Data collection template and questionnaire

Sachsen-Anhalt (Saxony-Anhalt)

DEE Sachsen-Anhalt

DEE1 Dessau DEE2 Halle DEE3 Magdeburg

GDP per head (2000)

DEE Sachsen-Anhalt ⁵⁰¹: 15.896 € (average of new Länder incl. Berlin: 17.424 € and excl. Berlin: 16.216 €)⁵⁰²

Germany⁵⁰³ 24.700 €

EU-15 = 100; DEE = 68,4; DEE1 = 64,2; DEE2 = 70,0; DEE3 = 69,1⁵⁰⁴

GDP at current prices/in Million €

DEE Sachsen-Anhalt⁵⁰⁵: 41.843

Germany⁵⁰⁶: 2.030.000

EU-15⁵⁰⁷: 8.524.371
Employment rate (2000) ⁵⁰⁸

DEE Sachsen-Anhalt 1.049.000 persons in gainful employment = 58,5% (German average = 68,8%)

DEE1 Dessau: 202.600⁵⁰⁹

DEE2 Halle: 365.200⁵¹⁰

DEE3 Magdeburg: 489.800⁵¹¹
Unemployment rate (2002) ⁵¹²

DEE Sachsen-Anhalt 20,8 (2001: German average: 9,8%; West 7,9%, East: 18,0%)

2001 as 2002 not avaliable for NUTS 2 level

DEE1 Dessau: 21,9%

DEE2 Halle: 21,8%

DEE3 Magdeburg: 19,7%

Technological standing (5 point scale): 3


Strengths [short description]⁵¹³

Sachsen-Anhalt, one of the former GDR states, is located in the center of Germany and covers an area of 357.022 km². At a number of 2.571.500 inhabitants (in 2002), population density is rather low. The state has been re-established 8after its existence between 1947 and 1952) with the German unification. Sachsen-Anhalt shares its international airport with Leipzig (Leipzig/Halle) and has several regional airports and commercial airports. The three largest cities (Landes, Halle, Magdeburg, Dessau) are connected to the Intercity-Network of the Deutsche Bahn. With the rivers Elbe, Saale, Havel, Elbe-Havel-Channel and the Midlandchannel, the state is integrated into the European waterway network.

Sachsen-Anhalt is constituted by 5 regions:

• 
  Altmark: food and wood processing industry; processing of renewable resources and plastic production
  
• 
  Magdeburg: food and wood processing industry; mechanical engineering; logistics
  
• 
  Harz: tourism; automotive industry; pharmaceutical industry; phyto-biotechnology
  
• 
  Anhalt: chemical industry; pharmaceutical industry; mechanical engineering; logistics
  
• 
  Halle: chemical industry; plastic production; biotechnology, IT and media
  

Important economic branches thus are chemical industry (‚chemical triangle’), mechanical engineering (traditionally strong sector) and food industry (cultivation of grain, potatoes and sugar beets). In the south of the state Leuna-Merseburg, Schkopau and Bitterfeld-Wolfen form the so-called ‚chemical triangle’ with large foreign companies such as Dow Chemical or TotalFinaElf established sites here. The chemical industry is one of the most relevant sectors of the state’s economic structure. Regarding the turnover in 2001 it was the second largest sector of the processing industry (just behind the food sector). Sachsen-Anhalt (with 12.000 employees) produces the highest turnover in the chemical industry within the new Länder. In the first half of 2002 turnover grew about 6.7% to about € 2 billion. Also employment grew in this sector. Within the chemical industry the pharmaceutical industry is one of the most important sub sectors (turnover in 2002 (515 mio €) four times of that in 1991). Global players such as Bayer or Hexal as well as SME like Carl Hoernecke GmbH are important pillar of this sub sector.

Nevertheless, this southern region like the whole state, predominantly characterised by chemical industry also hosts a large food industry. This sector is the largest one in terms of turnover in 2001 (22.5% of the processing industry) and employment in 2001. In this context also the highly productive agricultural sector should be mentioned.

The metal producing and processing industry is the third largest sector in terms of turnover in 2001 (209.600 € per employee) and the second largest in terms of employment. One quarter of all employees in this sector in the new Länder are employed in Sachsen-Anhalt.

The mechanical engineering sector is a traditionally strong sector. In 2001 it ranked fourth in employment (also about ca. 11.200 in 2002) and sixth in turnover. This sector is mainly characterised by SME. A special advantage of this sector is the high level of quality secured by the certification according to DIN EN ISO 9001:2000 and DIN ISO 9000 ff.

New economic sectors with a high growth potential are the automotive-supplies and wood-processing industries and also new technologies such as the information and communications technology, biotechnology and medical technology.

The automotive-supplies sector (about 10.000 employees) is concentrated in Magdeburg and Dessau. The development in this area has always been characterised by innovations and thus the sector has a certain growth potential. Also the biotechnology industry is booming and the ‘biotech’ region Halle-Leipzig-Jena is growing in importance (esp. in the area of phyto-biotechnology network ‘InnoPlanta’ awarded by the federal ministry for education and research; biocentre Halle, biocentre Gatersleben, financial support by the state government for start up in this area).

The single economic sectors develop quite differently with the highest growth rates to be found within the processing industry. Recently investments focused on the automotive-supplies, mechanical engineering and wood-processing industries. Among the “new Bundesländer”, Sachsen has the greatest volume of direct investments, especially due to the chemical industry and the mechanical engineering. Among the new Länder the state ranks second as business location and eighth among all German states.

Regarding the education and research field 2 universities, 8 public institutes of higher education, 4 Max-Planck institutes and 2 Fraunhofer installations are located here. The Martin-Luther-University Halle offers an interesting programme for highly talented pupils (‘Audimax’), which allows pupils to be especially supported in special schools. The scope of support for highly talented is very broad in the state (compared to other German states).
In 1999 the state held rank 1 in investment per employee in the processing industry.⁵¹⁴
Companies: Abtshof Magdeburg GmbH, Bayer (Bitterfeld), Bishop, Bombardier Transportation, Bosch Telekom, Brandt AG, Burger Knäcke AG Burg, Campbell’s, Chemiedreieck, Danzas, Deutsche Post AG, Domo-Group, Doppstadt, Dow Chemical (Schkopau), DaimlerChrysler, EEG - Erdöl Erdgas GmbH Enercon-Group, esco - european salt company, FAM Magdeburger Förderanlagen und Baumaschinen GmbH, Guardian Industries, Gas AG, Halko Halberstädter Würstchen- und Konservenfabrik GmbH, Halloren Schokoladenfabrik GmbH Halle, Hasseröder Brauerei GmbH, Hellmann Nicolai, HEXAL, Carl Hoernecke GmbH, K + S Kali GmbH, KATHI Rainer Thiele GmbH Halle, Kühne & Nagel, Libehna Fruchtsaft GmbH Raguhn, Linde AG, Manuli Stretch, Mercer (Stendal), MIBRAG mbH, MITTELDEUTSCHE ERFRISCHUNGSGETRÄNKE GMBH & CO KG (Leisslinger), Nestlé, Nordlam, Otto Versand GmbH, Probiodrug. Propapier GmbH, Radici Chimica GmbH, Regiocom, Rhodia Syntech, Röstfein Kaffee GmbH Magdeburg, ROMONTA GmbH - Tagebau Amsdorf, Rotkäppchen Sektkellerei GmbH & Co., Salzwedler Baumkuchen, Schönebeck und Calbe (windpower stations), Schwan’s-Group, Stöver, TotalFinaElf (Leuna), Transcom Europe, Varioboard, Walter Telemedien, Zörbiger Konfitüren GmbH,
Weaknesses [short description]

Very high unemployment rate. Like Brandenburg, Mecklenburg-Vorpommern, Berlin (East), Sachsen, and Thüringen the state still belongs to the "priority 1" regions (regions with maximum subsidization possibilities) supported by the EU structural funds.

Evolution in last decade [short description]

Employment has been decreasing (1992: 1.125.900, 2002: 1.021.000) and the same holds true for the GDP/per capita (1992: 8.999 €, 2002: 16.886 €).⁵¹⁵ For a long period the state had the highest unemployment rate in Germany, even if the terrific loss of workplaces was stopped after the first period after the unification. Economic catch up processes will thus probably last longer than in the rest of the federal state.

During the GDR the state was the main spot for food production; agriculture was thus one of the most important sectors. The state, like all new Länder, has gone through a difficult period of restructuring and concentration on core competencies (chemical industry, mechanical engineering, food industry) in the early 1990ies. Especially the mining sector (coal, copper) was subject to grave changes and restructuring. Because of the natural resources, mining is also today still important, but concentrates on potash and salt production, natural gas and storage mining (‘Speicherbergbau’). Furthermore, great parts of former mining areas were transformed into tourism and leisure areas.

Because of the growing investments in this period, especially the mechanical engineering sector has become strong. Contrary to this the construction industry and related areas like glass; ceramics and processing of stones and earth are decreasing in importance. Employment was decreased by 3.1% from 2000 to 2001. The problems of restructuring of the construction industry prevail also in 2002 as in 2002 17.2% less employment have to be noted and one fifth less companies compared to 2001. Also turnover decreased (2002: 7% less than 2001)

The automotive-supplies sector became boosting since the competence network MAHREG-Automotive won the InnoRegio competition of the federal ministry for education and research. This network brings together about 100 companies and research institutes in this area.
Further indicators for DEE Sachsen-Anhalt

Public revenue and spending (mio €)⁵¹⁶

	2001	2002
Revenue	7.960,59	8.000,00
Spending	8.046,27	8.282,00

Employment (at workplace) per sector⁵¹⁷

Agriculture: 1999: 40.500 2000: 38.300 2001: 36.800

Industry 1999: 161.900 2000: 159.600 2001: 158.000

Building and construction trade: 1999: 166.700 2000: 148.700 2001: 128.300

Trade, tourism, transportation: 1999: 251.600 2000: 255.700 2001: 253.100

Public and private services:^518 1999: 462.200 2000: 454.800 2001:461.800

Industrial Structure

Branches of processing industry⁵¹⁹

Branch	Employment figures
	2000	2001
Timber	1.689	1.668
Paper, printing, publishing	3.413	3.628
Chemical industry	11.676	11.896
Rubber and synthetic material	5.641	6.480
Glas, ceramic, working of stone and earth	9.492	9.198
Metal (production, working, ..)	5.755	6.022
Mechanical engineering	11.031	11.142
Vehicle production	7.703	7.337
Furniture, jewellery, musical instruments, sports equipment, toys	2.748	2.768

Research base

Employment in education, higher education and research⁵²⁰

2001/02

43.180

Public expenditure on science and research (€)⁵²¹

2001	1.509.873.506
2002	1.478.522.400

Students at universities⁵²²

Wintersemester	Total number of
1999/2000	35.353
2000/2001	37.992
2001/2002	40.709

Support infrastructure

Infrastructure (categories of streets)⁵²³

Category	Motorway (Autobahn)	Road network	Total
Kilometres	320	10.574	10.894

Vehicles

2000^524	1.517.164
2001^525	1.522.925
2003^526	1.523.812

Doctors and dentists (2000)⁵²⁷

Doctors	8.073
Dentists	2.009

Designation for principal domestic policy support instruments (5 point scale): Total: 4

Territorial Policy	4
Public sector transfer	5
Employment policy	4
Technology policy	2,5-3

Sachsen-Anhalt⁵²⁸

ST	Fiscal resources before SHES (in Mio. DM)	Divergence from national average (balance measurement) (= 100)	Contribution / assignment within SHES (in Mio. DM)	Fiscal resources after SHES (in Mio. DM)	Divergence from national average (balance measurement) (= 100)	Supplementary federal grants (in Mio. DM)						Fiscal resources after SHES and Gap-filling grants (in Mio. DM)	Divergence from national average (balance measurement) (= 100)
						Gap-filling grants	Compensations for special political costs	Compensations for special burdens (east Germany)	Transitional grants (west Germany)	Rehabilitational grants Bremen and Saarland	SFH total
1995	9.510	85.0	1.123	10.633	95.0	504	164	2.208	0	0	2.876	11.137	99.5
1996	9.447	84.0	1.241	10.688	95.0	506	164	2.208	0	0	2.878	11.194	99.5
1997	9.358	84.4	1.175	10.533	95.0	499	164	2.208	0	0	2.871	11.032	99.5
1998	9.775	84.6	1.207	10.982	95.0	520	164	2.208	0	0	2.892	11.502	99.5
1999*	10.108	84.2	1.300	11.408	95.0	540	164	2.208	0	0	2.912	11.948	99.5
2000*	10.247	83.5	1.407	11.654	95.0	552	164	2.208	0	0	2.924	12.206	99.5
2001	9.590	84.7	1.164	10.754	95.0	509	164	2.208	0	0	2.881	11.263	99.5

*) preliminary


Impact on ex-ante divergence from national average of support from EU funds (7 point scale): 5,7

		2000-2006 (mio €)
				ERDF		ESF		EAGGF
		Total	EU contribution	EU contribution	%	EU contribution	%	EU contribution	%
Objetive 1	Saxony-Anhalt	8697.414	3360.445	1908.342	56.89%	715.254	21.32%	730.849	21.79%

Impact on ex-ante divergence from national average of domestic policies (7 point scale): 6,2

Change in standing of region relative to national average in last five and ten years⁵²⁹

	1991	1996	2001
GDP/capita (€)	6998	14189	16367
Population	2849100	2731500	2598400
Employment (persons)	1274100	1113500	1038100
Unemployment (persons)	167.127	234.451	264.493
Unemployment rate	10,3	18,8	20,9

	1995	1997	1999
R+D expenditure (mio €)^530	503	513	523

Estimated effect on regional circumstances of different domestic policies:

	Strongly positive:	Slightly positive	Neutral	Slightly negative	Strongly negative
Territorial Policy	X
Public sector transfer	X
Employment policy		X
Technology policy		X