The Wolfram-Engels-Prize is awarded to Minister of Finance Dr. Wolfgang Schäuble

Prof. Dr. Lars P. Feld, Prof. Dr. Theo Siegert, Dr. Rainer Hildmann, laureate Dr. Wolfgang Schäuble, Prof. Dr. Clemens Fuest, Prof. Dr. Nikolaus Schweickart und Prof. Dr. Michael Eilfort (left to right)

Awarded with the Wolfram-Engels prize 2016: Dr. Wolfgang Schäuble, German Minister of Finance.

Prof. Dr. Theo Siegert, president of the board of trustees of the Stiftung Marktwirtschaft explains the jury's choice.

The Spring Meeting of Stiftung Marktwirtschaft and the award ceremony for the Wolfram-Engels-Prize took place in Kronberg, where Stiftung Martwirtschaft and Kronberger Kreis were established.

Prof. Dr. Clemens Fuest, member of Kronberger Scientific Council and president of the ifo-Institute, honouring the laureate.

Schäuble donated the prize money of the Wolfram-Engels award to the NGO, Deutsches Rotes Kreuz, in order to help Syrian refugees in the neighbor regions of Syria.

Photographs © by Kay Herschelmann

The Wolfram-Engels-Prize 2016 is awarded to the German Minister of Finance Dr. Wolfgang Schäuble

The Stiftung Marktwirtschaft has awarded Dr. Wolfgang Schäuble, the German minister of finance, the Wolfram-Engels-Prize on the 8th of April. The Jury honoured Schäuble for his part in improving the fiscal autonomy of states and municipalities as well as his efforts to maintain the principle of liability during the European debt crisis. The Jury also acknowledged his regulatorily consistent stance for a balanced budget.

Dismantling the Boundaries of the ECB’s Monetary Policy Mandate

The German Federal Constitutional Court (Bundesverfassungsgericht) submitted an order for referral to the European Court of Justice (CJEU) in 2014, asking it to clarify the compatibility of the “Outright Monetary Transactions” (OMT)-Programme with European Union law. The OMT-Programme prepares the ground for the selective purchasing of government bonds of crisis-struck Member States of the European Monetary Union (EMU). A year later, the CJEU decided that the OMT-Programme is covered by the mandate of the European Central Bank (ECB) and does not violate the prohibition of the monetary financing of Member States. Concerns raised by the Federal Constitutional Court were only partially adressed.

In this study, the Kronberger Kreis, Scientific Council of the Stiftung Marktwirtschaft, explains why the CJEU’s reasoning would have irreversable consequences, if the German Federal Constitutional Court were to follow. The CJEU’s judgment dismantles the boundaries of the ECB’s monetary policy mandate and significantly weakens the prohibition of the monetary financing of Member States in the long run. Effective judicial review of the scope of the ECB’s competence would no longer be guaranteed. An act of crisis intervention by the ECB threatens to irrevocably turn the future structure of the EMU into the wrong direction.

The english version of the study examining the ECB's monetary policy mandate is available for download.

Minimum Wage Position Paper

The Market Economy Foundation strongly recommends against the introduction of an across-the-board minimum wage in Germany. Read here about why we not only find the minimum wage harmful to employment, but also ineffective as a social strategy: Minimum Wage Position Paper (German)

Municipal Finance Reform: Latest Assessment

The Tax Code Commission's four column reform model, developed under the roof of the Market Economy Foundation, enabled the formation of a highly acclaimed policy proposal that has found considerable support in the political arena.

With the approval of the Foundation, the state of Lower Saxony allowed the Federal Statistical Authority (Statistiches Bundesamt) to conduct a thorough analysis of the proposal’s effects in all Lower Saxon municipalities.

Statistics (German)

Citizen's Dividend (Bürgergeld) – A Deadly Antidepressant

What do we think about the Citizen's Dividend? Irrespective of whether you like to call it a solidarity-inspired basic income guarantee or a transfer payment with no strings attached, the Citizen's Dividend is a deadly antidepressant. Read more on the subject in our:

Think Piece (German)

You can find more background information on the subject by reading our report from our conference "Citizen's Dividend and Basic Income: Stroke of Genius or Madness?"

Conference Report (German)