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The euro is the currency of the European Monetary Union and after the US dollar the second most important member of the international currency system. Together with the national central banks, the European Central Bank (ECB), headquartered in Frankfurt/Main, is responsible for monetary policy with regard to the euro. The euro is the official currency in 20 of the 27 EU member states. The euro was physically introduced in “Euroland”, including Germany, on January 1, 2002, having served as a currency of deposit since the beginning of 1999.
The Federal Chancellor is the only member of the Federal Government to be elected. The constitution empowers him to personally choose his ministers, who head the most important political authorities. Moreover it is the Chancellor who determines the number of ministries and their responsibilities. It is he who lays down the guidelines of government policy. These outline the Chancellor’s right to stipulate binding government activities. This authority gives the Federal Chancellor a whole array of instruments of leadership that easily stands up to a comparison with the power of the President in a presidential democracy.
The Parliamentary Council, which in 1949 resolved the Basic Law, took as its role model for the Federal Chancellor the position of the Prime Minister in Great Britain. The Prime Minister possesses exactly the same means of power as that of Chancellor, though the latter’s power is actually far less than that of the British premier. In the British parliamentary system only one party is ever in power, because the first-past-the-post system there favors the strongest party. As a rule, in the Bundestag no one party has a clear majority. For this reason a coalition is normally necessary to be able to elect a Chancellor.
The election of the Chancellor is preceded by extensive negotiations between those parties that plan to govern together. These address specific topics such as how the ministries are to be divided up between the parties, which ministries are to be maintained and which newly created. The strongest party in the alliance is accorded the right to propose the Federal Chancellor. In addition the parties agree on the policies they intend to tackle in the next few years. The results of these coalition negotiations are enshrined in the coalition treaty. Only when these steps have been completed is the Chancellor elected. Negotiations between the government parties prepare the decisions taken by the Federal Government and accompany them afterwards. Should there no longer be political consensus between the parties before general elections for a new Bundestag are due, removing the Chancellor from office becomes an alternative. Should a constructive vote of no confidence result in the current Chancellor indeed being removed from office, a new Chancellor must be elected at the same time. This repeal of parliamentary confidence forces the parties represented in the Bundestag to form a new, functioning government majority before they bring down the Chancellor. There have only been two previous attempts to bring down the Chancellor, only one of which succeeded, namely in 1982 when a vote of no confidence was passed against the Chancellor Helmut Schmidt (SPD), who was replaced by Helmut Kohl (CDU).
However, at any time the Federal Chancellor himself can also propose a vote of no confidence in the Bundestag to test whether he still enjoys the unlimited support of the governing parties. Should the Chancellor lose the vote this indicates that parts of the government majority are drifting away from the Chancellor, leaving the Federal President to decide whether the Bundestag should be dissolved and a general election held. The Federal President can also request the parties represented in the Bundestag to try and form a new government.
In the history of the Federal Republic there has never been a genuine defeat in a vote of no confidence. There have on three occasions been previously arranged defeats: The elected representatives of the government parties or the ministers abstained in order to bring down the government in 1972, 1982, and 2005. This course of action was taken in order to prematurely dissolve the Bundestag, which according to the constitution is otherwise not possible. It can only be taken with the approval of the Federal President and is legally not uncontroversial.