Germany: Staff Report for the 2006 Article IV Consultation

Author: International Monetary Fund

Volume/Issue: Volume 2006 Issue 438

Publication date: December 2006

ISBN: 9781451810530

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Labor , Economics- Macroeconomics , Public Finance , ISCR , CR , deficit , fund staff projection , core rate of inflation , government , rate , unemployment insurance rate , staff appraisal , labor productivity growth , Commercial banks , Employment , Cooperative banks , Wages , Global , Europe

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Summary

The three-point VAT increase is part of a package in which unemployment payroll taxes will be reduced. Risks to the recovery are balanced but the range of forecasts for 2007 is unusually wide. The priority for Germany is to transmit its external strength to the domestic economy, thus further broadening the recovery and creating conditions for sustained high growth. The authorities are undertaking a review of active labor market policies (ALMPs) with a view to curtailing their number.