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2006 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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The Performance of the Education System Needs to Improve

While average educational attainment in the population of working age is relatively high, with most individuals possessing at least an upper secondary degree, the tertiary graduation rate is one of the lowest in the OECD and secondary schooling outcomes are in need of improvement. Improving access to early childhood education, as well as a more consistent evaluation of school performance against nation-wide or state-wide performance standards, coupled with more school autonomy, notably in staffing decisions, can contribute to raising secondary education outcomes. Universities need to be given better incentives to offer attractive degree programmes with relatively short study duration, by making funding of universities more outcome-oriented and by further strengthening their autonomy with respect to budgetary, administrative and personnel decisions as well as student admissions. Student fees, coupled with a loan scheme and an income-contingent repayment scheme, should be introduced in all states.

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