DIW Weekly Report

Government Consumption Stabilizes the Economy in the Short Run; Tax Cuts Have a Stronger albeit Delayed Effect

The reform of the debt brake and the special fund for infrastructure and climate neutrality have considerably expanded Germany’s fiscal space. The associated fiscal policy shift not only opens up opportunities for additional public investment: The new funds can also be used for more government consumption. At the same time, the federal government has also provided revenue-side stimulus through tax ...

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China’s Dominance in Shipbuilding and U.S. Trade Policy Create New Risks for Europe and Other Trading Partners

China is now the dominant builder of the world's commercial shipping fleet, building more than half of new ships in 2025. Using new data combining maritime transaction records, ship registries, and vessel positions, this report shows how deeply Chinese-built ships are now embedded in global trade. With new US port fees on Chinese-built vessels potentially starting in November 2026, this report further ...

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An Underestimated Policy Lever: The ECB’s Collateral Policy Supports Financial Markets and Reduces Uncertainty

A central bank’s collateral policy determines which assets banks may use as collateral for refinancing operations. Thus, it is a critical tool for providing the banking system with liquidity while simultaneously stabilizing it. Using a high-frequency identification approach, this study examines how the European Central Bank’s collateral policy influences banks, financial markets, and government bond ...

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Energy Price Shock Slows German Economy - Global Growth Remains Moderate

The German economy is failing to gain momentum after three weak years. At the turn of the year, a modest recovery appeared to be taking hold, driven primarily by domestic demand and private consumption. However, in addition to the structural problems already present, the German economy must now also contend with the consequences of the Iran War. The energy price shock has halted the recovery before ...

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Photovoltaic Manufacturing in the EU Requires a Unified Industrial Strategy

Solar photovoltaic (PV) electricity is critical for providing Europe with a steady supply of decarbonized energy at competitive prices. To ensure the supply of solar PV modules, the European Union (EU) aims to meet 40 percent of its demand with domestic products by 2030. To achieve this goal, EU Member States no longer need to base their support for PV projects solely on price under the NZIA, but can ...

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The Rise in Absenteeism in 2022 Is Only Partly Due to Electronic Sick Notes

In Germany, employee absences due to illness rose sharply, particularly in 2022. Various sources argue that the introduction of the electronic certificate of incapacity for work (eAU) caused this. Official data previously did not include absences that were not reported to health insurance providers; since the introduction of the eAU, this is no longer the case. This gap does not exist in Socio-Economic ...

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Climate Concerns Are Increasingly Affecting Germans

Climate change triggers anxiety in many people. Concerns about the consequences of climate change vary significantly not just by age and generation but also over time. Using German Socio-Economic Panel (SOEP) data, this Weekly Report examines the extent to which these differences stem from age-related effects, generational socialization, or year-specific events. The results show that climate concerns ...

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Municipal Investment: Potential and Limitations of the Special Fund for Infrastructure and Climate Neutrality

Municipalities play a key role in providing public services, but despite rising gross investment, there is a significant erosion of assets: real investment growth remains insufficient and net investment continues to be negative. The Special Fund for Infrastructure and Climate Neutrality (SVIK) can help strengthen local government investment activity and reduce regional disparities. Based on a scenario ...

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AI Transformation Potential Impacts Both Men and Women in the Labor Market

Technological progress in the field of generative artificial intelligence (GenAI) is set to radically transform the labor market. The transformation potential of AI varies greatly across occupations. Given that the German labor market is strongly segregated by gender, it is important to examine whether GenAI-driven transformation will affect women and men differently. When data on AI transformation ...

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Cannabis Use Largely Stable Following Partial Legalization; Cocaine Use Has Been on the Rise for Several Years

Two years after the partial legalization of cannabis, this Weekly Report examines current developments in the German cannabis and other illicit drug markets. The analysis is based on police crime statistics, survey data, wastewater data, and price information. The number of recorded cannabis and drug offenses declined noticeably in 2024, primarily reflecting a statistical effect. Regarding cannabis ...

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