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DEUTSCHE BANK RESEARCH CALLS REFORM OF EUROPE'S IMMIGRATION AND AGRICULTURAL POLICIES CENTRAL TO ECONOMIC VITALITY OF EUROPE, GERMANY

DEUTSCHE BANK RESEARCH CALLS REFORM OF EUROPE'S IMMIGRATION AND AGRICULTURAL POLICIES CENTRAL TO ECONOMIC VITALITY OF EUROPE, GERMANY
 FRANKFURT, Germany, May 21 /PRNewswire/ -- "Even measured by its own dubious goals," writes Deutsche Bank Research on European agricultural policy, "it can hardly be acclaimed a success, and now it can no longer be reasonably financed." This observation is made in the latest issue of DB Research's Bulletin, a quarterly survey of economic and monetary issues.
 In addition to providing a critical examination of the EC's farm policy, the Bulletin also reports among other topics on Germany's migration policies and the performance of the Treuhand, Germany's privatization agency.
 A more rational agriculture policy is central to the issue of integrating the reforming economies of eastern Europe into the world market. "If the EC presumes to give these countries theoretical instruction on the workings of the free-market system, it can hardly refuse them entry to the market in precisely those areas where they can actually exploit a comparative advantage," notes DB Research.
 The institute adds that continued protectionism would mean another financial burden for eest European consumers -- in addition to the costs of the current agriculture policy -- due to the social dislocation it would cause in eastern Europe's farm sector. Among the facts and figures cited: farm products account for only 10 percent of world trade and net agricultural output contributes less than 3 percent to the OECD countries' GDP.
 In the face of an aging population and shrinking workforce, Deutsche Bank Research's quarterly publication also addresses Germany's need for a more rational immigration policy. The labor supply will decline by 4 million by 2010 under the current rate of attrition. By then, the number of retirees per 100 working individuals will rise from 28 to 35.
 "There is no evidence to support widespread fears that immigrants are taking jobs away from German workers," DB Research notes, whereas an increase in the immigrant workforce would eliminate bottlenecks and enhance labor market flexibility to spur overall growth. "Admission (to Germany)," the institute suggests, "can be made contingent on competence in the language and professional qualifications, or a clear willingness to acquire both."
 Another key topic of the current edition of the Bulletin is an assessment of the Treuhandanstalt, Germany's privatization agency. Having sold roughly 6,300 companies by the end of March 1992, with an average of 400 companies a month in 1991, "The Treuhand's sell-off of state-owned assets is the largest privatization campaign in history," according to DB Research. In addition, just under 20,000 small and medium-sized companies have already been sold. All in all, over 1 million jobs have been secured by Treuhand efforts while privatization proceeds were in the range of DM 22 billion at the end of March. Including follow-on investments agreed at the time of sale, that total rises to DM 130 billion.
 Measured in terms of pledged investments and jobs guaranteed, French companies top the list of foreign investors active in eastern Germany with DM 2.3 billion and almost 15,000 jobs, respectively. In terms of numbers of acquisitions, French investors rank third with 46 purchases. The Swiss are first in that particular category, having bought 60 companies, followed by the United Kingdom with 56 purchases. U.S. firms -- above all their German and other European subsidiaries -- have bought 19 companies, pledging investment totalling DM 1.5 billion. The Japanese have so far only bought three companies, two of them by European subsidiaries.
 -0- 5/21/92
 /NOTE: For a copy of the complete text, contact Ute DeFarlo, vice president, communications, TransAtlantic Futures, Inc., Washington, D.C. Telephone, 202-462-1222; Fax, 202-462-1229./
 /CONTACT: Dieter Brauninger of Deutsche Bank Research, in Frankfurt, 011-49-69-7100-7208/ CO: Deutsche Bank Research ST: IN: FIN SU:


MH -- DC010 -- 2690 05/21/92 09:49 EDT
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