1. Economic Trends in Germany Andreas Gursch Acting Director German Trade Office Taipei

2. Survey - Review to 2005, End of Schröder-era - Analysis of Germany´s economic situation - The year 2006, The Merkel-era - Germany´s foreign affairs - Germany´s economic outlook - Germany´s best technologies

3. Review: End of Schröder era 2005 GermanyWestEast Unemployed 4,7 Mil.3,2 Mil.1,5 Mil. Rate11,4 %9,6 %18,2 % Vacancies460.000360.000100.000 Unemployment in August 2005

4. Economic spirit in 2005: How is your business outlook? Companies „All right“20 % „Rather good“51 % „Rather bad“22 % „bad“7 %

5. Analysis of Germany´s strength - World´s market leader in export - High innovation; „Land of ideas“, most patent applications worldwide - High qualified employees - Very good infrastructure - World´s leader in environmental protection and protection of natural resources - Small and medium sized companies as driver of economic cycle - High degree of social peace

6. Analysis of Germany´s flaccidities - Domestic demand is too low - Economic growth below average in the EU - Problems with educational system asserted by the european PISA-study - Social peace attacked by „Hartz IV“-law - 3 % budget deficit limitation by the EU complicates investment

7. The Merkel-era, the year 2006 Unemployment in 2006

8. 20052006 „All right“20 %32 % „Rather Good“ 51 % „Rather bad“22 %15 % „Bad“7 %2 % Economic spirit in 2006: How is your business outlook?

9. What happened? Schröder - AGENDA 2010 - Employment law (liberalisation of job protection) - „Hartz IV“-law - Environmental technology Merkel - Fiscal reform - Tax reform - Social law (health)

10. Hightech-Masterplan - Incentives for more venture capitalism - Encourage people to start their own enterprise - Support programmes for research companies - „Knowledge makes markets“-campaign to support co-operation between small-and-medium-sized- enterprises and universities research institutes - Advancement of innovation in small-and-medium- sized- enterprises - Counteract the lack of specialized staff

11. Germany´s foreign affairs Presidency of the European Union in 2007 Presidency of the G 8 in 2007

12. Main focus of G 8 Presidency „Growth and responsibility“ as a guiding theme  Design of globalized world economy  Development of Africa

13. Main focus of EU presidency  European constitution  Design of economic, social and ecological future  Area of freedom, peace and law  Common foreign and safety policy

14. Germany´s economic outlook 2007 is supposed to become a booming year! - VAT-raise of 3 % surprisingly doesn´t stop growth of domestic demand - Consequently tax revenue raises and budget deficit is minimized - Unemployment rate is supposed to lower from 10.8 % in 2006 to 8.8 % - Expansion of industry production and even the building industry

15. Germany´s best technologies  Automotive sector  Renewables sector  Electrical and machinery sector

16. Thank you for your attention For more information about German companies and technologies please contact the German Trade Office Taipei 4F, No.4, Min-Sheng E. Rd.,Sec. 3 Taipei 104, Taiwan Tel: +886-2-2506-9028 Fax:+886-2-2506-8182 http://taiwan.ahk.de