Germany’s attractiveness as a business location has taken a hit in recent years. According to the Foundation for Family Businesses’ Country Index, Germany currently ranks 18th out of 21, and it is second to last in terms of taxation. Tax conditions play a crucial role in Germany’s long-term prospects, and without measures to bolster its tax allure, a substantial climb in the country index seems improbable.   In the October 2023 edition of ZEW Monthly, the spotlight is on “Corporate Taxation”, providing insight into the Mannheim Tax Index and highlighting the challenges Germany faces in the international tax competition. Additionally, ZEW researchers are currently examining the return to a 19 per cent VAT rate in the hospitality sector and changes in women’s savings behaviour due to pension reforms. RESEARCH ON CORPORATE TAXATION ↗ GERMANY RISKS LOSING ITS ATTRACTIVENESS IN INTERNATIONAL TAX COMPETITION    The current Mannheim Tax Index from ZEW Mannheim shows that Germany has lost further ground in international tax competition. This is particularly due to France having lowered its corporate tax rate in recent years. With that said, Germany’s corporate tax burden is now the highest when directly compared with important competitors. The effective average tax burden of a profitable investment project in Germany in 2022 is 28.8 per cent, exceeding the EU average by 10 percentage points.   More about the Mannheim Tax Index   ↗ ZEW AND UNIVERSITY OF MANNHEIM RECEIVE 1.6 MILLION EUROS FOR JOINT TAX RESEARCH    The Leibniz ScienceCampus MannheimTaxation, a joint initiative of ZEW Mannheim and the University of Mannheim, will receive 1.2 million euros in research funding from the Leibniz Association over a period of four years.   More about MannheimTaxation     ↗ BACK TO 19 PER CENT VAT IN THE FOOD SERVICE INDUSTRY    During the COVID-19 pandemic, the value added tax (VAT) rate for the food service industry was temporarily reduced from 19 to seven per cent. This subsidy that entails annual tax losses of three billion euros is due to expire at the end of 2023. A ZEW analysis now shows that the return to 19 per cent taxation makes economic sense and is socially just, because challenges such as structural change, inflation and labour shortages affect other sectors just as heavily.   More about the ZEW expert brief AT A GLANCE ↗ ALTERED SAVINGS BEHAVIOUR DUE TO PENSION REFORM    In 1999, a pension reform raised the retirement age for women from 60 to 63, affecting those born in 1952 or later. This reform has had a significant – albeit individually variable – impact on the working lives of those affected. A recent study by ZEW Mannheim and the University of Mannheim reveals that women have been taking this reform into consideration early on and, as a result, save less and spend more money during their working years compared to before the pension reform. However, women born in 1952 or after still enjoy higher incomes during retirement. More about the ZEW study CURRENT ZEW TOPICS ↗ CLAUDIA VON SCHUTTENBACH APPOINTED NEW MANAGING DIRECTOR OF ZEW MANNHEIM     The Supervisory Board of the ZEW – Leibniz Centre for European Economic Research in Mannheim is pleased to announce the appointment of Claudia von Schuttenbach as the institute’s new managing director. Ms. von Schuttenbach will assume her role on 1 March 2024, succeeding Thomas Kohl, who will be retiring. Kohl has devoted over 31 years to various roles at ZEW, serving as the managing director since 2004 and co-leading the institute with Professor Achim Wambach since 2016.   Find out more   ↗ ZEW HEALTH ECONOMIST SIMON REIF APPOINTED AS PROFESSOR    Professor Simon Reif, head of ZEW Mannheim’s “Health Care Markets and Health Policy” Research Group, has accepted a joint position at Friedrich-Alexander-University of Erlangen-Nuremberg (FAU) and ZEW. He has accepted a professorship in economics with a focus on health markets in the Department of Economics and Social Sciences at FAU, effective 1 October 2023.   Find out more   ↗ ZEW AT THE VFS ANNUAL CONFERENCE 2023 IN REGENSBURG    More than 800 scholars gathered from 24 to 27 September 2023 to exchange ideas at the annual conference of the Verein für Socialpolitik (VfS), which took place at the University of Regensburg. In celebration of its 150th anniversary, the largest economists’ association in the German-speaking world has chosen the theme “Growth and the Social Question” for this year’s gathering. ZEW Mannheim was once again actively participating with numerous contributions and had an information stand on site.   Read the event report ↗ AN AUCTION SERVES THE PURPOSE OF ENSURING SUPPLY BETTER   The Federal Network Agency recently unveiled a draft outlining the framework for allocating mobile radio frequencies from 2026 onward. Rather than opting for an auction, the agency contemplates extending current usage rights, set to expire in 2025, until 2033.   Read the full opinion piece EVENTS ↗ ZEW LUNCH DEBATES MARKET FOR EU EVALATIONS LACKS COMPETITION    Around 30 per cent of the current EU budget is allocated to cohesion and structural policy, striving to close economic gaps between European Member States. To assess the success of this policy, robust evaluations are key. On 18 October 2023, ZEW economists Professor Friedrich Heinemann and Dr. Zareh Asatryan discussed the requirements for cohesion policy evaluations and the need for reform with high-ranking representatives from politics and business before an audience of approximately 120 guests at the Lunch Debate in Brussels.   Read the full event report ↗ MANNHEIMTAXATION ANNUAL CONFERENCE TAX CONFERENCE CELEBRATES ANNIVERSARY    The MannheimTaxation Annual Conference, organised by ZEW Mannheim and the University of Mannheim, marked its tenth edition in September 2023. The milestone event was a resounding success. The conference coincided with the recent extension of the Leibniz ScienceCampus, providing additional cause for jubilation. Over 80 participants from around the world engaged in discussions during twelve presentations and two poster sessions, covering 43 current works in the field of tax research. The keynote speakers were Professor Joel Slemrod from the University of Michigan and Professor Rebecca Lester from Stanford University.   Read the full event report UPCOMING ↗ MIFE ANNUAL CONFERENCE THE FUTURE OF FINANCIAL EDUCATION: AIMING FOR EFFECTIVITY, SUSTAINABILITY, AND INCLUSION    Financial education is on the rise and in many places it is receiving the attention it needs in view of the current challenges. But what does effective, sustainable, and inclusive financial education look like for all population groups? What content should be addressed, when, for whom and by whom? Which teaching-learning arrangements should be used? What educational policy and contextual conditions are needed? These and other questions on financial education of the future will be discussed at the Third MIFE Annual Conference on 20 November in Mannheim with high-ranking representatives from science, politics, and practice.   More about the event → CONTACT FOR QUESTIONS OR SUGGESTIONS ON THE CONTENT Dr. Frank Herkenhoff | frank.herkenhoff@zew.de EDITORIAL TEAM   Yvonne Bräutigam // CvD   Simone Mann // Design   Julia Glashauser // Online Communi­cations Officer   Pascal Ausäderer // Press Officer     Funded by:     ZEW – Leibniz Centre for European Economic Research L7, 1 · 68161 Mannheim Phone: +49 (0)621/1235-01 E-mail: zewmonthly@zew.de Website: www.zew.de   Executive Directors: Professor Achim Wambach, PhD; Thomas Kohl Chair of the ZEW Supervisory Board: Ministerial Director Dr. Hans Reiter Registered Office: Mannheim Local Court Mannheim HRB 6554 USt-IdNr.: DE188318292   Commitment to Data Protection   Detailed Legal Note   Notification on the General Data Protection Regulation (GDPR)   Unsubscribe from ZEW Monthly