Political, Economic and Social System of Germany

Germany

Basic Facts
Population: 82,5 Million
Life expectancy: 78.54 years
Area: 357,021 sq. km
Ethnic background: German 91,5%, Turkish 2,4%, other 6,1%
Religion: Protestant 34%, Catholic 34%, Muslim 3.7%, unaffiliated or other 28.3%
Human Development Index: 0.925 (16)

History
1871: Foundation of the German Reich
1914-1918: World War I
1918-1933: Republic of Weimar
1933-1945: Nazi Dictatorship and WW II
1949: Foundation of the FRG and GDR
1990: Reunification

Political System
Germany is a federal, democratic and socially responsible state
Consists of 16 states (Länder)
Head of State: Federal President (Mostly representative)
Head of government: Chancellor

Most Important Institutions
Bundestag (Parliament)
Bundesrat (Federal Council)
Federal Government
Länder (States)

The Bundestag (Parliament)
Bundestag is the central institution of the political system with 603 members
Elected by all Germans for 4 years
Elects the Federal Chancellor, passes laws and controlls the government

The Bundesrat
(Federal Council)
Representation of the Länder
Participates on the legislation
It is often used as a party-political instrument

Federal Government
Formed by Ministers and the Chancellor
Chancellor determines „policy guidelines“
Normally formed by a coalition
Accountability to the Bundestag

Political Parties
"The parties shall help to form the political will of the people" (Article 21 of the Constitution)
5% of the votes are needed to be part of the Bundestag

Political Parties
SPD: Social Democrats
CDU: Chrisitian Democrats (conservatives)
CSU: Bavarian conservatives
Alliance90/Greens (Ecologists)
FDP: Liberals
PDS: Socialists (Former GDR State Party)

Distribution of seats 15th election period in the Bundestag

Self-government of the Länder
Länder are not Provinces
Responsible for the administration
Right to establish certain own laws
Subsidiarity principle

Economy
Total GDP 2004: 2 177 Billion €
GDP per capita in 2004: 24.000 €
Income/Employee 2004: 2200 €/ month
Total Exports in 2004: 730 Billion €
Unemployment 2004: 10,4 %

Structure of the Economy

Exports

Unemployment per Region

Social System
Social Security: PAYG, financed by Employers and Employees, income related
Pension Insurance (19,5%)
Health Insurance (12-15%)
Long-term care Insurance (1,7%)
Unemployment Insurance (6,5%)
Social Assistance covering basic needs

The Demographic Challenge

Current Political Challenges
Global competition
Demographic changes
Unemployment
Public Deficit
Reactivating East Germany
Building a social Europe