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Possible effects of the proposed EU Services Directive on the German economy

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  • Gernot Nerb

Abstract

The Ifo Institute and DIW, Berlin, have analysed the expected structural effects of the planned EU Services Directive. The evidence indicates that the employment effect will differ greatly depending on the industry branches. In Germany, manufacturing should profit from the broader and more economical offerings of services but also from the liberalisation in the provision of product-oriented services in other EU countries. But also the service sector in the narrower sense will profit from the stronger growth dynamics in Europe. This applies especially to R&D consulting, service providers in the area of technical, physical and chemical analyses, as well as advertising. Here there will be opportunities for market expansion for German providers that have high-quality standards. On the other hand, for services marked by a high level of intra-regional tradability and a relatively low portion of highly trained specialist, such as construction, industrial cleaning services, auto sales and employment services, the risks from cheaper service importers are relatively high.

Suggested Citation

  • Gernot Nerb, 2006. "Possible effects of the proposed EU Services Directive on the German economy," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 59(05), pages 19-24, March.
    • Handle: RePEc:ces:ifosdt:v:59:y:2006:i:05:p:19-24
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    References listed on IDEAS

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    4. Henk Kox & Arjan Lejour & Raymond Montizaan, 2004. "The free movement of services within the EU," CPB Document 69.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    5. repec:ces:ifosdt:v::y:2006:i::p:06-27 is not listed on IDEAS
    6. Henk Kox & Arjan Lejour & Raymond Montizaan, 2004. "The free movement of services within the EU," CPB Document 69, CPB Netherlands Bureau for Economic Policy Analysis.
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    Cited by:

    1. Ronald Bachmann & Thomas K. Bauer & Hanna Frings, 2014. "Minimum Wages as a Barrier to Entry: Evidence from Germany," LABOUR, CEIS, vol. 28(3), pages 338-357, September.
    2. Ronald Bachmann & Thomas K. Bauer & Hanna Kröger, 2012. "Minimum Wages as a Barrier to Entry – Evidence from Germany," Ruhr Economic Papers 0329, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Yvonne Wolfmayr & Kurt Kratena & Peter Mayerhofer & Jan Stankovsky, 2006. "Teilstudie 13: Exporte von Waren und Dienstleistungen stärken die Nachfrage," WIFO Studies, WIFO, number 27452.
    4. repec:zbw:rwirep:0329 is not listed on IDEAS

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    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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