Subsidization policy is intensively discussed in Germany. The paper demonstrates the extent of subsidization in Germany. Subsidies are defined as the sum of tax expenditures and those government expenditures which distort the structure of the economy; financial aid is granted to different...

Subsidization policy is intensively discussed in Germany. Subsidies comprise by definition tax expenditures and those government expenditures which distort the structure of the economy; financial aid is granted to different branches by the EU, the federal government, the states (Länder) and the...

Subsidies granted by the German federal government decreased in the 1998–2004 period. Since 2005, subsidies have increased. The transfers to the compulsory health insurance system were raised by very large amounts. Moreover, the subsidies for re-integrating the unemployed were raised. The...

Tax expenditures are granted for a variety of purposes in Germany. They will be reduced by measures decided upon in December 2003. The paper addresses the problems arising when tax expenditures are to be defined and measured. The extent and the structure of the tax expenditures in the period...