German companies shift R&D jobs overseas

mkpdavies · 02-02-2005, 03:32 AM

http://news.ft.com/cms/s/840adf26-74...00e2511c8.html

Quote:

About half of all German companies that invest in research and development abroad have been reducing their research capacities at home, according to a study published yesterday.

The shift of highly qualified R&D jobs is strongest among companies that have moved production capacities to low-cost labour markets, and leads to an "offshoring" spiral, according to a survey conducted by the DIHK, the umbrella organisation for German chambers of commerce.

This is terrible news for Germany. If they are leaking R&D jobs too, then they are in freefall. Germany has been tied up in EU red tape and it's economy being tied to the Euro has made it helpless in many ways. The German people must be asking themselves what the EU has brought to them?

Quote:

"Germany's appeal as a place to conduct research is fading," said Ludwig Georg Braun, president of the DIHK, commenting on the survey, "and it will fade further if the government fails to react."

The poll will also add weight to the warnings of economists ranging from Hans-Werner Sinn, head of the Ifo institute, to Bert Rürup, one of the five economists who advise the government, that Germany is turning INTO phpbb_a trade-based economy as its manufacturing and research capacities are thinning.

Bad, bad news. The powerhouse that was the German economy looks shakier by the day.

mkpdavies · 03-02-2005, 05:20 AM

http://www.nytimes.com/2005/02/03/bu...ss/03euro.html

Quote:

The number of unemployed people in Germany rose to five million last month, the most in the post-World War II period, as the government transferred some longtime welfare recipients to the jobless rolls

.

The Germans are scrEUd. So much for the Euro. So much for the single market. Their living standards are falling, and sooner or later tehy are going to start getting angry.

Quote:

"I'm skeptical that the E.U. can achieve a lot in this area," said Daniel Gros, the director of the Center for European Policy Studies in Brussels. "Nobody wants to say that the emperor is basically naked."

Germany is starting to overhaul its economy, Mr. Gros said, but not in response to any directive from Brussels. Facing competition from the new European Union member states, and lacking much latitude to loosen its fiscal or monetary policies, the German government has little choice but to go to work on its underlying rigidities, including the labor market.

That says it all! The EU myth that it is good for trade and the economy is bogus. Countries have sold their souls and sovereignty for what excatly?

Ireland is the only real benifactor in the short term. Even tehy will pay longer term as the subsidies dry up. Dear, dear me!

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