National Reform Program
Germany
2005 – 2008
Implementation and progress report 2006
15. August 2006
Inhaltsverzeichnis
1.
2.
Overview ........................................................................................................................ 3
Economic situation and overall economic framework................................................... 9
2.1. Situation and perspectives of the German economy in the year 2006...................9
2.2. Sustainable design of public finance - protecting social security..........................9
2.2.1. Sustainable design of public finance ...................................................... 9
2.2.2. Designing social security viably - reducing non-wage labour cost ...... 10
2.2.3. Sustainable reform of old-age security................................................. 11
2.2.4. Reform of the health sector .................................................................. 13
2.3. Completing German unity ...................................................................................15
2.4. Reform of federalism - clear delineation of responsibilities ...............................16
3. Progress in structural change ....................................................................................... 17
3.1. Expanding the knowledge economy....................................................................17
3.1.1. Progress in research, innovation and state-of-the-art technology......... 17
3.1.2. Strengthening educational systems....................................................... 19
3.2. Opening up markets and increasing competitiveness..........................................21
3.2.1. Progress in and shaping competition .................................................... 21
3.2.2. Focussing on growth-orientated markets.............................................. 22
3.2.3. Strengthening industry’s competitiveness ............................................ 23
3.3. Strengthening the framework for entrepreneurial activity...................................24
3.3.1. Clearing ground for private initiative ................................................... 24
3.3.2. Building up Germany as a financial platform ...................................... 26
3.3.3. Improving Corporate Governance ........................................................ 27
3.3.4. Supporting young and small enterprises............................................... 27
3.3.5. Shaping taxes in a growth-orientated manner ...................................... 28
3.3.6. Expanding the infrastructure ................................................................ 30
3.3.7. Long-term energy policy ...................................................................... 32
3.4. Using ecological innovations as a competitive advantage ..................................33
4. Preparing the labour market for future challenges....................................................... 35
4.1. Shaping structural labour market reforms efficiently ..........................................35
4.2. Activation and prevention – Effective integration as a guiding principle ...........36
4.3. Enhancing flexibility and employability on the labour market ...........................37
4.4. Modern immigration policy – Active integration into the labour market ...........38
4.5. Life cycle-oriented approach – Aligning labour market policy with
demographic change ............................................................................................39
4.5.1. Integrating young people into the labour market.................................. 39
4.5.2. Raising the share of women in the labour force ................................... 40
4.5.3. Promoting employment among older workers ..................................... 41
4.6. Restructuring support for start-up businesses by former unemployed persons...42
4.7. Improving the work-life balance .........................................................................43
4.7.1. Creating a better framework for mothers and fathers........................... 43
4.7.2. Enhancing the availability of all-day child care ................................... 43
4.7.3. Promoting family-friendly HR policies................................................ 44
4.7.4. Initiative “Local Alliances for Families”.............................................. 44
Tabelle:................................................................................................................................ 46
Maßnahmen und deren Stand der Umsetzung im Rahmen des Nationalen
Reformprogramms 2005 – 2006 ......................................................................................... 47
Strukturindikatoren für Deutschland im Jahr 2005 ............................................................. 88
1. Overview
1.
With the present implementation and progress report, the Federal Government will inform the European Union, the legislative bodies in Germany as well as the European and
German public about important projects which have been initiated since the presentation
of the 2005 National Reform Programme (NRP) and have partly been implemented
through proper legislation in the meantime. This report adds some details and concrete
terms to the 2005 NRP which was established last year during the transitory stage of
government formation.
2.
In the 2005 NRP, the Federal Government defined six priorities for the timeframe 2005
to 2008. One key issue will be the further development of the knowledge society as a
central condition of the viability of modern societies, of participation and social justice.
Other priorities include the competitive design of the markets and further improvement
of the overall conditions of entrepreneurial activity through a reduction of impediments
to private initiative, strengthening a competitive business structure and supporting small
and medium-sized enterprises. In line with the triad consisting of “renew - reform - investment” that characterises policies in the current parliamentary term, the Federal Government attributes primary importance to the sustainable consolidation of public finance,
safeguarding economic stability and preserving social security. The use of ecological innovation is to be enhanced, after all, it combines the protection of the environment with
long-term cost savings and increased effectiveness. However, the orientation of the economic, financial and labour market policy towards higher employment continues to be
the core priority.
The Federal Government welcomes the focus placed by the European Council in March
2006. The six priorities in the 2005 NRP largely cover the four fields of action which had
been identified as “areas of priority” by the Council of the European Communities in
March 2006: (i) higher investment in knowledge and innovation (section 3.1), (ii)
unlocking business potential, especially in small and medium-sized enterprises (sections
3.2 and 3.3), (iii) increasing employment opportunities (section 4), and (iv) an “energy
policy for Europe” (sections 3.3.7 and 3.4). Thus, the essence of the German reform policies for growth and employment is fully in line with the European strategy. The comment
of the European Commission concerning the German NRP that is contained in the 2006
spring report will be dealt with in the corresponding sections of the present implementation and progress report.
3.
In the 2005 NRP, the Federal Government concentrates on central fields of action that
have to be pursued in order to achieve growth and employment in a globalised environment in view of the demographic change of society and the transition towards the service
and knowledge society. The national agenda of reforms is designed to strengthen the
forces of growth through higher employment rates, higher investments and greater dynamics of productivity. The agenda for economic recovery in east Germany still enjoys
great priority in the Federal Government. Although the concrete measures have been tailored to the specific national conditions, Germany nevertheless also makes a significant
contribution towards the Lisbon strategy of the European Union. Since the introduction
of the Euro, important framework data for economic development have no longer been
determined at the purely national level, but to an increasing extent by the other Member
States and the European level. Favourable overall economic conditions are a decisive factor for drawing full benefits for growth and employment from the structural reforms, and
for actually utilising the increased production potential. This refers not only to the
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smooth cooperation of the macroeconomic policy fields, but also to their interaction with
the structural reforms on the markets for goods, services, and employment. Conversely,
successful structural reforms will increase the efficiency of macroeconomic impulses in
all markets, thus strengthening their resistance to external interference. For this reason, a
growth- and stability-oriented policy in all countries, in particular, the Euro zone, is of
vital importance for the economic dynamics within the Community.
4.
Restoring a sound financial basis is of key importance at the overall economic level (cf.
section 2.2.1). This is designed to comply with the objectives of the Growth and Stability
Pact and the deficit limits defined in Article 115 of the Basic Law. In combination with
the other reform measures, long-term viability of public finance will contribute to a further consolidation of the confidence of investors and consumers into a sustainable economic policy.
5.
As regards budget consolidation, progress is primarily based on cuts in spending and the
reduction of tax benefits and special tax exemptions - which can be considered equivalent
to reduced spending. Important measures for reducing subsidies and special tax exemptions have been implemented, such as the abolition of the homeowner’s tax subsidy.
Nevertheless, increasing the value-added tax rate is absolutely necessary. This increase
not only contributes to a budget consolidation, it also ensures that the labour cost in
Germany can be reduced. In order to additionally create short-term impulses for investment and sustainable, stronger economic dynamics, the Federal Government adopted a
25 billion Euro growth programme in early 2006. The federal states and the communities
have committed another approx. 12 billion Euro. The course for a sustainable reform of
the system of old-age pensions has been basically set by the pension reforms implemented in the previous years and the establishment of a funded provision for old age. The
gradual increase of the pensionable age to 67 years that was adopted by the government
is an important contribution towards the protection of the pension funds, and thus the
sustainability of public finance in view of the demographic change (cf. section 2.2.3).
6.
Germany has a modern, efficient health service which offers all citizens access to highquality health care while securing some 4 million jobs. In view of great challenges, not
least due to the demographic change and the technical and medical progress, the health
sector must continuously be further developed. However, reforms will have to account
for the discrepancy between the requirements of a dynamic, innovative growth industry
and the necessary control of spending. Therefore, the reform of the health system is one
of the most important projects with respect to demographic developments and the stressbearing capability of the social security systems. For this purpose, a draft legislation will
be prepared in autumn 2006 which will not only include provisions to safeguard sustainable financing, combined with a relaxation of the dependency of financing on labour, but
also promote economic efficiency and competition in the health sector (cf. section 2.2.4).
7.
One fundamental element of the joint process of renewal pursued by the Federal Government and the federal states is the reform of the system of federalism in the Federal
Republic of Germany (cf. section 2.4). The fundamental reform of the structures of federalism will improve the transparency and efficiency of the distribution of responsibility
and decision-making bodies to the different federal levels. It will strengthen the benefits
of federal structures and reduce their weaknesses. In particular, the capacity to act and
implement reforms will be strengthened at all levels of government, accountabilities will
be clearly defined, and many law-making processes will be accelerated. The reform is
also designed to address the financial relations between the different federal levels in a
second step.
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8.
Germany is a central location for research and development with a high level of knowledge and education. The German economy lives on its technological products and innovative services. Therefore, promoting the knowledge society is one focus of the six priorities defined by the Federal Government in the 2005 NRP. One important factor for the
transition towards a knowledge- and technology-based economy is - in addition to promoting research and development - the qualification level of the German workforce. Special emphasis is placed on the in-company system of vocational training. In the current
parliamentary term, the Federal Government will invest an additional 6 billion Euro on
research and development, thus contributing towards the achievement of the 3% objective. In order to accelerate the time between ideas and innovation, the Federal Government has set up a High Tech Strategy for combining the support of research and development and the design of framework conditions that are conducive to innovation into a
homogeneous policy for innovation (cf. section 3.1).
9.
The European single market is opening up great opportunities for growth and employment in Germany. Therefore, the Federal Government will actively contribute towards
the promotion of all measures by which the single market is accomplished. This includes,
for example, the complete liberalisation of the European market for postal services, the
revision of the legal framework for telecommunications, the implementation of the action
plan for financial services or the standardisation of the basis of assessment for corporate
taxes (cf. section 3.2). As regards the opening of the network-bound markets, it is necessary, from the German point of view, to find the proper balance between competition of
service providers and the diffusion of innovation. Infrastructure and networks must be
opened wherever necessary to achieve more intense competition in favour of the clients.
At the same time, incentives to invest in new infrastructure measures must be maintained
in order to help new technologies to spread. In order to maintain its position in the competition between globalised markets, Germany must continue to firmly rely on growthoriented markets and fully exploit their potential. Industry continues to be the backbone
of the German economy. The manufacturing sector is an important source of product and
process innovation. At the same time, important elements of added value, i.e. profits and
labour income, are derived from this sector. Flexibility and especially also mobility are
fundamental requirements for an economic upswing. The mobility of humans, goods, and
services is a prerequisite of economic growth and increased employment. Therefore, an
efficient transportation infrastructure is of special importance. At the same time, transportation management and the transportation industry are among the innovative economic sectors in Germany. Growth-oriented markets as well as the competitiveness of
industry are in the focus of industrial policy in Germany.
10. Growth presupposes creativity, vision and the capability of entrepreneurs to convert their
ideas into products, processes and services on the market. To achieve growth, companies
have to be founded and investments have to be made. For this reason, it is the aim of the
Federal Government to create a favourable climate for entrepreneurial activity (cf. section 3.3). In order to achieve a positive business environment, government activities
should be efficiently designed and bureaucratic impediments must be eliminated without
neglecting workers’ interests or the protection of the environment and of consumers. Especially small and medium-sized enterprises benefit more than others from less bureaucracy. For this reason, important steps were initiated in the very first few months of the
current parliamentary term in order to create a favourable economic environment for the
medium-sized companies in trade, commerce, industry, the service sector and the professions. In addition to a law to reduce bureaucratic burdens on SMEs, the Federal Government has introduced the standard cost model and will establish a standards review com-
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mittee to examine the cost of bureaucracy caused by existing and new regulations. Furthermore, the support of innovation and technology in small and medium-sized enterprises was improved and an SME initiative was launched which includes, without being
limited to, measures to improve the financing conditions for small and medium-sized enterprises. Enterprises are also further relieved from company taxes. In order to remain internationally competitive, tax rates have to be reduced to attractive levels especially for
corporations. For this reason, the corporate tax reform announced for the year 2008 is
also one of the most important tasks of the Federal Government. The aim is a statutory
tax rate of less than 30%.
11. A safe energy supply and competitive energy prices are key factors for the competitiveness of the German industry. Since the new energy industrylaw came into force in July
2005, the power and gas network operators have been subject to strong, efficient supervision by the Federal Network Agency and the regulatoryauthorities of the federal states.
This will improve the competitive conditions and contribute to a better utilization of potential cost savings identified. In view of the worldwide rise in demand for raw materials,
Germany will reduce import risks by relying on a balanced, diversified energy mix which
also includes coal and an increasing share of renewable energies. Furthermore, Germany
is striving to achieve ambitious efficiency gains both in the generation and conversion of
energy and in energy demand. An efficient use of resources and opening up new markets
will also contribute to Germany’s competitiveness, in particular, as regards innovative
energy technologies. In the second half of 2007, the Federal Government will present an
overall energy strategywith a perspective until the year 2020 which will link reliability of
supply, reasonable energy cost and efficient climate protection in an efficient way. In the
course of its preparations, the Federal Government has initiated a process of discussion at
the energy summit in early April 2006 which is designed to identify proposals concerning vital energy policy issues.
12. The modernisation of the labour market continues to be a major issue of the reform
agenda in Germany (refer to section 4). By the four acts concerning modern services on
the labour market, the contents and organisation of German labour market policy were
completely reoriented in the years 2003 and 2004. The labour market reforms are beginning to take effect, which is demonstrated by the fact that the Federal Labour Agency is
now achieving savings which will help to reduce the contribution level to the unemployment insurance. The core features of this reorientation include strengthening a preventive
approach in labour market policy, establishing the principle of “promoting and challenging”, opening up new employment potentials through new instruments as well as a comprehensive organisational reform of the labour administration. In line with the European
employment objectives, it is aimed at strengthening growth in Germany, supporting the
exploitation of all employment potentials and also at improving the opportunities for unemployed people to find a job. The central leitmotif of these structural reforms is an activating, social state which calls for a new relationship between individual responsibility
and solidarity in society. The years 2005 and 2006 have been characterised by the implementation of these reforms, especially as regards basic security for jobseekers (combination of unemployment assistance and social assistance for persons in need, yet fit for
work). In Germany, labour market policy has undergone a process of scientific evaluation of reforms by independent institutions for the first time. Where a need for adjustment was identified, the Federal Government initiated appropriate measures. In summer
2006, the Federal Government already adopted changes to the labour market reforms
(”Hartz IV”). They will improve the incentives to take up employment, among other
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things, and will thus contribute towards increased flexibility on the labour markets and
enhanced competitiveness.
The Federal Government has undertaken to sustainably improve the opportunities for all
adolescents to obtain training and employment, and to permanently reduce youth unemployment. Germany has further intensified its efforts to achieve this goal. The German
economy greatly depends on the qualification and skills of its workers. The integration of
young people into gainful employment is not only designed to ensure social cohesion, but
also forms the basis of further economic success in Germany.
Children are the future of society. However, especially women more often than not have
to choose whether they want to work, or whether they want to have children. This is one
of the reasons for the low birth rate in Germany, which will have negative effects on society’s innovative capacity and on growth and well-being in the medium and long term.
In addition to granting specific financial support to families, the Federal Government’s
family policy is therefore increasingly aimed at achieving better compatibility of family
and labour and the integration of women and mothers into gainful employment, in addition to general labour and employment market policies. In this context, it is of central
importance to provide an infrastructure of more and better education and care facilities to
efficiently support families and children. Furthermore, the protection of the livelihood of
families is to be promoted especially in the first months of a child’s life if the family
primarily wants to take care of its children itself (cf. section 4.7).
13. To improve Germany’s innovative and competitive capabilities, women and men must
have equal opportunities in order to equally contribute their resources and potentials to
industry, society and politics. For this reason, the strategy of gender mainstreaming is
continuously applied by the Federal Government and the federal states in order to ensure
equal opportunities and eliminate existing discrimination.
14. The present implementation and progress report was prepared under the guidance of the
Federal Government. It consists of two parts. The first part describes the strategy of reforms in Germany. In the second part, the concrete measures are described in detail in a
table. The description includes references to the relevant sections of the table. The federal
states were involved in the preparation of the report. The industry associations, trade unions and local government associations received the report for reference and comment.
Both chambers of the German parliament discussed the report before it was submitted to
the European Commission. The implementation and progress report will be published,
thus offering a foundation for a continuous, extended and profound parliamentary and
public debate about the further development of Germany’s contribution towards the Lisbon strategy of the Community.
15. The member states of the European Union consider economic policy an issue of joint
interest. The national reform programs as well as the relevant implementation and progress reports are part of the process of multilateral monitoring of the economic policy in
which the member states cooperate with the Commission through the various Council
bodies. In this context, the spring report of the Commission is of special significance. In
view of the complexity of the task of providing an analysis and concise assessment of the
economic policy in 25 member states, given their most diverse institutional systems and
special national features, it appears to be extremely difficult to map this complexity by a
manageable number of quantitative indicators. Most of the so-called structural indicators
reflect partial aspects of the policy fields in question at best. The effect of reforms also
decisively depends on the overall economic environment in which they take place. There-
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fore, qualitative assessments cannot be dispensed with, given the institutional background of a specific country.
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2.
Economic situation and overall economic framework
2.1.
Situation and perspectives of the German economy in the
year 2006
16. According to international organisations, the global economy will continue to expand
briskly, and international commerce will dynamically grow further. External impulses are
most likely to remain strong, and export dynamics will persist. Due to its highly competitive prices and a further improvement of its competitiveness by declining unit labour
cost, the German economy will continue to participate in this development. This mainly
applies to the Euro zone. In general, there are good perspectives that the structural reforms in Germany will soon result in higher employment rates.
17. Although the economic situation had temporarily lost some of its momentum at the end
of 2005, the German economy had a good start in the year 2006. Spirits are high in the
German industry. The economic indicators provide good reason for this. Most of them
are in line with an upward trend. Growth impulses are not only received from the world
economy, but to an increasing extent also from within Germany. In addition to investments in industrial equipment, private and state consumption expenditure contribute to
this positive trend. Initially, investments in the construction industry suffered from unusually strong weather-related impediments, but are gradually catching up now. In general, the economic development has gained in breadth, and the basic upward trend of the
level of business activity has consolidated. On this background, there is no doubt that the
economic growth of 1.5% forecast by the Federal Government in spring 2006 can actually be achieved. Germany will again contribute to stable prices in the Euro zone in the
year 2006.
2.2.
Sustainable design of public finance
- protecting social security
2.2.1.
Sustainable design of public finance
18. Establishing sound government finance is an important requirement for financial policy
scope of action and economic sustainability. This can only be accomplished if the interaction between the development of public finance, economic growth, employment subject to mandatory social insurance and demographic change is consistently observed.
Economic growth is a condition of sound public budgets, and vice versa. Higher growth
creates more jobs, reduces the labour market expenditure and increases the tax income as
well as the receipts of the social insurance. At the same time, sustainable public budgets
are a prerequisite for mastering the challenges of demographic development and globalisation. A consistent consolidation of public budgets, continued structural reforms and
the improvement of the quality of public finance are the cornerstones for economic
growth.
19. The structure of the federal budget is characterised by expenses for social security, government pensions and interest payment. These items account for roughly two-thirds of
the federal budget.
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20. On the expenditure side, Germany has achieved distinct success in terms of consolidation
in recent years. With a rate of 46.7 %, the public spending ratio reached its minimum
since 1991 in the year 2005. The strategy of consolidation will be strengthened in order
to ensure the sustainability of public budgets and the social security systems. The aim is
to reduce the national deficit to less than 3% of the GDP again in 2007, to cut federal net
borrowing to values below the investment volume, and to proceed with the strategy of
budget consolidation in subsequent years until a balanced total government budget is
achieved.
21. The consolidation volume necessary for that purpose is basically ensured by the 2006
Budget Supplement Act which was promulgated on 30 June 2006 (cf. tables no. 1 To 3).
On the income side, the law package mainly provides for an increase in the standard rates
of the value added tax and insurance tax by three percentage points each. The income
achieved from one percentage point of turnover tax will be passed on to the Federal Labour Agency (BA) as a means of reducing the contribution rate to unemployment insurance to 4.5 %. At the same time, the previous federal subsidy paid to the BA to cover its
deficit will be cancelled. Savings on the expenditure side will be achieved under the act
by reducing the federal lump-sum contribution to the statutory health insurance, a reassessment of the funds transferred to the federal states with respect to public passenger
transport based on the regionalisation act, and by cutting the annual bonus paid so far to
federal employees to one-half. The relief achieved by federal, state and local government
budgets under the Budget Supplement Act will grow from slightly below 0.8 billion Euros in the year 2006 to more than 18.1 billion Euros in the year 2007 and 21.7 billion Euros in 2008 to more than approx. 22 billion Euros in the year 2009 (federal government
to be relieved by approx. 0.9 / 12.4 / 15.4 / 15.7 billion Euros).
22. In the future, the federal budget policy will continue to be consistently aimed at consolidation. All expenditures will be reviewed, the need for and financing options of new projects and burdens with financial effects on income and expenditure will be examined and
balanced in the same policy area by defining new priorities. All measures are subject to
financing reservations. Germany has a noteworthy record of success as regards the reduction of subsidies. Since 1999, federal subsidies have been halved to approx. 6 billion Euros today. More savings will follow. As a rule, new subsidies will only be granted in the
form of financial assistance rather than tax exemptions, and existing ones will be converted into financial assistance wherever possible. Financial assistance will be limited in
time and decline over time, and will be recorded in a format that will allow for success
monitoring.
2.2.2.
Making social security sustainable for the future - reducing nonwage labour cost
23. It is the aim of the Federal Government to achieve a comprehensive policy that promotes
and strengthens cohesion between generations, and thus society as a whole. This concept
not only encompasses support for persons in need on the basis of solidarity, which goes
beyond pure subsistence protection but rather also covers socio-economic needs and the
possibility of participating in social life, but also more self-responsibility and participation the workplace. The political aim is to achieve an equilibrium between selfresponsibility and solidarity. As regards major risks such as illness, accidents, disability,
need of long-term care, reduced earning capacity, unemployment and old age, these aims
are achieved by the social security systems which provide for reasonable and financially
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sustainable protection. Reforms aiming at a long-term stabilisation of the social security
systems and a sustainable consolidation of public budgets are important elements of socially balanced policies and a precondition of new scope of political action.
24. In addition to most diverse opportunities for enhanced growth and well-being, the necessary process of economic reorganisation is also associated with risks based on increased
international competition. Especially affected are low-skilled persons. Also to be considered are individual social and health risks which can only be protected by government
schemes based on solidarity. The promotion of social cohesion and equal opportunities
are indispensable in order to counteract tendencies towards social exclusion and provide
sufficient social protection to the individual, also in the case of disability to work. Safeguarding the social and economic participation of people is the central issue of the Federal Government’s social policy. The National Strategy Report on Social Protection and
Social Inclusion 2006 describes accompanying measures to this end.
Reducing non-wage labour costs
25. Reducing non-wage labour costs is a central component of all efforts aimed at strengthening growth and employment. The Federal Government intends to permanently reduce
social security contributions to less than 40%. The contribution rate to the statutory pension insurance was maintained at a stable 19.5% in previous years as well as in the year
2006. As already stated in the 2005 NRP, the moderate increase of the pension insurance
contribution rate to 19.9% as per 1 January 2007 and of the statutory health insurance
contributions by roughly 0.5 percentage points will be more than offset by the simultaneous reduction of the contribution rate towards unemployment, therefore, the social insurance component of the total cost of labour will be reduced.
26. Under the 2006 Budget Supplement Act dated 29 June 2006, unemployment insurance
contributions will be reduced by two percentage points from currently 6.5% to 4.5% effective 1 January 2007. Reducing the non-wage labour cost will give new impetus to create additional jobs. To compensate this reduction at least in part, the Federal Labour
Agency will receive the proceeds from one percentage point of the increased value-added
tax rate (cf. Tables under no. 1 and section 21 hereof).
2.2.3.
Sustainable reform of old-age security
27. The pension reforms implemented in the past few years have already provided fundamental solutions to a sustainable financing of the pensions. The projected increase in
public spending for old-age security as a percentage of the gross domestic product until
the year 2050 was reduced from 5.5 percentage points to 1.7 percentage points according
to current calculations performed at the EU level. The 2005 NRP had still assumed this
figure to be 1.9 % on the basis of preliminary results.
28. In the medium term, the 2005 pension insurance report adopted by the government in
March 2006 shows that the lower limit for securing the pre-tax protection level1 as well
1
The pre-tax protection level is the proportion between the standard pension available (before taxes and without
the average contribution rate to the health insurance and without the contributions to the long-term care insurance) and the available average wages. It is calculated for the so-called standard pensioner who has earned the
national average income for 45 years, paid the corresponding contributions, and receives old-age pension as of
age 65. However, the development of the pre-tax protection level can be transferred to all employment careers
and the existing pension relationships (National Strategy Report on Old-Age Protection 2005).
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as the upper limit of the contribution rate stipulated by law can be complied with in the
time period until 2019. For this purpose, it is necessary to make up for lower pension adjustments that had not been previously implemented. In view of the sacrifices already
made by the pensioners towards consolidation of the old-age pension insurance, the Federal Government will stabilise the benefit levels in the current parliamentary term and
will not carry out any pension cuts.
29. Through the pension insurance report and the old-age security report, which was adopted
at the same time, the Federal Government comprehensively informed the public about
the situation of the statutory pension insurance, company and private provision for old
age. The results of this statutory monitoring of old-age security confirm that elderly persons in Germany today are being well taken care of at old age, and that the same will be
the case in the future. However, it is necessary that people make additional provisions for
old age in addition to the statutory pension for this purpose. The total net benefit standard
obtained from statutory pensions, government-promoted additional provision for old age
(Riester pension) or a company pension and an additional private pension financed from
the tax-exempted portion of the pension insurance contributions will remain stable in the
long run for average wage-earners. For people with a low income, the total net benefit
standard will even increase slightly in the long term. In the future, persons with children
will receive significantly higher benefits because child-raising times have now been
much better accounted for in the statutory pension insurance.
Additional old-age provision
30. Building up additional funded provision for old age has been massively promoted by the
state since the year 2002. For this purpose, a comprehensive set of instruments comprising tax elements and direct subsidies has been created. Compared to autumn 2005, the
number of contracts made for the Riester pension had increased by approx. 1.5 million to
around 6.2 million by late March 2006. Together with the existing entitlements to company pensions (status in mid-2004: approx. 15.7 million), some 20 million employees
presumably obtained state-subsidized additional provision for old age. In order to further
improve the support of families with children, the child subsidy for the Riester pension
will be increased from 185 Euros to 300 Euros per year for children born after 1 January
2008 (cf. table no. 4). Besides, due to their great popularity as provision for old age,
owner-occupied flats will be better integrated into subsidised provision for old age in the
future.
31. The Federal Government will increase the population’s awareness of its own pension
level and identify opportunities of further providing for old age. This is the starting point
of the “Fit-in-Altersvorsorge” (fit in provision for old age) which was initiated by several
federal ministries in cooperation with the pension insurance funds, the German association for adult education, the social partners and the federal association of consumer protection agencies.
Raising the pensionable age - increasing gainful employment of elderly persons
32. The rate of employment of elderly employees has already increased (from 37.5 % in the
year 2000 to 45.4 % in 2005) and is designed to rise further through a sustainable improvement of the labour market situation combined with a change in mentality in human
resources strategies of companies and the envisaged rise in the statutory pensionable age.
Among other things, limited contracts of employment with elderly employees will be
governed by new provisions from the age of 52 on (cf. table no. 110).
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33. Due to the trend reversal of the practice of early retirement by, e.g., raising the old-age
limits and the parallel introduction of actuarial pension discounts, the average retirement
age rose from 62.4 in 1995 to 63.2 years in the year 2005. Germany will continue on this
path by raising the age limit for obtaining old-age pension from 65 to 67 years by the
year 2029 as resolved by the Federal Government on 1 February 2006. Both the benefit
level of the statutory pension insurance and the contribution rate will be kept stable in the
long run by this measure (cf. table no. 5). On the labour market, these measures will be
accompanied by the specific support of elderly employees and workers in the course of
the “Initiative 50plus”.
2.2.4. Reform of the health sector
34. The health insurance modernisation act, which came into force in 2004, was a first step
towards the medium- and long-term stabilisation of the system of the statutory health insurance (GKV). However, additional measures will have to be taken in view of demographic change and the financial development of the GKV. For this reason, the lawmaking bodies have agreed upon immediate action. The act for improving the economic
efficiency in drug supply (AVWG) which came into force on 1 May 2006, contains
measures by which the statutory health insurance funds will save 800 million Euros already this year (cf. table no. 6). Among other things, reference prices were readjusted.
With the regulation of reference prices it is ensured that a sufficient choise of drugs will
still be available. Real innovation, i.e. therapeutic improvements, will remain exempted
from the fixed amounts. Furthermore, the health insurance funds may conclude special
discount agreements with the manufacturers in order to make drugs with higher prices
than the fixed amount available to the insured at no extra cost. In addition, physicians
will be made accountable more than before for the economic efficiency of their drug prescriptions (so-called “bonus-malus" rule).
35. A need for quick action was also identified with respect to the nation-wide availability of
physicians. For this reason, the Federal Government has initiated a draft Amendment to
the law concerning Statutory Health Insurance Physicians (cf. table no. 7). Under this
Amendment, the law governing the contractual relationship between and the statutory
health insurance physicians will be liberalised in order to prevent medical bottlenecks especially in rural areas. Furthermore, regulations concerning the reduction of impediments
in the establishment of medical service centres as well as an extension of start-up financing for integrated medical services by one year will ensure that health care are improved.
Reducing non-wage labour costs
36. In the system of statutory health insurance, the contributions of the employees and the
employers will be stabilised as of the year 2008 through co-financing from the national
budget. In the course of a legally defined process of adjustment, inevitable cost increases
based on medical progress and demographic development will be borne first by a growing subsidy from the national budget and - to the extent that this is not sufficient - by the
employers and insured on equal terms. The structural changes that will be initiated by the
2006 health reform will lead to an increased medium- and long-term efficiency within
the system of statutory health insurance and decelerate the rise in expenditure that would
otherwise have to be expected.
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Reform concept for sustainable financing of the statutory health insurance
(GKV) and for further quality and efficiency improvements
37. In view of great challenges, not least due to the demographic change and the progress in
medicine and medical technology, combined with a tendency of a weak increase in or
even stagnating income from contributions, the health sector has to be improved continuously . The number of elderly people will significantly rise over the next few decades in
Germany. This rise will be associated with higher expenditures in the health system
which will require additional financing. By beginning to finance some elements of societal tasks in the statutory health insurance from the federal budget, the resources of the
statutory health insurance will be placed on a more stable, more equitable and employment-promoting basis in the long run. The financial reforms to be initiated this year will
also be linked with a reform of the healthcare structures in order to ensure that the funds
available will be used more efficiently and more effectively in the future (cf. table no. 8).
38. For this reason, the reform concept of the Federal Government for medium- and longterm stabilisation of the statutory health insurance places special emphasis on the following objectives:
• To ensure that all citizens are covered by health insurance.
• To guarantee the access of all insured to all necessary health services - regardless of
the amount of contributions paid by the individual.
• To ensure sustainable financing and a liberalisation of the dependency between financing health care and wages.
• Intensified competition between health insurance funds and service providers.
• Fair competition between private health insurance companies and statutory health insurance funds.
• To improve the quality and efficiency of health care through more structural reforms.
39. The cornerstones of a health reform that were adopted in July 2006 basically include the
following points:
• New provisions regarding more flexible and more competitively designed relations between patients and physicians, between insured and health insurance funds, and between health insurance funds and service providers (optional tariffs, copayments,
greater contractual liberties of the insurance funds, new system of physicians’ reimburesement, cost-benefit analysis of drugs, improved interaction between outpatient and
inpatient services, further development of integrated health care, streamlining of organisational structures).
• Establishment of an overarching, central health fund which will be funded not only by
employee and employer contributions but gradually also by tax subsidies to account
for societal tasks within the GKV.
• Beginning of gradual tax funding of societal tasks (children) from the federal budget
as of 2008.
• Easier change by insured persons between private health insurance companies (portability of reserves for old age, creation of a basic rate for all persons voluntarily insured with private health insurance companies with mandatory contracting and without
exclusion of benefits, risk assessment or risk mark-ups), maintenance of private health
insurance as comprehensive insurance.
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Establishment of prevention as an independent pillar of the health sector
40. The strategy to strengthen health prevention that was initiated in the last parliamentary
term was interrupted by the premature German federal elections. For this reason, the law
that had already been adopted by the parliament in this context could not come into force,
but the government coalition has taken up this project again in its coalition treaty. By the
planned prevention law, cooperation and coordination as well as the quality of the measures of the social security funds will be improved without excessive bureaucracy and
aligned with the goals of prevention (cf. table no. 9).
Designing a sustainable long-term care insurance
41. The Federal Government will continue to develop and design a sustainable long-term
care insurance. This social security sector is also characterised by the clear need for legislative action by the legislators. Further developing the long-term care insurance is part of
the renewal of the social security systems in the Federal Republic of Germany. At the
moment, a reform concept is being developed on the basis of the coalition treaty which
will safeguard sustainable financing for this social security sector and will also ensure the
greatest possible fairness in distributing the expenses of the long-term care insurance resulting from demographic development across the generations. This includes supplementing the pay-as-you-go principle by funded elements as a demographic reserve and
balancing the different risk structures of statutory and private long-term care insurance
(cf. tables no.10 and 11).
2.3.
Completing German unity
42. The new German states have impressively caught up. This applies, in particular, to the
manufacturing sector. Nevertheless, recovery in east Germany still enjoys great priority
in the Federal Government. The efforts of the Federal Government directed at a recovery
in east Germany are focused on four objectives to which the promotion by the EU structural funds is equally committed:
•
•
•
•
Strengthening growth and employment
Improving innovative capabilities
Ensuring regional and social cohesion
Competitiveness at the international and European level
43. Strengthening growth and employment is mainly achieved in east Germany by broadening the industrial basis which provides new impulses for the development of the service
sector also. For this reason, the Federal Government has extended the investment subsidy
for the new German states until 2009 and opened it for investments in the field of tourism
(cf. table no. 12). The joint scheme for improving regional economic structures is continued at high levels (cf. table no. 13). The new states still rank as maximum promotion areas under the joint scheme and the law of subsidies. Furthermore, new and revised programmes for promoting small and medium-sized enterprises will include additional promotional preferences for east Germany (cf. table no. 14). The EU promotion of structures
in the new German states is increasingly based on the objectives of the Lisbon strategy.
44. In addition to this broad promotion approach, the Federal Government relies on providing targeted support to specific regional and sectoral targets, thus accounting for the in-
15
creased differentiation of economic development in the new states. The policy of promotion is guided by the principle of “Strengthening strengths - sharpening profiles”. It is focused on promoting growth cores and sectoral clusters. One of the central fields of action
includes the networking of potentials in business and research (cf. table no. 15). The
well-equipped public research environment in the new states still has to contribute a
greater share towards regional economic growth (cf. tables no. 16 and 23). Another
means of strengthening regional growth engines is the improvement of the transport infrastructure. The identification of weak points in the “gateways” (e.g. air transport and
logistics locations, analysis of deficits in rail-bound traffic) and the improvement of the
quality of traffic links with the new EU member states are of special importance. The
corresponding conclusions will be included in the implementation of the federal transport
route scheme 2003.
45. The high unemployment rate continues to be the greatest challenge faced by social cohesion in the new states. In addition to taking measures aimed at strengthening growth and
employment, the Federal Government is making efforts to reintegrate unemployed persons into the primary labour market and to preserve their working capability. To this end,
40 % of all integration funds of the Federal Labour Agency are used to finance measures
to assist long-term unemployed adults and youths in the new German states. The increased regional differentiation in the new states is counteracted by targeted strategies for
a sustainable development of rural areas. Important steps in this area include the promotion of regional development potentials and safeguarding the provision of infrastructure
in sparsely populated areas.
46. On the background of ongoing globalisation, the new states increasingly have to meet the
challenge of international competition. International competitiveness is enhanced by a
stronger sectoral profile in the individual regions and powerful investor advertising. To
this end, the “Industrial Investment Council” (IIC) and “Invest in Germany” are merged
into a company for locational marketing and investor relations. It is planned to endow
more funds to this new company.
2.4. Reform of federalism - clear delineation of responsibilities
47. The upper and the lower house of the German parliament have adopted a far-reaching
reform of the federal system of responsibilities. The reform of federalism will help to distinguish the competencies of the federal and state governments more clearly, especially
in the field of law-making. The capacity of the federal and state governments to take action and make decisions will be improved, political accountabilities will be more clearly
assigned, and the purposefulness and efficiency of compliance with obligations will be
increased (cf. table no. 17).
48. The reform basically covers the following areas:
• Reform of the rights of the Bundesrat (upper house of parliament) by considerably reducing the number of laws that require its approval and introduction of a new requirement, namely, that approval to federal legislation is mandatory if it is associated with
considerable cost. In return, the opportunities of the state parliaments to design entire
fields of policy will be strengthened.
• Reform of the law-making competences by abolishing framework laws and reorganising the range of concurrent legislative powers. In this field, legislation will become
16
easier for the Federal Government (reduction of the scope of mandatory approval). In
return, the states may diverge from federal legislation in certain fields of law-making
by adopting their own provisions.
• More distinct assignment of financial responsibility, mainly through a limitation of
mixed financing.
49. In another step towards reform, the financial relationships between the federal and the
state governments will be adjusted to the change in framework conditions in Germany
and abroad, especially as regards growth and employment policies. For this purpose, the
federal and state governments jointly want to agree on a suitable procedure, once the first
set of reforms has been implemented, to rapidly identify the preconditions and possible
solutions for a change of the Basic Law which will aim at strengthening the responsibility of the territorial authorities and the funds allocated to them according to their duties.
3. Progress in structural change
3.1. Expanding the knowledge economy
3.1.1. Progress in research, innovation and state-of-the-art
technology
50. Scientific breakthroughs which enhance economic performance promise to provide fresh
momentum for growth and innovation in Germany and in the EU. The Federal Government intends to facilitate and accelerate this transformation process, i.e. to better coordinate and interlink research, innovation and education policy, as well as economic, health,
environmental and consumer protection policy in Germany. To this end, measures for
science, research and technology are to be increased and budget funding invested primarily in innovative areas. Increasing private and public expenditure on research and development up to 3 % of GDP by 2010 is one of the priorities of the Federal Government’s
innovation policy. This goal has the active support of the business community.
51. In the context of the new innovation policy, the Federal Government will be investing an
additional Euro 6 billion in Research and Development (R&D) during this parliament.
This is the greatest increase in the Federation’s research budget since reunification. This
significant contribution is evidence of the Federal Government’s commitment to achieving the 3% goal (cf. Table 18).
52. The Federal Government has combined its innovation policy initiatives in the High Tech
Strategy for Germany (cf. Table 19). This strategy aims to further expand innovative
competence and excellence in science and the economy, in particular in SMEs, to create
routes from research to future markets, and hence to provide a one-stop shop bringing innovation policy to life. The High Tech Strategy identifies and describes challenges and
guidelines in the Federal Government’s research and innovation policy. It defines the
Federal Government’s supra-technology initiatives, ranging from support for research,
through knowledge and technology transfer, matters related to standardisation, to patents,
public procurement of innovations, the mobilisation of more private investment in research, support for innovative start-ups and strategic partnerships, through to forming innovation-promoting conditions (cf. Table 20). Over and above this, innovation strategies
are being formulated in selected fields of innovation which for the first time address at
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inter-departmental level the conditions for the development of future markets. The implementation of the High Tech Strategy is accompanied by representatives from the scientific sphere and the business community, where research is carried out in a union between the business and scientific communities.
53. The “Top Universities Excellence Initiative” will be launched this year and provided
with Euro 100 million from the federal budget (cf. Table 21). All in all, this excellence
competition is to be funded to the tune of Euro 1.9 billion until 2011. It promotes special
scientific excellence in research in order to give German higher education institutes a better position in international competition than was previously the case, and increases the
opportunities for young scientists. The candidates for the first round of promotion will be
announced in October. The joint commission of the German Research Foundation and of
the Science Council announced on 20 January 2006 the decisions in the first stage of the
application procedure in the Excellence Initiative Programme. After the decision of the
panel of judges for the Excellence Initiative, anticipated for October, it will be established which graduate schools, which excellence clusters and which future concepts of
the Universities can be promoted for five years from November 2006 onwards. The second selection round in the Excellence Initiative Programme was launched in April 2006.
54. In order to help create fertile ground for innovation, the Federal Chancellor called leading representatives from the business community, the research sphere and the political
arena to form a new “Council for Innovation and Growth”. The first meeting took place
in May 2006; further meetings are planned to take place in September and November of
this year. A major goal of the Council’s work is to set off further momentum at the highest level for shortening the path from an invention to a marketable product or procedure
(cf. Table 22).
55. The support of innovations and state-of-the-art technology is a joint goal of the Federation and the Länder. A large number of fields of activity, in particular in the higher education institutes, lie within the responsibility of the Länder. The Länder have taken a
number of steps in order to increase expenditure on research and development (cf. Tables 23 and 24). A major element here is for research and industry to become more intensively networked.
56. Policy on science is guided by greater autonomy, self-organisation, cooperation and competition. The goal is to create conditions enabling higher education institutes and research
facilities to considerably heighten their profile in competition as top research centres with
international reputations. The “Pact for Research and Innovation” agreed between the
Federation and the Länder will provide the research organisations with at least 3 % more
funds per year until 2010. This item accounts for a total of Euro 105 million in the current federal budget. The goal is to increase competition, cooperation and networking, especially between higher education institutes and the business community, to open up the
additional potential of German research and to improve the support of young scientists
(cf. Table 25).
57. The market launch of new products must be protected by copyrights and patents to enable creative ideas to translate into economic success. The Federal Government has
launched an R&D support initiative on this to promote the development of technical copy
protection procedures, such as product labelling in manufacturing, or copy-protected key
components (cf. Table 26).
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58. The Federal Government is working on the “Information Society Germany 2010”
(iD2010) action programme. iD2010 is to combine those aspects of innovation and competition policy that are relevant to information and communications technology with the
modernisation of the administration and social involvement to create a uniform strategy
within the Federal Government (cf. Table 27). The action programme is to be presented
in the autumn of 2006 as being relevant to and in time for the Federal Government’s “IT
summit”.
59. The Federal Government is currently drafting a new 2020 Research Programme on Information and Communications Technology, together with the business and science communities (cf. Table 28), aiming to expand combined research in the information and
communications technology area and to evaluate research results. At the same time, it is
to be ensured that project promotion and the IT research activities of the institutional research landscape form a perfect fit.
60. Modern energy technologies are vital to the future performance both of energy supply
and of the competitiveness of the German and European economies. The Federal Government will be topping up funds for energy research and innovation by more than 30%
in 2009 as against 2005, and will hence be promoting above all modern power plant
technologies, technologies and procedures for energy-optimised buildings, renewable energies, nuclear safety and repository research, as well as a national innovation programme in the field of hydrogen and fuel cells, to a tune of Euro 2 billion in the period
from 2006 to 2009 (cf. Table 29).
61. The goal of the EU Structural Fund in the approaching promotion period will be to alleviate the disadvantages suffered by structurally-weak regions, more closely interlocked
with the goals of the Lisbon Strategy. Innovation and expansion of the knowledge economy are a strategic goal of the German development strategy for the EU Structural Fund.
Hence, the possibility also exists for the Länder to promote higher education institutes
and research facilities where they make a concrete contribution towards support for the
regional innovation potential. This can take place in the area of enterprise-orientated further training, in the implementation of projects together with SMEs or in networking with
regional enterprises. Incentives are provided to evaluate research results from the European Framework Programmes for Research and Technological Development in and for
the region. What is more, greater use is to be made of the potential of inter-regional cooperation, and the use of funds is to be made more efficient (e.g. reorientation to revolving funds).
3.1.2. Strengthening educational systems
62. The vocational qualifications of the people living in our country are vital to innovation.
The structural shift towards those economic activities which employ an above-average
number of highly-qualified people will continue. This increases the need for accredited
educational qualifications. Demographic change will reduce the number of young people
entering the labour market in the foreseeable future. There is a risk of a lack of welltrained specialists arising – Germany’s key resource as a high-technology location.
Education policy in Germany is primarily a matter for the Länder. In order to increase
Germany’s competitiveness as a research location, the latter develop measures to train
and improve young scientists by introducing additional routes to skill-building or by
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means of promotional measures and research projects that are orientated towards the
young.
The Federal Government has drafted an umbrella strategy to promote the young based on
four elements: Modern vocational training, promotion of talented individuals, the support
of scientific talent and recruiting top international young talent. Support for talented individuals at higher education institutes and in vocational training was increased by 8 % to
roughly Euro 107 million (cf. Table 30).
63. In order to support the higher education institutes in skill-building for the young in preparation for the knowledge economy, the Federation and the Länder are planning a 2020
Higher Education Pact (cf. Table 31). The Ministers of Science of the Federation and the
Länder agreed in May 2006 on the core goals of the Higher Education Pact, and on how
it is to proceed. The goal of higher education policy in Germany is to increase the competitiveness and attractiveness of the Universities. To achieve this end, it is important for
the structure and organisation of training to be comparable across Europe, while the student numbers are to be increased and further measures taken to ensure high quality. To
this end, all courses of study, in other words also the entrepreneurship training courses,
are being modularised and integrated into a credit point system (Bologna process) as
B.A. and M.A. courses are introduced. What is more, the transition between various parts
of the education system is to be simplified, e.g. between vocational education, further
training and tertiary education.
64. In order to further increase competitiveness in the tertiary sector, the Länder have focussed their research support on networks, clusters and excellence associations. Their many
activities guarantee the current high ranking of the higher education institutes in the
European Framework Programmes for Research and Technological Development. The
Länder focus particularly on measures for profiling and competitiveness of their higher
education institutes. This includes the many Land Higher Education Acts which provide
for increased autonomy, responsibility and ability to act. Additional study places are
needed in light of the rapidly-increasing student numbers. Even though the starting positions differ greatly, the Länder take on responsibility for ensuring that the systems are
expanded for the coming generation (cf. Table 32).
65. The “Vocational Training Innovation Working Party”, to which the Länder also contribute, is to improve vocational training in the medium and long term (cf. Table 33). Central
topics are the development of joint strategies to modernise vocational training and to improve transition management (pre-work measures for the transition from school to training). Furthermore, links are to be established between vocational basic and further training, and it is to be made easier to transfer between the various segments of the educational sector. The national reforms are to be better coordinated with developments in
European vocational training. The “National Pact for Training and Young Specialists” is
to ensure that training is provided as needed (cf. also No. 144 and Table 34). A central
tool to improve regional training structures and obtain additional in-house training places
is the “Jobstarter” training structure programme, funded to the tune of Euro 100 million
for the next four years, including with funds from the European Social Fund (cf. Table 35).
66. There is a need to continue to improve pupils’ skills in schools, especially against the
background of the Pisa Studies, as well as to reduce the dependence of educational success on pupils’ social and ethnic origin, and to reduce the number of school-leavers with
no school-leaving qualification. To achieve this, steps must be taken in the pre-school,
20
school, and non-school fields (cf. Tables 36 to 39). The Länder are responsible for implementation. The federal “Second Chance for School Drop-outs” pilot programme
launched in the summer of 2006 reintegrates school drop-outs into schools and accompanies them on their path to the school-leaving qualification they seek (cf. Table 40).
67. In the context of a “National Integration Plan”, concrete proposals are to be drafted with
the involvement of all levels of the state and socially-concerned groups to improve the
conditions for the integration of immigrants. To achieve this end, the educational success
of children and juveniles with a migration background in particular is to be improved by
providing more intensive language promotion prior to school and at school, as well as
through better promotion in school and vocational training (cf. Table 43).
68. The promotion and the refinement of life-long learning is a core theme in all educational
sectors (cf. Table 44). The framework must be further improved in order to enable as
many people as possible to participate actively. High-level experts from the scientific and
practical fields will be working in the “Working Party on Innovation in Further Training”
until the summer of 2007 on recommendations to improve further training. The Federal
Government considers well-planned national education research to be needed on an empirical basis in order to refine the education system effectively. A framework concept to
strengthen the structure of education research is to be available in the summer of 2006.
There are plans for the establishment of a national education panel, amongst other things.
The Federation and the Länder submitted the first national education report in June 2006,
entitled “Education in Germany” which an independent consortium of experts was commissioned to draft.
3.2. Opening up markets and increasing competitiveness
3.2.1. Progress in and shaping competition
69. The Federal Government’s policy aims to expand the common internal market in a larger
Europe. This process focuses on opening up network-linked markets in Germany. Where
necessary, the infrastructure and the networks should be opened up for more intensive
competition to the benefit of customers. At the same time, incentives must be conserved
for investment in new infrastructural areas to enable new technologies to expand. The
regulatory framework must not therefore pose an obstacle to innovation, whilst at the
same time it must not prevent imitation (thus creating equal starting conditions).
70. Against this background, and in the context of the current process of amending the Telecommunications Act (Telekommunikationsgesetz), the Federal Government has also proposed a provision to regulate new markets which is to promote investment in infrastructure and innovation (cf. Table 45). The provision is worded in a technologically-neutral
manner and applies to both the fixed-line sector and to mobile telephone or cable networks. New markets are only subject to sector-specific regulation under special preconditions (long-term prevention of competition), and particular significance is also attached
to the statutory goal of investment and innovation promotion in the event of regulation.
In addition, the Federation and the Länder jointly pursue the goal of refining the media
landscape in Germany (broadcasting – new services – telecommunication) such that the
provisions are simplified, apply regardless of the distribution channels, and are open to
development. These considerations have been taken into account by the draft Telemedia
Act (Telemediengesetz), which has been adopted by the Federal Government, and by the
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draft of the 9th Agreement to Amend the Interstate Broadcasting Agreement (Rundfunkänderungsstaatsvertrag) enacted by the Länder (cf. Table 46).
71. The transposition of the second internal market package in German law in 2005 constitutes a further step towards the creation of effective competition on the electricity and gas
markets. Efforts since 2005 have focussed on the administrative implementation of these
regulations in order to ensure non-discriminatory access to the electricity and gas networks, as well as to set the stage for incentive-based regulation (cf. Table 47).
72. About 130 staff now work in the energy segment at the Federal Network Agency, which
has been commissioned to regulate network access. The examination of fees for network
utilisation which is currently underway has already led to initial corrections. Furthermore, the Federal Network Agency has made proposals for incentive-based regulation
(improving the efficiency of network operation), which will form the basis for a corresponding legal ordinance. It is also working on realising an effective access model for the
gas networks by October 2006.
73. In addition to the regulation of the network utilisation fees, the cartel authorities have
stepped up their activities in promotion of competition. An investigation is under way at
present to determine whether the prices of market-dominating gas utilities are justified in
material terms. The German cartel authorities are also working together closely with the
European competitionauthority in their ongoing examination of the gas and electricity
sector.
74. More rapid expansion of both national and cross-border energy networks is to be made
easier by shortening the planning periods. It is anticipated that the appropriate statute,
which is currently in the legislative process, will be adopted by the end of the year (cf.
Table 48). With the aim in mind of improving cross-border cooperation, especially in capacity shortage management, the Federal Government is committed to European regional
initiatives in the electricity area (cf. Table 49).
75. Fair competition conditions and equal access to markets without bureaucratic burdens
create innovative momentum and cause resources to be put to better use. The Federal
Government is therefore adjusting national competition law in the field of food retail to
circumstances on the market in order to improve competition conditions for small and
medium-sized enterprises in this sector in particular (cf. Table 50).
3.2.2. Focussing on growth-orientated markets
76. Growth and jobs which are able to face future challenges are contingent in Germany on
concentrating on future-orientated markets. The markets for organic, genetic and
nanotechnology in particular offer massive growth potential. Information and communications technologies will permeate more than previously all areas of everyday life, industry and technology, and increasingly also the environment. The Federal Government is
therefore preparing to expand the markets through sector-specific research and education
promotion, by building networks and creating favourable framework conditions. The
promotion of innovativeness in enterprises and the development of an innovative environment are also a central concern of the EU’s structural policy.
77. The market for security products and services turned over Euro 10 billion in 2005 in Germany alone, Euro 3.6 billion of which was accounted for by IT security. This sector is
also growing rapidly. This makes it clear that innovative security solutions not only serve
22
the purpose of increasing security, but also have a considerable economic potential. The
Federal Government will therefore be initiating a national civil security research programme (cf. Table 51).
78. Moreover, the nanotechnology activities intended to be carried out in the current parliament will be combined in a “Nano initiative 2010” to be submitted at the end of 2006. In
this way, nanotechnology is to be taken out of the scientific laboratories and brought into
industry (cf. Table 52).
3.2.3. Strengthening industry’s competitiveness
79. In order to enhance competitiveness, industrial policy must aim to improve the regulatory
environment for business, which is nowadays largely defined at EU level. The Federal
Government therefore supports the industrial policy efforts of the European Commission
in Brussels to accelerate growth and reduce unemployment. Special significance attaches
to the sector-specific initiatives which are accompanied and supplemented at national
level by corresponding initiatives as well as by a better-focussed innovation and technology support (cf. Tables 53 to 57). Initial amendments to the Renewable Energies Act
(Erneuerbare Energien-Gesetz) as well as the reform of energy taxation which entered
into force on 1 August 2006, shall improve the competitiveness of energy-intensive industries (cf. Table 97 and 96).
The promotion of technology in the area of the aviation industry is being supported by
the new aviation research programme. Additional budget funding has been provided for
this area in the context of the High Tech Strategy for Germany, which intends to create
an internationally-comparable framework for promotion and to increase the innovativeness of the German aviation industry. A marked increase will take place in comparison
with the first draft for the 2006 budget, dating back to the spring of 2005, through the
provision of Euro 190 million for the 2007 to 2012 period.
R&D promotion from the “Shipping and Maritime Technology for the 21st Century”
programme and support of innovation from the “Innovative Shipbuilding safeguards
Competitive Jobs” programme is being integrated in a single maritime innovation support measure. This makes the promotion of shipping and maritime technology a major
element of the High Tech Strategy for Germany, for which the Federal Government will
be increasing R&D funding from Euro 11.9 million in 2005 to Euro 26 million in 2009.
80. Euro 20 million are being provided for the “Research Initiative for the Future of the Construction Industry” (in the 2006 to 2009 period) from the Federal Government’s Euro 6
billion special programme for research and development. As a result, research funding in
the construction area is being increased to a total of Euro 28 million in this parliament.
The goal of the Research Initiative for the Future of the Construction Industry is to increase the competitiveness of the German construction industry on the European internal
market - especially small and medium-sized enterprises, which make up the lion’s share
of the construction industry (cf. Table 58). This will improve the innovativeness and performance of small and medium-sized enterprises in particular, which do not have resources of their own with which to carry out research.
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3.3. Strengthening the framework for entrepreneurial activity
3.3.1. Clearing ground for private initiative
Reducing bureaucracy
81. The Federal Government has taken a first step towards achieving progress in cutting red
tape and deregulation, as well as in the comprehensive modernisation of the State and of
the administration, by means of an amending act (First Act to Reduce Bureaucratic Obstacles, in particular for SMEs [Erstes Gesetz zum Abbau bürokratischer Hemmnisse insbesondere in der mittelständischen Wirtschaft]) and most importantly has relieved small
and medium-sized enterprises of unnecessary bureaucracy and overregulation which hinders growth (cf. Table 59). Another element is the introduction of the Standard Cost
Model at federal level and in initial pilot trials at Land level (cf. Table 60). A Legislation
Supervision Council is being established in the Federal Chancellor’s Office as an independent supervisory and advisory body. It is to examine existing and especially new provisions for the administrative costs which they generate, without questioning the political
and regulatory objectives (cf. Table 61). The Federal Government’s “Bureaucracy Reduction and Better Legislation” programme follows on from the “Reduction of Bureaucracy” initiative adopted by the Federal Government in July 2003. Furthermore, the “Proposals to reduce bureaucracy and for deregulation from the regions” (cf. Table 62) and
the project to correct federal law are being continued.
82. Also at Land level, a number of measures have been taken to limit the density of regulation and to reduce the number of standards and administrative provisions. This is an ongoing process which is a fixed element of the work of the executive. To this end, the
Länder have taken steps to ensure the strict examination of provisions and to restrict
these to a level that is absolutely necessary. The number of obligations to obtain approval
has already been reduced and replaced by notification or by the introduction of deadlines
on expiry of which approval is deemed to have been granted by default. What is more,
threshold values are being introduced and measures implemented to accelerate procedures. In order to simplify public promotion, the Länder are reducing small-scale promotion, introducing flat-rates and fixed sums and combining administrative procedures. Bureaucratic obstacles are being removed through efficient administration which goes
where the citizen actually operates. The unity of the administration ensures integrated decision-making. This releases energy and resources for other tasks (cf. Table 63).
83. Over and above this, the Federal Government has initiated measures in order to simplify
the law on public procurement and to increase performance-based competition (cf. Table 64). In a first step, the explicit requirements of the EC’s procurement directives,
which were revised in 2004, were transposed into German law. This applies for instance
to the transparent weighting of contract award criteria by contracting authorityes and to
the obligatory exclusion of unreliable enterprises. To this end, the Contract Award Code
(Vergabeverordnung) has been amended, which in turn refers to the individual amended
Codes, namely the “Verdingungsverordnungen” VOB/A and VOF. Secondly, the emphasis was defined for simplifying the law on awarding contracts in the existing system.
They provide especially for greater transparency, less bureaucracy, a structure which
meets the needs of small and medium-sized enterprises and more efficient legal protection. The Federal Ministry of Economics and Technology will be submitting a corresponding draft Bill by the end of 2006.
24
A lean, addressee-orientated administration
84. An innovative and efficient public administration is a vital factor in strengthening Germany’s position as an economic location, and is hence a major contribution towards increased growth and employment. For this reason, innovative solutions are being used to
be able to offer the services of the public administration more simply, more quickly and
more competently, and adjusted to the needs of the economy as well as those of citizens.
Measures are being continued with the aim in mind of simplifying administrative procedures and optimising processes, especially in the field of bulk procedures. In September
2006, the Federal Government will be submitting a programme for an efficient, innovative administration. By means of the measures which it contains for inter-level cooperation, to combine and professionalise internal services, concentrate on core tasks, use synergy effects through process optimisation and IT deployment, the public administration is
reducing bureaucracy and creating innovative frameworks for enterprises. In doing so,
the Federal Government is continuing along the path started with the “BundOnline 2005”
eGovernment initiative and the strategy for “GermanyOnline”, and orientating the most
important online services in line with users’ needs and across levels of the administration. The new E-Government programme and the measures to protect the information infrastructures are to be presented in conjunction with the Federal Government’s “IT summit” to be held in the autumn of 2006 (cf. Table 65 and 66).
Further refining successful foreign economic policy – the external dimension of
competitiveness
85. Foreign trade is the engine of the German economy. German enterprises are involved in
the international division of tasks as in no other country of a comparable size. In 2005,
Germany was the world champion in the export of goods for the third time in a row, and
it is likely that this will be the case again in 2006. One job in five in Germany depends on
German products and services finding their way onto world markets. All in all, the share
of exports in GDP is currently around 35%.
86. For this reason, foreign economic policy is a key element of German employment and
growth policy. A major goal of the Federal Government’s foreign economic policy, in
addition to foreign economic promotion and funding (cf. Table 76), is the creation of
framework conditions which are valid the world over, under which trade and competition
can develop as freely as possible. Despite the currently difficult situation in the ongoing
WTO negotiations, high priority therefore attach refining the multilateral world trade
rules and bringing the Doha world trade round to a successful conclusion. This means
especially opening European markets to trade and investment, improving market access
in third countries, reducing trade barriers and providing protection against unfair competition, making worldwide improvements in the protection of intellectual property rights,
as well as improved, safe access to public contracting markets and international raw materials.
87. Moreover, resolute support of German enterprises in their activities abroad is a major
task. To this end, the instruments available in foreign economic promotion are being
tuned up and the emphasis placed even more firmly on small and medium-sized enterprises. The network of German Chambers of Trade Abroad is thus being further expanded in cooperation with German industry. What is more, foreign trade instruments
such as export credit guarantees, investment guarantees, political assistance and trade
fairs will be especially tailored to the needs of small and medium-sized enterprises. In
25
export control, furthermore, the authorisation procedure will be further accelerated and
red tape will be slashed to meet Germany’s new international obligations (cf. Table 73).
3.3.2. Building up Germany as a financial platform
88. The Draft Act Transposing the Transparency Directive (2004/39/EC) (Gesetz zur Umsetzung der Transparenzrichtlinie), approved by the Federal Cabinet on 28 June 2006, is
to further improve the Europe-wide transparency of capital market information. Company holdings are to be made more transparent by introducing additional thresholds for
reports of voting rights in listed enterprises, and expanded disclosure obligations have
been introduced in reporting; issuers have special obligations to provide information to
security owners; important capital market information is stored centrally and historised
(cf. Table 67).
89. The reform bill currently being prepared for the Investment Act (Investmentgesetz) is to
further improve the competition conditions in Germany as a fund location. It is at the
same time the start of a project to cut red tape in the financial market sector. The guiding
line for the reform bill will still be consistent “one-for-one” implementation of European
law. It is anticipated that the reform bill will enter into force in 2007 (cf. Table 68).
90. The Conference of the Ministers of Economics of the Federation and the Länder found at
its meeting held on 7/8 June 2006 that there is an urgent need to act to improve the
framework conditions for SME funding and to enliven the market for venture capital in
innovative small and medium-sized enterprises, and voted unanimously to push the further development of the Act on Equity Finance Companies (Gesetz über Unternehmensbeteiligungsgesellschaften – UBGG). A corresponding bill has been submitted to the
Federal Council.
91. The introduction of listed real estate companies in Germany (REITs, Real Estate Investment Trusts) is to enliven the national real estate market by creating a better framework
for mobilizing real estate stocks. The Coalition Agreement provides for introducing
REITs only if reliable taxation of investors can be ensured and they have a positive impact on the housing market (cf. Table 69).
92. The Implementing Act for the new Consolidated Banking Directive and the new Capital
Adequacy Directive was adopted by the German Federal Parliament on 29 June 2006. It
is expected to be approved by the Federal Council in September 2006. The Act is a part
of the transposition of the new capital measurement and capital standards - better known
as “Basel II”. The Act introduces the most far-reaching changes for two decades, both for
the banking industry and for banking supervision. In the new set of regulations, all institutes can opt for either standardised procedures and internal models on risk management
and calculation of the minimal capital requirements. All procedures have one thing in
common: They link the minimal capital requirements more closely than was previously
the case to the risk of a loan. This provides the banks with incentives to determine the
risks more precisely and to refine the required systems on an ongoing basis. This will
improve the stability of the financial system.
The amendments to the Banking Act (Kreditwesengesetz) are based mainly on requirements contained in the two EU directives. National options offered by the EU directives
were used in favour of the industry granting and taking up loans. These options include
all regulations favouring loans to SMEs. The SME firm-size adjustment contained in
Basel II entails lower minimal capital requirements for small loans, and takes more credit
26
securities into account. Accordingly, this results in a reduction of requirements as to
loans to traders, freelancers and farmers. To implement the new capital requirements in
German banking supervision law, two legal ordinances are planned containing technical
provisions, in addition to the present draft Bill. The special needs of smaller institutions
have been taken into account. It is now possible to say that the German banking system
as a whole will benefit from the new provisions (cf. Table 70).
3.3.3. Improving Corporate Governance
93. The Business Integrity and Modernization of Shareholder Actions Act (Gesetz zur
Unternehmensintegrität und Modernisierung des Anfechtungsrechts - UMAG) entered
into force on 1 November 2005. This makes it easier in particular for a minority of
shareholders to file companies’ compensation claims against their internal bodies, thus
considerably increasing facilities for corporate control, whilst limiting abuse in relation
shareholder actions. The new regulations have already been used in the 2006 shareholder
meeting season, and have proven themselves in practical terms (cf. Table 71).
3.3.4. Supporting young and small enterprises
94. It is a special concern of the Federal Government to create a favourable economic environment for company start-ups and self-employment, to reduce bureaucratic obstacles
and at the same time to fully exploit the innovativeness and the ideational capital of small
and medium-sized enterprises. Major activities benefiting small and medium-sized enterprises have been combined in an SME Initiative taken by the Federal Government (cf.
Tables 72 and 73). The initiative aims to create momentum for more growth in SMEs,
including by
•
•
•
•
•
•
•
creating more favourable fiscal conditions and encouraging investment,
systematically reducing bureaucratic obstacles,
introducing measures to promote start-ups,
making SMEs more innovative,
modernising vocational training and safeguarding the ability of young specialists,
improving the funding situation to make it easier to invest,
introducing measures to mobilise more venture capital for high-tech start-ups and
young technology enterprises, and
• introducing measures to support SMEs’ foreign trade activities.
The Länder are helping towards improving conditions for SMEs and for start-ups inter
alia with one-stop shops for approvals and promotion advice, as well as by making improvements in the contract award procedure and rapid processing of the public authorities’ payment obligations.
95. By introducing the “startothek” central information system on 1 January 2006, the Federation created a tool for “uniform contacts”, containing all requirements relevant to
start-ups, such as statutes, approvals and ordinances at federal and Land level – updated
every 14 days. Special by-laws can be supplemented at regional level by local authorities. Chambers, local authorities, economic development corporations, as well as selfemployed corporate consultants can reduce the administrative effort of starting up by using the “startothek” because the up-to-date information which is important for a start-up
can now always be obtained from one source (cf. Table 74).
27
96. At the beginning of June 2006, the Conference of Ministers of Economics commissioned
the “SMEs” Federation-Länder Commission to develop a concept for a coordinated, coherent support system of the Federation and the Länder for start-up advice by the 2006
autumn conference. The cornerstone of this concept is regional contact points for startups, setting of the promotion period of start-up advice for five years and individual supplements in the Länder. The new consultation promotion is to be in operation in Germany in 2007 (cf. Table 75). The use of the EU Structural Fund will be more closely orientated in future towards improving the conditions for enterprises, and for SMEs in particular.
97. The high-tech start-up fund implemented as a Public-Private Partnership by the
Federation, the Reconstruction Loan Corporation (KfW) and several industrial enterprises
promotes technology-based start-ups by providing share capital. This has made a
significant contribution towards improving the funding conditions for the commercial use
of promising research results.
The high-tech start-up fund finances R&D-based technology enterprises founded within
the previous year and which meet the European Commission’s definition of a small enterprise, as well as new start-ups, primarily in the high-tech sector. The fund invests exclusively in Germany. Over and above this, it must be probable that the products, procedures and scientific-technical services to be developed and marketed will have clear
competitive advantages and sustained market opportunities on the relevant market. The
enterprises must furthermore be growth-orientated and have management which has the
necessary technological and fundamentally also commercial expertise. The fund has a total volume of Euro 262 million, and started operations in August 2005.
3.3.5. Shaping taxes in a growth-orientated manner
98. A central challenge of the years to come consists of achieving the goals of structural consolidation of public budgets on the one hand and fiscal policy stage-setting for greater
growth and employment on the other. A high priority attaches here to securing the feasibility of public funding, in conjunction with improving the quality of public expenditure.
For this reason, the Federal Government is pursuing a dual strategy consisting of a balanced overall package of coordinated measures to consolidate and underpin growth. Fiscal policy is embedded in this.
99. Three statutes came into force on 1 January 2006 with a number of fiscal measures which
serve to stabilise the tax base. The Act Abolishing the Home Ownership Benefit (Gesetz
zur Abschaffung der Eigenheimzulage) dated 22 December 2005 removed the individual
fiscal subsidy with the highest volume from the federal budget for new cases. The additional tax income generated by its abolition, amounting to approx. Euro 6 billion over a
full year, is indispensable in order to consolidate the budget. The Act Restricting Loss
Write-offs in connection with so-called Tax Deferment Models (Gesetz zur
Beschränkung der Verlustverrechnung im Zusammenhang mit so genannten Steuerstundungsmodellen) of 22 December 2005, has restricted the attractiveness of such models, especially in the case of media funds. Losses from these conceptually-orientated
funds can now only be set off against subsequent positive income from the same source
of income. Additional tax income amounting to Euro 550 million is already anticipated
this year. The Act Initiating an Immediate Fiscal Programme (Gesetz zum Einstieg in ein
steuerliches Sofortprogramm) of 22 December 2005 also introduced measures serving to
broaden and stabilise the tax base. The possibility was abolished to digressively write off
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buy-to-rent real estate for new cases in particular. Furthermore, limited tax relief for settlements and temporary allowances, as well as the deduction of private tax advice costs
as special expenses, were abolished. In addition to the three above statutes, provisions
were passed in the Act to Reduce Abusive Tax Models (Gesetz zur Eindämmung missbräuchlicher Steuergestaltungen) of 28 April 2006 which counter tax avoidance and the
unjustified exploitation of loopholes in fiscal law. Tax income amounting to more than
Euro 800 million is anticipated here. The Act provides for the deduction of the acquisition costs for securities and land, as well as buildings in the current assets only at the
time of sale. Furthermore, the fiscal deductibility of the private use of motor vehicles registered among the operating assets was restricted and a sanction was introduced for the
unlawful passing on of petrol receipts to third parties (cf. Tables 76 to 79).
100. The Act for Fiscal Promotion of Growth and Employment (Gesetz zur steuerlichen
Förderung von Wachstum und Beschäftigung) of 26 April 2006 helps to sustainably
clean up state finances, sets the stage for growth, and targets improvement of investment.
The Act hence supplements the consolidation activities which have been carried out to
date and those which will follow to include measures intended to produce a tangible improvement in the framework for more growth and employment. With effect from
1 January 2006, childcare costs amounting to two-thirds of expenditure, up to a maximum of Euro 4,000 per child, can be claimed as special expenditure or expenses incurred
for production of income. Furthermore, expenditure for household services and private
maintenance and modernisation expenditure in private households amounting to 20% of
the cost of the work, up to a maximum of 600 Euro, can be deducted from standard income tax. The maximum amount doubles to Euro 1,200 for the use of care services for
individuals who have a serious disability or who receive benefits from long-term care insurance (cf. Table 80). Digressive depreciation of moveable fixed assets was increased to
30 %, time-limited for two years. Furthermore, the turnover threshold for the actual payment of turnover tax in the old Federal Länder as on 1 July 2006 was doubled to
Euro 250,000 and left at Euro 500,000 in the new Federal Länder (cf. Table 72).
101. The 2006 Supplementary Budget Act (Haushaltsbegleitgesetz) of 29 June 2006 is to increase the standard value-added tax rate from 16 % to 19 % as on 1 January 2007. The
increase in value-added tax serves both to consolidate the budget and to fund the reduction of the contributions to unemployment insurance by 2 percentage points, benefiting
both employers and employees (cf. Table 1 ).
102. The 2007 Taxation Amendment Act (Steueränderungsgesetz) of 19 July 2006, already
adopted, continues the consolidation process. It comprises further measures to reduce fiscal favours such as the restriction of the blanket distance rate to long-distance commuters
and the reduction of the tax-free amount for savings and the introduction of a supplement
on income tax for top earners. Other measures, such as restricting the deductibility of expenditure for a home office, also serve to simplify the tax system (cf. Table 81). A fundamental reform of corporation taxation is to be implemented as on 1 January 2008 (cf.
Table 82). The reform is to improve the structure of corporate taxation and the position
of Germany in international location competition. Local authority finances are to be consolidated and effective measures taken against the loss of tax substrate. The cornerstones
of the reform were adopted by the Federal Cabinet on 12 July 2006. The previous corporation tax and trade tax are to be replaced by a federal and a local corporate tax with a
joint, uniform assessment base. The total tax burden on corporations is to be reduced to
less than 30%, and partnerships are also to benefit from the reform.
29
103. The inheritance tax is to be reformed as on 1 January 2007, taking account of the anticipated judgment of the Federal Constitutional Court. Here, especially also provisions are
to be included to facilitate corporate succession (cf. Table 83).
104. The national fiscal provisions on restructuring of enterprises are to be modernised and
adjusted to the requirements of European law this year in the framework of the Act on
Accompanying Fiscal Measures to Introduce the European Company and Amending
other Fiscal Provisions (Gesetz über steuerliche Begleitmaßnahmen zur Einführung der
Europäischen Gesellschaft und zur Änderung weiterer steuerrechtlicher Vorschriften),
adopted by the Federal Cabinet on 12 July 2006. The increased flexibility helps to increase the attractiveness of Germany as an investment location, and at the same time consistently safeguards German fiscal rights.
105. The Federal Government is actively supporting the reform process to create an EUstandard corporate assessment base. It is being discussed at the moment how a uniform
fiscal assessment base can be ascertained in order to standardise the 25 different sets of
regulations currently in operation in the European Union. The goal of this discussion is to
reduce fiscal obstacles in the internal market in order to enhance Europe’s economic dynamism and competitiveness.
3.3.6. Expanding the infrastructure
Safeguarding mobility – Orientating infrastructure to resource efficiency
106. It is only possible to ensure mobility if sufficient investment is provided in the long term
for the maintenance and expansion of a modern, high-performing transport infrastructure.
The Federal Government is meeting this responsibility by stepping up investment in
transport by Euro 4.3 billion in the period 2006 to 2009. The distribution of investment
among the individual years and modes of transport takes place here according to the
principle of quickly achieving high, sustainable economic effects with the necessary
transport projects, especially creating momentum for employment and ecologicallysound transport management. The funds invested in infrastructure expansion are being
increased in comparison with the previous planning approach and are to be retained at
this level in the following years. This investment line gives planning and investment security to implement the investment policy foci of the 2003 Federal Traffic Routes Plan.
Strengthening public-private partnerships
107. In order to mobilise additional capital for public-private partnership projects, above all in
public building construction, the possibility has already been created by virtue of the
Public-Private Partnership Acceleration Act (ÖPP-Beschleunigungsgesetz) for open real
estate funds to use up to 10 % of the portfolio in the public-private partnership area (cf.
Table 84). The Federal Government is currently seeking to refine the Public-Private
Partnership Act (ÖPP-Gesetz). The particular goals are the further reduction of regulations which discriminate against public-private partnerships and making public-private
partnership projects more open to for small and medium-sized enterprises.
108. In the transport infrastructure, the contract award procedures for four pilot projects were
launched in 2005 and are running according to plan. The participation competition has
been completed for two of these procedures, and conclusion of the participation competition for the other two is planned for summer/autumn 2006. As to the project which is the
furthest advanced, namely the widening of the A8 federal motorway between Munich
30
and Augsburg, bids have been submitted which are currently being evaluated. The goal is
to award the contract in the first half of 2007. The start of the award procedure for the
planned fifth pilot project depends on the planning permission procedure to be carried
out by the Land. Particularly at local level, public-private partnerships also offer a possibility to carry out important projects. For instance, a vocational school centre in
Leverkusen, a town hall in Gladbeck and the largest public-private partnership project in
the country for public schools in the Offenbach district were launched.
Acceleration of planning with roads and energy networks
109. In order to accelerate the planning and approval of infrastructure projects, the Federal
Government has launched the Infrastructure Planning Acceleration Act (Infrastrukturplanungsbeschleunigungsgesetz). The accompanying increase in the efficiency of approval procedures aims to improve the location conditions as well as enhancing competitiveness. The Act makes it possible to reduce the planning time by up to 2 ½ years. The
draft Bill has been in the parliamentary procedure since December 2005, and is likely to
be adopted in the autumn of 2006 (cf. Table 48).
Developing rural areas – improving the competitiveness of the towns and cities
110. All areas must make a contribution towards the development of the national economy in
accordance with their economic capacities and their strengths. The central point to release the potential of rural areas for growth and employment momentum is the promotion
of integrated development, which is also the subject of the second pillar of the Common
Agricultural Policy. The European Agricultural Fund for Rural Development (EAFRD;
Regulation (EC) No 1698/2005) will be a significant implementation instrument from
2007 onwards. On the basis of strategic EU guidelines applying to this fund, the Federation and the Länder have drafted a “National strategy plan for the development of rural
areas” (cf. No. 85)
The implementation of the National Strategy Plan takes place through the development
programmes of the Länder, which are currently being drawn up. The content and financial core of these programmes is formed by the measures taken by the national Federation-Länder “Joint Task for the Improvement of Agricultural Structure and Coastal Protection”
111. The Federal Government is carefully analysing the impact on social issues, town planning and the construction industry linked with the internationalisation of the housing
markets. The introduction of “Real Estate Investment Trusts” (REITs) is also being discussed in this context (cf. No. 91 and Table 69).
112. The towns and cities are effectively supported by the Länder in their function of being
pacemakers for innovation and momentum-providers for regional development (cf. Table 86). The Länder are taking extensive measures to reduce provisions and administrative practices which constitute hurdles to performance and growth, especially also in
view of small and medium-sized enterprises. Examples are relief and acceleration in approval and planning procedures, start-up advice and dealing with start-up formalities in a
one-stop shop, quality seals for SME-orientated local administrations (cf. on this also
sections 3.3.1 and 3.3.3).
Research, technology and innovation promotion which benefits the towns and cities to a
considerable degree already has a major status among the Länder. From 2007 onwards,
31
they will also be making greater use of funds from European structural policy and used
nationwide to support innovation processes and the knowledge-based economy within
the meaning of the Lisbon Strategy. The towns and cities will benefit from this to a considerable degree. A high degree of urbanity forms fertile ground for innovation. To enhance the attractiveness of the inner cities, projects are being promoted to supplement urban marketing which are being developed in cooperation between cities, trade and other
groups in order to remedy the waning attractiveness of the city centres, fill vacant lots,
counter the trend towards chain stores and alleviate transport problems.
113. A precondition for the towns and cities being able to carry out their economic functions
is the efficient provision of basic services for the public, as well as social integration,
even in the face of shortages of funding and falling population sizes. Intensive efforts
have been made to ensure services for the public. This is made clear for instance in local
passenger public transport.
114. The Federation and the Länder have launched a number of programmes and promotional
measures to help the towns and cities to deal with the problems of structural change and
falling population numbers. In addition to classical rural planning promotion, the work is
also to focus on the projects of the federal “Urban re-development East” and “Urban redevelopment West” programmes, as well as of the Federation-Länder programme entitled “Municipal Districts with Special Development Needs – the Social City”.
3.3.7. Long-term energy policy
115. In the second half of 2007, the Federal Government will be submitting an overall energy
strategywith a perspective until 2020. This is also about giving market players a longerterm orientation for their investment decisions (cf. Table 87). In the context of the preparations for this concept, a comprehensive discussion of this process was launched with
the energy summit held at the beginning of April 2006. Representatives of the energy industry, of industrial and private consumers, of the trade unions, of research and of the
environmental associations are to draft proposals which couldbe used as elements for the
overall energy strategy at several high-level meetings, supported by three working parties.
116. The Länder shape energy policy through the Federal Council, conferences of ministers,
various Federation-Länder bodies and currently via the working parties appointed by the
Federal Government’s energy summit. The Länder also play a major role through law enforcement and their own Land policy tools (cf. Tables 88 and 89). They make a particular
contribution by means of the following measures:
• development of specific Länder concepts for energy supply,
• contribution to the regulation of the electricity and gas networks at Land level through
the Land regulatory authorities to increase competition on the electricity and gas markets,
• programmes and advice on energy saving and efficiency,
• programmes for renewable energies and energy technology innovation, and
• strict supervision of nuclear power plants in enforcement of the Atomic Energy Act
(Atomgesetz) to ensure the highest possible level of safety.
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3.4. Using ecological innovations as a competitive advantage
117. The tool of emission trading on principle sets the stage for the necessary CO2 reduction
goals being achieved in the area of the energy sector and in other areas of industry in a
cost-efficient manner. With the second National Allocation Plan 2008-2012, the Federal
Government has refined the provisions on emission trading in order to make the CO2
trading system more efficient in ecological and economic terms (cf. Table 90). With the
established reduction goals for the emission of greenhouse gasses, the Federal Government will ensure that the German climate protection obligations are met (21% goal). At
system level, the competition situation of industry on the international markets and the
high share of process-related emissions has been taken into account by differentiating between the fulfilment factors. By means of fourteen years of free equipment of new plant
on the basis of demanding emission values (benchmarks), the NAP II goes further and
creates an investment motivation for the modernisation of Germany’s power plants. What
is more, the contract award system has been made simpler and more transparent. This reduces amongst other things the administrative effort for the enterprises involved. In partnership with the business community, the Federal Government has taken the initiative to
implement measures according to the project mechanisms “Clean Development Mechanism and Joint Implementation” (CDM-/JI). The goals are to achieve cheaply the climate
protection goals at corporate level, to improve competitiveness and open up foreign markets for innovative climate protection technologies through cooperation (Memoranda of
Understanding) (cf. Table 91).
118. The transposition of the EU’s directive on energy performance in buildings is currently
in the legislative process. From 2007 onwards, energy passports are also to be issued for
existing buildings relating to their energy efficiency if they are to be sold or let. The
transparency this will create will make it easier for potential purchasers or tenants to include energy consumption in their decision-making process. Thus, market mechanisms
will encourage energy efficiency. Energy efficiency measures not only help climate protection, but reduce dependency on energy imports. The Federal Government has increased the promotion volume for energy performance in building restoration, and will
provide Euro 1.4 billion annually for this until2009 (cf. Tables 92 and 93).
119. A major share of the National Innovation Programme proposed in May 2006 in the area
of hydrogen and fuel cells belongs to the fuel strategy which was initiated in 2004, and
which aims to promote alternative fuels and innovative drive technologies (cf. Table 94).
A “hybrid action plan” is currently being implemented in the mobility and transport research programme. The goal is to act together with the automobile industry in order to
push the development of everyday hybrid vehicles. Various projects to manufacture synthetic fuels from biomass (so-called second-generation biofuels such as BTL Fuel or
ethanol from lignocellulose) are currently being prepared in which their manufacture is
being tested at pilot level, and unresolved issues as to their ecological and economic
evaluation are to be clarified. Important answers on this are to be provided by a study coordinated by the German Energy Agency (dena) on the realisation of large-scale production plant for synthetic fuels from biomass in Germany.
120. The sale of biofuels is currently being promoted via tax relief. A minimum quota is to be
introduced as on 1 January 2007 as a new promotion instrument. Sales of pure biofuels
that are higher than this quota will be fiscally promoted in a transitional period up to
2011 (cf. Tables 95 and 96). The promotion of the sale of the traditional biofuels such as
biodiesel, ethanol and vegetable oil not only reduces CO2 emissions and dependence on
33
oil imports, but also safeguards rural jobs. The current sales promotion also supports research and innovation efforts in the field of second-generation biofuel since this helps to
open up potential sales markets during the research phase already.
121. A major tool to promote electricity production from renewable energies is the Renewable
Energies Act, which prescribes reliable, degressive remuneration rates. The Act will be
examined until 2007 and reformed if necessary in order to make the promotion of renewable energies as economical as possible (cf. Table 97).
122. In the heating sector, the market incentive programme for renewable energies is to be
continued, subsidising solar collectors and modern wood heating. The economic viability
of these technologies has now increased, so that it has been possible to reduce the promotion rates (cf. Table 98).
123. In view of increasing energy demand and the simultaneous necessity to reduce CO2
emissions, the significance and hence the market for renewable energy sources in the
electricity and heating sectors, and in the transport sector, as well as for energy efficiency
technologies, will expand all over the world. In order to market internationally the technical expertise which has grown up in Germany, the Federal Government is funding and
coordinating the “Renewable Energy Export Initiative” which promotes advice and information measures, as well as establishing contact with foreign enterprises for instance
at trade fairs and exhibitions (cf. Table 99). The initiative is being expanded to include
energy efficiency technologies.
34
4. Preparing the labour market for future challenges
4.1.
Shaping structural labour market reforms efficiently
124. The Federal Government’s labour market policy is based on the principle of the activating welfare or “workfare” state. In accordance with Integrated Guideline No. 19, Germany’s labour market policy aims to sustainably integrate the unemployed into the labour market. The Job-AQTIV Act (2002), the Federal Government’s two-stage plan
(2002), the first three Acts for Modern Services on the Labour Market (2003 and 2004),
the Act on Labour Market Reforms (2004) and the Fourth Act for Modern Services on
the Labour Market (2005) provide the statutory framework for the Government’s activating labour market policy. A new subsistence guarantee for job-seekers is intended above
all to combat long-term unemployment more effectively than before.
National indicators in the framework of the European Employment Strategy
In 2005, 1.35 million people were supported on an annual average by labour policy measures
by the Federal Government, the Federal Employment Agency and the Arbeitsgemeinschaften*. This number corresponds roughly to the number of beneficiaries in 2004 (1.38
million) prior to the merger of unemployment assistance and social assistancefor the employable persons in need of help. The vast majority of unemployed persons receive active support
from the employment administrationat an early stage. Accordingly, the non-compliance rate
(no measure as part of a concrete reintegration plan) was just 2.7% among young people (period under review: 7/2004 to 6/2005) and 1.7% among adults (1/2004 to 12/2004). Taking
into account only the participation in an active labour policy measure in a strictersense (no
profiling, no reintegration agreement), the non-compliance rate is 17.5% among young people and 12.8% among adults. However, the activation rate for long-term unemployed adults
was at just 12.8% in 2005-, and thus, below the EU target of 25% by 2010. However, with an
activation rate for long-term unemployed young people (six months unemployed) of 32.4%
Germany has already clearly exceeded the EU target of 25%.
* Arbeitsgemeinschaften: Joint agencies between local employment agencies and municipalities that are formed
under Section 44b, SGB II.
125. Developments on the labour market in 2005 were impacted by the introduction of subsistence guarantees for job-seekers (Second Book of Social Code/SGB II). This caused a
sharp rise in unemployment figures in the first months of 2005, also due to the fact that
employable persons in need of help who had not registered with the social assistance
agencies were now applying for Unemployment Compensation II. Another task during
this phase was to establish the subsistence guarantee system for job-seekers, manage the
payment of Unemployment Compensation II to eligible beneficiaries and handle the required organisational changes. The planned extent of integration activities and the introduction of labour market instruments as foreseen by SGB II could only begin at a later
stage. The initial concern was to identify future perspectives together with the persons in
question, explore possible obstacles to regaining employment, and develop strategies to
overcome these. Following that process, the focus was directed at integration. Nevertheless, the financing entities that manage subsistence guarantees for job-seekers succeeded
in swiftly establishing support structures in the course of 2005. This impacted also on the
35
number of participants in labour policy measures, with a particularly strong response to
the instrument of subsidizedquasi-employment jobs. The number of additional jobs of
this kind rose from 32,000 in January 2005 to 305,000 in December 2005. The task at
hand now is to use the wide range of support options afforded by SGB II to a greater extent than before.
126. By the end of October 2005 all 178 Employment Agencies had been transformed into
Customer Centres in compliance with the schedule set out in the 2005 NRP. These Customer Centres are mainly charged with managing the workflow and handling upstream
administrative tasks. Issues are, if possible, clarified already at the reception stage (the
"client portal”) and client data is recorded. The portal manages the flow of clients by assigning appointments within a guaranteed timeframe. The new system has clearly improved the level of service provided to clients. The reorganisation is fully in line with Integrated Guideline No. 20.
Evaluation of labour market reforms
127. Germany has commissioned independent research institutes to prepare a scientific
evaluation of its labour market reforms. The research primarily aims to verify the effectiveness of the reforms. Emphasis will be laid also on gender-related aspects. In 2005 the
Federal Government presented some interim results in an initial report entitled "Die
Wirksamkeit moderner Dienstleistungen am Arbeitsmarkt" (The effectiveness of modern
services in the labour market). Towards the end of 2006 reliable results and statements
on the effectiveness of the reforms will be published in a final report. The documentation
will provide an important basis for the continued development of an active labour market
policy also in 2007.
128. Independently of the reforms, the subsistence guarantee for job-seekers that was introduced in early 2005 will be monitored by independent research institutes and reviewed in
terms of its effectiveness. Questions to focus on here include whether and if so, to what
extent the various agencies implementing the system (Arbeitsgemeinschaften and licensed local agencies) are successful in reintegrating thepersons in need. A relevant report is to be submitted to the Bundestag and Bundesrat at the end of 2008.
129. In addition, two separate research projects will be conducted to assess the effect of SGB
II implementation on equal opportunities and migrant-specific issues. Again, a full set of
results should be available by 2008.
4.2.
Activation and prevention – Effective integration as a guiding
principle
130. To ensure that employable persons in need of help are effectively integrated into the labour market, in 2005 some EUR 6.6 billion were dedicated to active employment promotion measures as set forth in the integration section of SGB II (subsistence guarantee system). Approximately EUR 6.5 billion in additional funding for reintegration measures
were earmarked in the 2006 budget. The Budget Committee of the Bundestag has placed
EUR 1.1 billion of this amount under a budgetary restriction, to be lifted only if a specific need for additional funding is plausibly demonstrated.
36
131. Experience made in 2005 showed that the performance and efficiency of the subsistence
guarantee for job-seekers have to be enhanced. To this end, the Federal Government implemented a number of reform projects (cf. Table nos. 100 to 102). The cost of an own
apartment for under-25s is only borne subject to approval from the competent local
agency. The standard rate for Unemployment Compensation II in both the new and the
old Länder was set at EUR 345 per month (in the new Länder, it had previously been
EUR 331).
132. There was also a need for adjustments regarding the shift of the burden of proof for cohabiting couples, personal allowances for assets, greater flexibility regarding sanctions,
and on-the-spot job offers. In future, these job offers are to be made to persons who have
not received assistance in the form of subsistence guarantee for job-seekers or under the
SGB III (compensation system). These provisions were adjusted by an act entitled “Gesetz zur Fortentwicklung der Grundsicherung für Arbeitsuchende” (Act on the Continued
Development of Subsistence Guarantees for Job-Seekers) which came into force on 1
August 2006.
4.3.
Enhancing flexibility and employability on the labour market
133. The expectations placed on the flexibility of employees and employers are rising. The
Federal Government aims to create a framework that enables both employers and employees to respond adequately to these expectations. It is in favour of maintaining the
right to retain autonomy in collective bargaining. At the same time the Government aims
to reconcile the need for flexibility with a sufficient level of security, a concept referred
to as Flexicurity. A fair balance between these two dimensions is the most reliable way to
ensure that both employers and employees respond adequately to the need for adjustment
and that these changes are accepted in return for an assurance that livelihoods and jobs
will be maintained. The collective bargaining parties will play a major role in this context.
134. The need for flexibility on the labour market has grown. In recent years the collective
bargaining parties have repeatedly demonstrated that company-specific provisions would
be made wherever necessary for both employers and employees. This was demonstrated
also in the 2006 round of negotiations when agreements were reached in the retail sector,
the metalworking and electrical industry and the textile and apparel sectors. The parties
in these branches of industry can now decide to what extent they can deviate from the
general framework set by the wage agreements, for instance in terms of working hours,
remuneration-, and bonus payments. The agreements on training for employees in the
metalworking and electrical industry, too, have resulted in more scope for action and are
indicative of a new and modern collective bargaining system.
135. The Act on Part-Time Work and Fixed-Term Employment Contracts makes an effective
contribution to creating and securing employment and to ensuring a better work-life balance. Today, part-time working models are a familiar element of working life. According
to the 2005 microcensus the number of part-time workers has risen to 7.9 million.
136. The Federal Government aims to improve the employability of low-productivity workers
by strengthening existing training opportunities and reviewing framework conditions for
low-wage jobs. For instance, a special programme to promote further training for lowqualified and older workers in enterprises has been initiated by the Federal Employment
37
Agency with a budget of EUR 200 million to improve opportunities for these target
groups on the labour market (see Section 152).
The Federal Government also aims to restructure the low-wage sector. It intends to introduce a combined-wage model that on the one hand aims to make it worthwile for workers to accept these jobs by a balanced mix of wages and social benefits and provides additional simple jobs on the other. The Federal Ministry of Labour and Social Affairs is to
set up a working group that will prepare an employment concept for low-qualified workers in consultation with the Federal Government by the autumn of 2006. On the one
hand, the concept will prevent wages from dropping below-subsistence level; on the
other, it will give more people an opportunity to take up low-wage jobs. In its analysis,
the working group will take into account the effect of the concept on the tax and contribution systems and vice versa, lower contributions resulting from the so-called mini and
midi jobs, and issues relating to the act on the posting of workers, minimum wages, and
the impact of the EU Services Directive (cf. Table no. 103).
4.4.
Modern immigration policy – Active integration into the labour
market
137. Besides the integration of migrants through language training under the Immigration Act,
measures encouraging the integration of migrants into working life were reviewed and
adapted. Experience has shown that people with a migration background require specific
support and information to enable them to integrate into the regular labour market in the
first place. The Federal Government hence initiated the setup of a nationwide information and support network (cf. Table no. 104), entitled IQ – Integration through Qualification, to promote the integration of persons with a migration background into the labour
market. The project, co-financed by the EU, aims to network as many institutions as possible that provide support to migrants and to enable them to gain access to standard labour policy instruments. This is done by optimising target group-specific support, case
management in the Job Centres, and improving the vocational qualification system.
Measures include job-specific language training, basic and advanced training and qualifications and target group-specific skill and ability profiling, as well as advisory services
for start-ups. These measures are linked up to existing assistance services such as advisory services to migrants on arrival and to young migrants, and are provided in close cooperation with businesses, craft associations, industry, and trade unions. These networks
have been operating in six regions since mid-2005. The project is coordinated by the
Federal Employment Agency in cooperation with the Central Association of German
Crafts and the Central Authority for Continued Training in the Craft Sector. The medium
term aim is for the networks to become a nationwide, long-term institution for employment promotion.
138. Experience made in the past has also shown that many persons with a migration background do not have sufficient command of the specific vocabulary they need to integrate
successfully into working life. Young people and adults with a migration background
who receive support under the social insurance system (SGB III) are hence offered jobspecific language training. The training courses are co-funded by the European Social
Fund. From 2007 they will also be available to unemployed migrants receiving assistance
under the subsistence guarantee system (SGB II).
38
139. The parliamentary parties’ Coalition Agreement of 11 November 2005 stipulated an
evaluation of the Immigration Act. Among the questions to be reviewed were whether
the aims of the Immigration Act, including those relating to labour migration, have been
achieved and whether there is need for improvement. The Federal Government published
the evaluation report in late July 2006.
As there has been no change in the labour market since the Immigration Act was
adopted, the Federal Government currently sees no need to introduce a selection procedure for labour migrants. In future, it will still have to be examined whether it is necessary to compensate a drop in the size of the economically active population by granting
entry to labour migrants via a selection process, or whether the existing framework offers
sufficient opportunities for immigrants to find work on the German labour market.
4.5.
Life cycle-oriented approach – Aligning labour market policy
with demographic change
140. In correspondence with Integrated Guideline No. 18, Germany pursues a life cycleoriented approach to employment policy. The extension of available labour in all groups
and the provision of target group-specific support where required is a necessity especially
in anticipation of a shrinking population of employable age.
4.5.1.
Integrating young people into the labour market
141. The Federal Government has intensified and stepped up its efforts to integrate young
people in the training and labour markets. The rate of unemployment among young people in Germany is below the European average. Applying the ILO method, in 2005 the
average rate of unemployment among young people under 25 was 15%, while the EU25
average was 18.5%.
In the course of implementing the European Pact for Youth, the cross-links between the
political measures in the fields of general and vocational training, employment, social integration, and mobility have been strengthened. Young people and youth organisations
are involved in many ways in implementing the Pact.
142. The Federal Government is implementing a wide range of measures to ensure that no
young person remain unemployed for more than three months - a goal that even exceeds
the European target set by the European Council in March 2006. To strengthen placement activities the Federal Employment Agency is introducing new plans of action that
are designed to optimise the placement and advisory process. More than EUR 5.1 billion
were spent in 2005 on integrating young people, with some 626,000 EUR young people
received support on an annual average.
In the meantime, the impact of on-the-spot job, training or work opportunity placement
for young job-seekers in need of assistance who receive support under the subsistence
guarantee system has proven successful. Employable needy persons are given a personal
advisor who provides them with intensive support in gaining training or work, alongside
extensive assistance with finding accommodation and managing debts or drug addiction.
The ratio of 1:75 (i.e. one advisor for 75 young people) has been reached in the majority
of Arbeitsgemeinschaften.
39
143. According to the “challenge and support” principle, this intensive support is provided in
return for an undertaking on the part of the young people to fulfil their part of the integration agreement. The support measures in this new system are working well, with around
93,800 young people currently benefiting from them. Besides work opportunities, the
main focus of the system is the promotion of further vocational training. However, the
figures do not yet reflect the full impact of the system as no data are available yet on the
training promotion measures.
144. The National Pact for Training and Young Skilled Workers was set up jointly by the
Federal Government and industry to ensure that training continues to be provided in line
with requirements under Germany’s dual training system. In 2004 and 2005 the businesses successfully fulfilled their obligations under the Pact by increasing the number of
availabletraining places. Initially time-limited until 2007, the Pact will be developed further and extended for another three years (cf. Table no. 34).
The new Introductory Training for Youths (EQJ) programme that was set up by the partners in the Pact has proven successful. In the year under review, the Employment Agencies had registered as many as 42,000 places, of which around 30,000 have already been
occupied by first-time trainees. These figures clearly exceed the Federal Government’s
intended target of 25,000. 56.5% of those who took part in introductory training in 2004
have been placed in an apprenticeship position since October 2005; in the control group,
that figure is just 18%. 29.5% of enterprises who had previously not offered any apprenticeship places now do so (cf. Table no. 105).
A nationwide model programme foresees the setup of so-called Skills Agencies (Kompetenzagenturen) which, as recognised providers of counselling services at school level,
will occupy a central placement and guidance function to assist particularly disadvantaged young people from disadvantaged urban areas and structurally weak rural regions
to integrate into society. For young people who are difficult or impossible to reach with
existing measures, personalised plans are developed in order to help them integrate into
both society and working life while taking into account their family and social backgrounds (cf. Table no. 106).
4.5.2.
Raising the share of women in the labour force
145. While the proportion accounted for by men in the German labour force has been declining for years, the share of women continued to grow also in 2005. With an employment
rate of 59.6% (men: 71.2%), Germany has almost reached the target rate of 60% among
women stipulated by the Lisbon Strategy for 2010.
Under employment promotion law women are to receive active labour policy measures at
least to a degree that corresponds to their share in the unemployed population. In recent
years the Federal Labour Agency, which is responsible for transposing these laws, always succeeded in fulfilling this statutory obligation. According to its June 2005 report
on gender equality in the labour market, in 2003 and 2004 the share of women in the
group participating in promotion measures nationwide exceeded 41% in both years (target rate for 2003: 40.8%, 2004: 40.7%). In terms of further vocational training, women
accounted for more than half of participants. In 2003, their share was 50.9%, rising even
to 52.2% in 2004 and 2005. Further vocational training remains an important labour policy instrument for integrating women into working life, specifically those re-entering the
labour market.
40
146. The Federal Government and umbrella business associations have signed an agreement
to promote gender equality in the private sector, which will enable women to benefit
from improved career opportunities. The second report on the results of this agreement,
which focused on women in management positions, was published in February 2006.
Raising the number of women in management positions is also the aim of the Federal
Government-funded information portal www.frauenmachenkarriere.de. A series of measures, including a nationwide agency for start-up businesses headed by women, have been
designed to leverage women’s professional and entrepreneurial potential and their impact
on economic development more effectively than before (cf. Table nos. 107 to 109).
4.5.3.
Promoting employment among older workers
147. Raising the employment rate among older workers remains a firm objective for the Federal Government. At 45.4% the employment rate among the over-55 age group in 2005 is
still under the EU target of 50% for 2010, yet has risen steeply in previous years (2000:
37.5%). Besides, unemployment among older people (registered unemployed persons
aged 55 to 64) has decreased. While an annual average of 842,000 older unemployed persons were registered in 2000, by 2005 the number had dropped to 580,000. In June 2006
566,000 persons aged 55 and over were registered unemployed, 18,000 fewer than one
year before. In other words, both the employment und the unemployment rates among
older persons are moving in the right direction. This process is supported by the Federal
Government’s decision to gradually raise the effective pension age to 67 from 2012 onwards. In addition, the Federal Government removed a further incentive for early retirement by scaling back the maximum eligibility period for unemployment benefit to 12
months in all new cases registered from 1 February 2006, and to a maximum of 18
months for employees aged 55 or over.
These positive developments are most probably a result of extensive labour market reforms whose aims included the activation of older unemployed persons. The so-called
Hartz Acts introduced a range of labour policy measures to promote the employability of
older persons. The effectiveness of these measures is currently being examined as part of
a Government-commissioned review of the Hartz reforms. The measures themselves will
be revised and consolidated to form a package entitled “Initiative 50plus”. In line with
the coalition agreement, which obliges it to bring about a sustainable improvement in the
employment situation for the older population, the Federal Government is to adopt a
framework for ”Initiative 50plus” which will be submitted to the European Commission
together with an implementation and progress report.
148. One concern besides employing labour market instruments is to make better use of the
opportunities afforded by labour law to employ older workers. The Act on Part Time and
Fixed Term Employment contains a provision that simplifies the procedure of employing
workers aged 52 and over. The fixed-term employment provision relevant to workers
aged 52 and over that was originally effective until the end of 2006 is being adapted to
comply with European law to incentivise companies to recruit older workers (cf. Table
no. 110).
149. The Federal Government programme “Perspective 50 Plus”, a series of employment
pacts for older workers in the regions, serves to encourage businesses to employ older
workers as intended by the Coalition Agreement of 11 November 2005. The programme
is intended to run until the end of 2007 (cf. Table no. 111).
41
Support is given to 62 regional projects nationwide that promote the reintegration of
older long-term unemployed persons aged 50 and over into the labour market. The regional projects pursue a number of approaches. Some are based on an innovative central
idea, while others focus specifically on raising awareness among employers. A number
of them have recombined familiar instruments in new ways or are testing innovative
methods.
150. In addition, since July 2005 the Federal Government has promoted a programme to create up to 30,000 additional jobs for persons aged 58 and over. These are work opportunities with top-up compensation (referred to as 1-Euro-Jobs) and are available to long-term
unemployed persons for up to three years. At the end of 2005, 10,500 long-term unemployed persons were participating in the programme. Approval decisions may be issued
up to 31 December 2006, enabling participation until the end of 2009 (cf. Table no. 112).
The Länder have set up their own programmes to reintegrate unemployed persons with
restricted occupational profiles.
151. The New Quality of Work Initiative (INQA) is currently focusing on mastering the challenges of demographic change. Good qualifications and good health are important prerequisites for older employees' ability and willingness to remain in gainful employment.
In this context INQA provides practical assistance to employers. In East Germany, in
particular, there are positive examples of companies that employ older workers.
152. A special programme for training low-skilled workers and older employees that was initiated in 2006 by the Federal Labour Agency with a budget of EUR 200 million intends
to improve opportunities for low-qualified and older candidates on the labour market.
Using existing labour promotion measures, assistance will be given to low-qualified and
older unemployed persons aged 50 and over whose chances of gaining employment are
low due to a number of obstacles. Besides improving integration, the programme is also
designed to provide companies with start-up capital for the training of lower-qualified
and older employees, especially those in the SME sector - a measure expected to improve
qualification levels. According to calculations by the Federal Labour Agency, the available budget of EUR 200 million will suffice to support an expected 50,000 persons (cf.
Tables nos. 112 and 113).
4.6.
Restructuring support for start-up businesses by former
unemployed persons
153. For unemployed persons, taking up self-employmentis a promising way back into the
labour market. Empirical evidence suggests that the survival rate of assisted start-up enterprises is high, with a low rate of return into unemployment.
154. To optimise the support system further, on 1 August 2006 the existing tools - bridging
allowances and start-up assistance – were replaced by a new instrument, the start-up
grant (cf. Table no. 114). Reducing the number of available instruments to one has increased transparency for employees, reduced administrative complexity, and raised the
efficiency of the support system for formerly unemployed start-up founders. The new
system aims to unite the positive experience made with providing start-up assistance to
certain groups of persons (e.g. women) with the integrative effect of the bridging allowance system, which was highly successful over the years.
42
155. The start-up grant aims to safeguard founders’ livelihoods and social security in the initial post-foundation phase. To increase the chance of success of the supported enterprises, a range of new criteria have been introduced. The feasibility of the business plans
are verified and the skills and abilities of the founders taken into stronger account. Further criteria will raise the efficiency of the grant system and incentivise people to consider self-employment at an early stage.
4.7.
4.7.1.
Improving the work-life balance
Creating a better framework for mothers and fathers
156. The Federal Government has adopted a draft act on the introduction of parental allowance. The parental allowance will replace the current child-raising allowance and aims to
support families in the first 14 months of a child’s life with maintaining a livelihood. It
promotes the equitable participation of women and men in professional and family life.
One parent is granted the parental allowance for up to 12 months, while the other parent
is eligible for the remaining two months. Exceptions are made e.g. for single parents. The
parental allowance makes it easier for everyone, both highly qualified men and women
and low earners, to decide in favour of starting a family (cf. Table no. 115).
157. Families should be able to fall back on a wide range of support services that enable them
to balance their work and family commitments. The system creates jobs and helps parents make time for their families. In 2006 the Federal Government therefore improved
the deductibility of private expenditure on childcare and household-related services (cf.
Section 99 and Table no. 80). This is an important prerequisite for the development of a
transparent, legal market. A possible hub for services at local level may be the so-called
multi-generational homes. A multi-generational home is to be set up in each county and
self-governing town by 2010 – 439 in total. Multi-generational homes create new structures for interaction between all generations and support entrepreneurial and also private
and voluntary activities that aim to help reconcile working and family life. The first
multi-generational homes are expected in the autumn of 2006 (cf. Table no. 116).
4.7.2.
Enhancing the availability of all-day child care
158. The Federal Government will continue to support the Länder in extending the availability
of high-quality all-day child care in line with demand. This is a major contribution to
helping families to reconcile their professional and personal commitments and return to
work after having children, and to helping each child to develop positively. This requires
the provision of a wide range of different services, including support for all-day nurseries
and more all-day child care and in-company kindergartens.
159. The expansion of day care for children under three and under is enshrined in the DayCare Expansion Act. 230,000 additional day-care places are to be created by 2010. The
Act obliges the municipalities to provide sufficient day-care facilities for the under-threes
by 2010. The Federal Government will ensure that the required funds – EUR 1.5 billion
per annum – are released (cf. Table No. 117).
Each year the Federal Government reports to the Bundestag on the progress made with
increasing the number of available day-care places. The first report, adopted on 12 July
2006, demonstrates that the number of day-care places for the under-threes in West Ger-
43
many has doubled since 2002. Should it emerge by 2008 that more than 10% of municipalities will not succeed in creating enough places by 2010, the Federal Government intends to extend the legal claim to a kindergarten place, which currently only covers children aged three and over, to children aged two and over. Considering the existing lack of
facilities, the call for establishing a legal claim to day-care for all children until they
reach school age at an early point is premature. The Federal Government will hence reevaluate the situation once it becomes apparent what progress is being made with extending the number of facilities.
160. The Federal Government is supporting the quality initiative of the Länder to develop and
publish their own education plans for teachers with model experiments, evaluations, consultation with major partners, conceptual contributions, appraisals, and the “Kinder- und
Jugendbericht” (Child and Youth Report). The Government also concurs with the recommendations of the Education Forum which state that safeguarding and enhancing
quality in this area crucially requires a stronger support system for teaching staff. In addition, a dense network of advisory and training structures will ensure the necessary transfer of results from theory into practice. The need for quality improvements and a stronger
focus on education at all-day nurseries mean that ongoing advanced training is becoming
ever more important. The Federal Government is supporting activities in this field also
by model projects and research initiatives (cf. Table no. 118).
4.7.3.
Promoting family-friendly HR policies
161. Launched in January 2006 the programme "Erfolgsfaktor Familie. Unternehmen gewinnen“ translates the broad acceptance of family-friendly structures into day-to-day practice in as many companies as possible. The aim is to convince a far greater number of
businesspeople, managers and HR executives to use family-friendly HR policies as a
strategic management instrument and turn family-friendly structures into one of the
hallmarks of German businesses. To this end, a number of documents and guidelines are
being prepared, including guidelines specifically for management and employee representation bodies that demonstrate the opportunities and concrete elements of a familyfriendly HR policy; guidelines for in-company child care facilities, including business
plans for kindergartens in companies of all sizes and in all industries; and guidelines on
returning to working life after time out for the family, including practical recommendations (cf. Table no. 119).
A company network was launched on 5 July 2006 that functions as an information and
cooperation platform for companies with family-friendly policies and those who wish to
introduce them. The aim is to connect 1,000 companies to the network by the end of
2006 who will promote family-friendly policies in their own areas.
4.7.4.
Initiative “Local Alliances for Families”
162. Stakeholders in the Initiative promoting Local Alliances for Families include various
partners from politics, business and society. The Local Alliances work in their own areas
to promote more family-friendly structures. The Initiative is set to expand and develop
also in future. Its main focus is to set up projects to improve work-life balance. This includes verifying the family-friendliness of companies, producing practical guidelines for
companies, developing and offering child-care facilities during school holidays, providing advisory services and training, and introducing family-friendly opening hours. The
44
local initiatives aim in particular to bring about flexible opening hours for day-care facilities and flexible day-care models, and expand the facilities open to the under-threes,
“emergency care”, and in-company kindergartens (cf. Table no. 120).
45
Implementation of Meassures in the Context oft the National Reform Program 2005
– 2006 ................................................................................................................................. 47
Strukturindikatoren für Deutschland im Jahr 2005 ............................................................. 89
(Anmerkung: Maßnahmen der Länder werden nur exemplarisch und zusammenfassend dargestellt)
46
Table: Measures and their implementation status in the scope of the National Reform Programme 2005 - 2006
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
2.
Expected effect
Status and time schedule
Effective date
Economic situation and overall economic framework
2.2.
Sustainable design of public finance
- protecting social security
2.2.1
Sustainable design of public finance
3
Increasing the standard value-added tax and insurance tax rate by
3 percentage points;
including 1 percentage point for reducing the unemployment
insurance contribution (the second percentage point necessary to
reduce contributions from 6.5% to 4.5% will be borne by Federal
Labour Agency)
Budget consolidation, recovery of
scope for action
Budget Supplement Act dated
29 June 2006
1.1.2007
V. B
13
Reducing the special endowment for federal civil servants and
the Federal Bank subsidy
Personnel cost saving
Budget Supplement Act dated
29 June 2006
1.7. and
1.8.2006, respectively
V.
B
1
3
Reassessment and reduction of dynamics
of the funds provided under the regionalisation act to public local
transport, change in financing of the social insurance
Budget consolidation
Budget Supplement Act dated
29 June 2006
1.7.2006
1.
Budget consolidation,
reducing non-wage labour
costs
B.1
2.
Budget consolidation
3.
Budget consolidation
2.2.3
4.
Strengthening
additional funded provision
for old age
V. D
5.
Raising the
pensionable age
V. D
Sustainable reform of old-age security
2, 18
Raising the child allowance for state-subsidised additional pension (Riester pension) for children born on or after 1 January
2008 from 185 Euros to 300 Euros per annum
Better integration of promotion of owner-occupied flats into
subsidies to old-age provision
Increased dissemination of government-subsidised additional provision
for old age
In preparation
1.1.2007
(planned)
2
18
Raising the standard age level from 65 to 67 years
Long-term stabilisation of the benefit
level and the contribution rate of the
statutory pension insurance
Resolution of the Federal Government
dated 1 February 2006
Draft law is under preparation
2007
47
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
2.2.4
6.
Reform of the health sector
V.D
2, 18
-
-
7.
Reform of the
health sector
V.D.
2, 18
Reform of the
health sector
V.D.
2, 18
Act for improving the economic efficiency in drug supply
(AVWG)
including:
two-year price freeze for drugs prescribed at the expense of
the public health insurance as of 1 April 2006
readjustment of fixed-amount rule
special incentives for efficient prescription practice (bonussurcharge rule) by the physicians
Effective date
Improvement of the economic efficiency of drug supply,
stabilisation of
expenditure for drugs, and
savings of statutory health insurance
totalling approximately
800 million Euros
Adopted by the Federal Parliament on 17
February 2006 and approved by the
Bundesrat on 7 April 2006
Completed:
1. May 2006
To be dealt with by the parliament in
autumn 2006
Presumably
1. January 2007
cancellation of the age limits for access to and termination of
activity as contract physician in planning areas with insufficient numbers of physicians
Overall concept for a sustainable health sector characterised by
solidarity and capable of withstanding demographic influences
- insurance coverage for all
- securing access to all necessary medical services regardless of the amount of contribution individually paid
- ensuring sustainable financing and a liberalisation of the
dependency between financing and labour, partial cofinancing of societal tasks (children) from tax funds.
- intensified competition between health insurance funds and
service providers.
- fair competition between private health insurance companies
and statutory health insurance funds.
-
Status and time schedule
Reform of the health sector
Liberalisation and increased flexibility of the law concerning
contract physicians by the Amendment to the contract physicians
law (VÄG) including
- admission of local and regional professional service centres
- Avoiding medical bottlenecks
comprising all service providers entitled to provide services
especially in the east German states
- easier employment opportunities for physicians in outpatient
Improving
medical supply
services, thus better compatibility of family and employment
-
8.
Expected effect
further structural reforms for improving the quality and
efficiency of the system
48
Improving the quality and efficiency of medical supply
Sustainable stabilisation of the
system with regard to demographic
change and medical progress
Reducing the dependency of financing on the wage factor, thus
cutting the non-wage labour cost
Draft law autumn 2006
Establishment of prevention
as an independent pillar of
the health sector
Integrated
Guideline
9.
2005 NRP
No.
Measure/
Core task
V.D
2, 18
Status of implementation
Description of measure
Expected effect
Cooperation and coordination as well as the quality of the measImprovement of the health condition of
ures of the social insurance funds and sectors will be improved in
the population. Reducing the rate of
a cross-sectoral and unbureaucratic manner. Development of
chronic illnesses.
preventive objectives to which the measures will be geared.
Status and time schedule
Coalition agreement
Long-term, sustainable protection of the financing basis for the
provision of long-term care in the scope of the reform of the
long-term care insurance
10.
Reducing non-wage labour
costs
V.D
22
To ensure financing in the future, the coalition agreement provides for a balancing amount between the private and the social
branch of the long-term care insurance as well as the establishment of reserves for demographic change. Whether or not additional measures will be required will depend on the contents of
the reform as well as the time component of the measures.
Reform of the long-term care insurance subject
to the coalition agreement
The social long-term care insurance will be maintained as an
individual branch of social insurance. It will remain a “core
protection system” according to the basic idea underlying its
introduction.
11.
Designing a viable longterm care insurance
V.D
2, 18
In view of the demographic development and by accounting for
the type of care that is preferred by the majority of persons in
need of care, the reform of the long-term care insurance will be
focused on promoting and supporting home care structures
according to the principle that outpatient care has priority over
inpatient care. The reform will materially provide for benefitrelated and structural changes.
49
Fair distribution of cost within and
between the generations
In preparation
Limiting non-wage labour costs
Increased orientation of the structures
of providing long-term care according
to the needs of the persons in need of
care and their families as well as
ensuring a reasonable relationship
between outpatient and inpatient care.
Adjustments and clarifications as well
as modifications in the legal basis of
contracts and benefits provided for
under the long-term care insurance
which have become necessary based
on legal precedents
In preparation
Effective date
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
Passed by both houses of parliament
Subject to the
approval of the
EU Commission
21.7.2006
Adopted by the Federal-State planning
committee on 20 February 2006; subsidies
are subject to the approval of the EU
Commission (expected to be granted in
autumn 2006)
1.1.2007
still open
(By the end of the year, e.g., the two
programmes ERP capital for new start-ups
and ERP capital for growth will have to be
revised)
2.3 Completing German unity
12.
Investment Incentive Act
2007
V.C
10
Continued promotion of industrial start-up investments and
Broadening the industrial-commercial
certain production-related services as well as start-up investments
basis of the new German states,
in the hotel trade
strengthening the tourism industry
13.
Joint scheme for improving
regional economic structures
New delimitation of the German regional promotion area for the
time period 2007 to 2013, implementation of the new regional
guidelines of the EU Commission
Targeted strengthening of the investment activity of the manufacturing
industry for creating and protecting
jobs, promoting an industry-related
infrastructure, initiating cooperative
networks and cluster management
projects
14.
Preferential promotion of
east German small and
medium-sized enterprises
The Federal Government will include additional preferences for
promotion in order to substantially facilitate company growth in
the new German states and improve their viability in all programmes that are new or to be revised
Strengthening SMEs in east Germany,
creating jobs
15.
Innovative competition
“Business Meets Science”
V.C
V.C
15
still open
The regional actors in research institutions and SMEs will be
Measure has been included into the budget
Identification and promotion of new,
called upon to use innovative concepts for new and more effiplans of the Federal Government and 6
efficient types of communication and
cient types of communication and cooperation in order to break
billion Euros earmarked in the programme
up the barriers between the different innovation systems, to make cooperation between the actors in the
“New Impulses for Innovation and
use of synergies and thus, in particular, to improve the transfer of process of innovation in east Germany.
Growth” with a total volume of 20 billion
the results of scientific research into industrial applications
Euros (until 2009)
50
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
−
−
16.
Promotion of the new
German states
II.A
7
−
Expected effect
In the field of vocational training, 13,000 new training
positions will be promoted by the Federal Government and
the new states under the special programme to promote
training positions in the east in the year 2006;
Furthermore, the Federal Government will provide more
than 500m Euros for the new states in the time between
1999 and 2008 under the “Entrepreneurial Regions” programme. The “Entrepreneurial Regions” programme today
comprises five different programmes with the common objective to identify and promote regional potential for innovation in order to strengthen the regional competence profile.
V.E
Programme “InnoProfile”
launched in the year 2006.
Further establishment and modernisation of the east German
education and research structures
Promoting innovation and competitiveness in east Germany
New measures to improve innovation
management in companies and to increase
the number of start-ups will be additionally introduced in the year 2007 (“Entrepreneurial Regions”)
2006/
2007
Reform of federalism
Amendment of the Basic Law and adoption of a law to supplement the reform of federalism in order to implement the amendment of the Basic Law in common law.
Key concerns:
- Reform of the rights of the Bundesrat by reducing the number
of laws that require its approval and introduction of a new requirement, namely, that approval to federal legislation is
mandatory if it is associated with considerable cost.
Reform of federalism
−
Effective date
Under the market-oriented programmes INNO-WATT and
NEMO, 450m Euros will be provided until the year 2009 to
subsidise the sponsors of innovative growth and innovative
networks in the new German states.
2.4
17.
−
Status and time schedule
-
Reform of the law-making competences by abolishing
framework laws and reorganising the range of concurrent legislative powers. In this field, legislation will become easier
for the Federal Government (reduction of the scope of mandatory approval). In return, the states may diverge from federal legislation in certain fields of law-making by adopting
their own provisions.
-
Clearer assignment of financial responsibility.
Improvement of the capacity of the
federal and state governments to take
action and make decisions, clear
assignment of political accountabilities, and enhancement of the purposefulness and efficiency of compliance
with obligations.
Adopted by the Federal Parliament on 30
June 2006 and approval by the Bundesrat
on 7 July 2006
Fehler! Verweisquelle konnte nicht gefunden werden. Fehler! Verweisquelle konnte nicht gefunden werden.
51
One day after
promulgation of
the amendment
of the Basic Law
Supplementary
law:
Largely on 1
January 2007,
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
3.
Expected effect
Fehler! Verweisquelle konnte nicht gefunden werden.
19.
20.
Euro 6 billion programme
Federal Government’s
High Tech Strategy
Introduction of a
research bonus
II.A / B
II.A;
II.B
II.B
Effective date
Fehler! Verweisquelle konnte nicht gefunden werden.
Fehler! Verweisquelle konnte nicht gefunden werden.
18.
Status and time schedule
Fehler! Verweisquelle konnte nicht gefunden werden.
Progress in rFehler! Verweisquelle konnte nicht gefunden werden.
7,8
− Mobilisation of additional R&D
investment from the Länder and
Additional investment totalling Euro 6 billion in research
the business community
and development in this parliament. The funds from the
Adoption of the programme in the
Federal Cabinet on 5 April 2006;
Euro 6 billion programme are primarily intended for projects − Strengthening state-of-the-art
which promise to have a disproportionately large effect in
and cross-over technologies
since then launch of the first phase
terms of additional R&D investment from the Länder and − Strengthening innovative SMEs (additional investment in R&D amountthe business community, and hence exert a major mobili- − Increasing the performance and ing to almost Euro 600 million in 2006)
sation effect for innovation.
international attractiveness of
the German science system
7, 8
Coordination of measures relevant to more than one innovation policy area in 17 high-tech sectors (e.g. nano and
Increasing the innovativeness of
bio technology, information and communications technolGerman industry; stronger exploitaogy, mechanical engineering, environmental and energy
tion orientation of public-funded
technology, health); introduction of new incentive mecharesearch facilities; creation of
nisms for cooperation between science and industry, taking
innovative conditions
particular account of SMEs; aid in implementation in a
union between the business and scientific communities
Cabinet resolution in summer 2006
Measures
implemented
during the
parliament (by
2009)
Introduction of a research bonus for research commissions
of small and medium-sized enterprises at higher education
institutes and non-university research facilities. This is to
serve as a motivation for the research facilities to commit
more to economically-relevant topics and research commissions. The bonus is to be paid to the higher education
institutes and research facilities.
Public announcement already took
place, currently drafting concept
Implementation
planned for
2007
8
52
Improving researchers’ exploitation
orientation
On entry into
force of the
2006 budget
22.
23.
Excellence initiative
Progress in innovation
Progress in innovation
and state-of-the-art
technology
II.C
II.A / B
IIB
Integrated
Guideline
21.
2005 NRP
No.
Measure/
Core task
7
Status of implementation
Description of measure
Expected effect
The overall competition comprises three promotion segments:
−
graduate schools (average Euro 1 million p.a. each,
plus a flat-rate of 20 % of the programme costs; up to
40 promotions)
−
excellence clusters to promote top research (average
Euro 6.5 million p.a. each, plus a flat-rate of 20 % of
the programme costs; up to 30 promotions)
−
future concepts on project-related expansion of top
university research – building on success in promotion
segments 1 and 2 (average Euro 21 million p.a.; total
Euro 210 million p.a., plus a flat-rate of 20 % of the
programme costs)
Procedure:
Applicants are Universities, not individual departments; total funding volume approx. Euro 1.9 billion
from 2006 to 2011, of which 75 % Federation, 25 %
Länder
7,8
Establishment of a “Council for innovation and growth”
7,
8,
9
The Länder have taken the following measures amongst
others to implement the objectives:
−
Expansion of the strengths in basic applied research
−
Granting of funding in competition, especially to support particularly profiled clusters and for combined
projects
− Offensive to strengthen and intensify cross-sectional
and growth technologies; targeted support and development of cross-sectional technologies with worldwide
competitiveness and of application projects with a considerable market potential
− Innovation fund for sustainable promotion of excellence
in science and research
− Location and expansion of further excellent research
facilities closely related to industry and with transfer activities
− Development of revolving funds, especially for the
granting of subordinated loans for innovation projects
and human capital improvement
53
Status and time schedule
−
Expansion of the Universities in
Germany with best research to
become international centres of
excellence
Improving
competitiveness
Promotion of knowledge and technology transfer
Promotion of innovativeness and
state-of-the-art technology
−
−
Effective date
Conclusion of Federation-Länder
Commission agreement on
23 June 2005
Decisions on the 1st promotion
round October 2006
Decisions on the 2nd promotion
round October 2007
First session on 24 May 2006, further
sessions planned for 14 September
and 30 November 2006
The time of implementation depends
on the priorities set in the individual
Länder.
Partly already
being implemented
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
Closer cooperation between public
and publicly-promoted research
facilities and enterprises
Most measures have already been
initiated.
The measures
will have their
full effect in the
years to come.
− Improving the framework for the establishment and
location of new innovative enterprises
− Making it easier for innovative enterprises who would
like to set up jointly-funded research facilities and laboratories on the campus of a higher education institute
− Expansion of the promotion of start-ups from higher
education institutes
− Expansion of the promotion of the innovation-related
staff transfer
24.
Networking
between research and
economy
IIB
The Länder have taken the following measures amongst
others to implement the objectives:
− research commissions from industry; joint research
cooperation and research networks with several partners; formation of “platforms” in new technological
fields;
− promotion of joint research in which public and publiclypromoted research facilities and enterprises work on innovative research topics together, through to building
demonstrators and prototypes;
7, 8, 9 − centres for applied research at technical colleges;
− technology transfer from technical colleges to small and
medium-sized enterprises
− In order to improve the technology transfer, it is intended to advance the networking between industry,
Universities and research facilities and to interlink the
existing competence networks more closely. This can
make a contribution to retaining and increasing the
competitiveness of the domestic economy.
− Promotion of excellent clusters and networks in industry
and science, as well as of infrastructures
54
26.
Pact for Research and
Innovation
Protection of intellectual
property
II A
II.B
Integrated
Guideline
25.
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
7
− Intensification of competition
aiming to concentrate on excellence
− Expanding cooperation and
networking over organizational
borders
− Increased promotion of young
scientists aiming to retain excelThe Pact for Research and Innovation will increase the
lent young scientists for GerResolution of the Heads of Governannual subsidies from the Federation and the Länder for
ment of the Federation and the Länder
man research
the major science and research organisations (Max Planck − Additional potential to tackle
of 23 June 2005
Society, German Research Foundation, Helmholtz Asso1 January 2006
new, unconventional research
ciation of German Research Centres, Gottfried Wilhelm
Duration of the Pact 2006-2010
approaches flexibly and quickly
Leibnitz Scientific Association, Fraunhofer-Gesellschaft) by − Increased cooperation with
at least 3%
industry in order to improve the
innovation balance sheet
through problem-orientated
technology transfer
− Improved tools to promote startups based on research facilities
and to use the results of Research and Development in
networks
8
R&D promotion initiative for the export-strong German
mechanical and plant engineering, which particularly sufTechnological leadership in technifers from product piracy (from Asia). Development is to
focus on technical copy protection procedures, as well as
cal copy protection in mechanical
and plant engineering
product labelling in manufacturing (e.g. hologrammes, laser
technology, chemical procedures and RFID procedures) or
the development of copy-protected key components.
Launch of the Federation’s R&D promotion initiative in 2006
Running time of
the projects 2-3
years
Status: under preparation
2006
Information Society Germany 2010 (iD2010)
27.
Information and communications technologies
II A, II
B, III
B, III
C
8, 9,
10
The core points of iD2010 are the modernisation of the
legal and technological framework, the further integration of To improve Germany as a location
the State, industry and private individuals in the information
for information and communicasociety, improving the security of information and commutions technology
nications technology and targeted promotion of research
into information and communications technology and developments meeting market needs.
55
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
Expected effect
−
28.
Information and Communications Technology
2020 research programme
II A, II
B, III
B, III
C
8, 9,
10
To establish and expand
Germany’s leading technological position in the area of information and communications
technology
To establish and expand the
competitiveness of Germany
as a location for production
and jobs in both sectoral and
cross-sector terms
To enhance the quality of
science, research and technological development and expand the role of German research into information and
communications technology as
an international partner and
competitor
To set the stage for retaining
and expanding jobs
Together with industry and science, the Federal Govern- −
ment is currently designing a new information and communications technology 2020 programme, which is to be
announced at the end of the year. It will serve to expand
combined research in information and communications
technology, improve the exploitation of research results in −
Germany, whist at the same time ensuring that project
promotion and IT research activities of the institutional
research landscape fit one another like a glove.
−
29.
“Energy for Germany”
Innovation Offensive
IV.B
11
The Federal Government will be increasing federal funding
for energy research and innovation by 2009 as against
2005 by more than 30 %, thus investing a total of Euro
2 billion in new energy technologies from 2006 to 2009.
Safeguarding secure, economic
and environmental energy supply
−
−
30.
Promotion of talented
individuals and the young
II.C
7
−
Share of students promoted by agencies to promote
talented individuals to be increased from 0.7 percent
to 1 percent in the next four years
Promotion of different talents in vocational training;
goal in line with the aspired to promotion rate of talented individuals at higher education institutes
56
−
−
−
−
promotion of excellence,
improving youth promotion
promotion of willingness to
perform
promotion of all talents
promotion of willingness to
undergo life-long learning
−
−
−
Status and time schedule
Effective date
Status: under preparation
Planned for
March 2007
Drafting the innovation offensive in
working party 3 “Research and Energy Efficiency“ of the energy summit. At the second energy summit to
be held in autumn 2006, an interim
report will be submitted on the state
of work reached.
2006 federal budget, adopted by
the Federal Parliament on
23 June 2006, approved by the
Federal Council on 7 July 2006
Annual increases until 2009
In 2006 increase by Euro 7.2
million to Euro 87.7 million
Increased promotion of talented
individuals in vocational training
in 2006 by Euro 0.8 million to
Euro 15.2 million
On entry into
force of the
Budget Act
32.
Enhancing the educational sector
II.C
II.C
Integrated
Guideline
31.
2020 Higher Education
Pact:
Safeguarding the quality
of higher educational
research and teaching
2005 NRP
No.
Measure/
Core task
7,
23
7,
23
Status of implementation
Description of measure
Expected effect
In the framework of the constitutional competences of the
Federation and the Länder
−
ensuring a supply of study places, taking account of
the anticipated increase, whilst consistently improving
the quality of teaching, in particular modernisation of
higher education in the framework of the Bologna reforms
−
sustained safeguarding and strengthening of performance in higher education research and expanding research funding
Exemplary measures taken by the Länder:
−
Profiling the higher education institutes inter alia by
means of performance-linked fund allocation
−
Support for the higher education institutes, research
facilities and SMEs by strategic orientation to the EU
Framework Programmes for Research and Technological Development
−
Introducing controlling systems, e.g. evaluation and
observation procedures
−
Strengthening the autonomy of the higher education
institutes: Higher education institutes should be able
to make income, set up enterprises and take holdings
in enterprises.
−
Meeting the requirement for training places at the
higher education institutes, especially in natural sciences and engineering
−
Time-limited measures to create additional study
capacities in the face of rising student numbers
−
Strong orientation to these needs of industry, further
improvement of the range of training capacities, primarily in natural sciences and engineering
−
Development of new postgraduate multimedia further
training studies
−
Support for the higher education institutes in developing user-orientated multimedia further training studies
−
Establishment of established posts for professorships
funded by foundations if the higher education institutes ensure the follow-up funding
−
Building up local electronic archives by means of
digitalisation, providing multimedia products and improving access to data bases by establishing regional
servers
57
−
−
−
−
intake of the strong birth years
at the higher education institutes
enhancing excellence in
higher education research
intake of the strong birth years
at the higher education institutes
strengthening excellence in
higher education research
Status and time schedule
Effective date
Federation and Länder are currently
negotiating a Higher Education Pact
From 2007
Federation and Länder agreed in May
2006 on the core aims of a
2020 Higher Education Pact
A concrete draft agreement is currently under preparation.
Ongoing measure, no time
limitation
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
Expected effect
Status and time schedule
Effective date
24,23,
18
The goal of the Working Party is to identify the central
challenges for innovation in the German vocational training
system and to draft concrete options for structural improvements in vocational training.
To increase the number of training
places available, improve the
quality of training and to make it
easier to transfer between the
educational fields
The Working Party is made up of
representatives of the Länder, the
industrial associations, the trade
unions, industrial personalities and
representatives of innovative vocational training practice, and drafts
proposals to improve structures.
From February
2006
23,18
In this Pact, industry has undertaken for a period of three
years to create 30,000 new training places and 25,000
skill-building and integration placements (EQJ) per year.
The Pact’s steering committee decided on 14 July 2006 to
extend the Pact for another three years and to further
develop the Training Pact, which had initially been scheduled to end in 2007
Improving the training places on
offer by opening up new potential
for additional in-house training
places
The Training Pact was agreed for the
period 2004-2007, it is intended to be
extended.
From 2008
−
−
33.
34.
Vocational Training
II.C,
Innovation Working Party III.B
National Pact for Training
and Young Specialists in III.B
Germany (2004-2007)
−
35.
JOBSTARTER Programme (2005-2010)
III.B
23,18
−
Passing on knowledge inter alia on market access
preconditions for products, on economic and organisational aspects of CE labelling for engineers in
higher education training and business practice to improve the competitiveness of enterprises in the internal market
Building up centres of excellence at Universities and
research facilities
−
The promotion of projects aims to provide juveniles
more in-house training places at regional level by persuading companies and enterprises to provide training.
The Federal Government continues to provide 13,000
additional training places in the Training Programme
East in 2006.
58
Increasing the number of in-house
training places available and improving the quality of the training
structures
−
−
The first promotion guideline was
published on 6 December 2005.
52 projects were already approved in the first round of promotion.
Further project selection rounds
to follow, publication of the second promotion guideline in July
2006
From 2005
37.
Promoting all-day
schools,
pre-school education
Improving school skills
IIC
Integrated
Guideline
36.
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
The Länder have taken the following measures amongst
others:
−
Enhancing kindergartens as a place for pre-school
education, language development and equipping children with the skills they will need at school.
−
Undertakings to cooperate and recommendations for
cooperation between kindergartens and primary
schools
−
Quality characteristics of pre-school promotion; support for families and promotion of pre-school education
−
Language promotion in kindergartens and in special
23,18
courses immediately before starting school, in some
cases with legal obligation
−
Promotion in primary schools orientated in line with
the potential of the children to learn, e.g. learning
groups spanning several years, with an individual period spent in starting lessons of between one and
three years
−
Expansion of care for pre-school children and school
children as needed
−
Federal “Future Education and Care Investment Programme” to build and expand all-day schools amounting to Euro 4 billion
The Länder have taken the following measures amongst
others:
−
to improve reading skills, differentiating, individualised
measures in the context of open lesson forms (e.g. independent working, weekly workplans) and targeted
promotion measures
−
interdisciplinary education in mathematical skills,
23
promotion of natural science and technical learning in
primary school
−
implementation of language promotion projects in the
elementary area
−
orientation courses for newly-immigrated ethnic resettlers and Jewish immigrants
59
Expected effect
Status and time schedule
Better interlinking of pre-school
area and primary school,
Better employability
Measures in planning and measures
already commenced
Improving primary education,
especially reading skills and understanding mathematical and natural
science contexts,
improving employability
Measures in planning and measures
already commenced
Effective date
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
−
38.
39.
40.
−
−
Improving school skills
Improving school skills
Improving school/nonschool skills
IIC
IIC
Preparatory and support classes and courses aiming
to enable children and juveniles who do not speak
German as quickly as possible to attend school in a
normal class in line with their age and individual performance
Conception for cooperation with immigrant parents
Regional units to promote children and juveniles from
immigrant families with the aim in mind of improving
the chances of these children and juveniles in the
elementary area, in school, in the transition from
school to work, in training, and in the transition from
training to work
23
The Länder have taken the following measures amongst
others:
−
introduction of binding diagnosis and comparison work
for examining educational standards
−
quality management at vocational schools
−
schools taking responsibility for own operations
23
The Länder have taken the following measures amongst
others:
−
promotion of independent learning
−
teaching in learning fields more closely orientated
towards working life
−
enhancing the teaching of economics in secondary
schools, “practice” and “junior” firms at vocational
schools
−
promotion of highly-talented individuals
−
discussion of vocational independence, entrepreneurialism and acceptance of responsibility for one’s own
vocational future
−
targeted promotion of extra-curricular educational
work in the context of work with children and youth
work, cultural youth work and youth social work, as
well as youth media work
−
targeted promotion of extra-curricular educational
work, including in the framework of children and youth
work, cultural youth work and youth social work as
well as youth media work
−
promotion of measures of mobile youth work (street-
60
Expected effect
Status and time schedule
Targeted promotion of the ability
of school to teach, taking particular account of pupils with a migration background;
Measures in planning and measures
already commenced
improving employability
Refining the quality of teaching on
the basis of binding standards
defining obligatory, regular further
training for teachers, as well as a
results-orientated evaluation:
improving employability
Measures in planning and measures
already commenced
Orientation of teaching also towards targeted promotion, especially in the areas of independent
learning, foreign languages and
economic skills:
Improving extra-curricular education work.
Making it easier to gain access to
the information society
Improving
employability
Family-friendly
corporate culture
Measures in planning and measures
already commenced
Effective date
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
−
−
41.
42.
Shortening overall training periods
Reducing the number of
school drop-outs
II.
C
23
Expected effect
Status and time schedule
Shortening schooling periods,
extending working lives
Measures in planning and measures
already commenced
Reducing the number of school
drop-outs
Individual schemes tailored to
personal situations enabling an
initial number of about 1,000 juveniles over the country to finish
school
To be launched in the summer of 2006
work); promotion of measures of youth work, youth
recreation and political youth education, in each case
accompanying contributions towards acquisition of
social skills and for social and vocational integration of
juveniles
acquisition of media skills for youth education specialists and participating juveniles; online magazine; establishment of regional youth agencies as a regional
networking platform; “Qualipass”; promotion of youth
and media projects
national competition, “Family-friendly companies”
Internet portal
The Länder have taken the following measures amongst
others:
−
in several Länder introduction of eight years of general
schooling at grammar schools
−
interlinking models of full-time vocational schools with
dual training occupations in order to shorten the overall training periods
2nd Chance for School Drop-outs
Model programme for the reintegration of school drop-outs
and help to achieve the desired school-leaving qualification. At more than 50 locations all over the country, an
initial number of 1,000 juveniles are to be included in individual schemes tailored to their personal situations, enabling them to finish school. The juveniles have personal
“Case Managers” at their disposal at the local coordination
centres as a point of call and to provide advice, for instance
also providing placements in internships or supplementary
courses.
61
Effective date
44.
Drafting a National Integration Plan
Strategy for
life-long learning
II.
C
II.D
Integrated
Guideline
43.
2005 NRP
No.
Measure/
Core task
23
Status of implementation
Description of measure
Expected effect
Status and time schedule
Drafting a National Integration Plan with goals, concrete
measures and undertakings in six areas of activity:
− refining integration courses
− promoting knowledge of German from the outset
− ensuring education and training, increasing chances on
the labour market
− improving the situation of women and girls, making
equal rights a reality
− supporting in situ integration
− strengthening the civil society
Reducing the number of school
drop-outs
Individual scheme tailored to the
personal situation enabling an
initial number of about 1,000 juveniles over the country to finish
school
To be launched in the summer of 2006
− Learning Regions Programme:
Establishment and expansion of networks spanning
educational areas and organizations. Cooperation between as many parties as possible in education at regional level (further training-providers, enterprises, all
types of school, labour agencies, chambers, local authorities, social partners, socio-cultural facilities et al.)
serves to develop, try out and establish in the long term
innovative measures
−
Further Training Innovation Working Party:
Fourteen experts from research and practice. Goal: to
combine the most important topics and requirements
for improved framework conditions of life-long learning
and consistent expansion of further training to become
8, 23,
a strict concept
24
−
Examination of model of saving for education
Networking of regional educational
players, increasing participation in
education and employability
Expanding participation in further
training, better interlinking of the
fields of education
Increasing private willingness to
invest in education
Through greater individual options, the development of new
offers is to be supported which are really needed and for
which there is a demand. The development is to be examined of budget-neutral saving for education which is to use
incentives and promotion to motivate people to also invest
privately more in education, and hence in their own development.
Measures taken by the Länder:
Promotion of investment in both in-house and private
education for employees in small and medium-sized enterprises to improve in-house and outside employability
Increasing the competitiveness of enterprises and support-
62
Increasing competitiveness and
participation through life-long
learning
Ongoing programme to end 2007
May 2006-May 2007
Examination should be concluded end
2006
Measures in planning and measures
already commenced
Effective date
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
Expected effect
Status and time schedule
Effective date
ing life-long and on-the-job learning
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− Creating incentives for the establishment and expansion of modern telecommunication networks
− Exempting appropriate investment from regulation for a specific period
− Promotion of innovative processes without accepting distortions
Legislative procedure:
Cabinet: 17 May 2006
1st Reading Federal Council: 7 July
2006
Federal Parliament:
Early autumn
2nd Reading Federal Council: November-December 2006
probably end
2006
9
The draft Bill accommodates the
increasing convergence. The new
Refining the media system by a draft Bill to Simplify Proviprovisions are to apply independsions regarding specific Electronic Information and Comently of the channels via which
munications Services (Gesetzentwurf zur Vereinheitlichung
services are distributed, be open to
von Vorschriften über bestimmte elektronische Informatidevelopment and simplify the
ons- und Kommunikationsdienste [Elektronischerexisting legal framework, and
Geschäftsverkehr-Vereinheitlichungsgesetz – ElGVG]).
should offer improved protection
The centrepiece is formed by the new Telemedia Act.
against deceptive information in email advertising.
Draft of the Telemedia Act was
adopted by Cabinet on 14 June 2006;
the Federal Parliament will deal with it
conclusively in Oct./Nov. 2006, 2nd
reading Federal Council planned for
December
1 March 2007
at the earliest
13
Supplementary ordinances to the Energy Industry Act
(Energiewirtschaftsgesetz – EnWG)
First network fee approval procedure by the Federal Network Agency
Federal Council deliberation on individual draft ordinances; further ordinances (e.g. on the introduction of
incentive-based regulation) under
preparation
2006/2007
−
45.
Amendment of the Telecommunications Act
(Telekommunikationsgesetz)
46.
Information and communications technology
policy
47.
Electricity and gas market
−
IIIA
II.B
III.A
13
The draft Bill deals in abstract terms with the issue of
the regulation or non-regulation of new markets.
The concrete decision as to whether a specific (intermediate consumption) market is subject to regulation
is decided not at statutory level, but in the market
analysis and market definition procedure by the Federal Network Agency in coordination with the European Commission.
63
Intensification of competition on the
electricity and gas markets
Falling electricity and gas prices for
all consumers
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
Parliamentary deliberation since December 2005, adoption anticipated in
the autumn of 2006
End 2006
48.
Acceleration of planning
in transport routes and
energy networks
IV.F
16
Infrastructure Planning Acceleration Act
Increasing efficiency in the approval procedures, shortening
planning periods by up to a total of
2 ½ years possible,
improvement of the location conditions and competitiveness
49.
Electricity market
III.A
13
Cross-border capacity shortage management in European
regional initiatives in the electricity sector
Intensification of competition on the
electricity market
Ongoing measure
50.
Modernising competition
law
IV.A
13
Tightening up the existing prohibition of sale below purchase price: The sale of foodstuffs below purchase price is
in principle prohibited even for only occasional sales.
Improving the competition conditions for small and medium-sized
enterprises in the foodstuffs retail
Submitted to Parliament
in the autumn of 2006
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still open
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The Federal Government is launching a civil security research programme with an anticipated budget of Euro 100
million to 2010.
51.
Security research programme
II.B. /
III B
8, 10
The research topics identified in the current expert dialogue
and taking priority both in the European and in the national
context for example address the following fields:
− optimisation of security and protection of networked
systems, security of infrastructures and supply facilities
− protection against terrorism and accidents with biological, chemical and other substances,
− improvement of crisis management,
− interoperability and integration of information and communication systems,
− improvement of situation awareness and improvement
of the security culture,
− restoring security in crisis situations,
− investigation of causes, for instance in the field of radicalisation and crime
The programme is orientated to the needs of users among
the authorities (e.g. fire services, Federal Agency for Technical Relief, police) and private (infrastructure providers
such as transport companies, utilities, telecommunication,
logistics).
Accompanying research will examine any possible disadvantageous impact on civil and freedom rights.
64
Improving security in freedom.
Competitiveness; strengthening
Germany as a research platform;
motor for innovation in Europe
Status: under preparation
anticipated for
November
2006
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
Improving competitiveness;
strengthening Germany as a research platform;
motor for innovation in Europe
Status: under preparation
anticipated for
November
2006
Bundling the many activities of the Federal Government in
an overall strategic approach in order to exploit the economic potential of nanotechnology even more intensively
than previously, including also social and ecological aspects
52.
Nano Initiative 2010
II.B. III
B
8, 10
The strategy tackles the following approaches in particular:
using the potential of nanotechnology for strong German
sectors
introducing other sectors and enterprises to nanotechnology
quality assurance
making nanotechnology products marketable
helping to shape standards
recruiting young scientists for business start-ups
promoting the exchange of ideas via networking
examining the impact of nanotechnology early
encouraging an informed debate within society on
opportunities and risks
inter-coordinating specialist policy in order to reduce
obstacles to innovation
inter-coordinating project research and institutional
promotion
using the opportunities of a networked Europe
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53.
Making industry more
competitive
III.C.
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Establishment of the Automotive Cluster Eastern Germany
LL 10 (ACOD)
65
Improving contacts between automobile manufacturers and suppliers; improving competitiveness
The ACOD office has commenced its
work.
Approval of
Joint Task
funds as knockon financing on
22 June 2006
Making industry more
competitive
55.
Making industry more
competitive
56.
Making industry more
competitive
57.
58.
Making industry more
competitive
Strengthening the construction sector
Integrated
Guideline
54.
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
Improving the involvement of Universities and small and mediumsized enterprises in the research
and production networks of the
aviation industry
Privileged involvement of Universities
and SMEs in research networks in the
new aviation research programme is a
part of the promotion guideline.
2006
III.C.
Sectoral conference of Eastern German aviation and space
LL 10 industries, initiative for a capable location for aviation and
space travel
III.C.
Aviation research programme: promotion of technology
LL 10
projects in industry-led research networks
Increasing the innovativeness of
Introduced by a promotion guideline of
the German aviation industry.
the Federal Ministry of Economics: 1st
Establishment of high-performance
round of tenders launched in 2006.
networks from science and industry
Research networks to be launched
to shorten innovation cycles
from 1 January 2007
III.C.
Promotion of innovation in ship-building with the promotion
programme “Innovative ship-building ensures competitive
LL 10 jobs” (acc. to Commission framework on state aid to shipbuilding – 20 % promotion of the investment for industrial
applications of innovations)
Reducing the high risks in shipbuilding with innovative new ship
building methods and procedures,
improving competitiveness
III.C.
III.C
LL 10
Promotion of research and development in the shipping
industry (shipping, ship-building and marine technology)
with the R&D programme entitled “Shipping and marine
technology for the 21st Century”
Launching the “Future of Construction Research Initiative”
(in the period 2006 to 2009)
Introduced by the promotional guideline of the Federal Government
Improving the competitiveness of
the shipping industry, safeguarding
and expanding technology leadership, closing the cost gap to the
Far East, shifting transport onto
waterways, opening up new markets for marine technology, use of
resources from the sea
The goal of the Future of Construction Research Initiative is to make
the German construction industry
more competitive in the European
Single Market
March 2005
January 2005
The budget provides the necessary
funding.
Public offer/promotion guidelines in
force from July 2006
Selection procedure and deliberation
on topic from September 2006
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66
January 2007
3 July 06
Reduction of bureaucracy
IVA
Integrated
Guideline
59.
2005 NRP
No.
Measure/
Core task
14
Status of implementation
Description of measure
Expected effect
First Act to Reduce Bureaucratic Obstacles, Especially for
Small and Medium-Sized Enterprises (Erstes Gesetz zum
Abbau bürokratischer Hemmnisse insbesondere in der
mittelständischen Wirtschaft)
−
Amongst other things increasing fiscal thresholds for bookkeeping and obligations, thresholds to appoint commissioners and for obligatory statistical surveys
60.
61.
Reduction of bureaucracy
Reduction of bureaucracy
IVA
IVA
14
14
−
The amending act is to especially provide long-term relief
for small and medium-sized
enterprises, and to
improve the framework for
enterprises and for competitiveness; especially with regard to SMEs.
Status and time schedule
Effective date
The Federal Cabinet approved the
draft Bill on 25 April 2006 and also
passed further-going resolutions. The
parliamentary procedure (the Act is
subject to approval) was completed on
7 July 2006 with the approval of the
Federal Council.
Directly after
signing by the
Federal President
On 25 April 2006, the Federal Government adopted the Reduction of
Bureaucracy and Better Legislation
SCM will
Programme, incorporating the intro− create better steering for the
duction of the Standard Cost Model
political arena through cost
(SCM).
transparency
The recording and analysis work for
− facilitate targeted intervention
the entire stock of standards of the
and control in the departments, Federation is to run until the end of
Introduction of the Standard Cost Model (SCM) at
October 2006, after which the order of
− improve regulatory impact
federal level.
the information obligations to be
analysis/cost impact analysis
− facilitate the realisation of cost measured will be set. From January
savings for the economy (esti- 2007, the on site questionnaires/
mates presume an annual sav- surveys will be implemented in the
enterprises in order to determine the
ings potential running to biltime and cost parameters. This phase
lions of Euros).
is to be completed by 2007. The Federal Cabinet will set the reduction goal
in mid-2007.
On 25 April 2006, the Federal Gov−
The Legislation Supervision
Council is to support the Fed- ernment resolved to appoint a National
eral Government in examining Legislation Supervision Council as an
A Legislation Supervision Council is to be established at
independent supervision and advice
existing and especially new
the Federal Chancellor’s Office as an independent superviprovisions of federal law as to body as an element of the Reduction
sory and advisory body. It is to examine existing and espeof Bureaucracy and Better Legislation
what bureaucracy costs are
cially new provisions for bureaucracy costs which they
programme. The Federal Parliament
incurred (obligations to recause without questioning the political and regulatory
has now adopted a Member’s Bill
port). Here, the Legislation
objectives.
which was submitted to the Federal
Supervision Council is not
to/may not question the politi- Council on 7 July 2006 for a final
cal and regulatory objectives. statement.
67
In 2006.
Pilot projects
are currently in
operation in
several Länder,
including in the
area of the
Land Construction Codes
(Landesbauordnungen)
63.
Reduction of bureaucracy
Reduction of bureaucracy
IVA
IVA
Integrated
Guideline
62.
2005 NRP
No.
Measure/
Core task
14
14
Status of implementation
Description of measure
Expected effect
With a call for proposals on deregulation and reduction of bureaucracy from the regions, regional industry and administration
are integrated into a discussion of
the problem which can also lead in
many cases to pragmatic solutions
being found locally, leading to the
amendment of statutes or ordinances. Where regional solutions
are not expedient, the Federation
receives a stock of tape-cutting
proposals which are examined as
to their feasibility, and in an ideal
case can indeed be implemented
at least in some cases.
Proposals to cut red tape from the regions
Measures taken by the Länder:
Restriction of the density of regulations and reduction of
the number of standards and administrative provisions:
−
strict two-tier supervision of legal provisions carried
out by an intra-departmental examination by a unit
outside the specialist administration, and then by the
legislation examination committee
−
introduction of a regulatory impact analysis taking
account of all major interests of citizens and enterprises
−
capping the number of administrative provisions; term
of administrative provisions limited from the outset; It
should be examined whether the period of application
of all other legal provisions can be time-limited.
−
obligation to examine legal and administrative provisions for their necessity and topicality at suitable intervals
−
reduction of the number of administrative provisions
−
supervision of the costs of bureaucracy to avoid unnecessary provisions and further cost burdens for the
economy
−
establishment of a central legislation examination /
central legislation supervision body.
Establishment of independent deregulation commissions
comprising experienced practitioners and social partners,
68
Long-term relief for
enterprises;
especially SMEs
Status and time schedule
The project is currently in the second
round of calls for proposals.
ongoing measures; pilot projects inter
alia in the area of the Land Construction Codes
Effective date
Implementation
planned by
2006
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
or of an ombudsman:
−
appointment of a Land Commissioner for the Reduction of Bureaucracy, Deregulation and Reduction of
Tasks (Ombudsman) as a contact for the business
community, the administration, local authorities and
citizens
−
Proposals to reduce bureaucracy and tasks in the EU,
the Federation and the Länder
Introduction of threshold values and measures to accelerate procedures (procedure managers, approvals issued by
one-stop agencies):
−
combining responsibilities and specialist knowledge at
the lower administrative authorities and in intermediate authorities. This brings to play the principle of the
one-stop agency and sets the stage for further acceleration of approval procedures.
−
electronic processing of administrative procedures
and optimising business processes
−
simplification of contract awarding procedures at
national level
−
various concrete regional projects, also with the involvement of business associations and chambers,
also facilitating effective unbureaucratic and fast procedures in situ and advantages for instance also for
start-ups
Reducing obligations to provide statistics and report
−
Roughly 98 % of all statistics are based on regulations
put out by the EU and by the Federation. The Länder
have already done much in the past to relieve the
burden on small and medium-sized enterprises as to
obligations to provide statistics. In 2005, it was possible to reduce burdens further, such as with foreign
trade statistics, in hotels and restaurants, in construction establishments and – despite more stringent EU
requirements – in the environmental field. The Länder
will also endeavour in future to prevent new obligations to provide statistics especially for small and medium-sized enterprises and to reduce old ones.
Mobile and electronic authority services:
69
Status and time schedule
Effective date
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
−
Expected effect
Status and time schedule
Effective date
Portal for administrative services, central access to
forms and online services with which procedures can
be entirely or partly operated via the Internet, networking of the Internet services of all levels of the administration
Intensive support for European legislative procedures by
the departments:
−
Intensive support for European legislative procedures
in all areas in order to breathe life into the principles of
subsidiarity, proportionality, better legislation and debureaucratisation in individual cases
Further initiatives and projects to reduce bureaucracy,
achieve deregulation and reduce the number of tasks:
−
various projects to measure the cost of bureaucracy
with the Standard Cost Model. The costs of statutory
obligations to provide information for enterprises are
measured.
−
Project to reduce the burden of bureaucracy on small
and medium-sized enterprises using a specific sector.
1.
64.
Public contracting
IV.A
14
Slashing through red tape in the
1.Implementation of the revised EU procurement directives; law on the award of contracts;
2. making German law on the award of contracts more lean increased transparency and hence
competitions in public contracting
14
Refining the inter-departmental modernisation strategy for
the federal administration, emphasising organisation and
steering, the law on collective bargaining and service law,
as well as personnel management.
Re-orientation of the Federation’s E-Government Strategy
by means of the European Information and Communications Technology Strategy i2010
with central, IT-aided procedures in the State’s most
important services
2.
−
65.
Making the administration
lean and addresseeorientated
IVA
70
−
Administration is more innovative,
more efficient and tailored to the
needs of the business administration and citizens.
−
Implementation is completed in
oct.2006
Adopted by the Federal Parliament and approved by the Federal Council by end 2007
Proposal to the Cabinet to adopt
a resolution in September 2006
Investment plan and annual
implementation plans for the EGovernment programme from
2006 to 2010 on the basis of the
medium-term financial planning
of the Federation under preparation
Implementation from the second
half of 2006
Goal: 1 January
2008
13 September
2006
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
Expected effect
Status and time schedule
−
−
66.
Making the administration
lean and addresseeorientated
IV.A
Federal Government’s National Plan to Protect the Information Infrastructures
14
Maintaining and increasing a high
level of IT security
−
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Resolution passed by Cabinet on
13 July 2005, first measures
commenced
Implementation plan for the
federal administration for resolution by Cabinet in autumn 2006
under preparation
Implementation plan for the
protection of critical infrastructures from 2007 under preparation
Effective date
autumn 2006
Enhancing Germany’s role as a financial platform
Transposition of the EU’s Transparency Directive
(2004/39/EC) into national law
− introduction of additional reporting thresholds for reports
of voting rights with security issuers
− expanded disclosure obligations in reporting
Europe-wide dissemination and central storage of important capital market information
Improving the transparency of the
capital markets, Europe-wide
dissemination of capital market
information; reduction of bureaucracy
Adoption of Cabinet resolution on
14 June 2006; Parliament deliberation:
Federal Parliament 1st reading
21 September 2006; Federal Parliament 2nd/3rd readings on 27 October
2006; approval Federal Council on
24 November 2006
20 January
2007
Draft bill under
preparation
2007
67.
Improving the transparency of the capital markets
IV. B
12
68.
Revision of the Investment Act
(Investmentgesetz)
IV.
B
12,
13, 14
Increasing the competitiveness of Germany as a location
Improved competition framework
on the German fund market, more
funds to be issued in Germany,
also improved framework for German Hedge Funds
69.
Introduction of REITs
IV.
B
12, 14
Creating German REITs
Improving the framework in Germany as a real estate location
Examining the conditions set out in the
Coalition Agreement
2007
70.
Implementation of
Basel II by means of the
amended Consolidated
Banking and Capital
Adequacy Directives
IV.
B
12
Suitable minimal capital requirements for firms dealing in
securities and financial institutes, taking account of banks’
and security firms’ risk exposure when granting loans and
in their other transactions
Reducing the burden of holding
capital in reserve because of riskorientated calculation of minimal
capital requirements
Adopted by the Federal Parliament on
29 June 2006 and approval by the
Federal Council anticipated on
22 September 2006
1 January 2007
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71
Corporate Governance
IV.E
Integrated
Guideline
71.
2005 NRP
No.
Measure/
Core task
15
Status of implementation
Description of measure
Expected effect
Business Integrity and Modernization of Shareholder Actions Act, especially:
- Making it easier to assert liability claims of companies
against its own bodies by introducing a low threshold
value for the right of minority shareholders to file actions;
- Restriction of abusive exercise of the right to file shareholder actions;
- Creation of an electronic shareholder forum to facilitate
establishment of contact between shareholders
Increasing corporate integrity and
owner control
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72.
IV.
9
10
12
Act was already promulgated in 2005
in the Federal Law Gazette (Part I
p. 2802).
Effective date
1.11.2005
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The Federal Government’s SME initiative:
Strengthening the
framework for entrepreneurial activities;
opening up the enterprise
potentials, especially of
SMEs
Status and time schedule
1.1 Creation of favourable conditions for small and medium-sized enterprises, including by means of:
− More favourable tax-deduction conditions for enterprises (increasing digressive depreciation for investment
from 20 % to 30 %) in 2006 and 2007
− Increased turnover limit with actual payment of turnover
tax in the old Länder from 2006 from Euro 125,000 to
Euro 250,000, as well as extension of the turnover limit
applicable in the new Länder from Euro 500,000 to
31 December 2009
− cf. also Nos. Fehler! Verweisquelle konnte nicht
gefunden werden., Fehler! Verweisquelle konnte
nicht gefunden werden. and Fehler! Verweisquelle
konnte nicht gefunden werden.
1.2 Reduction of bureaucracy (cf. on this Nos. Fehler!
Verweisquelle konnte nicht gefunden werden. to
Fehler! Verweisquelle konnte nicht gefunden werden.)
1.3 Start-up offensive as the kick-off for more start-ups,
including by:
− Accelerating the entry in the commercial register, in the
register of cooperatives and partnerships and creation
of a register of companies
− Making it easier to form limited companies.
− Introduction of protection against attachment for improved protection of old-age pensions for the selfemployed
72
Creation of a favourable economic
environment for start-ups and selfemployment, reduction of bureaucratic obstacles, strengthening the
capacity for growth and innovation
participation among SMEs
SMEs initiative was adopted on
19 July 2006 by the Federal Cabinet
ongoing
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
− Re-orientation of the promotion of start-ups from science
− cf. also Nos. Fehler! Verweisquelle konnte nicht
gefunden werden., Fehler! Verweisquelle konnte
nicht gefunden werden., Fehler! Verweisquelle
konnte nicht gefunden werden.,
1.4 Making SMEs more innovative, including by:
− Considerably increasing the funds for SME-orientated
promotion that is open-minded towards technology
− Improving the broad impact of indirect promotion that is
open-minded towards technology, for instance through
new promotional measures for enterprises previously
not carrying out research; at the same time expanding
cluster projects in community research, and by expanding European networks
− Improving access of small and medium-sized enterprises to the technology-specific specialist programmes
of the Federation for key industrial technologies
− Orientating the standardisation processes in line with
the requirements and needs of enterprises, above all
small and medium-sized enterprises
− Expanding the technology-orientated services of the
Federal Technical Agencies for SMEs
− cf. also Nos. Fehler! Verweisquelle konnte nicht
gefunden werden., Fehler! Verweisquelle konnte
nicht gefunden werden., Fehler! Verweisquelle
konnte nicht gefunden werden. and Fehler! Verweisquelle konnte nicht gefunden werden.
1.5 Modernising vocational training and ensuring a supply
of young specialists, including by:
− continuing and refining the National Pact for Training
and Young Specialists
− Ongoing modernisation of existing and creation of new
training curricula, as well as of ordinances on vocational
further training, including ordinances on master craftsmen examinations
− Expanding the range on offer of not too narrowlyspecialised occupations by graduated training systems
− Better interlinking of basic and further training
73
Status and time schedule
Effective date
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
1.6 Improving the funding situation of SMEs, including by:
− Reforming the ERP innovation programme with the goal
of funding more development risks through equity mezzanine funds
− Increasing the willingness of banks to grant more promotional loans of the Federation by retaining and
strengthening the system of guarantor banks
− SME-friendly implementation of the new international
rules on equity capital requirements for financial institutions in German law (“Basel II”)
− Act on Protection of Receivables (ForderungsIncreasing the number of successsicherungsgesetz) with the goal of improving clients’
ful start-ups by women, awarewillingness to pay
ness-creation among pupils for
self-employment and teaching
1.7 Mobilisation of venture capital for innovation:, incl.
− Expanding the fund for start-ups and young technology basic skills, support for fastenterprises (high-tech start-up fund, ERP start-up fund, growing start-ups in the initial
phase, making it easier to transfer
ERP/EIF umbrella fund) with partners from industry
from higher education to the market.
2. Measures taken by the Länder:
2.1 Measures to strengthen entrepreneurial spirit at
schools
− Management game competitions for playful training of
entrepreneurial competences
− Development of training modules for further training of
teachers in entrepreneurship
− Support in building up pupils’ and practice firms
− Designing lesson units with entrepreneurs
2.2 Start on Campus Initiative
− Management for awareness creation among students
− Start-up training at higher education institutes
− Promotion of incubators and networks to support startups from higher education institutes and research facilities
2.3 Programme to ensure the legal succession of enterprises
− Awareness-creation and available information
− Advisory and coaching programmes for old and new
owners
− Succession moderators in the chambers
74
Status and time schedule
Effective date
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Increasing growth in SMEs
The SMEs initiative was adopted by
the Federal Cabinet on 19 July 2006.
Effective date
− M.A. studies for taking over an enterprise
− Improved funding aid (e.g. surety option for unforeseeable follow-up investment)
73.
Strengthening the
framework for entrepreneurial activities;
Supporting SMEs on
foreign markets
IV.
9
10
12
Support of industry on foreign markets, including by:
− Federal Government efforts for the worldwide market
opening of goods and services and refining the worldwide trade rules in the world trade round
− Correcting and tightening up of the Foreign Trade and
Payments Act (Außenwirtschaftsgesetz) and the Foreign Trade and Payments Ordinance (Außenwirtschaftsverordnung), aiming to make it easier to
comprehend and apply
− Continuation of the export credit guarantees and investment guarantees in order above all to support the
technology-orientated export economy in opening up
difficult markets in developing and threshold countries
and to enable SMEs to gain rapid access to federal
guarantees
− Acceleration and debureaucratisation of the authorisation procedures in export control and the decisionmaking procedures for export credit guarantees
− Expansion of bilateral investment promotion and protection contracts and of federal guarantees to safeguard
investment abroad
− Continuation of the programme of attending trade fairs
abroad at a high level and from 2007 supplementation
to include a programme of promotion of participation by
young, innovative enterprises at major international
trade fairs in Germany in cooperation with the Länder,
especially in selecting the fairs
− Expanding the Chambers of Trade Abroad in cooperation with German industry
− Improving the enterprise-orientated services offered by
the Federal Office for Foreign Trade (bfai)
75
ongoing
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
− SME-orientated political assistance with projects abroad
74.
Improving the framework
for commercial activities;
opening up the potential
of an enterprise,
especially of
SMEs
75.
Improving the framework
for commercial activities;
opening up the potential
of an enterprise,
especially of
SMEs
IV.
9
10
12
“startothek” Internet platform with all requirements relevant
to start-ups, such as statutes, authorizations and ordinances at federal and Länder level
IV.
9
10
12
Combining and re-orientating training and advice promotion
for start-ups with the following main points:
Creation of transparency, uniform- offered via regional contact points
ity and efficiency in the start-up
- start-up phase defined to last for five years
field
- possibility for the Länder to improve the programme
conditions
Fehler! Verweisquelle konnte nicht gefunden werden.
76.
Reduction of subsidies
and tax exemptions
IV. D
1
3
77.
Reduction of subsidies
and tax exemptions
IV.
D
1
3
78.
Reduction of subsidies
and tax exemptions
IV.
D
79.
Reduction of subsidies
and tax exemptions
IV.
D
Simplification of the start-up advice
and creation of uniform contacts for
start-ups
introduced on
2 January 2006
Resolution of the Conference of Ministers of Economics of 7/8 June 2006 to
develop a coordinated, coherent
implementation
promotion system of the Federation from 2007
and the Länder
Fehler! Verweisquelle konnte nicht gefunden werden.
Budget consolidation
Act Abolishing the Home Ownership
Benefit of 22 December 2005
1 January 2006
Restriction of possibilities to offset losses
Spreading the fiscal assessment
base,
budget consolidation
Act Restricting Loss Write-offs in
connection with so-called Tax Deferment Models of
22 December 2005
1 January 2006
1
3
Incl. abolition of restricted tax exemption for settlements,
abolition of the deduction of special expenses related to
private tax advice, transition to linear depreciation with buyto-rent real estate
Spreading the fiscal assessment
base,
budget consolidation
Act Initiating an Immediate Fiscal
Programme of
22 December 2005
1 January 2006
1
3
Incl. restriction of the so-called 1% arrangement on vehicles among the necessary operating assets, explicit provision of an obligation to form valuation units in the fiscal
balance sheet
Spreading the fiscal assessment
base,
budget consolidation
Abolition of the home ownership benefit for new cases
76
Act to Reduce Abusive Tax Models of
1 January 2006
28 April 2006
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Incl. improvement of the fiscal deduction of child-care
costs, long-term care and care services and craftsmen’s’
services
Status and time schedule
Effective date
80.
Promotion of growth and
employment
IV.
D
81.
Reduction of subsidies
and tax exemptions
IV.
D
1
3
Reduction of the blanket distance rate to long-distance
commuters, increase in the top income tax for noncommercial income from 42% to 45%, restriction of the
fiscal deductibility of home offices
Spreading the fiscal assessment
base,
budget consolidation
Adopted by the Federal Parliament
and the Federal Council
1 January 2007
82.
Promotion of growth and
employment
IV.
D
13
Reform of corporate tax, especially reducing the tariff
burden on corporations
Improving
competitiveness
Draft Bill under preparation
1 January 2008
83.
Promotion of growth and
employment
IV.
D
14
Loosening up inheritance tax in enterprise succession
Improving
competitiveness
Draft Bill under preparation
1 January 2007
Fehler! Verweisquelle konnte nicht gefunden werden.
84.
85.
Opening the Investment
Act to favour publicprivate partnerships
Development of rural
areas
IV.F
Measures to increase employment Act for Fiscal Promotion of Growth and
1 January 2006
and economic growth
Employment of 26 April 2006
Fehler! Verweisquelle konnte nicht gefunden werden.
The amendment of the Investment Act is intended to make
it possible to incorporate public-private partnership project
Mobilisation of additional capital for
LL
public-private partnerships by
companies into open real estate funds’ portfolios up to
15,16 10 %, as well as to set up infrastructure funds as closed
expanding the investment possibilifunds in the shape of “public-private partnership investment
ties
corporations with fixed capital”
National Strategy Plan for the development of rural areas
with the following core elements:
- Increasing competitiveness, opening up new income
potential, as well as creating and ensuring jobs within
and outside agriculture and forestry;
- Improving the state of education, skills and innovation
potential;
- Strengthening environmental protection, nature conservation and animal protection, as well as improving
product quality;
- Safeguarding and developing cultural landscapes,
above all by land management;
77
Releasing the potential of rural
areas for growth and employment
impulses
Draft Bill under preparation (deliberation in coalition working party “PublicPrivate Partnership Simplification Act
[ÖPP-Vereinfachungsgesetz]“)
Implementation starts on approval of
the strategy plan by the Commission
(anticipated for autumn 2006)
anticipated for
1st quarter
2007
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
-
Expected effect
Status and time schedule
Sustainable development of small
and medium-sized towns, as well
as of villages; improving the competitiveness of the cities; creating
additional jobs and income opportunities, including outside traditional agricultural production, e.g.
in tourism and in renewable energies
ongoing measures;
no deadline
Conserving and improving the quality of life in rural
areas and diversifying the rural economy.
Congress of the Federal Government on the future of
rural areas in October 2006
Measures taken by the Länder:
- e.g. village renewal programmes, regional management
measures, cooperation between districts, etc.
86.
Making the towns and
cities more competitive
IV.F
16
Measures taken by the Länder:
− Attracting industrial re-location also by providing land
through land consolidation
− Urban renewal programmes (revitalisation of the inner
cities and town centres, creating identity and attractiveness in the centres, re-structuring, re-allocating and developing empty land, as well as ecological renewal in
problem areas)
− Urban planning promotion programmes (improving the
quality of the cities and municipalities as a place to do
business and live)
− Programmes for sustainable settlement development by
village renewal/development with the promotional goals:
ƒ revitalisation of town centres by creating identities
and attractiveness
ƒ development of empty land through re-allocation
and re-structuring, as well as ecological improvement
ƒ diversification of agricultural activities to become
non-agricultural income
ƒ improving the income possibilities in rural areas by
measures of structural, transport and economic policy
Fehler! Verweisquelle konnte nicht gefunden werden.
Fehler! Verweisquelle konnte nicht gefunden werden.
78
Effective date
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
Comprehensive overall strategywith a perspective until
2020, as a basis of German energy policy
87.
88.
The energy summit held at the beginning of April 2006
launched an extensive debate process in the framework of
the preparatory work for this strategy. Representatives of
the energy industry, industrial and private consumers, the
trade unions, the research and environmental associations,
supported by three working parties, are to draft proposals
in several central meetings which can serve as building
blocks for the overall energy policy.
Overall energy policy
concept
Environmental and
climate protection
VI.B
11
Measures taken by the Länder:
− environmentally-friendly enterprise management by
various promotional systems (environmental checks,
enterprise workshop and environment management according to the regulation on the eco-management and
audit scheme)
− promotion of in-house energy and material flow management
− support for the development of environmental products
(projects for integrated product policy and eco design
guideline climate protection concept)
− increasing the share of renewable energies in total
energy consumption by 2010 to 4.2% and by 2020 to
10%
− transposition of the EU-wide CO2 emission trading
system at Länder level
− incentives to modernise older buildings to save energy
(existing building energy saving programme, energy
saving check-up)
− targeted promotion programmes to expand renewable
energies and to implement CO2 reduction measures in
the private, commercial and local authority areas
− expansion of energy research (especially in fuel cell
technology and renewable energies)
− strategy to increase the share of alternative fuels
79
Longer-term energy policy framework, also as an orientation for
market players’ investment decisions
Transition to resource-saving,
environmentally-friendly production
and consumption patterns
Preparatory discussion process (energy summit): April 2006 to
1st half of 2007
Overall energy policy stratey:
2nd half of 2007
ongoing measures;
no deadline
not applicable
Renewable raw materials
/biomass
VI.B
Integrated
Guideline
89.
2005 NRP
No.
Measure/
Core task
11
Status of implementation
Description of measure
Expected effect
Measures taken by the Länder:
− Establishment of networking of the various research
facilities and organisations active in the area of the research and development of the use of renewable raw
materials; research programme on renewable raw materials and bioenergy; establishment and use of a bioenergy research platform
− Research project on gas production from biomass
(procedure to manufacture synthetic gas from dry biomass) as a contribution to the implementation of the
Transition to resource-saving,
ongoing measures; no deadline
Federation’s future fuel strategy
environmentally-friendly production
− Germany can achieve technological system leadership
in the use of biogenic gasses, e.g. in the manufacture of
synthetic gas from biomass, and exploit this at global
level.
− Biomass action plan as a contribution to the implementation of the European Union’s goals in the area of the
use of renewable energies; important development perspectives for rural areas which go beyond a merely regional dimension
Fehler! Verweisquelle konnte nicht gefunden werden.
90.
National
Allocation Plan 20082012
VI.A
11
Status and time schedule
Fehler! Verweisquelle konnte nicht gefunden werden.
Implementation of the market economic instrument of
emission trading.
The National Allocation Plan 2008-2012 (NAP II) has established the total allocation volume and the allocation
rules for the trading period 2008-2012, and at the same
Cost-efficient reduction of the CO2
time creates long-term calculable conditions for investment,
emissions of enterprises which are
whilst countering the weaknesses of the current emission
obliged to trade in emissions;
trading system, in particular in the area of the passing on of
investment in efficient, environmenelectricity prices, which should nonetheless be remedied as
tally-friendly plant
fast as possible by revising the EU’s directive in the framework of the coming review process.
The strong international competition in some energyintensive sectors was taken into account by differentiated
fulfilment factors in NAP II
80
−
−
−
−
NAP 2008-2012 adopted 28 June
2006
Notification in Brussels on
30 June 2006;
Draft 2012 Attribution Act (Zuteilungsgesetz - ZuG) under preparation;
Parliamentary deliberation on the
2012 Attribution Act in second
half of 2006
Effective date
92.
93.
94.
Cost-efficient climate
protection:
CDM-/JI initiative
Improving energy efficiency in buildings and
revitalizing the construction industry
Increasing energy efficiency in buildings and
revitalizing the construction industry
Federal Government’s
Fuel Strategy
VI.A
VI.B
VI.B
VI.C
Integrated
Guideline
91.
2005 NRP
No.
Measure/
Core task
11
11
11
11
Status of implementation
Description of measure
Implementation of a CDM-/JI initiative as an element of the
partnerships between the Federal Government and German industry.
1. Agreements on bilateral JI/CDM cooperation (Memoranda of Understanding) with many guest regions are
being negotiated under the management of the Federal
Ministry for the Environment, Nature Conservation and
Nuclear Safety or have already been signed.
2. Further measures planned in the initiative:
− refinement of the legal and institutional basis in Germany
− hedging of specific project risks
− financial contribution from the Federation
− marketing activities
Increasing the promotion volume for building renovation to
save energy in order to reduce energy consumption and
CO2 emissions. Euro 1.4 billion are to be made available
annually until 2009. This programme is composed of a
grant element, a tax element and energy-related measures
in federal buildings. The grant element (low-interest loans
and also subsidies after entry into force of the 2006 federal
budget) amounting to roughly € 1 billion annually will be
disbursed via the KfW-promotional bank.
Renewing the Energy Saving Ordinance (Energieeinsparverordnung) with introduction of the energy passport also
for existing buildings; additional energy-consumption requirements as to lighting and air conditioners of nonresidential buildings
Strategy for alternative fuels and innovative drives in the
context of the Sustainability Strategy for Germany
81
Expected effect
Status and time schedule
Reasonably-priced achievement of
the climate protection goals at
corporate level (EU emission trading);
improving competitiveness and
opening up foreign markets for
innovative climate protection technologies at all levels
(in particular industry and energy
supply / energy efficiency and
renewable energies)
Announced by the Federal Ministry for
the Environment
in December 2005.
Approaching the goal of renewing
in energy terms 5% per year of
buildings erected prior to 1978.
Promoted measures give rise to an
investment volume of Euro 28
billion, benefiting amongst others
small and medium-sized construction enterprises.
Promotion conditions currently under
review, then new contract concluded
between the Federal Republic of
Germany and the KfW
Deliberation in the context of the
Budget Act
(Federal Parliament 20-23 June 2006,
Federal Council 7 July 2006)
Increasing energy-related conversions in existing buildings
Discussion draft currently being deliberated in departments
The Fuel Strategy is to create
planning security and incentives for
investment.
Ongoing project:
Basis: Cabinet Resolution on “The
Road to Sustainability 2005” on
10 August 2005; publication of “Perspectives for Germany, a sustainability
strategy for Germany“, October 2004
Effective date
Loans:
1 February
2006
Subsidies:
Entry into force
of the 2006
federal budget
by end of 2006
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
95.
Biofuels Quotas Act
(Biokraftstoffquotengesetz)
VI.C
11
96.
Revision of the taxation
of energy products (Energy Tax Act [Energiesteuergesetz]) and
amendment of the Electricity Tax Act (Stromsteuergesetz)
IV.B
11
IV.B
11
97.
98.
Renewable energies
(Renewable Energies Act
[Erneuerbare EnergienGesetz – EEG])
Market incentive
programme for
renewable energies
VI.C
11
Status of implementation
Description of measure
Expected effect
Status and time schedule
Effective date
Draft Bill under preparation:
Cabinet: 9 August 2006
Federal Parliament: 1st reading Sept
2006
Anyone selling fuels will be obligated from 2007 to sell a
Increasing the biofuel share to 6 % Federal Parliament: 2nd/3rd reading
statutory minimum quota of biofuels. Biofuels are to be fully
1 January 2007
(related to energy content) by 2010 Oct 2006
taxed within the quota.
Federal Council: 1st reading Sept
2006
Federal Council: 2nd reading Nov
2006
Announced in the framework of the
Inter alia:
Act Revising the Taxation of Energy
Inter alia:
− improvement of the competiProducts and Amending the Electricity
− relieving the burden on high-electricity-consuming
tiveness of high-electricityTax Act (Gesetz zur Neuregelung der
enterprises of the production industries
1 August 2006
consuming industries
Besteuerung von Energieerzeug− adjustment of the fiscal promotion on biofuels to
nissen und zur Änderung des Strom− avoiding overcompensationof
changed cost structures
steuergesetzes) of 15 July 2006 in the
biofuelsproduction
Federal Law Gazette Part I p. 1534
Reducing the burden on highelectricity-consuming enterprises and
− Amendment of the Renewable Energies Act to improve
on the railways: Draft Bill adopted by
the competitive position of high-electricity-consuming
the Federal Cabinet on 14 June 2006
Ensuring safe, economic, environenterprises.
mentally-friendly energy supply
− Examination of the Renewable Energies Act as to its
Renewable Energies Act experience
economic efficiency (experience report)
report by end 2007; followed where
appropriate by an amendment of the
Renewable Energies Act
Promotion of solar collectors and modern wood heating
through subsidies. Last year, around 140,000 applications
were approved with an investment volume of almost
Euro 900 million. For this year, it is to be anticipated that
the investment that has been launched will increase in
volume. The promoted technologies have become more
economically viable, so that it has been possible to reduce
the promotion rates.
82
Reducing dependence on energy
imports, sparing the climate and
raw materials, increasing the regional added value and creating
future-proof jobs
Ongoing programme. New promotional guidelines in force since 21 June
2006
not applicable
99.
Renewable Energies
Export Initiative
VI.B
Status of implementation
Integrated
Guideline
No.
2005 NRP
Measure/
Core task
11
Description of measure
Expected effect
− increasing the export rate of
renewable energies serves to
increase the international competitiveness of the domestic reSupport for small and medium-sized enterprises in the
newable energy industry
renewable energies sector with the tools available to the
Ministry of Economics in foreign trade promotion in opening − export-induced production
up export markets. Measure is based on a Parliamentary
increase permits one to anticiresolution from 2002.
pate falling costs for renewable
energy products.
(expansion of the initiative to cover energy efficiency tech- − increasing the added value in
nologies under preparation)
Germany and job creation.
− spread of German renewable
energy technology abroad helps
protect the climate.
Status and time schedule
Effective date
ongoing measure;
no deadline
Fehler! Kein gültiges Resultat für Tabelle.
3.1.
Independently of the reforms, the subsistence guarantee for job-seekers that was introduced in early 2005 will be monitored by independent research institutes and reviewed in
terms of its effectiveness. Questions to focus on here include whether and if so, to what extent the various agencies implementing the system (Arbeitsgemeinschaften and licensed
local agencies) are successful in reintegrating thepersons in need. A relevant report is to be submitted to the Bundestag and Bundesrat at the end of 2008.
3.2.
Continued development of
SGB II
100.
Review of legal framework
for benefit distribution
VII.A
Cost of SGB II spread
101. across the Federal Government and the Länder
VII.A
Standardisation of standard
benefits in new and old
102.
Länder; redefinition of “unit
of need”
−
−
VII.A
−
Reformed legal framework for benefit distribution (continued
development of SGB II)
Increased efficiency of subsistence
guarantees for job-seekers, optimisation of legal framework for benefit
distribution
Act on the Continued Development of
Subsistence Guarantees for Job-Seekers –
2nd/3rd reading in the Bundestag
on 1 June 2006,
Bundesrat Plenary Assembly on 7 July
2006
probably 1
August 2006
Federal Government’s contribution to Länder costs
set at 29.1%
Planning security for Länder
First Act amending the Second Book of
the Social Code announced on 22 December 2005
1 January 2006
Clarifications to prevent SGB II provisions from developing in the wrong
direction
Act amending the Second Book of the
Social Code and other acts,
announced on 24 March 2006
1 July 2006
Benefits standardised across Germany
Redefinition of “unit of need “: under-25s included in
parental unit of need if still resident in the same household
More stringent regulations concerning the setup of a separate household for needy under-25s
83
Status of implementation
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Description of measure
130
Strengthening low-wage
103. sector/subsidised low-paid
employment
VII. C
22
Expected effect
Status and time schedule
Effective date
Results to be presented in the autumn;
transposition into law still unclear
probably 1
January 2007
Enhancing flexibility and employability on the labour market
Review of all existing regulations governing wage supplementation for low-wage earners in order to improve employment
opportunities for the long-term unemployed
Improved integration of low-qualified
workers and the long-term unemployed into the labour market
Modern immigration policy – Active integration into the labour market
Modern immigration policy
/ Active integration into the
104.
labour market
VII
19
Setup of an advisory and information network to integrate persons with a migration background into the labour market
4.4
Life cycle-oriented approach – Aligning labour market policy with demographic change
0
105.
Access to apprenticeships
Improvement in the situation of young people on the
labour market
106.
(conclusion of 2006 ER,
Section 38)
VII. B.
VII
B
23,18
18,
19,
23
Improved participation in standard
labour policy measures
Integrating young people into the labour market
Special Federal Government programme (EQJ) to provide introductory training for young people until 2007; continuation with
involvement of ESF to 2010 is under review
− Adopted by Federal Cabinet on 14 July
Improvement in the provision of
2004,
vocational training for young people
with low placement chances who
− Published in Federal Gazette on 5
failed to gain an apprenticeship place
August 2004, no. 145, p. 17385
also in the subsequent placement round − Continuation under review
Skills Agencies (Kompetenzagenturen):
As part of a nationwide model programme, Skills Agencies will
be set up as recognised providers of support for the professional
and social integration of particularly disadvantaged young people Prevention of social marginalisation of
from disadvantaged areas and structurally weak rural areas.
especially disadvantaged young peoTogether with young people who are difficult or impossible to
ple, and their integration into the
reach with existing measures, personal development plans are
labour market
developed that enable them to integrate into working and social
life, taking into account each person’s family and social background.
84
1 January 2005
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
0
Increase in the employment
107.
rate among women
108.
Promoting female entrepreneurs and female employment
109.
Reducing gender-specific
differences
VII. B.
VII. B.
18
Improving the rate of
employment among older
workers
Employment pacts for older
workers
111.
Federal programme
“Perspektive 50plus“
V.D
VII.B
VIII
B.
Status and time schedule
Promotion of gender equality, increase
in share of women in management
− Adoption of 2nd report in February
positions and future-oriented profes2006: Focus on women in management
sions, narrowing the pay gap, improvpositions
ing the work-life balance
9, 10,
12, 18
Female entrepreneurs’ agency and internet portal
The nationwide female entrepreneurs’ agency strengthens
framework conditions for women’s business activities
(www.gruenderinnenagentur.de).
The information portal www.frauenmachenkarriere.de provides dedicated support to women in planning and managing
their careers
Women’s professional and entrepreneurial potential is consistently leveraged
− Term: 2004 – 2007
− Term: 2004 - 2009
18
“Neue Wege für Jungs“
”Neue Wege für Jungs“ is a nationwide project to network initiatives designed to help boys plan their working and personal lives.
The activities encourage boys to reflect on male role perceptions.
More gender equality by overcoming
barriers in terms of boys’ career
choices
− Term: 2005-2007
2,
17,18
2, 17,
18
Effective date
Raising the share of women in the labour force
Agreement between the Federal Government and umbrella
business associations in Germany to promote gender equality, 2
July 2001
0
110.
Expected effect
Promoting employment among older workers
Review of regulations governing time-limited employment
contracts for employees aged 52 and over
Promotion of 62 regional projects by 93 participating Arbeitsgemeinschaften and recognised municipal agencies to encourage
the reintegration of long-term unemployed persons aged 50 and
over into working life
85
Improved employment opportunities
for older job-seekers; improved legal
and planning security
Bill under preparation
probably 1
January 2007
Contribution to improving employment situation and raising the rate of
employment among older workers; use
of regions’ potential to reintegrate
older unemployed persons into general
labour market
Resolved following agreement between
governing parties in Coalition Agreement
dated 11 November 2005
October 2005 to
December 2007
Special programme for
continued training for low113.
qualified and older workers
in companies
Integrated
Guideline
Federal programme
to create 30,000 additional
112. jobs for workers aged 58
and over
Status of implementation
2005 NRP
No.
Measure/
Core task
Description of measure
VIII
B.
2,
17,
18
Promotion of up to 30,000 work opportunities with top-up compensation (1-Euro-Jobs) lasting up to three years for older longterm unemployed persons
Contribution to preserving and activating the professional skills of older
persons in the framework of socially
recognised jobs
Federal Government resolution in April
2005; agreement between governing
parties in Coalition Agreement dated 11
November 2005
July 2005 to
December 2009
VII.
B
2,
17,
18
Targeted promotion of low-qualified and older unemployed
persons; continued training for older and low-qualified workers
Improving the integration of lowqualified and older unemployed persons; encouragement above all of
SMEs to provide continued training to
raise the general qualification level
Resolution of the Administrative Board of
the Federal Employment Agency
11 November 2005
2006
Act Further Developing Book Two of the
Social Code
1 August 2006
First reading in the Bundestag on 22 June
2006
1 January 2007
150
114.
Promotion of start-up
businesses founded by
unemployed persons
through start-up grants
VII.A
Consolidation of existing instruments to promote new businesses
19, 20,
founded by formerly unemployed persons into one, the new start21
up grant
155
115.
VII.
D.
18
Status and time schedule
Effective date
Restructuring support for start-up businesses by former unemployed persons
153
Promotion of rate of employment among women
(Conclusion 40)
Expected effect
More precise and efficient support for
start-ups
Improving the work-life balance
Creating a better framework for mothers and fathers
Parental allowance:
Parents who work no longer than an average of 30 hours a week
during the first 14 months of their child’s life receive a parental
allowance amounting to 67% of the labour income earned one
year before the birth (at least EUR 300, at most EUR 1,800), also
if the parents did not work prior to the birth. In the case of low
incomes below EUR 1,000/month the allowance is scaled between 67% and 100%ore the birth (at least 300 child'ositions and
future-oriented professions, narrowing the . As a rule, one parent
receives the allowance for 12 months only; exceptions are made
for single-parent families.
86
Promotion of gender equality in terms
of career and family life. Women are
expected to return to work sooner,
which reduces gender-specific differences concerning employment, unemployment and pay.
Promoting the work-life
balance
VII. D.
Integrated
Guideline
116.
2005 NRP
No.
Measure/
Core task
18
Status of implementation
Description of measure
Expected effect
Status and time schedule
Multi-generational homes
By 2010 a multi-generational home is to be set up in each county
and self-governing town. These homes create a platform for
interaction between all generations and for the provision of
family-related services.
Improved infrastructures for families
2006 - 2010
156
117.
118.
Increase in the number of
available day-care places
Increase in the quality of
day-care facilities
II.
C.
VII.
D.
18
23
II C
18
VII D
23
Enhancing the availability of all-day child care
Federal Government report according to Section 24a (3) SGB
VIII concerning an improved availability of day-care place for
children under three. The Day-Care Expansion Act, or TAG, of
27 December 2004 (Federal Gazette p. 3852) stipulates the
submission of an annual report by the Federal Government to the
Bundestag concerning the status of increasing the number of daycare places. The report details the status in 2005 and describes
municipal activities to expand facilities locally.
Increase in the number of available
day-care places
The quality of day-care facilities and family day care is to be
improved by the following nationwide measures:
- Language promotion in day-care facilities
- Educational and learning stories
- Implementation of the National Quality Initiative in day-care
facilities
- Child care exchanges
- Internet portal www.wissen-und-wachsen.de
- Online manual for family day care
- Training for family day care-givers
Higher-quality education and care for
infants and young children
87
The report and draft resolution were
discussed by the Cabinet on 12 July 2006.
Effective date
Integrated
Guideline
2005 NRP
No.
Measure/
Core task
Status of implementation
Description of measure
0
Promotion of work-life
balance, more gender
equality
(Conclusion 73),
Promotion of employers’
119.
contribution to improve
social cohesion (Conclusions 69, 70), Raising the
rate of employment among
women (Conclusion 34)
VII.D.
Expected effect
Status and time schedule
Promoting family-friendly HR policies
New elements of the company programme
“Erfolgsfaktor Familie. Unternehmen
gewinnen“
Raising awareness of family-friendly HR policies as management
instruments among entrepreneurs, executives and HR officers.
New elements:
- Guidelines concerning elements of a family-friendly corporate culture
17,18,
- Guidelines for in-company kindergartens
21
- Guidelines for returning to work after time out for the family (autumn 2006)
- Evaluation of company competition, including illustration
of best practices
Company programme to be launched in
the autumn of 2006
Family-friendliness is a trademark of
German businesses
Guidelines to be published in the autumn
of 2006
Company network
Information platform for (yet-to-become) family-friendly companies enabling communication and mutual support.
161
Company network launched in July 2006
Initiative "Local Alliances for Families“
Initiative “Local Alliances for Families”
120.
Improving work-life balance
VII.D
18
The initiative involves a series of local alliances for families run
by partners from politics, business and society that aim to network their family-friendly activities and develop new ideas,
especially concerning work-life balance and child care.
88
Promoting work-life balance and
improving the availability of (flexible)
child care facilities
ongoing
319 local family alliances
(as at 27 June 2006)
Effective date
Anhang zum Nationalen Reformprogramm 2006
Structural indicators for Germany in 2005
Target
2010
GDP per capita
(PPS, EU 25 = 100)
Labour productivity per person employed
(PPS, EU 25 = 100)
DE
EU 25
EU 15
109.7
100.0
108.4
101.6
100.0
106.1
Employment rate - total
(%)
70.0
65.4
63.8
65.2
Employment rate - females
(%)
60.0
59.6
56.3
57.4
Employment rate of older workers - total
(%)
50.0
45.4
42.5
44.1
71.0
76.9
74.1
2.49
1.86
1.92
16.0
17.1
17.1
104.1
100
103.7
16
16
17
5.0
3.9
3.3
6.2
12.2
11.1
81.5
92.0
98.3
Energy intensity of the economy *
158.80
204.89
187.48
Volume of freight transport *
107.5
104.7
105.3
Youth education attainment level - total
(%)
Gross domestic expenditure on R&D *
(% )
3.0
Business investment *
(%)
Comparative price levels
(EU 25 = 100)
At-risk-of-poverty rate after social transfers total *
(%)
Long-term unemployment rate - total
(%)
Dispersion of regional employment rates total *
Total greenhouse gas emissions °
( 1990/1995 = 100)
Source: Eurostat,
* 2004, ° 2003
79