Made in Germany | EU farm subsidies German
The Lдnder are not the only ones to subsidize or support some federal industries it is a massive and growing degree Despite Germany's commitment to a social market economy, exceptions to market principles existed in West Germany and proliferate in Germany reunified German economic institutes and experts have repeatedly warned that the authorities at various levels have supported many economic activities that should have been abandoned or forced long since become federal authorities competition and earth have ignored the complaints of economists, but have generally promised to reduce or eliminate subsidies achievable soon.
Before unification, the West German government and various Lдnder supported a number of industries and services, such as coal, steel, aerospace, shipbuilding and agriculture, with activities of federal support in counseling and Lдnder support to important and influential local industries between 1970 and 1989, the total volume of subsidies, including those paid by the European Community EC - see Glossary, went from DM12 billion DM45 billion over the level of subsidies has increased almost continuously, even after Kohl took office and his government had committed itself to reduce While some categories of subsidies - such as agriculture - were not fully in West Germany, but under control EC even the party designated specifically for German farmers have also increased by 250 for this nt in 1980 overall, the federal government provided about a third of total West German subsidies the other two thirds come from the Lдnder and t end it localities 1980s and early 1990s, total usually has an average of about 6 percent of west German GDP, although it has increased due to unification.
Despite concerns about West German subsidies, an organization for cooperation in 1990 and the OECD Economic Development - see Glossary survey of Germany concluded that German subsidies are not unusually high by the standards of EC OECD describes as the average for OECD countries Separate International monetary Fund IMF - see Glossary and Ministry of Finance studies reached a similar conclusion, indicating that Germany 's West was actually a little below average among members of the Ec in subsidies.
Although these findings could provide some comfort for policy, it remains true that some German industries - particularly in coal complex of traditional steel - dependent on subsidies to the point that they should be closed if they do not receive support from the government in one way or another, but subsidies are often paid even some of the biggest German concerns and more profitable, such as Daimler-Benz, Siemens, Bayer and Volkswagen, for special production lines or research These companies generally reported that the grants cover only a small part of their expenses.
After unification, the combined subsidy western and eastern budgets have increased even more, and the new government of reunited Germany has found himself compelled to provide more grants in order not to allow an excessive level of structural unemployment in former East Germany the official East German statistics suggested that the level of subsidies in the GDR budget was 30 percent, but in reality, the level may be much higher because of the generally low level productivity in the GDR Although no total figure of German subsidies are available in the confusion and diversity of programs since unification, the government has already promised to keep a number of unprofitable enterprises in eastern Germany as the steel complex around Eisenhьttenstadt and docks shipbuilding around Rostock in production until they become competitive - that will not be for decades, if any at all.
Government grants Germany, Germany, government subsidies, the West German subsidies.