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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 Government and cabinet is made up of the Federal Chancellor and the Federal Ministers. While the Chancellor holds the power to issue directives, the ministers have departmental powers, meaning that they independently run their respective ministries in the framework of those directives. Moreover, the cabinet abides by the collegial principle, in disputes the Federal Government decides by majority. The affairs of state are managed by the Chancellor.
There are around 48,000 native animal species and over 24,000 native species of land plants, mosses, fungi, lichens and algae in Germany. Nature conservation is a state goal in the Federal Republic and is entrenched in Article 20a of the Basic Law. There are thousands of designated nature conservation areas in Germany, as well as 16 national parks and 16 UNESCO biosphere reserves. In addition, Germany is a signatory state to the most important international nature conservation agreements and party to almost 30 international agreements which strive to conserve the environment. The percentage of organically managed areas is increasing and in 2021 came to 9.6 percent. In the medium term it is projected to rise to 20 percent.
The Basic Law of the Federal Republic of Germany does not call for any particular economic order. Yet it is firmly anchored in the principle of the welfare state and therefore excludes a purely free market economy. Since the founding of the Federal Republic of Germany in 1949 the country’s economic policy has been hinged on the notion of the social market economy. The social market economy was developed and implemented by Ludwig Erhard, the first Minister of Economics and later German Chancellor. The fundamental idea is based on the principle of freedom of a market economy, supplemented by socio-political methods for keeping a due balance in society. On the one hand, the system is designed to enable market forces in principle to develop freely. On the other, the state guarantees a welfare network that protects its citizens from risks.
The Basic Law determines that Germany is a constitutional state: All state authorities are subject to judicial control. Section 1 of the Basic Law is of particular relevance. It stipulates that respect for human dignity is the most important aspect of the constitution: “Human dignity shall be inviolable. To respect and protect it shall be the duty of all state authority.” Among other things, the other basic rights guarantee the freedom to act within the law, equality before the law, freedom of the press and media, freedom of association and protection of the family.
In determining that it is the people who exercise power through special bodies, the Basic Law lays down representative democracy as the form of rulership. Furthermore, it determines that Germany is a constitutional state: All state authorities are subject to judicial control. Another principle of the constitution is that Germany is a federal state, in other words the ruling authorities are divided up into a number of member states and the central state. In conclusion, the Basic Law defines Germany as a welfare state. The welfare state requires the political system to take precautions such that people are guaranteed a decent standard of material well-being in case of unemployment, disability, illness and in old age. One particular feature of the Basic Law is the so-called “eternal character” of these governing constitutional principles. Subsequent alterations to the Basic Law or a completely new constitution cannot encroach on the basic rights, the democratization of sovereignty, the federal state and the welfare state.