2004 OECD Economic Surveys: Germany 2004

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Germany’s strong export performance is helping to restore growth, but in this 2004 review of Germany’s economy, OECD suggests further measures to create confidence and strength in the economy. In particular, OECD carefully examines linking fiscal consolidation to public sector reform, measures to create employment, and fostering product market competition. This edition’s special feature looks at how to improve Germany’s capacity to innovate.

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Increasing the Capacity of the Economy to Create Employment

The government has embarked on a substantial reform programme, improving incentives for individuals out of work to take up jobs and for firms to hire workers. Indeed, the protracted weak performance of the labour market continues to underline the need for labour market reforms. Further progress is necessary to ensure that the reforms achieve a substantial and lasting increase in employment, as outlined below. The Annex summarises recommendations for structural reform and action taken since the 2003 Economic Survey.

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