The episode opens with Germany narrowly avoiding a recession despite stagnant GDP growth. Inflation in Germany decreased to 2.3% in October, remaining slightly above the ECB's 2% target. The European Central Bank decided to keep its deposit rate unchanged at 2%, marking the third consecutive pause. This rate determines what commercial banks earn on deposits with the ECB and influences consumer savings rates. According to Verivox, consumers currently earn nearly 1.5% on overnight money and about 2% on fixed-term deposits with one-year maturities. The ECB sees no need for action as inflation in the eurozone and Germany is close to its target. In contrast, the US Federal Reserve cut interest rates for the second time in a row. The ECB also announced it will launch a pilot project for a digital euro in 2020, moving to the next phase after successful preparations. EU legislators must still pass a law to provide the legal basis for the digital euro. The episode shifts to Bavaria's apprenticeship market, where the new training year began on September 1st with around 80,000 apprentices starting. After eight weeks, approximately 14,000 training positions remain vacant in Bavaria. Companies frequently report too few applicants and growing competency issues among youth. Hubert Schöffmann from the Bavarian Chamber of Industry and Commerce notes that 84% of Bavarian companies identify deficits. These deficiencies are not in subjects like mathematics or English but in areas such as willingness to perform, mental capacity, interest in vocational training, and motivation. Another factor contributing to the shortage is the transition from eight-year to nine-year Gymnasium, which has reduced the number of high school graduates available for apprenticeships.
