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OECD Economic Surveys: Germany 2006

image of OECD Economic Surveys: Germany 2006

This 2006 edition of OECD's periodic survey of Germany's economy finds economic activity still weak and uneven, and recommends reforms in a number of areas. Special chapters cover regaining fiscal credibility and improving public efficiency; improving the education system, gaining flexibility in the labour market, and opening up competition in services and network industries.

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Fostering Product Market Competition Would Have Large Benefits

Much scope remains to make regulation of product markets more conducive to competition – notwithstanding progress in recent years –, with substantial benefits for consumer welfare, productivity and employment. While the general competition legislation and enforcement framework is mostly effective, measures need to be taken to reduce administrative burdens on entrepreneurship and reduce the involvement of the government in business sector activities, notably through accelerated privatisation. Policies favouring small enterprises need to be revised, with a view to fully exposing them to competition and avoiding disincentives for small firms to grow.

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