CNE Monatsmagazin Digest
April 2007

English Summary

Less good than bad: The new study from the Institut Économique Molinari and the Centre for the New Europe by Valentin Petkantchin concludes that the current reference pricing policy in Germany - along with possible savings through compulsory sickness funds in the use of pharmaceuticals - presents several possible drawbacks for patients and insured people: It provides the insured with limited coverage for certain drugs, and it relies on the use of a bureaucratic classification of groups of drugs that are considered substitutable even if patients may not see it in the same light. Moreover, German-style RP discriminates against new medicines whose incremental costs are high. Thus it hampers drug innovations.

10 Years After: Over the last 10 years, the Stockholm Network brought together more than 110 market-oriented think tanks from across Europe. Among its many activities, the Stockholm Network also organises public policy debates, for instance "Debating Pharmaceutical IPRs", on 20 February 2007 at the Palais des Nations in Geneva. At the event, jointly organised with UNCTAD, tough questions were asked: Are pharmaceutical IPRs a barrier to access to medicines or are they essential to it? Do pharmaceutical patents prevent or enhance pharmaceutical research and development?, etc. Discussants included Kiyoshi Adachi, Helen Disney, Graham Dutfield, Eric Noehrenberg, Meir Pugatch, James Love, and Christoph Spennemann.

Strict Federalism: In his new book (Föderalismus in Deutschland und Europa, Federalism in Germany and Europe), Economics Professor Charles Beat Blankart (Humboldt University, Berlin) enriches the federalism debate in Germany. His plea is straight forward: "He who carries the financial burden should have the say." Blankart argues against mixed systems in Europe and Germany: "Neither fish nor fowl. You cannot have both at the same time." In an interview with Hardy Bouillon, Blankart explains his ideas on strict federalism.

Federalism II: 30 years ago, Herbert J. Storing, Professor of Constitutional History and Law at the University of Chicago, finished his magnum opus, The Complete Anti-Federalist. It comprises the works of various authors who expressed their concerns and criticism of the drafted U.S. Constitution, the main concern being that too much power would be delegated to a central authority, namely the federal bodies, especially the federal government. "The name is somewhat misleading", says Hardy Bouillon in his review. "It was the Anti-Federalists who called for more federalism in the U.S. Constitution. However, the genesis of the name has to be seen against the background of the Federalist Papers."

Many legal jobs could be created in Germany, if only bureaucracy would be cut back und incentives for entrepreneurship were promoted, writes Gunnar Sohn. "Bureaucracy permitting, half a million jobs could be transferred from illegality to legality", he says, quoting a new study by the Cologne-based Institute of the German Economy (Institut der deutschen Wirtschaft Köln). According to a new cross-country study by Global Entrepreneurship Monitor (GEM), Germany ranks 34th among 42 countries when it comes to new entrepreneurship. "When Germans turn self-employed, they look for safety, not for risk", Sohn reports.

The open 21st century: This is the title of a colloquium in memoriam for Gerard Radnitzky, organised by friends of the libertarian philosopher who died in March 2006, aged 84. The colloquium is to be held from 14-15 May 2007 at the University of Trier, Germany, where Radnitzky taught from 1976 until retirement in 1989. Speakers include Wolfgang Kasper, Gerd Habermann, Wilfried von Studnitz, and Hardy Bouillon.

The last word: Public goods have their own logic. Once provided, they should guarantee access to everybody without discrimination. Hence a municipal pool should be open to everybody during all opening hours. Logical as it sounds, it is not, says CNE-President Stephen Pollard. "The discriminatory act would be making the pool available to everyone, all of the time, given that there are many groups - not just Orthodox Jews, but Muslim women and some women of no religion who are merely modest in their behaviour - who would not be able to utilise the facility for which they have paid their taxes. Allocating a small amount of time to those women is not discriminatory; it is the opposite", Pollard concludes.

Click here to view the full Monatsmagazin in German.

Dr. Hardy Bouillon is Head of Academic Affairs at the Centre for the New Europe.