorganisation Zeitz (Saxony-Anhalt) (Objective 1 under the European Structural Fund) o Development and implementation of job-creating project with the involvement of all partners Joint working meetings of the pacts at least twice a year Instituted a nation-wide network 60% of the overall budget allocated to developing endogenous potential 19% of the overall budget allocated to infrastructure schemes (57.8% of the budget going to the Güstrow Pact) 9.2% of the overall budget allocated to human resource development 4.5% of the overall budget allocated to schemes to integrate people into the job market Amberg-Sulzbach Neukölln Braunschweig-Peine Bremen Chemnitz Güstrow Hamburg Ruhr Zeitz Total budget (€) 23.306.400 6.567.400 43.935.000 12.256.360 47.944.500 10.675.463 12.976.100 32.597.200 312.105.000 EU funding (€) 2.088.000 1.050.000 17.763.000 4.575.000 21.811.000 995.000 2.140.000 8.522.000 51.084.000 209 Are there relevant differences between regions in the arrangements governing labour markets? Not really significant, as all are structured according to the national example of the Alliance for jobs Outline of Alliances for Work or comparable institutions on Länder level681 Baden Württemberg Bavaria 681 Name of institution (founding date) Alliance for Education and Employment (May 1999) Employment Pact Bavaria (June 1996) Participants Main objectives - Land government - Industry - Trade unions (until January 2000) - Land employment office - universities - Municipalities Improving the framework conditions for education, training, technology and employment to strengthen the positive development on the labour market - Organisations of Bavarian industry - Trade unions - Bavaria’s state government - Stopping the decrease of employment - Reducing the unemployment figures - Improving the situation of training vacancies working groups: - situation of training vacancies - labour market fund - lack of skilled workers, continuing education and flexibilisation of the labour market - compatibility of family and Main decisions or results (year) 60 recommendations for action, 31 have already been implemented and the remaining have been initiated, e. g. (from February 2001) - Securing the future possibilities of training (24) - Promoting lifelong learning (10) - Increasing labour market flexibility (4) - Innovative ways for more employment (9) - assistance to create jobs (13) - situation of training vacancies: Catalogue of measures „Training Initiative Bavaria“ (1997), „Training Initiative 2006“ (Oct. 2000) to support the efforts of industry and to further improve training opportunities for young people (27 individual measures). - labour market fund: Since 1997 an annual 10.2 million € from privatisation gains for training and employment promotion measures; so far the working Ibid. pp. 120-125. 210 Name of institution (founding date) Participants Main objectives employment - dialogue between different branches of industry - socially acceptable development of EU expansion to the East - unemployment of severely disabled people Berlin Berlin’s Alliance for Securing Production Sites and Employment (March 1996) - Senate - Industry (chamber of trade and commerce, business associations, chamber of handcrafts) - Trade unions - Land employment office Working groups: - labour market and innovation offensive - elimination of red- tape - regional solidarity - reduction of costs - training and continuing Main decisions or results (year) group has unanimously selected 237 projects to be equipped with funds of approx. 60 million € so that approx. 16,500 participants can be trained and approx. 12,000 receive different support measures. - Additional decisions (19961999): conclusion of a declaration on loyalty to wage negotiations and sub-contraction in order to guarantee the existing collective bargaining agreements in the construction sector, founding of a counselling agency for technology and innovation TIBAY (1999), passing the “Bavaria model” (1999) to reduce or avoid overtime by granting wage cost subsidies for fixed- term employment of unemployed workers; - additional decisions in 2001 on the lack of skilled workers, compatibility of family and employment, socially acceptable development of EU expansion to the East, vocational continuing education, flexibilisation of the labour market. Sept. 1996 – presentation of interim report by the 5 working groups. June 1999 – decision on reports on the issues training/ vocational education and qualification and scarce professions. 211 Name of institution (founding date) Brandenburg Bremen Participants Main objectives education Since 1999: - hospital reform/ socially acceptable implementation of hospital planning - qualification and scarce professions - conditions of Berlin as a premier location for business - taking up the priorities of the Federal Government’s immediate programme for vocational education policy/ new initiatives to create training vacancies and to combat youth unemployment Strengthening industry and improving the employment situation in the regions of Brandenburg. Joint session of Land government and the board of the Standing Conference of Local Planning Authorities (1st meeting in April 1996) - Land government - board of the Standing Conference of Local Planning Authorities - county district commissioners and mayors Brandenburg’s training consensus (informal) - Land government - umbrella associations of industry - Trade unions - Employment service - Municipalities Using the existing structures and bodies, especially the Land Committee for Vocational Education Brandenburg to solve current and future problems in the vocational training sector. Alliance for Employment and Training in Bremen and Bremerhaven (April 1999) - Senator for Labour, Women, Health, Youth and Social Affairs - Senator for Industry and Ports - Senator for Education and Working groups: - improving the situation of the training market/ reducing youth unemployment - further development of labour Main decisions or results (year) The Alliance is a process and has shifted to the local level. Since 2000/ 2001 so- called “District Employment Alliances” (BBB) have been created in all 12 districts of Berlin. These alliances integrate the relevant local partners and businesses and work on local projects. Selection of projects with special importance for industry and the employment situation. As far as employment effects are concerned, training potentials and women’s share are taken into consideration. The partners of Brandenburg’s training consensus have set themselves the target to provide a training vacancy that leads to a recognised occupational training certificate for each young person who is able and willing to be trained. - on training market situation: declaration of Alliance partners: a vacancy is to be provided for each young person who is able and willing to be trained (1999), regular regional training 212 Name of institution (founding date) Hamburg Regular discussions with the first mayor (2002) Participants Main objectives Science and Research - Associations - Trade unions - Chamber - Employment offices - Magistrate Bremerhaven market policy - Innovative industrial policy to secure and create jobs - first mayor - Senate representatives - Industry - Associations - Chambers of trade and commerce - Trade unions - Employment service priorities: employment, labour market policy and training policy, including social inclusion Main decisions or results (year) conferences, establishment of a co- ordination office for additional joint vocational training for T. I. M. E. jobs (2000), bundling of support for off- company training in the programme „joint training places and training partnerships“ (1999/ 2002) - on further development of labour market policy: information and advertising campaign for an enforcement of part- time in old age (2000), support of the programme „Older people in employment” (2000), combating the unemployment of severely disabled people (2000/ 01) - on industrial policy: bundling of strengths to combat illegal employment (since 1999), initiative to tap off the potentials of the biotechnology sector (2000), establishment of the forum „Employer tourism“ (2000), participation in the IAB’s company panel survey (2000/ 01) 1. round of discussions scheduled for April 2002, so no results yet 213 Hesse Mecklenburg Western Pomerania Name of institution (founding date) Meeting with the premier to discuss the situation of training vacancies (1996) Participants Main objectives Main decisions or results (year) Annually setting target figures for training contracts and joint actions and recommendations to achieve the targets - premier - Land ministries - Land employment office - Associations of entrepreneurs or employers - Trade unions - Chambers - combating youth unemployment - improving the situation of training vacancies - Regular meetings with labour market actors - Alliance with companies that offer temporary work (February 2002) - premier - Land ministries - Land employment office - Associations of entrepreneurs or employers - Trade unions - Chambers - Integration of the unemployed into employment - creating new jobs - combating illegal employment and moonlighting - developing new labour market policy initiatives Agreements with the Alliance’s partners within the framework of co- ordination negotiations on Hesse’s labour market policy, e. g. in institutionalised support groups Alliance for Employment Competitiveness Mecklenburg Western Pomerania (December 1998) - Land government - Employers’ associations - Trade unions - Land employment office North - Chambers - Conference of cities and municipalities - Conference of counties - Society for industry promotion and - creating and guaranteeing training vacancies and jobs by improving co- operation between Land, industry and trade unions - supporting the activities of the Alliance on the national level – developing own initiatives to improve the employment and training situation in Mecklenburg Western Pomerania - regional development - securing a high degree of training vacancies - signing the training pact 2000 Plus (1999) - review of training promotion (2000) - support of the JUMP Programme - development of Youth- WorkFuture (JAZ) programme, including the pilot projects „youth builds“, „DUO“, „youth firms“ (2001) - development of an offensive to promote Mecklenburg Western Pomerania as a business location (2001) - developing Mecklenburg Western Pomerania as a biotechnology location by founding BioCon Valley M- V e. - working groups: - vocational training of young people - reduction of youth unemployment - framework conditions for the startup and development of 214 Name of institution (founding date) Participants Main objectives businesses - new ways in labour market policy - regional development of Western Pomerania Lower Saxony Alliance for Employment and Training in Lower Saxony (December 1998: first meeting of control group) Control group: - Land government - Employers - Trade unions working groups: - control group - associations - churches - local umbrella associations - Land working groups - securing existing jobs - creating new jobs - securing future opportunities for young people in employment and training - combating youth unemployment and creating additional training places Main decisions or results (year) V. (2001) - improving support for startups (since 1999) - preparation of EU enlargement to the East (since 2001) - Start of labour market and structural development programme ASP (2002) - development of a qualification offensive (2001) - introduction of labour promotion projects in the public interest (GAP) (since 1999) - testing different pilot projects incl. on job rotation and part time work (since 2000) - implementation of different projects for Western Pomerania’s regional development (since 1999) - passing the „Programme to combat youth unemployment and to create additional training vacancies in Lower Saxony“ (September 2001) - results so far: by the end of 2001 3,000 long- term unemployed young people had been placed; clear improvement of balance of training places - Start of Training Offensive 2002 (decision from 2001) - regulations on loyalty to collective bargaining agreements for all construction plans of Land and municipalities that amount to less than 5 215 Name of institution (founding date) North Rhine Westphalia Alliance for Employment, Training Competitiveness in North Rhine Westphalia (December 1998) Participants - Employers’ associations - Chamber - Trade unions - Land government Additional participants during the preparatory meetings of the Alliance are representatives of: - the protestant and catholic Main objectives Developing concepts and pilot projects to create and secure innovative jobs with future perspectives Priorities include: - combating youth unemployment, improving the training situation - employment possibilities for Main decisions or results (year) million €. This goes back to extensive discussions in the Alliance - circular directive on „Principles to exclude inappropriately low and high offers when awarding public contracts - evaluation of employment programmes on the basis of incentives and discussions in the Alliance - preparation of the action programme to integrate disabled people into the general labour market - implementation of the GEMEINSAM Programme (promotion of additional training vacancies within the framework of joint training systems) by the end of 2004 - start of the pilot project „joint learning places to promote training in the new IT and media professions“ (LOVE- IT) by the Land government: creation of 2, 000 new training contracts during the project’s first year. inter alia - Training consensus North Rhine Westphalia - Land initiative "Youth and Employment" - starting the SME offensive "Move" (1999)- joint declaration on the support of transfer partnerships and the initiation of regional networks of 216 Name of institution (founding date) Rhineland Palatinate Oval table (January 1995) Participants Main objectives churches - the Land employment office -the Institute for Labour and Technology - the Project Ruhr GmbH and - other experts low- skilled workers - supporting collective bargaining agreements on preretirement part- time work and other models of flexibilisation of working time - working time models - cross- border labour market - incomes of the future – worker participation in company capital - SME offensive North Rhine Westphalia "Move" - Multimedia in mechanical engineering - Alliance for Work in the rural regions - senior citizen industry - transfer partnerships - future initiative for the construction industry - Premier - Minister for Labour, Social Affairs, Family Matters and Health, - Minister for Industry, Transport, Agriculture and Viniculture, - Minister for Education, Women and Youth - Land employment office - German Federation of Trade Unions, ver. di, IG Metall, IG BCE - Federation of Rhineland Palatinate’s employers’ associations - securing jobs - creating new jobs - securing training for young people - influencing the continued structural change - promoting social and industrial innovation - extending an effective, innovative and practice-related school and education system Main decisions or results (year) competencies to support the transfer of workers (1999) - simplification of pilot projects to integrate low- skilled workers (1999) - Start of the "100 Businesses" project to attract businesses to use pro-employment working time models (2000) - Land initiative „incomes of the future“ (2001) - multimedia in mechanical engineering (2001) - network for employment promotion (spring 1996): promotion programme for SMEs to implement flexible working hours, cross- departmental “special committee Illegal Employment”, support of regional training dialogues, development of employment possibilities for the low- skilled unemployed - training consensus (1997): promotion of joint training places, extension of Land and local authorities to train, promotion of off- company 217 Name of institution (founding date) Participants Main objectives - Chambers Saarland Saxony Main decisions or results (year) training - implementation of JuSoPro (2000): labour market conferences in problematic areas, targeted contacts with companies and affected people - Training and Employment Pact for Young People in the Saarland - various working groups activities Alliance for Work Saarland (January 1999) - Land government - Chambers - Business associations - Trade unions - Land employment office Co- ordinating labour market policy issues and measures to support the creation of new jobs Priorities: - New employment opportunities - Vocational training - Youth unemployment - Flexibilisation of labour Joint Initiative Saar (1997) Land government - party groups of the state parliament - associations of employers and industry - Chamber of Labour - Trade unions - churches - employment service - local umbrella associations - environmental associations Broad co- operation of important future- oriented measures of industrial, location and labour market policy - pilot project for low- skilled workers (1999) - network „Employment transfer“ (2000) - concept for the „practically skilled“ (2000/ 2001) Foundation Innovation and Labour Saxony (December 1996) Board of the foundation: - Saxony’s state government - associations of employers and industry - Trade unions Participating to secure existing employment and create new employment Main results in 2001: - approx. 230 expert activities in approx. 300 businesses, mostly SMEs in the processing industry, to increase competitiveness and gain a livelihood - support of approx. 50 networked projects of companies and scientific institutions (InnoRegio projects, innovation 218 Name of institution (founding date) Saxony Anhalt Alliance for Work and Competitiveness in Saxony Anhalt (January 1999: first meeting) Participants - Land government - Industry - Trade unions - Municipalities - Employment service Main objectives - supporting the Alliance for Work at the Federal level - reducing unemployment - securing training for young people - improving the competitiveness of Saxony Anhalt as a location for business Main decisions or results (year) fora, growth hubs) - support of approx. 120 regional projects, including 36 leading projects, mostly to develop human resources and cover industry’s demand for skilled workers. These activities helped to secure and develop approx. 9,500 jobs in approx. 300 businesses, most from the processing industry. - labour market policy initiatives: „demand- oriented qualification to eradicate bottlenecks of skilled workers”, facilitation of the transition from training into employment, extended use of Saxony Anhalt’s measures for the long- term unemployed and older workers - training: closing the gap in training vacancies (best balance of training places in the nation for the past three years). - promotion of SMEs: SME initiative, business set- up offensive, improvement of framework conditions, package of measures to investigate and persecute moonlighting and illegal employment - environmental balance sheet: Alliance for the Environment to develop industry in an environmentally- friendly way: discussions with industry, implementation and continuation 219 Name of institution (founding date) Schleswig Holstein Participants Main objectives Alliance „Work for Schleswig Holstein“ (February 1999) Alliance „Work for Schleswig Holstein“: - Land government - Land employment office - business associations - chambers - handcrafts - Trade unions; Alliance „Work for Schleswig Holstein“: - labour market policy: aggressive use of JuSoPro, extending vocational continuing education, use of pre-retirement part- time work with simultaneous employment of younger workers, creating jobs with orking time measures - industrial policy: supporting the offensive for business startups by the Land and the external representation of the industrial location, bundling the counselling activities for industry and technology promotion, speeding up planning and approval procedures „Kiel Meeting“ (1988) „Kiel Meeting“: umbrella associations of industry and trade unions as well as the Land government headed by the premier „Alliance for Training“ - Land ministries „Kiel Meeting“: Issues that go beyond current politics; development and discussion of strategic aims of labour market and industrial policy - offering a training vacancy for Main decisions or results (year) of ecological audits, environmental certificate of Saxony Anhalt’s crafts, relief catalogue for local industry. - image improvement for Saxony Anhalt: image campaign “Industrial location, state of research and technology”, active and aggressive investor acquisition Since the majority of the scheduled topics and concrete objectives of the „Work for Schleswig Holstein“ Alliance has been implemented , this successful co- operation between social partners and Land government will be continued in the „Kiel Meeting“. results 1997- 2001 220 Name of institution (founding date) (annually) The first “Alliance for Vocational Training” was initiated in 1997. Thuringia Participants Main objectives - chambers - associations - Trade unions - Land employment office each young person who is able and willing to be trained. - filling the existing training vacancies, - supporting the Alliance for Work, Training and Competitiveness at the Federal level to modernise Germany’s dual system of vocational training. No formal Alliance for Work, but regular meetings: high- level meetings / meetings between trade unions and industry (regularly since 1996) - creating additional jobs for the (long- term) unemployed, especially for women, - Land government - umbrella associations of industry - chambers - Trade unions Thuringia’s Training Initiative (2001) - Land ministries - Industry - chambers - Trade unions - employment service - local umbrella associations - reducing (long- term) unemployment young people, older workers, recipients of social assistance - reducing placement obstacles through vocational continuing education - improving industrial and tourist infrastructure - flexibilisation of labour - securing industry’s demand in skilled workers -further development of vocational guidance classes and professional orientation - further development of Thuringia’s joint training places - converting the vocational training centres of the crafts trade into centres of competencies Main decisions or results (year) - creation of additional training places - measures to increase young peoples’ ability to be trained - increased creation of training places in new professions - agreement on the co- operation of all partners in Germany’s dual system additionally in 2000/ 2001 - provision of training vacancies for each young who is able and willing to be trained - filling the existing training vacancies Initiation and test of „Second Career“ programme in cooperation with Thurinigia’s employment offices - review of professional preparation Extensive information campaign 221 222 Provide a general assessment of how much national employment policies differ in different regions and of the governance of employment policies As outlined in the German NAP 2002, the regional employment policies have different focal points and main priorities. We thus find a number of differences in regional employment policy measures, which nevertheless still focus on the core German labour market problems of job creation and activation, youth, female and long-term unemployment, training, promoting economic growth, etc. National employment policies moreover have to respond to the different strengths and weaknesses of the German Länder. Therefore the implementation of these national employment policies can differ according to the special needs and the resources of a region. Generally the Länder are rather innovative in terms of their employment policies, e.g focussing on flexibilisation of work. Thus, the Länder are important fields for experiments in this area.682 Labour market performance in 1999683 Strengths Baden-Württemberg Bayern Berlin Brandenburg Bremen Hamburg Hessen Mecklenburg-Vorpommern Niedersachsen Nordrhein-Westfalen Rheinland-Pfalz Saarland Youth unemployment, low unemployment and female unemployment Good marks in all areas Good mark in participation in the labour market, medium marks in long-term unemployment Good figures in participation in the labour market and long-term unemployment, No special strengths, good figures in female unemployment and unemployment Figures generally in the upper middle field, very good performance in female unemployment Good figures (in comparison to other Länder) in youth and female unemployment and unemployment Good figures in participation in the labour market and long-term unemployment No special strengths performance in female unemployment and unemployment in the upper middle field All figures well except employment rate Female employment rate in upper Weaknesses Weaker employment rates and higher long-term unemployment No special weaknesses Very bad performance in terms of youth unemployment, relatively weak in other areas too Weak performance in unemployment rates, youth and female unemployment Nearly all figures are weak No special weaknesses Weaker performance in employment rates and long-term unemployment Weak performance in unemployment rates, youth and female unemployment Comparably low employment rate and high long-term unemployment rate Especially weak performing in employment rate and long-term unemployment Low employment rate Especially weak performing in 682 Blancke, Susanne / Schmid, Josef (2000): Die Bundesländer in der aktiven Arbeitsmarktpolitik, WIP Occasional Paper Nr. 12, Tübingen, p. 26. 683 Translated version of Blancke, Susanne / Schmid, Josef (2000): Die Bundesländer in der aktiven Arbeitsmarktpolitik, WIP Occasional Paper Nr. 12, Tübingen, p. 24 223 area Sachsen Sachsen-Anhalt Schleswig-Holstein Thüringen Very good figures in participation in the labour market, medium in long-term unemployment Good figures in participation in the labour market, medium in longterm unemployment Generally good – upper middle field, esp. female unemployment Very good figures in participation in the labour market and in longterm unemployment employment rate and long-term unemployment Weak performance in unemployment rates, youth and female unemployment Especially weak performance in unemployment rates, youth and female unemployment No special weaknesses Weak performance in unemployment rates, youth and female unemployment According to Blancke/Schmid until 1997 three different types of labour markets could be identified in the different German Länder684: Those using a push strategy with high readiness to introduced innovation, high degree of deepness of labour market interventions, active labour market policy, close link to industry and regional policy, wage subsidies, subsidised employment, subsidised structural change, creation of incentives for private employers to hire unemployed persons, close link between employment and training, neo-corporate political process, high level of budget spending for employment measures o Brandenburg, Bremen, Hamburg, Mecklenburg-Vorpommern, Niedersachsen, Nordrhein-Westfalen, Sachsen, Sachsen-Anhalt, Thüringen Those using a pull strategies with a low level of active labour market measures, low degree of budget spending in this area, target group and problem focused labour market policy, support of apprenticeship for (disadvantaged) young persons, low degree of innovations, measures close to work places, labour market policy not linked to structural or industry policy, hardly any institutionalised labour market coordination measures, economic policy as equivalent to labour market policy, o Baden-Württemberg, Bayern, Hessen, Rheinland-Pfalz. Those using a stay strategy (close to the pull strategy) with low degree of labour market intervention weak link to regional policy, low level of innovations, normal use of labour market instruments (co-financing by the Federal Employment Service, strong orientation alongside target groups), nevertheless: high level of budget spending o Saarland, Schleswig-Holstein Since 1998 all Länder have put greater emphasis on active labour market measures and the development of innovative strategies. Thus, pull strategy Länder increased public spending in the area and the co-operation in regional Alliances for work intensified the innovative potential. Talks within those alliances for work are compared to the national level more successful and even less conflictual. Additionally elements of political steering (work hour models, evaluation of the need for training) are increasingly integrated into regional employment and labour market policies too. Regional priorities in labour market policies as presented in the 2002 NAP (wording of the NAP) 685 684 Translated version of Blancke, Susanne / Schmid, Josef (2000): Die Bundesländer in der aktiven Arbeitsmarktpolitik, WIP Occasional Paper Nr. 12, Tübingen, p. 29. 224 Baden-Württemberg: scarce public means for active labour market measures main principle: increased co-ordination between employment policy and economic policy, education policy and women’s policy as well as policy for rural areas decentralised approach: measures have to be aimed at the regional level (incl. participation of social partners, NGOs, education institutions priorities of the regional employment strategy: o strengthening the active and preventive approach o promoting business start-ups o taking into account innovative measures and methods o training opportunities for unskilled, semi-skilled and older workers o measures to prepare low-performing young people for vocational training or classes to prepare mothers for a reinsertion into employment. implementation of state programmes aiming at integration into the primary labour market o ‘Youth-Work-Future’ o ‘Work and Future for the Long-term Unemployed’ o projects by the European Social Fund Bavaria: Priorities (esp. targeted at SMEs) promotion of start-ups and company successions promotion of the regions targeted promotion of new technologies (framework of the High-TechOffensive) co-operation-based employment policy approach reflected in Bavaria’s Employment Pact. supplement, support and strengthen active labour market policy of the Federal Labour Office integration into the primary labour market labour market fund financed by the interests earned in the privatisations of the „Future Bavaria” programme o Implemented within the framework of Bavaria’s Employment Pact. o Individual measures are chosen in a consensus reached by the individual participants of the Pact. o Targeted at the promotion of groups difficult to place o Main focus on districts of the local employment offices with an aboveaverage unemployment rate (receiving approx. 80 % of the funds) programmes and measures concentrate on o promotion of special groups (recipients of social assistance, disadvantaged young people, older unemployed persons and unemployed foreigners) o promotion of non-profit worker transfers to re-integrate unemployed recipients of social assistance (combination of placement elements, occupational qualification, limited employment contracts and educational guidance) ESF funds are also used for the re-integration of people with special placement difficulties o Vocational continuing training measures for people receiving of benefits according to the Social Law Compendium 685 Federal Republic of German: National Action Plan for Policy on Employment 2002, Berlin 2002, pp. 92-104. 225 o important contribution to Bavaria’s labour market with measures of tailormade vocational continuing training targeted at structural changes of the regions and aim at attracting companies into the regions Berlin: Labour market policy framework programme ARP (basis of Berlin’s labour market policy since 1991) ‘Berlin’s Alliance for Competitiveness and Securing Production Sites’: one of the main frameworks for discussion of labour market reforms Senate of Berlin (in co-operation with the districts) will create conditions to award contracts in the framework of employment-creating infrastructure promotion pursuant to the Job-AQTIV Act Integration of labour market policy measures into development strategies of the districts Training as a key element (sufficient vocational training vacancies): promise of the above mentioned Alliance to offer a training vacancy to each willing young person Brandenburg: Four priority areas: o Qualifying for working life – promoting initial vocational training regional government’s aim to provide a training vacancy that offers training in a recognised profession for each willing young person. special programmes to increase the number of vocational training places programmes to create additional training vacancies o Financing work instead of unemployment - integrating target groups into the labour market is the second pillar of Brandenburg’s labour market policy. differentiated amount of measures: e.g. measures to promote institutions that provide services for the unemployed, the promotion of a course scheme for the long-term unemployed and a programme called “Work instead of Social Assistance” o Stabilising existing jobs - unemployment shall be tackled by preventive measures set in the companies (priority to promote the qualification of workers in SMEs) o New methods and instruments – innovative solutions for selected individual support stabilisation and creation of jobs for SMEs campaigns so far focussed on the flexibilisation of working hours, women in IT jobs and the improvement of education programmes in companies. priorities are the result of a partnership agreement within the reform of the programme „Qualification and Employment for Brandenburg“ in which a large number of the Land’s labour market policy actors participated. Bremen: main instrument: Bremen’s active „Employment Policy Action Programme” (BAP) o takes the financial means of the Land and the local authorities pursuant to the Social Assistance Act of the city of Bremen and bundles them with funds by the ESF and the EFRE. 226 o BAP funds are combined with the promotion funds of the employment offices in Bremen and Bremerhaven The strategic aims of the BAP: o Preventing reaction: guaranteeing and promoting employment o Active labour market policy guiding structural changes o Creating additional and future-oriented training places o Preventing the emergence of long-term unemployment / combating existing long-term unemployment o Special support for groups at risk on the labour market seven funds of the BAP: o Qualification fund (strengthening Bremen as a location for business by qualifying its labour force potential) o Support fund (support of innovation of SMEs) o Start-up fund (promotes the self-employment of unemployed persons) o Fund to promote the employment and qualification of severely disabled people (integration of severely disabled people into the labour market) o Promotion of employment fund pursuant to the Social Law Compendium III (bundles labour market policy instruments of employment promotion usually financed in addition to the Federal Labour Office) o Fund for local employment promotion pursuant to the Social Assistance Act (occupational integration of recipients of social assistance) o Planning and development fund (innovative approaches in labour market policy, e.g. the Alliance for Work and Training) Hamburg: Revision in 2002: Aims: closely aligning labour market policy with company needs and at an increased coupling of labour market policy measures with the general labour market Priority: o integration of the unemployed into the regular labour market under the heading „Promote, Demand, Efficiency“ o support of measures to maintain and create jobs o tailor-made promotion of unemployed persons through profiling and assessment o strictly aiming pro-employment measures at the needs that are relevant to employ and integrate unemployed persons and at the needs of the companies on the general labour market o creating additional low-quality jobs o setting up an efficient controlling system for the scope and the use of different labour market policy programmes o criteria like benefits agreements, the preservation of wage compensation offers, etc. shall be used as a condition that employers have to fulfil in order to receive support o opening up of low-skilled and low-wage jobs „Hamburg Model of Employment Promotion“ (1 March 2002) creation of additional employment with compulsory social insurance granting wage cost subsidies without red-tape, handing out cheques, a voucher for continuing training 227 mixture between a „wage combination model“ (worker promotion) and wage cost subsidies (employer promotion) Target group: long-term unemployed persons, recipients of social assistance, unemployed persons who have not finished their vocational training and people likely to become long-term unemployed Hesse: Priorities: o promotion of especially disadvantaged target groups: the long-term unemployed, recipients of social assistance, severely disabled people, disadvantaged young people, older unemployed persons and women o placement measures o assistance to find a job o vocational guidance o promotion of vocational training programmes o measures of vocational continuing training o employment and wage cost subsidies o immediate integration into the general labour market o measures to improve the infrastructure „Action Programme for Regional Labour Market Policy“ (HARA) o freely combinable modules of „Hesse’s Action Programme for Regional Labour Market Policy“ o aid programmes and multiple activities organised at the local and district level o integration of unemployed recipients of social assistance into employment “ wage combination model Hesse” o reactivate jobs or create new jobs in the low-wage sector the Land strengthened programmes to improve equal opportunities o „in-company training vacancies for single mothers“ o women’s promotion measure of the HARA programme (child care, inclusion of women’s bureaux, women’s quota) o above-average participation of women in Hesse’s combined wage pilot project (72 % of participants are women) 2001: Land and ESF funds of more than 100 million DM available for labour market measures Mecklenburg Western Pomerania labour market policy leans back on regional development concepts labour market policy also supplements the economic, education, social and environmental policies as well as regional and state planning. assists regional actors in the development of new skills employment promotion projects that benefit the community (‘GAP projects’) „Labour market and Structural Development Programme“ (ASP) o new approaches to strengthen the region’s labour market o Groups of people and activities that are not supported by the local employment offices receive special promotion o helping the administrative districts and towns to facilitate the return into employment for citizens who receive social assistance o measures are mainly ESF funded. o Priorities: Occupational integration of young people and young adults 228 state programme JAZ “Youth – Work – Future” programme „Enterprise MV“ for young unemployed people who want to become self-employed „mv4you“, a communication agency for young people who do not see sufficient professional perspectives in Mecklenburg Western Pomerania at the moment but want to stay in contact with the region. Equal opportunities for men and women complementing gender mainstreaming strategies specific promotion of women promotion programmes are reviewed upon their gender impact Specific activities to reduce structural discrimination of women Developing the knowledge-based society Participation of the regional and local levels The responsibilities of the regional/local level are strengthened by their participation in the design of the programmes disabled people are taken into special consideration Lower Saxony In 2002, focus on young people under 25 o promotion of structural adjustment measures, training opportunities for the unemployed, etc. o so-called “youth offices” have been established in 7 cities in Lower Saxony (besides the existing counselling structures from the state programmes RAN and RABaZ) provide new employment opportunities for young recipients of social assistance greater focus to the preventive idea of the labour market programme o focus on the primary labour market o linking the programme with the economic policy Priorities: o preventive measures (preventive approach) o early intervention, o vocational training and vocational continuing training o extending the comprehensive labour market programme for women o promoting the compatibility of family and employment for men and women (family services, implementation of gender mainstreaming in all labour market programmes) o linking labour market policy with economic and structural policies o enhancing effectiveness through tailor-made promotion programmes. North Rhine-Westphalia decentralised, participative approach of labour market policy Priorities: o target group-oriented, structure-oriented and preventive labour market policy o promotion concept developed by the Land supplements the promotion of the Federal Government o own promotion systems that enable new ways of employment promotion with ESF funds 229 o strategies to link labour market policy measures with the special needs of companies o occupational integration of the long-term unemployed, young people and women as well as migrants and disabled people o advocating occupational integration of young people pilot projects (with the social partners) to promote the transition from school into employment were developed initiative „Youth and Employment“: approach for occupational integration of young unemployed people. Support of regional and sectoral structural changes o thirty regional conferences members are the respective representatives of a.o. the local authorities, the employment service, the employers and the trade unions o Ruhr area o specific promotion approaches to provide new employment perspectives for the unemployed and those threatened by unemployment o promotion of employment transfers carried out in co-operation with the social partners o occupational reorientation and reinsertion of former miners support for counselling and training projects in order to structure necessary adjustment processes in companies Within the framework of the labour market policy co-financed by the ESF, the labour ministry has concluded target agreements with the conferences that define the results that should be achieved for the respective policy areas with the funds available to the region. The results shall be discussed in annual meetings on the state of the programmes with the regions and if necessary, adjustments to the regional strategies shall be agreed. Rhineland Palatinate main target groups o long-term unemployed, recipients of social assistance, older unemployed persons and young people who are hard to place o workers threatened by dismissal development of early warning systems “what-to-do” guidelines in a company crisis promotion for the creation of labour policy safety structures use of outplacement counsellors. in the past ten years: approx. 200 active organisations of labour market policy measures (annual volume of approx. 50 million € from Land and ESF funds) set of instruments from counselling and training over vocational guidance to the actual placement into employment on the regular labour market. labour market-relevant research and employment-securing support measures for companies state programme „Work has to pay off – supplementary child benefit to avoid reliance on social assistance“ „Mainz model“ establishment of service agencies Saarland Sub-goals and promotion priorities: o Promoting equal opportunities of men and women 230 o o o o o o increasing the percentage of women in gainful employment facilitating their return into employment improving the occupational opportunities of women on the labour market equal participation of women in labour market policy measures facilitating the compatibility of family and employment Combating long-term unemployment increased use of preventive measures to avoid long-term unemployment provide additional occupational qualification measures as well as employment Combating youth unemployment providing additional occupational qualification measures as well as employment developing modular, gradual measures reducing the percentage of unskilled young adults reducing the percentage of young people without a degree of secondary general education Promoting initial vocational training: especially for low-performing young people Promoting integration into the labour market: development and improvement of basic vocational training measures tied with employment measures on skills that can be used on the primary labour market. expanding structures of employment-promoting regional and local counselling, placement and acquisition. Promotion of occupational re-orientation: expanding occupational re-orientation offers for those workers who are in risk or who are losing their job due to structural changes due to structural changes of the economy Adjustment of occupational qualification: improved measures to adjust skills to the technical and organisational changes and the changes of production systems Saxony Saxony’s labour market policy focuses on: o Human capital investment o Improving the entrepreneurial environment by promoting skills of entrepreneurial thinking and acting o Reducing long-term unemployment by strengthening growth factors and by focussed use of labour market policy instruments, especially for qualification and promotion of disadvantaged groups, o Offering integration measures for the long-term unemployed through activities outside of traditional gainful employment. o Reforming social security systems o Rendering working hours more flexible o Integrating elements of civic responsibility. less interventionist reactive promotion focus on transition into the primary labour market (e.g. specific training opportunities targeted at company needs) 231 As far as promotion funded by the ESF and the local employment offices is concerned, unemployed persons or those threatened by unemployment shall continue to be supported pursuant to the regulations of the ESF and the Law to Promote Employment Wage cost subsidies for companies used mainly to reinsert people who are particularly disadvantaged onto the labour market as well as business start-ups Saxony also participates in pilot projects for the employment of low-skilled workers Strategic priorities of the promotion policy T’AURIS project’: o Attracting additional competitive companies (settlements, business start-ups) o Maintaining the competitiveness of the existing companies o Qualification, creating an environment for the creation, multiplication and economic use of knowledge o Creating an efficient infrastructure o Using the specific regional potentials Saxony Anhalt large part of the budget is spent on initial vocational training, the qualification of workers, into counselling for companies on matters of personnel and organisational development and into job rotation (preventive approach) principle of financing employment instead of unemployment increase in labour market opportunities for women measures shall also contribute to the Land’s structural development older workers: programme „Actively into Retirement“ four aims: o increasing and improving the availability of jobs o improving the integration opportunities of special groups o redistribution of labour o improving the infrastructure Schleswig Holstein activities taking into account the principle of promoting and demanding With the funds from the European Social Fund, Schleswig Holstein will use approx. 260 million € for these means until the end of 2006 concept for the state’s structural development “Our Aim: A Future in our own Region” (initiated in 2000 with a duration until the end of 2006) o bundles resources from national and European sources for securing jobs and creating new jobs, promoting general and vocational education in the sense of lifelong learning and creating equal opportunities sub programme „Employment for Schleswig Holstein 2000 (ASH 2000)“ (Land’s list of objectives) o closely follows the EES principles and especially the ESF prerequisites for promotion “Elmshorn Model” (now called Personnel-Service-Agency/PSA): o new employment possibilities in the low-wage sector o innovatively links job acquisition with skills tailored to the respective needs and (if necessary) grants for the social insurance contributions „Employment for Schleswig Holstein“ (regional action programme) provides the institutional framework for tripartite co-operation. The Land participates in the continuing development of the national Law to Promote Employment 232 o pushed that job rotation be included into the regulations of the Social Law Compendium IIII Thuringia Priorities: o creating additional training places through the „Thuringia Training Initiative“ o continuing development of ESF programmes to combat youth unemployment (projects like „Job Access in Thuringia” (JET) will be continued) o measures to improve the management and co-ordination of training programmes within the framework of the training offensive o promoting in-service training of workers and business owners o measures to reactivate unemployed skilled workers, e.g. by continuing the “Second Career” programme o pilot project for tailor-made training of workers and unemployed persons (QualiPass Thuringia) o promoting business start-ups and entrepreneurship o continuing labour market policy programmes for young people, women, the long-term unemployed and older people (e.g. “Work instead of Social Assistance”, „50-plus“ and „unemployed and hard-to-place“) o promoting structural adjustment measures (e.g. improving the content of the measures has been achieved by introducing quality criteria as a yardstick) o bringing labour market policy to the regions, drafting and implementing regional development and promotion concepts Nevertheless, the main separating line lies between western and eastern German countries with huge differences in employment and unemployment rates, but also in the need for structural adaptation and change. As far as the overall governance of employment policies is concerned, more or less the same type of structures apply in the different Länder, as e.g. the Employment Service is a Federal agency and regional alliances for work were structured after the example of the national Alliance for Jobs. Nevertheless, esp. the integration of social partners varies. Moreover, the Federal Employment Service as well as unemployment and social benefit are co-financed by the Länder at the regional and local level. Thus, the Länder partly set up programmes on ‘Work instead of social benefit’ in order to minimizes expenditure in this area. The most important actors involved at the Länder level are the ministries for labour and social affairs, the ministries for economy and education, local authorities and the employment services. 233 Regional data on employment policies Supply data that documents employment policies: concentrate on expenditure and the number of participants affected by these policies, but also report other relevant information that bears on cohesion. (Note that, in addition to national sources, useful summary information can be found in OECD, ‘Employment Outlook’ and European Commission, Employment and social affairs, ‘Employment policies in the EU and in Member States’ for national data). Public expenditure of the Federal Employment Service (in 1000 €)686 Public employment services (2002) Of which are earmarked for: Labour market training (training for employed adults) Youth measures (unemployed youth; apprenticeships and related forms) Subsidised employment (subsidies to regular employment; support for unemployed starting enterprises; direct job creation) 686 BadenWürtte mberg Bayern Berlin Brande nburg Bremen Hambu rg Hessen Meckle nburgVorpom mern Nieders achsen Nordrh einWestfal en Rheinla nd-Pfalz Saarlan d Sachsen Sachsen -Anhalt Schlesw igHolstein Thüring en 4.757.2 12 6.392.7 11 3.281.2 99 3.172.4 60 539.50 6 1.075.2 71 3.085.6 52 2.362.1 19 4.533.7 44 10.247. 968 1.967.6 44 588.55 2 5.313.4 06 3.536.8 16 1.798.2 27 2.917.9 71 198.26 8 263.867 471.91 6 211.76 2 36.814 68.273 159.20 2 163.15 1 264.58 4 590.28 2 112.63 3 37.560 294.48 4 289.15 3 99.796 214.66 0 150.71 6 217.930 206.83 8 300.10 9 329.21 2 49.826 136.00 4 243.67 3 232.02 7 506.93 8 96.244 32.525 434.68 8 240.61 1 106.15 1 219.97 6 222.05 6 309.799 916.95 0 399.42 5 57.071 113.16 9 277.93 7 342.85 9 602.55 5 635.63 2 745.95 6 42.575 891.56 7 593.26 6 119.18 1 377.99 0 Bundesanstalt für Arbeit (2003): Aktuelle Arbeitsmarktdaten, http://www.pub.arbeitsamt.de/hst/service/statistik/detail/a.html 234 Measures for the disabled (2002) Unemployment compensation Support for employment creating infrastructure ESF 389.12 8 4.520.9 62 1.931 437.119 128.29 8 2.349.8 65 132.79 9 29.689 52.328 4.514.4 47 35.663 554.08 1 2.770.6 52 52.331 16.680 842.79 2 9.272 185.81 5 2.303.8 21 11.163 465.72 3 5.022 19.754 10.991 16.646 5.496 7.366 12.007 86.208 612.40 5 8.286.0 73 8.820 153.65 3 1.463.3 95 5.745 43.526 1.712.9 12 92.731 271.14 9 3.530.9 33 24.812 17.424 21.328 52.652 10.641 5.164 436.93 9 2.738 187.49 5 3.967.5 62 108.78 6 161.43 8 3.735.0 69 186.59 9 28.480 25.293 26.502 1.307.5 52 6.693 141.19 0 1.995.2 24 26.881 6.620 21.695 Number of participants affected687 Labour market training (training for unemployed adults; training for employed adults) (entrance 2002)688 Subsidised employment (subsidies to regular employment; support for unemployed starting enterprises; direct job creation) (Dec. 2002)689 Measures for the disabled690 BadenWürttem berg Bayern Berlin Branden burg Bremen Hambur g Hessen Mecklen burgVorpom mern Niedersa chsen Nordrhei nWestfale n Rheinlan d-Pfalz Saarland Sachsen SachsenAnhalt Schleswi gHolstein Thüring en 21.293 33.610 30.666 28.351 5.419 11.385 22.595 26.679 40.746 79.200 17.382 5.782 43.514 39.112 14.676 29.891 1.920 2.883 11.217 11.680 1.471 1.572 1.878 10.614 5.160 11.125 1.501 617 27.586 15.249 1.479 10.347 11.716 16.910 3.748 3.767 1.206 2.674 5.810 3.296 10.086 23.393 5.440 1.451 6.990 3.861 3.281 3.578 687 Bundesanstalt für Arbeit (2003): Aktuelle Arbeitsmarktdaten, http://www.pub.arbeitsamt.de/hst/services/statistik/detail/i.html Bundesanstalt für Arbeit (2003): Teilnehmer/Eintritte in Maßnahmen der beruflichen Weiterbildung nach Ländern, http://www.arbeitsamt.de/hst/services/statistik/200212/iiia5/fbw/ads055l.xls 689 Bundesanstalt für Arbeit (2003):Arbeitsmarkt in Zahlen, Arbeitsbeschaffungsmaßnahmen, Dezember 2002, http://www. arbeitsamt.de/hst/services/statistik/200212/iiia4/abm_heftd.pdf, p.9. 688 690 ibid. 235 Unemployment compensation (Dez. 2002)a a 296.436 392.975 250.393 233.822 43.620 72.752 198.207 182.993 327.222 728.176 133.627 41.268 389.189 257.314 119.975 201.402 incl. unemployment benefit, reintegration support and pension transition subsidies 236 Regional differences in paid weekly working hours (h) 2002691 All 37,9 37,5 37,3 37,5 39,3 36,8 37,5 37,6 39,6 37,2 38,1 37,8 38,0 39,5 39,9 38,0 39,7 Germany Baden-Württemberg Bayern Berlin Brandenburg Bremen Hamburg Hessen Mecklenburg-Vorpommern Niedersachsen Nordrhein-Westfalen Rheinland-Pfalz Saarland Sachsen Sachsen-Anhalt Schleswig-Holstein Thüringen Male 38,0 37,7 37,5 37,7 39,4 36,7 37,5 37,7 39,6 37,3 38,2 37,9 38,2 39,6 39,9 38,0 39,8 Female 37,2 36,8 36,4 36,6 39,2 37,1 37,1 37,1 39,2 36,6 36,9 37,2 37,0 39,2 39,7 37,5 39,3 Regional differences in salaries Production Industry Hourly wage 2002 (€)692 Germany Baden-Württemberg Bayern Berlin Brandenburg Bremen Hamburg Hessen Mecklenburg-Vorpommern Niedersachsen Nordrhein-Westfalen Rheinland-Pfalz Saarland Sachsen Sachsen-Anhalt Schleswig-Holstein 14,56 15,60 14,72 14,66 11,05 16,77 16,74 15,13 10,72 15,31 15,04 15,00 15,73 10,46 10,81 14,36 Monthly wage 2002 (€)693 Production Industry, Trade, Financial and insurance services Monthly wage 2001 (€)694 All 2.396 2.544 2.387 2.388 1.888 2.677 2.728 2.471 1.843 2.477 2.490 2.465 2.601 1.797 1.874 2.368 All 3.110 3.258 3.219 2.383 3.298 3.290 3.270 2.318 2.946 3.176 3.016 2.873 2.414 2.369 2.888 Male 2.484 2.667 2.486 2.455 1.929 2.737 2.783 2.551 1.894 2.546 2.560 2.537 2.672 1.881 1.918 2.461 Female 1.837 1.949 1.849 2.018 1.619 1.986 2.080 1.920 1.448 1.938 1.878 1.853 1.943 1.423 1.529 1.820 Male 3.492 3.670 3.620 2.747 3.683 3.661 3.591 2.647 3.300 3.522 3.379 3.252 2.770 2.698 3.271 Female 2.455 2.521 2.498 2.046 2.498 2.719 2.689 2.018 2.294 2.529 2.399 2.197 2.053 2.041 2.289 691 http://www.destatis.de/jahrbuch/jahrtab61.htm. http://www.destatis.de/jahrbuch/jahrtab62.htm. 693 http://www.destatis.de/jahrbuch/jahrtab63.htm. 694 http://www.destatis.de/jahrbuch/jahrtab63.htm. 692 237 Thüringen 10,30 1.776 1.864 1.471 2.359 2.657 1.993 238 Literature Blancke, Susanne / Schmid, Josef (2000): Die Bundesländer in der aktiven Arbeitsmarktpolitik, WIP Occasional Paper Nr. 12, Tübingen, Bundesregierung (2003): Die Maßnahmen der Agenda 2010 im Überblick, http://www.bundesregierung.de/basisattribute,-482917/Die-Massnahmen-der-Agenda2010.htm Bundesregierung (2002): Moderne Dienstleistungen am Arbeitsmarkt - die 13 Module des Hartz-Konzepts, http://www.bundesregierung.de/ emagazine_entw,-431462/Moderne-Dienstleistungen-am-Ar.htm. Council of the EU (2002) Council Recommendation of 18 February 2002 on the implementation of Member States’ employment policies, Official Journal L60, 24.1.2001, pp. 70-80. Council of the EU/European Commission (2003): Joint Employment Report 2002, Brussels. Federal Republic of Germany (2002): National Employment Action Plan 2002, Berlin. Frankfurter Allgemeine Zeitung (2003a): Solbes fordert Deutschen mehr Reformen ab, 22. May 2003, p. 11. Frankfurter Allgemeine Zeitung (2003b): Deutliche Worte der Forschungsinstitute zur Wortschaftspolitik der Regierung, 15. April 2003, p. 15. Focus Magazin (2003): Reformen, immer feste druff, 12. May 2003, pp. 020-025. Schmitthenner, Horst (Hg.) (2002): Bewertung der Vorschläge von Peter Hartz, IG Metall Vorstands-Mitteilungen http://www.arbeitnehmerkammer. de/sozialpolitik/doku/1_politik/ba_hartz_RS29_2002_igm_sopo.pdf, 01.07.2002. Thiel, Elke (2002): National Report for Germany, GOVECOR project, http://www.govecor.org/data/20020910182059_German_Report2.pdf. 239 7 Technology policies Describe the main national technology and innovation policies and explain whether, and if so how, they are applied at regional level. The national technology policy has been going through a change of general approach in recent years. ‘Huge technology’ research (nuclear research, aerospace research, etc.) no longer build the focus of activities, but the support for research and development networks and clusters and different new areas such as biotechnology, renewable energies, micro technologies, etc. This change was promoted by the Federal level in order to support the regional development of research activities throughout Germany. “The German Government is increasingly relying on promotional approaches to stimulate regional competence centres in pioneering areas of technology. It will put the existing and successful regional promotional measures in the new federal states on a steady basis, to enable scientific and technical crystallisation points to evolve there with a high commercial potential and a strong influence outside their region.”695 Federal budget for the overall national policy area (mio €):696 2001 10.667 Research and development policy 2002 (planned) 11.025 2003 (planned) 11.573 Moreover, the German technology policy is characterised by a strong decentralised approach, which includes parallel funding of R+D activities by the Federal and the Länder level and indicates a weaker regional impact of the central state than in other EU member states. Technology policy related tasks in Germany697 State level Regional level National level Tasks Support of interaction and know-how transfer between economy and science Decline of administrative burden for setting up research sites Support of an innovation-friendly climate and information of the public on new technologies Guarantee of a high level of education (in cooperation with the Länder) Support of a quick and efficient patent rolls Provide for good conditions for the development of private venture capital markets Increase the adaptability of labour markets to structural changes caused by innovation activities Shortening of licensing procedures for new goods Tax relief for employees’ participation Research and technology policies principally fall within the competences of the Länder. Nevertheless, according to art 91b GG and given the relevance of these policy areas for the development of the entire Republic the Federal level and the Länder have the opportunity to cooperate on a voluntary base and to commonly finance policies at their discretion.698 Since 695 Bundesministerium für Bildung und Forschung / Bundesministerium für Wirtschaft und Technologie (2002): Innovation Policy - More Dynamic for Competitive Jobs, Berlin/Bonn, p. 52. 696 Bundesministerium der Finanzen (2001): Finanzplan des Bundes 2002 bis 2006, Berlin, p. 13. 697 IfW/ISI/NIW/DIW (2000): Regionale Verteilung von Innovations- und Technologiepotentialen in Deutschland und Europa, Karlsruhe, p. 531. 698 Bundesministerium der Finanzen: Das System der öffentlichen Haushalte, Berlin, http://www.bundesfinanzministerium.de/Service/Bundeshaushalt-.802.9330/Broschueren/Das-System-der-OeffentlichenH...htm 240 1975 the Federal level and the Länder set up a framework plan for joint support measures under this article. The main body for the establishment of this framework is the Bund-Länder Commission for Educational Planning and Research Promotion (Bund-Länder-Kommission für Bildungsplanung und Forschungsförderung – BLK). The framework plans set up expenditure targets for the different areas and institutions. The plans are subdivided into two relevant budget headings with a clear focus on the later area: planning of education measures scientific research of supra regional relevance Regarding these joint measures the co-financing level is not fix and can be adapted from measure to measure; e.g. co-financing for the Max-Planck institutes and the Deutsche Forschungsgemeinschaft is 50% - 50%, while other measures vary. Moreover the Federal level offers funding for different research centres and institutes (the so called blue list / Blaue Liste). The measures and instruments are implemented by regional/Länder authorities. For a recent benchmark year (2000, 2001 or 2002), provide information on the scale and regional distribution of spending on these policies. The Eastern Länder (incl. East Berlin) received about 1.3 billion € (18 %) of technology and research funding by the Federal level in Germany in 2000.This represents a slight decrease by 0.7 % from 1999. Among the Eastern Länder, Saxony (5.4%) received the largest share in 2000, followed by Brandenburg (3.3%), Saxony-Anhalt (2.1%), Thuringia (1.8%) and Mecklenburg – Western Pomerania (1.7%). Among the West Länder, North RhineWestphalia (17.3%) and Bavaria (17.1%) got the highest level of Federal funding, followed by Baden-Württemberg (15.9%) and West-Berlin (10%).699 Actual Federal R&D expenditure by Land / performance of R&D700 1997 1998 1999 2000 mio € % mio € % mio € % mio € % Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 1 144.4 1 570.3 721.4 243.0 157.8 314.4 376.8 99.4 15.5 21.3 9.8 3.3 2.1 4.3 5.1 1.3 1 288.5 1 345.8 706.6 249.2 179.0 295.7 349.6 126.4 17.5 18.3 9.6 3.4 2.4 4.0 4.8 1.7 1 181.5 1 287.7 716.3 246.7 198.1 312.3 361.4 127.3 16.3 17.7 9.9 3.4 2.7 4.3 5.0 1.8 1 185.4 1 269.2 738.8 245.3 202.3 324.0 383.9 126.8 15.9 17.1 9.9 3.3 2.7 4.4 5.2 1.7 514.6 1 237.0 115.7 38.4 360.0 150.0 206.9 124.5 7.0 16.8 1.6 0.5 4.9 2.0 2.8 1.7 539.8 1 250.2 122.1 48.8 352.4 151.4 219.0 134.9 7.3 17.0 1.7 0.7 4.8 2.1 3.0 1.8 543.1 1 236.6 118.7 36.4 394.4 156.9 211.2 138.0 7.5 17.0 1.6 0.5 5.4 2.2 2.9 1.9 613.4 1 285.3 127.7 41.0 398.0 158.9 202.2 136.3 8.2 17.3 1.7 0.6 5.4 2.1 2.7 1.8 Federal financial aid to the Länder according to art 91b GG701 Education/Research acc. to art 91b GG 699 Bundesministerium für Bildung und Forschung (2002): Facts &Figures Research 2002, p. 297. Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p- 161. 701 Data provided by the central data collection archive of the Länder finance ministries / Zentrale Datenstelle der Landesfinanzminister 700 241 Planning of education measures (mio €)702 Research of supra regional relevance Support for research institutes (1000 €) (mio €) Baden Württemberg Bavaria Berlin Berlin (West) Berlin (East) Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Total 2001 24,2 2002 11,2 2001 17,5 20,7 17,4 2002 7,1 7,9 6,5 2001 2002 23.139 13.701 23.894 13.346 23.189 41.599 35.158 1.229 18.573 14.026 17.153 40,3 35,2 18,3 16,2 6,4 1,1 4,1 10,0 4,0 3,1 0,6 1,7 4,2 2,4 22.836 36.735 43.148 1.177 16.713 12.932 16.313 - - 12,6 26,0 4,9 12,4 15.237 24.113 19.086 26.445 44,0 23,9 25,2 192,8 19,3 15,3 12,8 93,1 6,0 1,6 14,4 6,9 3,6 5,8 158,1 2,6 0,7 6,5 3,5 1,6 3,2 68,9 3.299 5.243 50.404 23.760 26.482 5.021 3.436 5.410 51.993 24.223 24.972 4.401 340.253 348.133 Among the common tasks (‚Gemeinschaftsaufgaben’= GA) according the art 91a GG exists also a GA for building and maintenance of Universities (GA ‘Hochschulbau’). This task is cofinanced by the Federal level (50%) and the Länder (50%) and is not subject to discretionary powers of the two levels. It is in power since 1970 and support infrastructural measures in university building and maintenance activities. Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Total Federal grants for building and maintenance of universities (mio €)703 1995 1996 1997 1998 1999 2000 2001 143 149 131 142 157 140 162 100 108 125 155 182 176 167 86 56 56 56 49 50 49 44 40 43 42 40 33 40 14 10 10 7 13 13 17 22 26 26 28 33 27 34 51 48 46 32 40 41 46 25 29 37 38 41 36 44 66 118 82 146 62 145 53 133 43 147 69 173 78 185 39 21 83 38 30 38 918 32 16 57 44 37 47 927 34 10 66 52 37 43 923 40 11 69 53 26 36 921 40 12 96 59 27 44 1023 36 15 88 58 26 40 1021 42 17 109 63 29 50 1132 702 Including action programme apprenticeship East. Planungsausschuss für den Hochschulbau (2002): 32. Rahmenplan für den Hochschulbau nach dem Hochschulbauförderungsgesetz 2003–2006, Berlin, p. 29. 703 242 Are there any specific regional technology strategies administered by national government bodies or agencies or sub-national authorities? Of special relevance in this policy field is the InnoRegio programme for which the Federal level offers 80 mio € in 2003. “InnoRegio, an initiative for support of innovative regions, is aimed especially at improving productivity, competitiveness and regional attractiveness in the new Länder.”704 The programme concentrates on financing innovations in the Eastern Länder. The programme does not finance Länder as a whole, but different projects and networks. Thus the budget spent on the different projects cannot be allocated to the Länder but refers to the projects funded. The Federal ministry for education and research provides for a total Federal budget of 225,6 mio € for the period from 1999-2006 covering the costs for a total number of 339 projects. The Länder / regions themselves establish their focus, based on their economic and research activities and qualifications. By this programme 23 research networks have been created. Moreover, in 2001 the programme 'Innovative Regional Core Growth Areas' was initiated to complement InnoRegio. It promotes innovative initiatives in the Eastern Länder, which are based on regional clusters of competence and production. So far 9 core growth areas have been advanced (ca. 40 mio €). Additionally, about 40 laboratories for innovation and foundation were established in universities and research institutes in the Eastern Länder States (25.6 mio €). Furthermore, so called innovation forums with a total number of 444 regional initiatives applied for support.705 Supported InnoRegios706 704 Bundesministerium für Bildung und Forschung (2002): Basic and Structural Data 2001/2002, Berlin, p. 288. http://www.innoregio.de/foerderung.php 706 http://www.innoregio.de/innoregios.php 705 243 Budgets for the several projects under InnoRegio (mio €)707 707 ibid. 244 Federal grants for InnoRegios708 Project Berlin Berlin-Buch-AG: Management für innovative Therapieentwicklung Brandenburg BioHyTec, Biohybrid-Technologien in der Region PotsdamLuckenwalde RIO, Regionales Innovationsbündnis Oberhavel Firm: Mittelostbrandenburgisches Zentrum für innovatives Recycling zur Entwicklung neuer Verbundprojekte Mecklenburg Western Pomerania 8 Up to 10 95 Maritime Allianz, Ostseeregion DISCO, Diabetes Informations- und Service-Center Ostvorpommern NUKLEUS, Präzisionsmaschinenbau Kunststoffzentrum Westmecklenburg Saxony KONUS, Kooperative Nutzung von Datennetzen für die berufliche Eingliederung von blinden und sehbehinderten Menschen InnoSachs, Hochtechnologien als Initiator für eine zukunftsorientierte Regionalentwicklung Textilregion Mittelsachsen Sachsen 31 Mio. BioMeT, Innovationsnetzwerk Dresden Sachsen 40 Mio. IAW 2010, Industrie- und Automobilregion Westsachsen 2010 RIST, Regionale Innovationsnetzwerke Stoffkreisläufe Musicon Valley Saxony Anhalt Budget (mio DM) Up to 10 Up to 10 34 16 31 20 22 22 99 18 35 18 10 18 112 708 Bundesministerium für Bildung und Forschung (2001): FÖRDERUNG REGIONALER INNOVATIONSINITIATIVEN IN DEN NEUEN LÄNDERN - Sachstandsbericht -Stand: 09.10.2001, Berlin, S. 4. 245 INNO PLANTA, Pflanzenbiotechnologie Nordharz/Börde MAHREG Automotive NinA, Naturstoff-Innovationsnetzwerk Altmark Rephyna, Innovationspotenzial Börde INNOMED: Regionales Netzwerk für Neuromedizin-technik Thuringia Barrierefreie Modellregion für den integrativen Touris-mus INPROSYS, Produktions- und Fertigungstechnik Micro Innovates Macro: Bautronic Konzept 2001 40 20 20 22 Up to 10 30 14 10 Up to 6 Core Growth Area709 Overall budget of 150 mio DM, single financing per area between 5 and 13 mio DM Berlin <xmlcity:berlin>: Kompetenz- und Anwendungszentrum XML Brandenburg NOA: Netzwerk für innovative Oberflächentechnik und Anlagenbau Sachsen Berlin-Brandenburg Anwendungszentrum intermodale Verkehrstelematik Berlin; Brandeburg Mecklenburg Western Pomerania Maritime Knowledge and Decision Support Systems, Rostock – Maritime Safety Assistance INNOCIS: "Innovationsinitiative kostengünstige, flexible CIS-Photovoltaik Saxony Zukunftsmarkt neue Werkstoffe, ASGLAWO GmbH Saxony Anhalt Pharmaka aus Magdeburg - Tradition und Zukunft Industrielle Produktion Therapeutischer Rekombinanter Proteine Thuringia Funktionelle anorganische-nichtmetallische Materialien –fanimat Moreover, the Federal ministry for economics and labour operates the research and development support programmes PRO INNO, NEMO and others, for which unfortunately no regional breakdown could be provided. PRO INNO launched in mid 1999 ends in 2003 budget: 317 mio € support for research and development in SME non-repayable grants preference of support for new Länder (but also transnational networks) NEMO network building for innovation in the new Länder 1. round 2002: 92 applications, of which 24 have been granted 2. round 2002: 61 applications Federal contribution for network management costs Budget: 7.9 mio € Budget for Federal support for technology policies710 709 Bundesministerium für Bildung und Forschung (2001): FÖRDERUNG REGIONALER INNOVATIONSINITIATIVEN IN DEN NEUEN LÄNDERN - Sachstandsbericht -Stand: 09.10.2001, Berlin, S. 9. 710 Bundesministerium für Bildung und Forschung (2002): Facts &Figures Research 2002, p. 283. 246 Programme name PROgramm INNOvation skills of small and medium-sized companies (PRO INNO) with the predecessor programme “Research co-operation among small and medium-sized enterprises“ Support of innovative networks (InnoNet) Industrial co-operative research by small and medium-sized companies (IGF),with the initiative programme “Future technologies for small and medium-sized enterprises“(ZUTECH) Innovation management NEMO (for small companies and crafts companies from the new Länder) Technology-oriented visit and innovation programme (TOP) Programme to strengthen innovation and technology transfer in small and medium-sized companies (crafts/trades, industry, retail/whole sale, services and liberal professions) Programme/project duration Predecessor programme: from 1993 to 1998 PRO INNO: from 1999 to 2003 from 1999 to 2003 IGF: no ending date defined; ZUTECH: since 1999, no ending date defined Funding volume (mio €) 1998 –2002: 564 1999 –2002: 17.36 1998 –2002: IGF: some 442 1999 to 2002 from 2000 to 2004 of this for ZUTECH 21.1 2000 –2002: 7.9 from 1992 to 2002 1998 –2002: 1.8 indefinite 1999 –2002: 44.15 247 8 Inward direct investment Are there any data on employment in foreign-owned versus indigenous industry at the regional level (provide a sectoral breakdown of such data if available) No such data could be found. Nevertheless, in order to get an impression of the volume of foreign direct investment in the German Länder, a table is provided below indicating, that the economic division between Eastern and West German Länder is also obvious in terms of inward direct investments as the new Länder remain substantially below the figures of the old Länder. Inward direct investments in the Länder (mio. €)711 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia GERMANY 1994 16.775 11.479 5.215 349 1.058 12.353 28.427 444 1995 18.918 14.521 5.420 460 1.278 13.805 31.649 460 1996 19.838 16.770 5.624 614 1.534 12.885 31.700 460 1997 23.308 17.866 5.307 1.102 1.538 16.189 39.576 448 1998 30.449 24.680 7.031 1.126 1.904 17.687 51.815 697 1999 34.836 32.868 6.950 1.123 1.685 26.578 73.271 623 2000 51.273 32.857 14.049 1.194 1.537 32.924 90.563 727 7.612 33.974 7.823 38.142 7.874 43.767 8.472 49.884 10.451 59.016 10.788 93.133 11.448 222.841 2.927 1.418 441 700 1.694 408 125.275 2.812 971 409 1.585 2.454 614 141.372 3.119 767 409 1.074 2.710 716 149.860 4.164 848 750 2.492 3.537 585 176.065 4.134 1.026 948 2.838 4.095 551 218.449 5.609 1.100 1.155 3.250 4.721 633 298.326 9.207 1.110 1.306 3.432 6.728 1.414 482.611 (Upon request data can also be provided for investments coming from companies located in the different Länder abroad.) Any data on Manufacturing (and Services) firm size by region? Even though the most frequent firms size type in all Länder are SME with less than 50 employees, big firms with 1000 and more employees is the most relevant firm size type in terms of employment in the majority of old Länder. This type is followed by firms with 200499 employees as most relevant employers in Hesse, Lower Saxony, Rhineland Palatinate, Schleswig-Holstein and Saxony-Anhalt, firms with 100-199 employees in Mecklenburg-West Pomerania, Saxony and Thuringia and firms with less than 50 employees in Brandenburg and North-Rhine Westfalia. Firm size and number of employees by firms size in 09/2000712 Baden Württemberg Number of firms Total Less than 50 employees 50-99 employees 100-199 employees 200-499 employees 500-999 employees 1000 and more employees 8857 4294 1939 1309 914 245 156 711 http://www.bankgesellschaft.de/vowi/11_bln_bbg/04_vergl/08_struktur/lv_dir_inv_j.htm Statistische Ämter des Bundes und der Länder (2003): Statistik regional 2002. Daten für die Kreise und kreisfreien Städten Deutschlands, CD-Rom. 712 248 Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Total Less than 50 employees 50-99 employees 100-199 employees 200-499 employees 500-999 employees 1000 and more employees Number of employees by firms size Number of firms Number of employees by firms size Number of firms Number of employees by firms size Number of firms Number of employees by firms size Number of firms Number of employees by firms size Number of firms Number of employees by firms size Number of firms Number of employees by firms size Number of firms 1272299 123382 134974 181856 277031 164948 390108 8047 4018 1707 1118 784 265 155 1222331 105340 120006 155759 243381 180604 417241 913 509 192 104 74 19 15 111912 13528 13724 14164 22030 13043 35423 1175 751 251 105 47 13 8 91448 18268 17344 14619 14472 9663 17082 351 193 64 45 25 17 7 65132 5080 4518 5995 7638 11339 30562 590 323 98 73 61 20 15 98490 8916 6868 10125 19808 14463 38310 3288 1729 674 410 315 98 62 461887 46627 46873 56647 95878 63473 152389 651 379 149 80 36 4 3 Number of employees by firms size Number of firms 48904 10188 10546 10890 10481 2555 4244 4182 2153 920 558 399 104 48 Number of employees by firms size Number of firms 564271 57940 64352 77783 122911 69730 171555 10673 5056 2531 1493 1079 347 167 Number of employees by firms size Number of firms 1479308 145857 176993 210174 324889 234631 386764 2303 - - - 2219 - 84 Number of employees by firms size Number of firms Number of employees by firms size Number of firms Number of employees by firms size Number of firms 305086 - - - 170860 - 134226 535 274 114 63 42 21 21 106262 7988 7734 8559 12566 14973 54442 2782 1613 627 342 158 33 9 222357 44207 43525 47756 46673 22429 17767 1277 732 292 146 86 15 6 Number of employees by firms size Number of 104036 19910 20267 20005 26388 9786 7680 1493 906 270 169 100 30 18 249 Holstein Thuringia firms Number of employees by firms size Number of firms Number of employees by firms size Total Less than 50 employees 50-99 employees 100-199 employees 200-499 employees 500-999 employees 1000 and more employees 141939 22367 18904 23474 30389 19162 27643 1742 955 436 221 110 16 4 136304 26954 30308 31246 31217 10641 5938 (Upon request data on NUTS 2 Level can also be provided for firm size and number of employees by firms size. It was not provided in the first place, as the question only aimed at ‘regions’.) Any data on regional job targets set by national agencies? Given that Germany takes part in the European Employment Strategy the country has set itself the overall job targets agreed at the European level. Nevertheless the regional parts of the German NAP do not indicate regional job targets or the plan of setting up such targets. As already indicated in the table on differences between regions in the arrangements governing labour markets (cf. chapter on ‘Employment policy’) the Alliances for Work in the different Länder have set themselves different main objectives and so far have achieved different aims. However, no regional job targets have been set by national agencies or other authorities as also ambitious national job targets as indicated in the Hartz-concept (creation of about 4 mio new jobs) are not taken up again (e.g. by the Agenda 2010). Only Hesse decided to annually set up target figures for training contracts, but not for regional job creation. Any data on advance factory building (at regional or even national level) by national agencies? The terms is understood as "'factory building the construction of which is promoted by a local community group the objective of which, or one of the main objectives of which, is to promote the development of, and the creation of opportunities for employment in, its locality” and thus related to the gross fixed capital formation or the German term ‘Bruttoanlageinvestitionen’. The figures for this item are presented for the Länder indicating how much was spent in the Länder on (new) advance factory building. As to the Federal level, no relation between the volume of investments and their distribution between the Länder could be found. Advanced factory building (Gross fixed capital formation / ‘Bruttoanlageinvestitionen’) (new buildings) of the Länder713 Gross fixed capital formation (new assets) in Germany by Bundesland 1991 to 2000 at current prices 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Mio €. 713 BadenWürttemberg 52.752 54.945 51.438 50.145 48.026 48.998 48.215 50.817 53.562 57.151 Bayern 67.952 71.095 64.238 69.022 68.339 68.720 66.506 71.866 73.696 79.532 Berlin 13.663 15.648 16.036 15.421 16.355 19.142 21.827 17.762 17.012 15.927 Brandenburg 8.117 10.906 14.775 17.838 17.627 18.661 17.667 17.449 17.093 16.081 Bremen 3.164 3.111 2.800 3.030 3.092 Hamburg 9.792 11.412 11.135 10.236 9.635 9.656 10.730 11.692 11.074 12.504 3.275 2.808 3.299 3.769 3.991 http://www.statistik-bw.de/VolkswPreise/ArbeitskreisVGR/tab07.asp 250 Gross fixed capital formation (new assets) in Germany by Bundesland 1991 to 2000 at current prices 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Mio €. 29.874 30.769 29.926 27.318 29.126 27.747 29.357 30.505 32.320 32.649 Hessen MecklenburgVorpommern 6.937 Niedersachsen 34.144 34.745 32.548 33.195 33.006 32.220 34.000 35.958 38.780 40.176 NordrheinWestfalen 72.614 74.895 68.314 69.278 68.844 69.675 71.673 76.306 84.432 88.085 Rheinland-Pfalz 16.758 16.890 16.320 17.640 18.181 16.885 17.836 18.916 19.732 20.580 10.715 12.658 14.008 14.525 13.062 11.931 11.129 10.473 10.106 Saarland 4.343 Sachsen 15.449 18.738 21.300 29.079 31.926 32.367 30.371 27.998 26.546 25.867 Sachsen-Anhalt 8.731 4.478 4.023 4.425 4.769 4.734 4.922 5.846 5.757 6.032 13.830 16.741 19.604 20.046 17.689 16.649 16.580 15.069 14.180 Schleswig-Holstein 10.438 11.474 11.121 11.913 12.655 12.078 12.674 13.587 14.203 14.091 Thüringen 7.729 11.850 15.283 17.591 16.730 13.577 13.560 13.272 14.364 13.128 Germany 362.460 395.500 389.130 409.520 412.590 408.240 411.010 422.980 437.880 450.080 Gross fixed capital formation (new assets) in Germany by Bundesland 1991 to 2000 at current prices 1992 1993 1994 1995 1996 1997 1998 1999 2000 Year to year change in % Baden-Württemberg +4,2 -6,4 -2,5 -4,2 +2,0 -1,6 +5,4 +5,4 +6,7 Bayern +4,6 -9,6 +7,4 -1,0 +0,6 -3,2 +8,1 +2,5 +7,9 Berlin +14,5 +2,5 -3,8 +6,1 +17,0 +14,0 -18,6 -4,2 -6,4 +34,4 +35,5 +20,7 -1,2 +5,9 -5,3 -1,2 -2,0 -5,9 -1,7 +6,7 +14,3 +5,9 Brandenburg Bremen Hamburg +5,3 -14,2 -0,3 +8,2 +2,0 +16,5 -2,4 -8,1 -5,9 +0,2 +11,1 +9,0 -5,3 +12,9 +3,0 -8,7 +6,6 -4,7 +5,8 +3,9 +6,0 +1,0 +54,5 +18,1 +10,7 +3,7 -10,1 -8,7 -6,7 -5,9 -3,5 Niedersachsen +1,8 -6,3 +2,0 -0,6 -2,4 +5,5 +5,8 +7,8 +3,6 Nordrhein-Westfalen +3,1 -8,8 +1,4 -0,6 +1,2 +2,9 +6,5 +10,7 +4,3 Rheinland-Pfalz +0,8 -3,4 +8,1 +3,1 -7,1 +5,6 +6,1 +4,3 +4,3 Saarland +3,1 -10,2 +10,0 +7,8 -0,7 +4,0 +18,8 -1,5 +4,8 Sachsen +21,3 +13,7 +36,5 +9,8 +1,4 -6,2 -7,8 -5,2 -2,6 Sachsen-Anhalt +58,4 +21,1 +17,1 +2,3 -11,8 -5,9 -0,4 -9,1 -5,9 +9,9 Hessen Mecklenburg-Vorpommern -2,7 -4,6 +4,9 +7,2 +4,5 -0,8 Thüringen +53,3 +29,0 +15,1 -4,9 -18,8 -0,1 -2,1 +8,2 -8,6 Germany +9,1 -1,1 +0,7 +2,9 +3,5 +2,8 Schleswig-Holstein -3,1 -1,6 +7,1 +5,2 +6,2 +0,7 Moreover, the common tasks (cf. chapter on ‘Territorial policy’) and state aid instruments (cf. chapter on ‘State aid’) are relevant in this context, as they support and finance investments also in factory building to minimise regional diversity and to save and create employment. 251 GA of the development of the regional economic structure (‘Verbesserung der regionalen Wirtschaftsstruktur’) (see chapter on territorial policies)714 Approved funds by GA in mio € 1991 - 2000 Industrial Branch Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia Total 63,3 326,1 755,6 12,9 61,3 472,8 201,5 195,1 25,4 36,4 1 529,2 1 122,9 19,4 1 015,6 5 222,2 GA for the support of agricultural structure and coastal protection (‚Förderung der Agrarstruktur und des Küstenschutzes’) (see chapter on territorial policies) – Total Federal Support715 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt 2000 (mio DM)716 166, 276 313, 522 0, 367 153, 721 1, 898 25, 075 60, 429 130, 766 240, 919 111, 013 84, 440 10, 562 95, 262 91, 238 2002 (mio €)717 89,832 167,730 0,326 76,887 1,714 9,934 41,197 69,143 111,681 61,041 47,905 5,771 51,089 52,595 714 Deutscher Bundestag Drucksache 15/861, 15.Wahlperiode 10.04.2003: Unterrichtung durch die Bundesregierung, Zweiunddreißigster Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der regionalen Wirtschaftsstruktur “ für den Zeitraum 2003 bis 2006, p.29. 715 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005. 716 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005. 717 Deutscher Bundestag Drucksache 14/9009, 14. Wahlperiode, 06. 05. 2002: Unterrichtung durch die Bundesregierung Rahmenplan der Gemeinschaftsaufgabe „Verbesserung der Agrarstruktur und des Küstenschutzes“ für den Zeitraum 2002 bis 2005, p.89. 252 85, 289 88, 298 1. 659, 075 Schleswig Holstein Thuringia Total 36,300 46,100 869,245 Annual employment numbers by region will allow calculation of net job creation numbers Annual employment (persons in gainful employment) numbers by Länder (Sept.) 718 1999 2000 2001 Baden Württemberg 3.775.672 3.862.423 3.897.772 2002 (estimated) 3.884.872 Bavaria 4.339.786 4.449.049 4.497.323 4.460.020 Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 1.149.495 838.312 284.700 755.510 2.162.249 609.316 1.155.000 819.780 287.918 774.388 2.216.728 595.516 1.138.977 790.236 289.867 782.178 2.240.378 572.243 1.110.970 771.587 287.451 772.593 2.214.694 554.009 2.432.369 5.911.526 2.480.184 6.014.847 2.463.031 6.004.180 2.443.161 5.931.094 1.199.710 358.236 1.575.245 876.704 824.149 850.516 1.214.968 363.714 1.542.279 844.693 832.907 830.651 1.214.680 363.523 1.487.689 824.710 830.876 807.492 1.209.416 357.921 1.450.481 799.715 822.587 782.820 Is there any possibility of obtaining gross job creation and gross job destruction numbers? The two main trends in gross job creation and gross job destruction are a general decrease in job creation since 1999 in all Länder and an increase in job destruction in the old Länder, while in the five new Länder Brandenburg, Mecklenburg-West Pomerania, Saxony, SaxonyAnhalt and Thuringia a (slight) decrease in job destruction since 1999 can be observed. Gross job creation (creation of gainful employment)719 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland 1991-1998 1999 2000 2001 2002 - 275.969 422.271 160.495 181.514 28.039 58.881 172.201 155.653 298.453 523.771 125.019 31.892 271.698 409.313 159.361 179.507 29.136 57.843 172.154 143.721 298.995 524.733 123.694 31.981 244.735 386.309 151.112 176.136 27.091 55.162 158.265 133.137 284.025 484.776 114.428 29.812 255.402 408.682 145.632 170.228 25.326 56.757 160.569 126.481 279.692 496.827 120.103 29.362 718 Bundesanstalt für Arbeit (2003): http://www.pub.arbeitsamt.de/hst/services/statistik/detail/b.html. Number of person entering unemployment from gainful employment, Bundesanstalt für Arbeit: http://www.pub.arbeitsamt.de/hst/services/statistik/detail/a.html 719 253 - Saxony Saxony Anhalt Schleswig Holstein Thuringia 334.259 211.374 108.879 195.546 314.362 201.923 105.589 186.475 306.273 199.289 104.015 174.030 298.610 183.970 101.911 165.023 Gross job destruction (destruction of gainful employment) 720 Baden Württemberg Bavaria Berlin Brandenburg Bremen Hamburg Hesse Mecklenburg Western Pomerania Lower Saxony North Rhine Westphalia Rhineland Palatinate Saarland Saxony Saxony Anhalt Schleswig Holstein Thuringia 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 234.940 283.335 341.434 326.497 314.322 329.936 309.330 291.708 285.774 260.321 284.153 326.605 396.814 183.455 226.680 28.490 61.170 156.714 185.453 414.690 181.194 222.904 27.606 63.899 173.173 196.977 485.315 167.362 177.234 29.717 67.173 200.765 144.299 462.417 173.151 159.735 28.975 66.145 195.625 143.106 474.458 162.150 177.047 29.779 64.394 193.375 149.111 500.803 172.333 200.721 30.215 67.677 208.913 166.343 486.850 172.488 196.603 29.464 64.947 199.581 169.430 457.535 161.730 188.263 29.194 61.277 187.038 152.267 433.813 161.472 201.881 29.144 59.474 182.072 159.290 417.148 159.994 185.810 29.101 57.089 176.463 151.426 452.053 161.420 186.769 30.027 61.287 184.706 148.033 508.083 167.756 182.307 30.009 66.776 212.884 142.716 279.159 277.821 327.949 309.444 320.602 353.649 353.343 326.594 310.190 319.016 325.044 338.783 503.541 557.554 636.133 603.592 587.548 617.945 584.769 556.925 557.575 556.135 594.766 653.071 123.341 131.850 150.070 140.356 141.980 150.648 148.433 136.974 131.841 130.126 134.328 149.496 36.820 393.092 239.270 37.249 421.682 240.050 43.733 338.261 226.233 37.625 285.159 204.934 35.405 323.882 223.759 38.521 362.109 250.912 35.585 380.593 245.700 33.178 336.562 219.862 33.974 354.384 227.146 33.670 343.305 211.454 34.182 327.666 199.565 36.920 314.212 195.602 108.859 109.925 120.414 119.889 116.795 125.599 123.066 115.844 110.800 110.841 117.690 123.178 252.998 263.774 206.729 174.173 195.350 221.278 218.237 191.242 204.712 191.005 182.008 180.670 We will need a list of ‘designated regions; i.e. those which the national authorities designate as warranting policy support and towards which they claim (nominally, at least) to direct extra resources and attention. The objective 1 regions as defined under the ESF are also those regions especially profiting from national public transfer instruments.721 2000-2006 (mio €) ERDF ESF Eastern part of Berlin Brandenburg Mecklenburg-Western Pomerania Saxony Saxony-Anhalt Thuringia EAGGF Total EU contribution EU contribution % EU contribution % EU contribution % 2120.302 6733.047 5493.088 687.558 3090.223 2455.750 517.858 1639.26 1100.19 75.32% 53.05% 44.80% 162.663 730.66 613.47 23.66% 23.64% 24.98% 7.037 720.302 742.09 1.02% 23.31% 30.22% 11240.40 8697.414 10018.45 4858.610 3360.445 2886.137 3057.598 1908.342 1480.29 62.93% 56.89% 51.29% 1098.191 715.254 866.7 22.60% 21.32% 30.03% 702.821 730.849 539.147 14.47% 21.79% 18.68% Moreover, also objective 2 regions are relevant under this heading.722 720 Number of person entering gainful employment from unemployment, Bundesanstalt für Arbeit: http://www.pub.arbeitsamt.de/hst/services/statistik/detail/a.html 721 http://europa.eu.int/comm/regional_policy/country/prordn/search.cfm?gv_pay=DE&gv_reg=ALL&gv_obj= ALL&gv_the=ALL&LAN=EN 722 http://europa.eu.int/comm/regional_policy/country/prordn/search.cfm?gv_pay=DE&gv_reg=ALL&gv_obj= ALL&gv_the=ALL&LAN=EN 254 2000-2006 (mio €) ERDF ESF Total Baden-Württemberg Bavaria Western part of Berlin Bremen Hamburg Hesse Lower Saxony North RhineWestphalia Rhineland-Palatinate Saarland Schleswig-Holstein EU contribution EAGGF EU contribution % EU contribution % EU contribution % 1160.366 2200.882 1179.189 97.769 536.638 384.449 97.769 475.804 244.125 100% 88.66% 63.50% 60.834 140.324 11.34% 36.50% - - 354.659 12.384 542.379 1492.457 3598.623 113.034 6.192 183.519 733.953 970.361 113.034 6.192 183.519 682.254 823.62 100% 100% 100% 92.96% 84.88% 51.699 146.741 7.04% 15.12% - - 1402.927 981.785 831.107 170.677 171.089 258.319 158.877 130.841 221.747 93.09% 76.48% 85.84% 11.8 40.248 36.572 6.91% 23.52% 14.16% - - As broader definition those Länder receiving so called Supplementary federal grants within the financial equalisation scheme (see chapter on public sector transfer) can be regarded as regions eligible to direct extra resources and attention. Saxony Berlin Saxony-Anhalt Brandenburg Thuringia Mecklenburg-Western Pomerania Bremen Lower Saxony Saarland Rhineland-Palatinate Schleswig-Holstein Baden-Württemberg Bavaria Hesse North Rhine-Westphalia Hamburg 723 Supplementary federal grants (mio €)723 2000 2001 2 345 2 313 1 955 1 925 1 493 1 473 1 375 1 358 1 370 1 352 1 030 1 017 987 870 970 899 750 612 658 550 406 219 - http://www.destatis.de/basis/e/fist/fisttab023.htm 255