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In line with the federal system, structuring and coordinating economic and financial policy is the joint task of central government, the federal states and municipalities. They cooperate in various committees. Furthermore, the Federal Government seeks the advice of independent economists. Every January the Federal Government presents to the Bundestag and the Bundesrat the Annual Economic Report, which among other things describes the government’s economic and financial goals for the year as well as the fundamentals of its planned economic and financial policy. One prerequisite for economic life in Germany being able to function is free competition, which is protected by the law against restrictions on competition. It prohibits anti-competitive practice on the part of both companies and the state. Likewise, company mergers, state subsidies and market barriers are assessed to establish whether they impair competition.
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Every four years, the parties stand in the general elections to the Bundestag. Traditionally, the turn-out is high in Germany, and following a high in the 1970s, when the turn-out was over 90 percent, since reunification it has been around 80 percent. 76.6 per cent of eligible voters took part in the election to the 20th German Bundestag in 2021.
In 1957, Germany was one of the six founding members of today’s EU, along with France, Italy, Belgium, the Netherlands and Luxembourg. The EU is currently made up of 27 states; the euro is the official currency in 20 of them. For Germany, European integration forms the basis for peace, security and prosperity. One of the key factors is the single European market. Germany also supports the integration of additional members in the EU..
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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.
Roughly two thirds of global warming caused by humans (anthropogenic) can be attributed to carbon dioxide emissions. The gas is produced when the fossil fuels gas, oil and coal are burned. They all contain carbon which combines with atmospheric oxygen to form carbon dioxide. In addition to carbon dioxide, other greenhouse gases include nitrous oxide, methane, as well halogenated fluorocarbons, perfluorocarbons and sulphur hexafluoride.
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.