Saturday, January 09, 2021
Incentives for quick delivery
Ifo boss brings vaccine bonuses into play
Ifo boss calls for more decisive support for vaccine manufacturers from the state. So far, there has been little incentive for them to take financial risks. If the vaccinations are delayed, the economic recovery will also be delayed.
In order to accelerate vaccine production in the corona pandemic, Ifo President Clemens Fuest has appealed to the federal government to give the manufacturers more support. "The state should support manufacturers to build up capacity as quickly as possible: for example through accelerated permits, but also financially," said the President of the Munich Research Institute to "Spiegel".
"He should offer the pharmaceutical companies bonuses for delivering the vaccine more quickly. Or also take on guarantees," said Fuest. The manufacturers have so far had little incentive to massively expand their capacities and thereby take major financial risks, according to the economic researcher, "and now the individual company does not necessarily benefit financially if it delivers the vaccine doses sold earlier".
The economist is convinced: the economy can only flourish if the pandemic is manageable. In his opinion, vaccinations are all the more important. "If the vaccination strategy doesn't work or vaccinations are delayed, the economic recovery will be delayed too."
Despite the tough shutdown with shops, restaurants and schools being closed, Fuest does not expect the German economy to collapse. "The manufacturing industry works, industrial production is running. Many service providers can continue to work from home," said the Ifo boss.
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