Germany

GERMANY

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS GERMANS
DEPENDENCIES
BIBLIOGRAPHY

Federal Republic of Germany

Bundesrepublik Deutschland

CAPITAL: Berlin

FLAG: The flag is a tricolor of black, red, and gold horizontal stripes—the flag of the German (Weimar) Republic from 1919 until 1933.

ANTHEM: Einigkeit und Recht und Freiheit (Unity and Justice and Liberty).

MONETARY UNIT: The euro replaced the deutsche mark as the official currency in 2002. The euro is divided into 100 cents. There are coins in denominations of 1, 2, 5, 10, 20, and 50 cents and 1 euro and 2 euros. There are notes of 5, 10, 20, 50, 100, 200, and 500 euros. €1 = $1.25475 (or $1 = €0.79697) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1 May; German Unity Day, 3 October; Repentance Day, Wednesday before the 3rd Sunday in November (except Bavaria); Christmas, 25–26 December. Movable religious holidays include Good Friday, Easter Monday, Ascension, and Whitmonday. In addition, the movable Carnival/Rose Monday holiday and various provincial holidays also are celebrated.

TIME: 1 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Germany is located in western Europe, bordering the North Sea between France and Poland. Germany is slightly smaller than the state of Montana, with a total area of 357,021 km sq (137,847 mi sq). Germany shares boundaries with Denmark and the Baltic Sea on the n, Poland and the Czech Republic to the e, Austria to the se, Switzerland to the s, France to the sw, Luxembourg, Belgium, and the Netherlands to the w, and the North Sea to the nw. Germany's boundary length totals 6,010 km (3,734 mi), of which 2,389 km (1,484 mi) is coastline. Germany's capital city, Berlin, is located in the northeastern part of the country.

TOPOGRAPHY

The topography of Germany is varied. The area along the Baltic coast is sandy, with dunes and small hills. Adjacent to the coast are forested ridges and numerous lakes of the Mecklenburg lake plateau. Around Berlin, the relief is less hilly. The southern limit of the lowland area is formed by a wide zone of fertile loess, reaching from Magdeburg to the highlands in the South. These highlands include the Harz Mountains; the densely wooded Thuringian Forest and the Erzgebirge (Ore Mountains), where the Fichtelberg rises to 1,214 m (3,983 ft). In the northeast, the wide German lowland—characterized by sandy North Sea shores, heath and moor (in the south), and highest altitudes of about 300 m (1,000 ft)—rises slowly to the central Germany uplands. These low, eroded mountains (1,070–1,520 m/3,500–5,000 ft) extend from the Rhine to the former border of East Germany.

In the west are a wide rift valley and a narrow gorge carved by the Rhine River. A group of plateaus and low mountains, averaging 460 m (1,500 ft) in altitude and including the Black Forest and Odenwald Mountains (highest peak, the Feldberg, 1,493 m/4,898 ft), form the greater part of southern Germany. They merge gradually with the highest walls of the Bavarian Alps (2,440–2,740 m/8,000–9,000 ft), which form the boundary between Germany, Switzerland, and Austria; the Zugspitze (2,962 m/9,718 ft), on the Austrian border, is the highest point in Germany.

The only major lake is Lake Constance (Bodensee; within Germany, 305 sq km/118 sq mi), which is shared with Switzerland and Austria. Except in the extreme south, all of Germany is drained by rivers that empty into the North Sea. The Rhine, with its two main tributaries, the Mosel and the Main, dominates the western areas; farther east are the Ems, the Weser, the Elbe, and the Oder. These rivers have estuaries that are important for the ports located there. In the south, the Danube flows from west to east. The East Frisian Islands are off the northwest coast; the North Frisian Islands lie along the coast of Schleswig. The small island of Helgoland is opposite the mouth of the Elbe River.

CLIMATE

The climate is temperate; rapid changes in temperature are rare. Average temperatures in January, the coldest month of the year, range from 1.5°c (35°f) in the lowlands to -6°c (21°f) in the mountains. July is the warmest month of the year, with average temperatures between 18°c (64°f) in low-lying areas to 20°c (68°f) in the sheltered valleys of the south. The upper valley of the Rhine has an extremely mild climate. Upper Bavaria experiences a warm alpine wind (Föhn) from the south. The Harz Mountains form their own climatic zone, with cool summers, cold wind, and heavy snowfalls in winter.

Precipitation occurs throughout the year: in the northern lowlands, from 51 to 71 cm (20–28 in); in the central uplands, from 69 to 152 cm (27–60 in); in the Bavarian Alps, to more than 200 cm (80 in). The higher mountains are snow covered from at least January to March.

FLORA AND FAUNA

Plants and animals are those generally common to middle Europe. Beeches, oaks, and other deciduous trees constitute one-third of the forests; conifers are increasing as a result of reforestation. Spruce and fir trees predominate in the upper mountains, while pine and larch are found in sandy soil. There are many species of ferns, flowers, fungi, and mosses. Fish abound in the rivers and the North Sea. Wild animals include deer, wild boar, mouflon, fox, badger, hare, and small numbers of beaver. Various migratory birds cross Germany in the spring and autumn. As of 2002, there were at least 76 species of mammals, 247 species of birds, and over 2,600 species of plants throughout the country.

ENVIRONMENT

Industrialization has taken its toll on Germany's environment, including that of the former GDR, which, according to a 1985 UNESCO report, had the worst air, water, and ground pollution in Europe. Since 1976, the Petrol Lead Concentration Act has limited the lead content of gasoline; for control of other automotive pollutants, the government looked toward stricter enforcement of existing laws and to technological improvements in engine design. The Federal Emission Protection Act of 1974, based on the "polluter pays" principle, established emissions standards for industry, agriculture and forestry operations, and public utilities. Nevertheless, by 1994, 50% of Germany's forests had been damaged by acid rain.

Germany has 107 cu km of renewable water resources, of which 86% are used for industrial purposes. Water pollution is evident in virtually every major river of the FRG, and the Baltic Sea is heavily polluted by industrial wastes and raw sewage from the rivers of eastern Germany. In the 1980s, the Rhine, from which some 10 million Germans and Dutch draw their drinking water, was 20 times as polluted as in 1949. Between November 1986 and January 1987 alone, 30 tons of mercury, 900 lb of pesticides, 540 tons of nitrogen fertilizers, and 10 tons of benzene compound were discharged into the river. The Effluency Levies Act, effective January 1978, requires anyone who discharges effluents into waterways to pay a fee reckoned in accordance with the quantity and severity of the pollutant; the proceeds of this act are allocated for the building of water treatment plants and for research on water treatment technology and reduced-effluent production techniques.

Significant sources of air pollution include emissions from coal-burning utility plants and exhaust emissions from vehicles using leaded fuels. In 1996 industrial carbon dioxide emissions totaled 861 million metric tons. However, the total carbon dioxide emissions in 2000 was down to 785.5 metric tons. The nation has set maximum levels for biocides in the soil, to protect food supplies. Under the nation's basic waste disposal law of 1972, some 50,000 unauthorized dump sites have been closed down and 5,000 regulated sites established; provisions governing toxic wastes were added in 1976. Germany's principal environmental agency is the Ministry of Environment, Nature Conservation and Reactor Safety, created in June 1986.

In 1970, the first German national park, with an area of 13,100 hectares (32,370 acres), was opened in the Bavarian forest, and in 1978 a second national park (21,000 hectares/52,000 acres) was opened near Berchtesgaden. The third national park, in Schleswig-Holstein (285,000 hectares/704,250 acres), opened in 1985, and a fourth, in Niedersachsen (240,000 hectares/593,000 acres), opened in 1986. The Messel Pit Fossil Site became a natural UNESCO World Heritage Site in 1995. There are also 32 Ramsar wetland sites. As of 2003, 32.6% of Germany's total land area is protected. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 9 types of mammals, 14 species of birds, 12 species of fish, 9 types of mollusks, 22 species of other invertebrates, and 12 species of plants. Endangered species include Freya's damselfly, Atlantic sturgeon, slender-billed curlew, and the bald ibis. Species believed to be extinct include the Bavarian pine vole, Tobias' caddisfly, the wild horse, and the false ringlet butterfly.

POPULATION

The population of Germany in 2005 was estimated by the United Nations (UN) at 82,490,000, which placed it at number 14 in population among the 193 nations of the world. In 2005, approximately 18% of the population was over 65 years of age, with another 15% of the population under 15 years of age. There were 95 males for every 100 females in the country.

Because of a low birthrate, an aging population, and emigration, Germany's population generally declined from the mid-1970s until around 1990. A heavy influx of immigrants in the 1990s more than compensated for the slight population loss due to more deaths than births. Although the annual growth rate in the 1980s was only 0.1%, immigration in the 1990s led to an annual growth rate in that decade of 0.8%. With immigration slowing, according to the UN, the annual population rate of change for 2005–10 was expected to be -0.1%, a rate the government viewed as too low.

The projected population for the year 2025 was 82,017,000. The population density was 231 per sq km (598 per sq mi).

The UN estimated that 88% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 0.19%. The capital city, Berlin, had a population of 3,327,000 in that year. Other large urban areas are: the Rhein-Main urban agglomerate, which includes Darmstadt, Frankfurt, Offenbach and Wiesbaden, 3,721,000; the Rhein-Neckar urban agglomerate which includes, Ludwigshafen am Rhein, Heidelberg, Mannheim, Frankenthal, Neustadt an der Weinstrasse and Speyer 1,625,000; the Rhein-Ruhr Middle urban agglomerate, which includes, Düsseldorf, Mönchengladbach, Remscheid, Solingen and Wuppertal 3,325,000; the Rhein-North urban agglomerate which includes, Duisburg, Essen, Krefeld, Mühlheim an der Ruhr, Oberhausen, Bottrop, Gelsenkirchen, Bochum, Dortmund, Hagen, Hamm and Herne 6,566,000; the Rhein-South urban agglomerate which includes Bonn, Cologne (Köln) and Leverkusen 3,084,000; the Saarland urban agglomerate which includes Neunkirchen, Saarbrücken and Saarlouis 896,000; Hamburg, 2,686,000; Stuttgart, 2,705,000; Munich (München), 2,318,000; Hanover (Hannover), 1,296,000; Bielefeld, 1,312,000; Nurenberg (Nürnberg), 1,206,000; Aachen, 1,073,000; Karlsruhe, 990,000; Saarland, 896,000; and Bremen, 889,000.

MIGRATION

From 1946 to 1968, 475,505 Germans emigrated to the United States, 262,807 to Canada, and 99,530 to Australia and Oceania. During the same period, however, millions of people of German origin and/or speech migrated to West Germany from eastern Europe, notably from the former Czechoslovakia and East Germany. Migration from East Germany to West Germany reached a climax just before the erection of the frontier wall in Berlin on 13 August 1961. It is estimated that about 4 million people—many of them skilled workers and professionals—crossed from East Germany to West Germany during the 40-year existence of East Germany. Immigration of ethnic Germans from Poland continued to be heavy after 1968, totaling about 800,000 between 1970 and 1989.

According to German law, persons who are not ethnic Germans are foreigners (except for the few granted citizenship) even if they were born and have spent their entire lives in Germany. Conversely, ethnic Germans are not foreigners even if emigrating from birthplaces and homes in eastern Europe.

From 1992 until 1996, 560,000 ethnic Germans (out of a total of 1.1 million in 1989) had left Central Asia for Germany. These returning ethnic Germans were formerly deported by Soviet leader Joseph Stalin during World War II as they were living in the Volga region and other parts of the former Soviet Union.

Some 350,000 Bosnians were granted temporary protection in Germany in the early 1990s. Repatriation plans began for the Bosnians in October 1996, when 30,000 Bosnians repatriated voluntarily. During 1998, approximately 83,000 people returned to Bosnia under the Government-Assisted Return Programme (GARP). Another 2,021 were returned forcibly. By 1999, more than 250,000 Bosnians had returned to their homeland.

Under the UNHCR/IOM Humanitarian Evacuation Programme, 14,689 people had been evacuated from Macedonia to Germany as of 1999. The evacuees, as well as Kosovars who had already sought asylum in Germany but whose cases were still pending or already rejected, were granted temporary protection, renewable every three months. As of 20 August 1999, 4,147 evacuees had returned to their homeland. In 2005 Germany returned 51,000 Kosovars, including 34,000 Roma to the UN-administered province.

Germany remains the third-largest asylum country in Europe, receiving 876,622 refugees in 2004. The main countries of origin were Serbia and Montenegro, Turkey, Iraq, Ukraine, Afghanistan, Russia, and Iran. Of these refugees 86,151—mainly from Serbia and Montenegro, Turkey, Iraq, Russia, Iran, India, and Pakistan—sought asylum. In 2005 slow job growth in Germany caused many young Germans to migrate abroad for jobs, inspiring the term "reverse foreign worker."

The 2004 estimate of worker remittances received by Germany was $6 billion. However, it was also estimated that in that same year Germany was the source of $10 billion in remittances. The 2005 estimate of Germany's net migration rate was 2.18 migrants per 1,000 population.

ETHNIC GROUPS

Until the late 1950s, the population was 99% German; the Danes in Schleswig-Holstein were the sole national minority. The influx of foreigners as "guest workers" beginning in the late 1950s led to an upsurge in the number of permanent foreign residents. Germans account for about 91.5% of the total population. About 2.4% of the population are Turkish. Other minority groups include Italians, Greeks, Poles, Russians, Serbo-Croatians, and Spanish. Even persons born and reared in Germany are considered foreigners unless they are ethnically German or naturalized. The Roma (Sinti) were recognized as "national minorities" in 1995.

LANGUAGES

German is the official language, and although dialectical variations are considerable, High German is standard. Low German, spoken along the North and Baltic Sea coasts and in the offshore islands, is in some respects as close to Dutch as it is to standard German. Sorbian (also known as Wendish or Lusatian) is a Slavic language spoken by the Sorbian minority. Under the GDR it was taught in schools in their settlement area. There was a daily newspaper in Sorbian and a publishing house for Sorbian literature. Many of Germany's sizable foreign-born population still speak their native languages, and there are numerous Turkish-speaking school children. Romani is spoken by the nation's small Roma population; the language has no written form and the Roma generally restrict the use of the language to within their own community.

In 1996, new rules were established reforming German orthography. Designed to eliminate the last vestiges of Gothic spelling, the rules, among other things, eliminated hyphens, restored some umlauts, and replaced the ß character. Confusion ensued when newly published dictionaries differed in their spellings of many words.

RELIGIONS

According to a 2004 report, the Evangelical Church, a federation of several church bodies including Lutheran, Uniate, and Reformed Protestant Churches, has about 27 million members, accounting for 33% of the population. Church officials report that only about 4% of members attend services on a regular basis. The Catholic Church also has 27.2 million members, or 33.4% of the population, with only about 17.5% of members active. Muslims make up approximately 3.4–3.9% of the populace with 3.1 to 3.5 million practitioners. Orthodox churches claim 1.1 million members, or 1.3% of the people. The Greek Orthodox Church is the largest division, followed by Romanian, Serbian, Russian (Moscow Patriarchate and Orthodox), Syrian, and Armenian Apostolic. Other Christian churches have about one million members, or 1.2% of the population. The largest of these are the New Apostolic Church (430,000 members), Jehovah's Witnesses (165,000 members), Baptists (87,000 members), and Methodists (66,000 members). Smaller groups include the Church of Jesus Christ of Latter-day Saints (Mormons), Seventh-Day Adventists, the Apostolate of Jesus Christ, Mennonites, Quakers, and the Salvation Army.

About 87,500 members of Jewish congregations live in Germany, making up 0.1% of the populace. There were also small numbers of Unification Church members, Scientologists, Hare Krishnas, members of the Johannish Church, Buddhists, the International Grail Movement, Ananda Marga, and Sri Chinmoy. Approximately 21.8 million people, or 26.6% of the population, belonged to smaller religious organizations or had no religious affiliation at all.

Freedom of religion is guaranteed, and although there is no official state religion, churches can receive financial support from the government.

TRANSPORTATION

Although the German transportation network was heavily damaged during World War II, the system is now one of the best developed in Europe (although much of the infrastructure in the former East Germany needs significant improvement). Because of the country's central location, almost all continental surface traffic has to cross its terrain. In 2004, the railroad system consisted of 46,142 km (28,700 mi) of operational standard and narrow gauge track. Of that total, standard gauge lines accounted for 45,928 km (28,567 mi), of which 20,084 km (12,492 mi) was electrified. Narrow gauge lines accounted for 238 km (148 mi), of which only 16 km (10 mi) was electrified. The greater part of Germany's rail system is operated by the government-owned Federal Railways System.

Highways and roads in 2003 totaled 231,581 km (144,043 mi), all of which were paved. As of 2003, there were 45,022,926 passenger cars and 3,541,193 commercial vehicles in use.

The total length of regularly used navigable inland waterways and canals was 7,300 km (4,540 mi) in 2004. Canals link the Elbe with the Ems, the Ems with the Dortmund, and the Baltic with the North Sea. The most important inland waterway consists of the Rhine and its tributaries, which carry more freight than any other European waterway. The Kiel Canal is an important connection between the Baltic Sea and North Sea. Major ports and harbors include Berlin, Bonn, Brake, Bremen, Bremerhaven, Cologne, Dresden, Duisburg, Emden, Hamburg, Karlsruhe, Kiel, Lubeck, Magdeburg, Mannheim, Rostock, and Stuttgart. In 2005, the FRG had a merchant fleet comprised of 332 ships of 1,000 GRT or more with a combined capacity of 5,721,495 GRT.

Germany had an estimated 550 airports in 2004. As of 2005, a total of 332 had paved runways, and there were also 33 heliports. Major airports include Schonefeld, Tegel, and Tempelhof at Berlin, Halle at Leipzig, Osnabruck at Munster, as well as those at Bremen, Dresden, Frankfurt, Düsseldorf, Hamburg, Hanover, Cologne-Bonn, Stuttgart, Nurenberg, and Munich. Lufthansa, organized in 1955, is the major air carrier; its route network includes both North and South America, the Near and Far East (including Australia), Africa, and Europe. In 2003, about 72.693 million passengers were carried on scheduled domestic and international airline flights, and 7,298 million freight ton-km of service was performed

HISTORY

Hunting and gathering peoples roamed the land now known as Germany for thousands of years before the first farmers appeared in the sixth millennium bc. By the time these Indo-Europeans made contact with the Romans late in the 2nd century bc, the Teutons of the north had driven most of the Celts westward across the Rhine. During the succeeding centuries, Germanic tribes such as the Alemanni, Burgundians, Franks, Lombards, Vandals, Ostrogoths, and Visigoths gradually developed in the territory between the Rhine estuary in the west, the Elbe River in the east, and northern Italy in the south. Some of these peoples, whom the Romans called barbarians (from the Latin barbari, meaning "foreigners"), overran Italy and helped destroy the Roman Empire; others settled in Britain, France, and Spain. The area on either side of the Rhine was contested until Charlemagne, king of the Franks (r.768–814), extended his domain to include most of Germany as far as the Elbe; he was crowned emperor at Rome in 800. Charlemagne's empire was eventually divided among his three grandsons, and the German sector itself was divided in the latter part of the 9th century.

Otto I, greatest of a new Saxon dynasty, united Germany and Italy and was crowned first Holy Roman emperor in 962. The strength of the rising Holy Roman Empire was undercut, however, by the two-pronged involvement in Italy and in Eastern Europe. Successive generations of Germanic emperors and of various ducal families engaged in constant struggles within Germany as well as with the papacy, and dispersed their energies in many ventures beyond the confines of the empire. Frederick I (Barbarossa, r.1152–90), of the Hohenstaufen family, overcame the last of the powerful duchies in 1180. His grandson Frederick II (r.1212–50), the most brilliant of medieval emperors, reigned from Sicily and took little interest in German affairs. Four years after his death, the empire broke up temporarily, and there followed a 19-year interregnum. In 1273, Rudolf of Habsburg was elected emperor, but neither he nor any of his immediate successors could weld the empire into a manageable unit.

The Holy Roman Empire's loose and cumbersome framework suffered from lack of strong national authority at the very time when powerful kingdoms were developing in England, France, and Spain. In the ensuing period, the Holy Roman emperors tended to ally themselves against the nobility and with the prosperous German cities and with such potent confederations of towns as the Hanseatic and Swabian leagues. During the 15th century and part of the 16th, Germany was prosperous: commerce and banking flourished, and great works of art were produced. However, the already weak structure of the empire was further undermined by a great religious schism, the Reformation, which began with Martin Luther in 1517 and ended in the ruinous Thirty Years' War (1618–48), which directly and indirectly (through disease and famine) may have taken the lives of up to two million people. Thereafter, Germany remained fragmented in more than 300 principalities, bishoprics, and free cities. In the 18th century, Prussia rose to first rank among the German states, especially through the military brilliance of Frederick II ("the Great," r.1740–86).

During the French Revolution and the Napoleonic wars, German nationalism asserted itself for the first time since the Reformation. Although frustrated in the post-Napoleonic era, the nationalist and liberal movements were not eradicated, and they triumphed briefly in the Frankfurt parliament of 1848. Thereafter, a number of its leaders supported the conservative but dynamic Prussian chancellor, Otto von Bismarck. After a series of successful wars with Denmark (1864), Austria (the Seven Weeks' War, 1866), and France (the Franco-Prussian War, 1870–71), Bismarck brought about the union of German states (excluding Austria) into the Second Empire, proclaimed in 1871.

Germany quickly became the strongest military, industrial, and economic power on the Continent and joined other great powers in overseas expansion. While Bismarck governed as chancellor, further wars were avoided and an elaborate system of alliances with other European powers was created. With the advent of Wilhelm II as German emperor (r.1888–1918), the delicate international equilibrium was repeatedly disturbed in a series of crises that culminated in 1914 in the outbreak of World War I. Despite initial successes, the German armies—leagued with Austria-Hungary and Turkey against the United Kingdom, France, Russia, and eventually the United States—were defeated in 1918. As a consequence of the war, in which some 1,600,000 Germans died, the victorious Allies through the Treaty of Versailles (1919) stripped Germany of its colonies and of the territories won in the Franco-Prussian War, demanded the nation's almost complete disarmament, and imposed stringent reparations requirements. Germany became a republic, governed under the liberal Weimar constitution. The serious economic and social dislocations caused by the military defeat and by the subsequent economic depression, however, brought Adolf Hitler and the National Socialist (Nazi) Party to power in 1933. Hitler converted the republic into a dictatorship, consolidated Germany's position at home and abroad, and began a military expansion that by 1939 had brought a great part of Europe under German control, either by military occupation or by alliance, leading to World War II.

Germany signed a military alliance with Italy on 22 May 1939 and a nonaggression pact with the former USSR on 23 August. Hitler's army then invaded Poland on 1 September, and France and Britain declared war on Germany two days later. France surrendered on 22 June 1940; the British continued to fight. On 10 December 1941, Germany declared war on the United States, three days after the attack on Pearl Harbor by its ally Japan. Hitler's troops were engaged on three major fronts—the eastern front (USSR), the North African front, and the western front (France). Hitler relied heavily on air power and bombed Britain continuously during 1941–42. But by 1943, German forces were on the defensive everywhere, thus marking the beginning of the end of the Nazi offensive thrusts. Finally, on 7 May 1945, after Hitler had committed suicide, the Allies received Germany's unconditional surrender. It is estimated that more than 35 million persons were killed during World War II. Of this number, at least 11 million were civilians. Among them were nearly 6 million Jews, mostly eastern Europeans, killed in a deliberate extermination by the Nazi regime known as the Holocaust; there were also about 5 million non-Jewish victims, including Gypsies, homosexuals, political dissidents, and the physically and mentally handicapped.

From Division to Reunification

After the surrender in 1945, Germany was divided into four occupation zones, controlled respectively by the former USSR, the United States, the United Kingdom, and France. Berlin was like-wise divided, and from April 1948 through May 1949 the USSR sought unsuccessfully to blockade the city's western sectors; not until the quadripartite agreement of 1971 was unimpeded access of the FRG to West Berlin firmly established. In 1949, pending a final peace settlement, Germany was divided into the Federal Republic of Germany, or West Germany, consisting of the former United Kingdom, French, and US zones of occupation, and the German Democratic Republic, or East Germany, consisting of the former Soviet zone of occupation. Territories in the east (including East Prussia), which were in German hands prior to 1939, were taken over by Poland and the former USSR.

The FRG's first chancellor (1949–63), Konrad Adenauer, the leader of the Christian Democratic Union (CDU), followed a policy of "peace through strength." During his administration, the FRG joined NATO in 1955 and became a founding member of the EC in 1957. That same year, the Saar territory, politically autonomous under the Versailles Treaty but economically tied to France after 1947, became a German state after a free election and an agreement between France and the FRG. A treaty of cooperation between those two nations, signed on 22 January 1963, provided for coordination of their policies in foreign affairs, defense, information, and cultural affairs. The cost of this program of cooperation with the West was further alienation from the GDR and abandonment, for the foreseeable future, of the goal of German reunification. Many citizens, including a significant number of skilled and highly educated persons, had been covertly emigrating through Berlin in the West, and on 13 August 1961, East Berlin was sealed off from West Berlin by a wall of concrete and barbed wire. The Western Allies declared that they accepted neither the legality nor the potential practical consequences of the partition and reaffirmed their determination to ensure free access and the continuation of a free and viable Berlin.

On 16 October 1963, Adenauer resigned and was succeeded by former Finance Minister Ludwig Erhard, who is generally credited with stimulating the FRG's extraordinary postwar economic development—the so-called economic miracle. Kurt George Kiesinger of the CDU formed a new coalition government on 17 November 1966 with Willy Brandt, leader of the Social Democratic Party, as a vice-chancellor. Three years later, Brandt became chancellor, and the CDU became an opposition party for the first time. One of Brandt's boldest steps was the development of an "Eastern policy" (Ostpolitik), which sought improved relations with the Socialist bloc and resulted, initially, in the establishment of diplomatic ties with Romania and the former Yugoslavia. On 7 December 1970, the FRG signed a treaty with Poland reaffirming the existing western Polish boundary of the Oder and western Neisse rivers and establishing a pact of friendship and cooperation between the two nations. That August, the FRG had concluded a nonaggression treaty with the former USSR; a 10-year economic agreement was signed on 19 May 1973. Throughout the late 1960s and early 1970s, tensions over the Berlin division in particular and between the two Germanys generally eased markedly, as did, in consequence, the intensity of pressures from both Allied and Soviet sides over the issue of reunification. In an effort to normalize inter-German relations, FRG Chancellor Willy Brandt and GDR Chairman Willi Stoph exchanged visits in March and May 1970, the first such meetings since the states were established. A basic treaty between the two Germanys was reached on 21 December 1972 and ratified by the Bundestag on 17 May 1973; under the treaty, the FRG recognized the sovereignty and territorial integrity of the GDR, and the two nations agreed to cooperate culturally and economically. Two years later, the GDR and FRG agreed on the establishment of permanent representative missions in each others' capitals. Relations with Czechoslovakia were normalized by a treaty initialed 20 June 1973. The early 1970s brought an upsurge of terrorism on German soil, including the killing by Palestinians of Israeli athletes at the 1972 Summer Olympics in Munich. The terrorist wave, which also enlisted a number of German radicals, continued into the mid-1970s but declined thereafter.

Brandt remained chancellor until 6 May 1974, when he resigned after his personal aide, Günter Guillaume, was arrested as a spy for the GDR. Helmut Schmidt, Brandt's finance minister, was elected chancellor by the Bundestag on 16 May. Under Schmidt's pragmatic leadership, the FRG continued its efforts to normalize relations with Eastern Europe, while also emphasizing economic and political cooperation with its West European allies and with the United States. Schmidt remained chancellor until the fall of 1982, when his governing coalition collapsed in a political party dispute. General elections in March 1983 resulted in a victory for the CDU, whose leader, Helmut Kohl, retained the chancellorship he had assumed on an interim basis the previous October. In January 1987 elections, Kohl was again returned to power, as the CDU and its coalition allies won 54% of the seats in the Bundestag.

The exodus of East Germans through Hungary in the summer of 1989 as well as mass demonstrations in several East German cities, especially Leipzig, led to the collapse of the German Democratic Republic in the fall of 1989. Chancellor Kohl outlined a 10-point plan for peaceful reunification, including continued membership in NATO and free elections in March 1990. Following these elections, the two Germanys peacefully evolved into a single state. Four-power control ended in 1991 and, by the end of 1994, all former Soviet forces left the country, although British, French, and American forces remained for an interim period. Berlin became the new capital of Germany, although the shift from Bonn to Berlin took place over several years.

Unification has been accompanied by disillusionment and dissatisfaction with politics and the economy. A falling GDP and rising unemployment have raised concerns that the costs of unification were underestimated. By 1997, the German government had given more than $600 billion to eastern Germany through business subsidies, special tax breaks, and support payment for individuals, while private companies invested $500 million more. Even so, the eastern German economy was fundamentally bankrupt with unemployment at about 20%. Some analysts predict that convergence of the two economies will not be complete for another 10 to 20 years. In the meantime, the financial drain imposed on Bonn by the east threatened to imperil Germany's other convergence project, European economic unification. However, Germany and 11 other EU countries introduced a common European currency, the euro, in January 2002.

By October 1996, Chancellor Helmut Kohl had been in office for 14 years, becoming the longest-serving postwar German chancellor. In 1998, German voters decided it was time for a change. In the September parliamentary elections, Kohl's CDU (Christian Democratic) coalition was defeated by the SPD, and Gerhard Schröder became the first Social Democrat in 18 years to serve as Germany's chancellor. The following month, Schröder formed a center-left coalition with the Green Party. The new coalition inaugurated "Future Program 2000" to tackle the country's economic woes and in June 1999 pushed through the most extensive reform package in German history, which included major cuts in state spending as well as tax cuts. In April 1999, the German government was transferred from Bonn back to its prewar seat in Berlin, where the Bundestag moved into the renovated (and renamed) building formerly known as the Reichstag.

In July 1999 Johannes Rau became the first Social Democrat to be elected president of Germany in 30 years. However, continuing dissatisfaction with the nation's budget deficit and other problems resulted in a disappointing showing for the Social Democrats in local elections in September 1999.

In July 2000 government negotiators reached an agreement on the payment of compensation to persons subjected to forced and slave labor under the Nazi regime. A total of dm10 billion was to be paid out under the auspices of a specially created foundation. Official figures showed that racist attacks increased by 40% in 2000, a worrying trend.

In June 2001, the government and representatives from the nuclear industry signed an agreement to phase out nuclear energy over the next 20 years.

Following the 11 September 2001 terrorist attacks on New York and Washington, D.C., Germany agreed to deploy 4,000 troops to the US-led campaign in Afghanistan directed to oust the Taliban regime and al-Qaeda forces. It was Germany's largest deployment outside Europe since World War II, and in November, Schröder survived a parliamentary confidence vote following his decision to deploy the troops.

Parliamentary elections were held on 22 September 2002. Schröder, unable to campaign on a strong economy, staked out a foreign policy position that ran counter to that of the United States. Throughout 2002, the United States and the United Kingdom were committing troops to the Persian Gulf region, and, in the event that Iraq would not disarm itself of any weapons of mass destruction it might possess, it was evident that the United States and the United Kingdom might use those troops to force a regime change in Iraq. Schröder announced Germany unconditionally would not support a war in Iraq, and that Germany was in favor of a peaceful settlement to the conflict. Edmund Stoiber of the CDU was Schröder's opponent in the September elections, and the race between them was exceedingly close. Stoiber took a more nuanced position on the question of Iraq, and accused Schröder of damaging German-American relations. Stoiber was more popular with voters on matters of fighting unemployment (9.8% nationwide), and improving a sluggish economy. The SPD and CDU/CSU each won 38.5% of the vote, but the SPD emerged with 251 to 248 seats in the Bundestag (due to a peculiarity in the German voting system which awards extra seats to a party if it wins more constituency seats than it is entitled to under the party vote), and in coalition with the 55 seats won by the Green Party, formed a government with Schröder remaining chancellor.

The UN Security Council unanimously passed Resolution 1441 on 8 November 2002, calling upon Iraq to disarm itself of chemical, biological, and nuclear weapons or weapons capabilities, to allow the immediate return of UN and International Atomic Energy Agency (IAEA) weapons inspectors, and to comply with all UN resolutions regarding the country since the end of the Gulf War in 1991. The United States and the United Kingdom indicated that if Iraq would not comply with the resolution, "serious consequences" might result, meaning military action. The other three permanent members of the Security Council, France, Russia, and China, expressed their reservations with that position. Germany became a two-year (nonveto bearing) member of the Security Council in January 2003, and aligned itself with France, the most vocal opponent of war. The United States and the United Kingdom abandoned diplomatic efforts at conflict resolution in March, and on 19 March, the coalition went to war in Iraq. Once coalition forces defeated Iraq and plans for reconstruction of the country were being discussed in April, Germany stressed the need for a strong role to be played by the UN in a postwar Iraq.

Although Schröder was popular for his position toward Iraq, he became increasingly criticized for the economic underperformance of Germany. Major challenges included the growing level of unemployment, high level of state deficit, and the slow economic growth. During Schröder's second term, Germany became the world's largest exporter of goods, surpassing the United States.

The high unemployment level became quite astonishing, because Germany's low unemployment rate was at one point the envy of the industrial world. In the year 2000, Germany's unemployment rate exceeded 8%. By the end of 2002 over four million people were unemployed in Germany. The unemployment level in 2004 climbed to an even higher mark. The situation got worse in early 2005, when Germany's Federal Labor Agency announced that on January 2005 more than five million Germans were unemployed, which was the highest number since 1932, when the economic devastation of the Great Depression brought the Weimar Republic to an end. The important unemployment level during the first three month of 2005 triggered a negative reaction, even from those who supported the government. Critics complained that the Social Democrat-Green administration of Chancellor Gerhard Schröder was not doing enough.

In addition to the high rate of unemployment Germany also experienced growing state deficit, which meant that it spent more than it earned. In the early 1990s Germany pressured the EU to change its rules, such that no EU member state's deficit could be more then 3% of its GDP, but Germany in 2002 was in fact breaking this rule with a GDP of 3.75%. Furthermore, Wirtschafts–und Währungspolitik Bulletin and Federal Statistics Office reported that in 2004 Germany's budget deficit remained at 3.7% of its gross domestic product, which means that it exceeded the European Union's rules for the third year in a row.

Germany has struggled to produce GDP growth of even 1% a year. In comparison to the other Western European countries, from 1995 to 2003 the Western European economies, averaged together, grew by 18.1%, but in Germany it experienced growth of only 10.2%. Although, the Federal Statistics Office in Wiesbaden reported that in May 2005 the German economy experienced some improvement by expanding at the greatest pace since 2001, slightly rebounding from a contraction. Unfortunately, consumer spending, the biggest part of the economy, has not increased for some time.

To deal with the economic challenges in 2003 Gerhard Schröder launched a major reform package called "Agenda 2010." Agenda 2010 was Schröder's plan to reform Germany's declining economy and restore Germany's competitiveness in the world market. This policy aimed to reform health, education, labor training, social security, family welfare, unemployment benefits, and pensions. Agenda 2010s priority was labor-market reform. Neither these reforms nor reduced taxation did much to improve the slow economic growth or lower the unemployment that had reached especially great proportions since the Great Depression.

Following the protests on 1 January 2005 the government's controversial reform of unemployment benefits, also called "Hartz IV" reform, came into effect. Under this reform, those who have been unemployed for over a year would qualify for a flat-rate benefit, only if they could prove that they were actively looking for work. Schröder's inability to deal with the weak economy was thought to have contributed to his loss of the chancellery in the 2005 elections to Angela Merkel (CDU/CSU). A very tense election race followed by an alliance between the two opposing parties; the CDU/CSU and the SDP became known as the Grand Coalition. On 10 October 2005 Merkel officially became the chancellor of Germany.

Merkel defined the main goal of her government as reducing unemployment, and improving GDP growth. It was her goal to improve the German economy by pursuing a mix of reforms including cutting public spending, lowering corporate tax rates, accelerating labor-market, and pushing through other reforms begun by Merkel's predecessor. She also intended to increase value-added tax, social insurance contributions, and the top rate of income tax.

During her first few months in office, Angela Merkel attained an 85% approval rating. During the third quarter of 2005, the economy posted a 0.6% increase over the previous year's period and it was forecasted that Germany's GDP would grow by 1.6–1.8% in 2006. Although Germany's unemployment rate was still at 11.3%, it had been gradually decreasing since mid-2005.

Angela Merkel presided over a fragile coalition government consisting of her conservative Christian Democratic Union (CDU) party, the conservative Christian Social Union (CSU), and the left-leaning Social Democratic Party (SDP). Consequently, to push any reforms or programs through, she would have to be able to work together with the Social-Democrats.

In the field of foreign policy, Angela Merkel acknowledged the importance of Franco-German relations. She intended to maintain Germany's strong ties with France; however, not as exclusively as they used to be. Merkel was interested in working with the new EU member states and repairing relations with the United States. During Merkel's term it was thought that Germany might become less involved with Russia due to her criticism of the Russian president, Putin's, policies in Chechnya and human rights abuses. Germany would continue to support Turkey in its desire to become a European Union member state and to support Iraq from outside. The next chancellery election was scheduled for November 2009.

GOVERNMENT

Germany is a federal republic founded in 1949. Germany's Basic Law (Grundgesetz) or its constitution, was promulgated on 23 May 1949. On 3 October 1990, the Federal Republic of Germany and the German Democratic Republic were unified in accordance with Article 23 of the Basic Law, under which the FRG is governed. German governmental structure consists of three branches: the executive branch represented by a president (titular chief of state) and a chancellor (executive head of government), a legislative branch composed of a bicameral parliament, and a judicial branch represented by the independent Federal Constitutional Court. The federal government exercises complete sovereignty and may be amended by a two-thirds vote of the legislature.

The federal chancellor and his or her cabinet ministers and the federal president compose a federal executive branch. This branch is situated at the center of the German political system, where the chancellor is the head of federal government and an elected president performs the largely ceremonial functions of proposing the chancellor to the Bundestag, promulgating laws, formally appointing and dismissing judges and federal civil servants, and receiving foreign ambassadors. The president is elected for a five-year term by a federal convention composed of members of the Bundestag and an equal number of delegates elected by the provincial legislatures.

Every four years, after national elections and seating of the newly elected Bundestag (parliament) members, the federal president nominates a chancellor candidate to that parliamentary body and the chancellor is elected by majority vote in the Bundestag. Since a chancellor can only be elected by a coalition possessing a majority of the seats in parliament, each individual chancellor belongs to a particular party and represents the ideologies of that party. The Bundestag cannot remove the chancellor simply with a vote of no-confidence. The Basic Law allows only for a "constructive" vote of no-confidence; that is, the Bundestag can remove a chancellor only when it simultaneously agrees on a successor.

The chancellor's authority is drawn from the provisions of the Basic Law and from his or her status as leader of the party (or coalition of parties) holding a majority of seats in the Bundestag. The chancellor has powers of patronage and agenda-setting circumscribed by coalition government. Thus, the chancellor outlines federal policy and declares guidelines for cabinet ministers. Any formal policy guidelines issued by the chancellor are legally binding directives and must be implemented by the cabinet ministers. Guideline power allows the chancellor to interfere in any policy issue and to determine the government's approach to the problem.

Ministers are appointed and dismissed by the federal president with chancellor's approval; no Bundestag approval is needed. By and large, the chancellor and ministers are accountable to the Bundestag.

The bicameral legislature (the federal parliament) consists of a federal council (Bundesrat) and a federal diet (Bundestag).

The Bundestag is the principal legislative chamber in the parliament. Members of the Bundestag are the only federal officials directly elected by the public. The Bundestag had 497 voting deputies in 1987; 22 nonvoting deputies represented West Berlin. Following unification, Bundestag membership was raised to 662 deputies; as of September 2005 it stood at 614. Elections are held every four years (or earlier if a government falls from power). Candidates must be at least 18 years of age. Bundestag members are elected for four-year terms by universal, free, and secret ballot, and may be reelected. The most important organizational structures within the Bundestag are parliamentary groups (Fraktionen), which are formed by each political party represented in the chamber. Among other things, the Bundestag may introduce federal bills. However, it usually responds to federal bills introduced by the federal government or by the federal council.

The Bundesrat is the body that represents the interests of the states (Länder) within this federal structure. It consists of 69 representatives appointed by the provincial governments according to the population of each province. Each state has three to six votes depending on population and is required to vote as a block. The federal council participates in the Federation's policymaking and thus acts as a counterweight to the federal diet (Bundestag). It also serves as a link between the federation and the federal states' delegations representing the governments of the states. It can reject any federal bill and it has an absolute veto power over any federal legislation that has an impact on the states.

Disagreements between the two chambers are handled by a conciliating committee.

POLITICAL PARTIES

The "five percent clause," under which parties represented in the Bundestag must obtain at least 5% of the total votes cast by the electorate, has prevented the development of parliamentary splinter groups. In order to become a leading force in the parliament, parties have to win the local elections and become a majority by building coalitions. The coalition that receives the most votes respectively has the most votes in the parliament. Since party elections happen on the regional level, consistency of the parliament depends on the outcome of the Länder's elections.

The chancellor of Germany always belongs to the coalition of the parties that received the largest number of seats in the Bundestag. The chancellor seemingly could push his reforms by counting on the support of his coalition. However, coalitions do not agree on everything and often are fragmented. In addition, there is some fragmentation within each party. Additionally, after the German unification, there has been noticeable discrepancy between east and west because Western and Eastern Germany had different patterns of party developments.

Looking back, only three parties gained representation in the Bundestag following the elections of September 1965. The Christian Democratic Union (Christlich-Demokratische Union—CDU) and its Bavarian affiliate, the Christian Social Union (Christlich-Soziale Union—CSU), with 245 seats, remained the strongest group, as it had been since the first Bundestag was elected in 1949. The Social Democratic Party (Sozialdemokratische Partei Deutschlands—SPD) increased its seats to 202 and remained the major opposition party. The Free Democratic Party (Freie Demokratische Partei—FDP), winning 49 seats, joined with the CDU and the CSU to form the "small coalition" government of Chancellor Ludwig Erhard.

The coalition government was dissolved in October 1966, following a budgetary disagreement between the CDU/CSU and the FDP. In November 1966, the CDU/CSU joined with the SPD to form a new coalition government, but following the general elections of September 1969, the SPD and FDP formed a coalition government with a combined strength of 254 seats. The elections of November 1972 resulted in a coalition composed of the SPD's 230 seats and the FDP's 42, over the CDU/CSU's 224 seats. Following the resignation of SPD leader Willy Brandt, Helmut Schmidt (SPD) was elected chancellor by the Bundestag in May 1974 by a 267–255 vote. The SPD/FDP coalition retained its majorities in the elections of 1976 (SPD 214, FDP 39) and 1980 (SPD 218, FDP 53).

In the general election of 25 January 1987, the results were as follows: CDU/CSU, 44.3% (223 seats); FDP, 9.1% (46 seats); SPD, 37% (186 seats); and the Greens, 8.3% (42 seats). The first all-Germany elections were held 2 December 1990. The results were as follows: CDU/CSU, 43.8% (319 seats); SPD, 33.5% (239 seats); FDP, 11.0% (79 seats); and Greens, 1.2% (8). The Party of Democratic Socialism (PDS), successor to the SED (Communist party), won 2.4% of the vote and 17 seats. East German parties were allowed to win seats if they received at least 5% of the vote in East Germany. After the breakup of the coalition in 1982, however, the CDU/CSU swept to victory in the voting of March 1983, winning 244 seats and 48.8% of the vote, compared with 226 seats (44.5%) in 1980 and 243 seats (48.6%) in 1976. The swing party, the FDP, took 34 seats (6.9%) and joined the CDU/CSU in a coalition behind Chancellor Helmut Kohl. The SPD polled 38.2% (down from 42.9% in 1980) and captured 193 seats, for a drop of 25.

The CDU and CSU emphasize Christian precepts but are not denominational parties. They favor free enterprise and are supported by small business, professional groups, farmers, and Christian-oriented labor unions. In foreign policy, the CDU/CSU alliance supports European integration and the strengthening of NATO.

The SPD is the oldest and best organized of all German parties. In recent decades it has modified its traditional Marxist program and made an appeal not only to industrial workers but also to farmers, youth, professional people, and the petty bourgeoisie. Its revised Godesberg Program (1959) envisages a mixed economy, support for European integration and NATO, public ownership of key industries, a strong defense force, and recognition of religious values.

The FDP is a more heterogeneous organization, consisting of both classical liberals and strongly nationalistic groups. The party is supported mainly by business interests and Protestant groups. It rejects socialism or state capitalism in principle. The Greens (Die Grünen) constitute a coalition of environmentalists and antinuclear activists; in 1983, they became the first left-wing opposition party to gain a parliamentary foothold since the Communists won 15 seats in 1949. In 1990, in cooperation with Alliance 90, a loose left-wing coalition, the Greens were able to clear the 5% hurdle and win Bundestag seats.

The October 1994 elections saw a weakening of the Free Democratic and Christian Democratic coalition and a strengthening of the Social Democrats and the Greens. The Christian Democrats won 41.5% of the vote and the Free Democrats 6.9%. This gave the governing coalition 341 seats in parliament and a majority of only 10 seats as compared to its previous 134-seat edge. The combined opposition alliance took 48.1% of the vote (331 seats): the Social Democrats took 36.4%; the Greens, 7.3%; and the former Communists in eastern Germany (now called the Party of Democratic Socialism), 4.4%.

Kohl's CDU-CSU coalition was weakened further in the September 1998 parliamentary elections, winning only 245 seats (35.1%), compared with 298 for the SDP (40.9%). Seats won by other parties were as follows: Greens, 47; Free Democrats, 44; and Party of Democratic Socialism, 35. Following the election, Germany's new chancellor Gerhard Schröder formed a center-left coalition government with the Green Party.

Elections held in September 2002 saw both the SPD and the CDU-CSU coalition each win 38.5% of the vote; however, the SPD came away with 251 seats to 248 for the CDU-CSU. The SPD renewed its coalition with the Greens, who took 8.5% of the vote and 55 seats, and Schröder remained chancellor. The Free Democrats took 7.4% of the vote and 47 seats, and the PDS won 4.3% of the vote and held 2 seats in the Bundestag. On 23 May 2004, Horst Koehler was elected president with the next election scheduled for May 2009.

In the November 2005 elections, Gerhard Schröder (SPD/Greens coalition) lost the chancellery office to Angela Merkel (CDU/CSU-FDP coalition). It was the first time in German history that one of the two larger parties has nominated a woman for this position. The election campaign turned into a tense race of Merkel running against Schröder. Election polls fluctuated as well as did the predictions of the election results. Polls showed that right before the election day, at least a quarter of German voters were still undecided.

Germany held the elections on 18 September 2005, except in a constituency in Dresden that held the elections on 2 October. Unsurprisingly, both candidates came close with the Christian Democrats receiving only 1% more votes and four more seats than the SPD. Exit polls showed that neither coalition group had won a majority of seats in the federal diet (Bundestag), and both parties lost seats compared to 2002. The SPD/Green coalition fell from 306 seats (in a house of 603) to 273 seats (in a house of 614). At the same time the CDU/CSU-FDP coalition fell from 295 seats to 286 seats. In the final distribution of seats in the federal diet, CDU got 180 seats, CSU received 46 seats, FDP gained 61 seats, SPD got 222 seats, the Greens remained with 51 seats, and the recently formed left-wing Left Party (or PDS/WASG alliance) climbed up to 54 seats. The next parliamentary elections were to be held September 2009.

Neither of the coalitions (SPD-Greens and CDU/CSU-FDP) could achieve a majority of vote in the federal diet (Kandzler-mehrheit) that is required to elect a chancellor. Both chancellors claimed a victory, but to make it functional, they had to negotiate with all of the parties to form an appropriate winning coalition. On 10 October, a round of negotiations ended with the Grand Coalition between the CDU/CSU and the SPD. Angela Merkel officially became chancellor on the condition that 16 seats in the new cabinet would be equally split up between the CDU/CSU and the SPD and with the SPD controlling 8 out of the 14 ministries, including the ministries of foreign affairs and finance.

LOCAL GOVERNMENT

The Basic Law guarantees local self-government, and the states (Länder) are granted all powers not specifically reserved to the federal government. The Federal Republic consists of 13 Länder, and 3 free states (Freistaaten); Baden-Wuerttemberg, Bayern (Freistaat), Berlin, Brandenburg, Bremen, Hamburg, Hessen, Mecklenburg-Vorpommern, Niedersachsen, Nordrhein-Westfalen, Rheinland-Pfalz, Saarland, Sachsen(Freistaat), Sachsen-Anhalt, Schleswig-Holstein, and Thueringen (Freistaat).

Länder each have ministerial governments and legislatures. They have primary responsibility for the maintenance of law and order; jurisdiction over their own finances, taxes, and administration; and supreme authority in education and other cultural activities. Through the Bundesrat, the Länder have considerable influence in federal legislation and can prevent the central government from imposing radical reforms.

Communes (Gemeinden) are the basic units of local government, apart from the municipalities, and have the right to regulate such local matters as those involving schools, building, cultural affairs, and welfare. Halfway between the Länder and the communes are the counties (Landkreise), which have autonomy in such matters as road building, transportation, and hospitals. They are administered by a Landrat, the chief official, and a Kreistag (country legislature).

JUDICIAL SYSTEM

Cases of the first instance are tried by local or Landkreis courts and the superior courts in each of the Länder. The Federal Court of Justice in Karlsruhe, the court of last resort in regular civil and criminal cases, consists of members appointed by a committee that includes federal and Land ministers and several Bundestag members. A court of appeal and the several Land and Landkreis courts are subordinate to the Karlsruhe tribunal. Special courts handle administrative, labor, financial, and social welfare matters. The Federal Constitutional Court, the highest court in the land, has competence to decide problems concerning the Basic Law and to test the constitutionality of laws. The court has 16 members: one 8-member panel elected by a committee of the Bundestag, the other by the Bundesrat.

The judiciary is independent of the legislative and judicial branches and remains free from interference or intimidation. The Basic Law provides for the rights to a fair trial and prohibits arbitrary interference with privacy, family, home and correspondence. The government authorities generally respect these prohibitions.

ARMED FORCES

The unification of Germany in 1991 brought the amalgamation of the People's Army of the German Democratic Republic and the Bundeswehr of the Federal Republic—on the Bundeswehr's terms, modified by political guidance. Essentially, West Germany abolished the East German Ministry of Defense and officer corps, but kept much of the GDR's Russian equipment and a few of its career officers and noncommissioned specialists. The Bundeswehr occupied East German military installations and found many of them beyond repair for training and suitable housing. The Bundeswehr moved eastward with all deliberate speed, especially since six Russian divisions and a tactical air force still remained in German installations. (With dependents these dispossessed Russians numbered almost 500,000). Meanwhile, Germany's NATO allies still maintained an integrated ground and air forces of almost 250,000 troops in western Germany, although this force shrank with the departure of the Canadian and Belgian forces, and the reduction of the American and British contingents in the 1990s.

The German active armed forces in 2005 numbered 284,500, supported by 358,650 reserves. Active Army personnel numbered 191,350. The German Army has large amounts of equipment including 2,398 main battle tanks, 409 reconnaissance vehicles, 2,067 armored infantry fighting vehicles, 3,123 armored personnel carriers, and 1,682 artillery pieces. In addition, the Germans have abundant air defense weapons, helicopters, engineering equipment, and sophisticated antitank weapons.

The German Navy has 20,700 active memebers, including 3,700 naval aviation personnel. The Navy operates 13 tactical submarines and 14 major surface combat vessels (all frigates), 14 patrol and coast combatants, and 23 mine warfare ships.

The German Air Force numbered 51,400 active personnel in 2005. It is structured into the Air Force Command and Transport Command. Equipment for the air force includes 417 combat capable aircraft and 96 transport aircraft of all types.

In 2005 Germany's defense budget totaled $30.2 billion. German armed forces are actively involved in peacekeeping and UN missions abroad. Germany has troops in France and Poland, and trains with the United States military.

INTERNATIONAL COOPERATION

The Federal Republic of Germany became a full member of the United Nations on 18 September 1973; it belongs to several nonregional specialized UN agencies. It is also an active participant in the Council of Europe, the European Union, NATO, OECD, OSCE, the Asian Development Bank, the African Development Bank, the Council of the Baltic Sea States, the Euro-Atlantic Partnership Council, the Caribbean Development Bank, G-5, G-7, G-8, and the Paris Club (G-10). Germany is a permanent observer of the OAS and a nonregional member of the West African Development Bank. The country is a member of the WTO.

Germany has supported UN operations and missions in Kosovo (1999), Ethiopia and Eritrea (2000), Sierra Leone (1999), and Georgia (1993). Germany is part of the Australia Group, the Zangger Committee, the Nuclear Suppliers Group (London Group), the Nuclear Energy Agency, the Organization for the Prohibition of Chemical Weapons, and the European Organization for Nuclear Research (CERN).

In environmental cooperation, Germany is part of the Antarctic Treaty; the Basel Convention; Conventions on Biological Diversity, Whaling, and Air Pollution; Ramsar; CITES; the London Convention; International Tropical Timber Agreements; the Kyoto Protocol; the Montréal Protocol; MARPOL; the Nuclear Test Ban Treaty; and the UN Conventions on the Law of the Sea, Climate Change and Desertification.

ECONOMY

Germany, with a GDP of $2.83 trillion (at market exchange rate) and $2.43 trillion (purchasing power parity—PPP) in 2005, has the world's third-largest economy in exchange-rate terms and the fifth-largest economy measured by PPP. It is the largest economy in Europe. More than in most other advanced economies, manufacturing remains at the heart of the German economy, although the share of overall industrial output (excluding construction) in GDP declined from 26.9% in 1992 to 22.6% in 2002. As of 2005, the steelmaking sector in the Ruhr region had declined significantly, and agriculture had become a sector of only marginal importance for the economy as a whole.

Before unification in 1990, GNP in West Germany increased at an annual average rate of 7% between 1950 and 1960 and 5.4% between 1960 and 1970. This rate slowed to 3.1% between 1970 and 1980 and 2.3% between 1980 and 1990. However, the unification of Germany in October 1990 proved a heavy economic burden on the west. In 1992, the former East Germany accounted for only 8% of GDP. Transfer payments and subsidies for the east resulted in a large public deficit. Alarmed at the potential for inflation, the Bundesbank pursued a tight monetary policy. This boosted the value of the mark and had a recessionary effect on the European economy. The unemployment rate in 1993 was 7.3% in the west, but 15.8% in the east because so many antiquated, inefficient enterprises were unable to compete in a market economy. These factors led to the recession of 1992–93 with growth in the GDP dropping to 1.1%. The economy recovered in 1994, posting a growth rate of 2.9%, but declined to 1.9% in 1995 and 1% in 1996.

Strong exports in 1997 were expected to bring the growth rate back to 3.5% with sustained growth projected at 4–4.5% for 1998–2000. Such hopes failed to materialize, as the real growth rate for 1998 was 2.7%. The costs of reunification saddled the country with $300 billion in debt, forcing western Germans to pay a 7.5% "solidarity" surtax for reconstructing the eastern section. Even with the infusion of cash, the eastern sector was essentially bankrupt in the late 1990s with 25% unemployment and worker output at 50% of its western counterpart. However, high unemployment did not result in a drop in the hourly wage rate. High labor costs also plague the west where workers average a 38-hour work week and enjoy six weeks of vacation per year. To remain competitive, German companies cut staff and relocated manufacturing jobs to lower-wage countries.

The coalition government of Social Democrats and Greens elected in 1998 pledged to combat Germany's economic sluggishness through a reform program dubbed "Future Program 2000." This program included budget cuts, tax reforms, and a major reform of the pension system. The government also tried to coordinate better labor-management cooperation in its effort to implement its reforms. This coalition government was returned to power in 2002, and Chancellor Gerhard Schröder called on citizens to "renew Germany" by pulling together during difficult economic times. Germany, on the brink of recession, saw a drop in the government's popularity. Schröder threatened to resign in 2003 if his reform package, called "Agenda 2010," was not passed by 2004. This program included a relaxation of job protections, reductions in unemployment and health care benefits, and an easing of the rules on collective bargaining. Indeed, the Social Democrats' traditional support from unions was compromised by the proposed reforms, including, as in France, pension reform: strikes broke out in Germany, France, Austria, and Italy in 2003 due to opposition to cuts in old-age benefits. Neither the reforms of "Agenda 2010" nor reduced taxation did much to improve consumer confidence for Germany's industrial workers, who were unemployed in large numbers. The unemployment rate in Germany stood at 10.6% in 2004, and at 12.4% for the first quarter of 2005.

As a result of elections held in September 2005, a "grand coalition" of the Christian Democratic Union (CDU) and the Social Democratic Party (SDP), headed by Chancellor Angela Merkel, was faced with the task of implementing further economic reforms. Reforming business taxes was one item on the policy agenda. The federal corporation tax rate is 25%, with local taxes pushing the total tax burden on companies up to 38%.

GDP growth was predicted to be a weak 0.9% in 2005, and 1.1% in 2006, with consumer prices rising by 1.9% in 2005 and 1.8% in 2006. Germany was expected to be forced to meet the EU's 3% budget-deficit ceiling by 2007. In 2005, a deficit of 3.7% of GDP was forecast, 3.4% in 2006, and 3.1% in 2007.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Germany's gross domestic product (GDP) was estimated at $2.4 trillion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $29,700. The annual growth rate of GDP was estimated at 0.8%. The average inflation rate in 2005 was 2%. It was estimated that agriculture accounted for 1.1% of GDP, industry 28.6%, and services 70.3%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $5.693 billion or about $69 per capita and accounted for approximately 0.2% of GDP.

The World Bank reports that in 2003 household consumption in Germany totaled $1.408 trillion or about $17,069 per capita based on a GDP of $2.4 trillion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 1.5%. In 2001 it was estimated that approximately 14% of household consumption was spent on food, 7% on fuel, 2% on health care, and 10% on education.

LABOR

Germany's labor force in 2005 was estimated at 43.32 million workers. Employment by sector in 2003 was as follows: industry 31.9%; agriculture 2.5%; services 65.5%; other occupations 0.1%. Unemployment was estimated at 11.6% in 2005.

The right to organize and to join trade unions is guaranteed by law. As of 2005, about 28% of the eligible labor force was unionized. In 1991, the western trade unions successfully expanded eastward, where they created western structures in the new states, totally dominating overall development so that no GDR trade union survived reunification. Disputes concerning the interpretation of labor agreements are settled before special labor courts. Wages and working conditions in virtually all commercial and industrial establishments are governed by collective bargaining agreements between employers' associations and trade unions. Germany in 2005 did not have an administratively or legislated minimum wage rate.

As of 2005, children under the age of 15 were generally prohibited from employment, and these child labor laws were strictly enforced. Minors 13 and 14 years of age were permitted to work on a farm up to three per day, or deliver newspapers up to two hours per day. Although the average workweek ranges from 36 to 39 hours, the law allows a maximum workweek of 48 hours. Also mandated are a 25% premium for overtime; paid holidays and vacations (15 workdays annually, minimum, and 18 days for employees over 35 years of age); and a 10% premium for night work. However, under various collective bargaining agreements, most workers are entitled to an even greater wage premium for overtime work and even more vacation time than legally required (six weeks per year is typical). About 74% of Germany's labor force in 2005 was covered by a collective bargaining agreement, which partly explains the relatively high wages in the absence of a minimum wage law, and why working time and vacation provisions exceed legal requirements. Health and safety standards are stringently regulated.

AGRICULTURE

Although 34% of the total area of Germany is devoted to crop production, production falls far short of satisfying industrial and consumer demand. Agriculture accounted for only 1% of GDP in 2003. The total amount of arable land in 2003 came to 12,040,000 hectares (29,750,000 acres). In 2003, the average size of Germany's 420,697 farms was about 40 hectares (100 acres).

Article 15 of the 1990 Treaty (for monetary, economic and social union) arranged for transitional price supports for GDR farmers until an integration within the EU agricultural market could occur. Before reunification, agriculture had engaged about 6.1% and 3% of the economically active populations of the former GDR and old FRG, respectively. Agriculture engaged 2.5% of Germany's population in 2002. The former GDR Länder contribute significantly to German agricultural production. The chief crops in order of yield in 2004 were sugar beets, 27,159,000 tons; wheat, 25,427,000 tons; barley, 12,933,000 tons; and potatoes, 13,044,000 tons. Apples and pears as well as cherries and peaches are significant fruit crops. In 2003, apple production was the smallest since 1995 from bad pollination and forest damage. Viticulture is important in the southwest, and Germany is a renowned producer of wines for world consumption; 105 million liters of wine were produced in 2004. Germany is the world's second-largest importer of agricultural products (after the United States), with nearly $50.8 billion in 2004.

ANIMAL HUSBANDRY

The government regulates the marketing of livestock, meat, and some dairy products; it also controls the distribution of livestock for slaughter and meat. Livestock in 2005 included 13,257,000 head of cattle (including five million milk cows), and 26,235,000 hogs, 2,138,000 sheep, 520,000 horses, 112,000,000 chickens, and 8,000,000 turkeys. Milk production amounted to 27.6 million tons in 2005; cheese, 2,074,000 tons; and butter, 444,000 tons. Meat production in 2005 included 4.5 million tons of pork, 1.1 million tons of beef, 1 million tons of poultry, and 54,000 tons of lamb, mutton, and goat. In 2002, of the 2.8 million cattle tested for BSE ("mad cow" disease), 0.003% were confirmed positive. Some 798,000 tons of eggs were produced in 2005. Germany is the leading meat, milk, and honey producer of Europe.

FISHING

The importance of the fishing industry has declined in recent years. At the beginning of 2004, the German fishing fleet consisted of 2,281 vessels with 66,008 GRT. In 2004, there were 88 fishery companies employing 9,004 people. The total catch in 2004 amounted to 288,000 tons, of which 125,000 tons came from domestic ports. The main fishing areas are the North Sea, the Baltic Sea, and the waters off Greenland. Overfishing is a serious environmental problem. The government subsidizes capacity reduction and modernization measures. The fish varieties accounting for the greatest volume are herring, mackerel, cod, and sardines. Aquaculture consists mostly of pond-raised trout and carp. Imports of fish products totaled 774,095 tons in 2004 (valued at $2.63 billion), while exports amounted to 370,508 tons (valued at $1.14 billion). Norway and Denmark together supply 40% of Germany's fish and seafood imports. Germany is the fourth-largest fish processing country in the EU (after the United Kingdom, France, and Spain). Processed fish production amounted to 474,428 tons in 2004, valued at $1.91 billion.

FORESTRY

Total forest area amounted in 2000 to over 10.7 million hectares (26.5 million acres), about 31% of the total land area. Reforestation has resulted in a 6% increase in the forest area since the end of World War II (1939–45). Deciduous species (such as beech, oak, ash, maple, and alder) originally covered about two-thirds of the area, and conifers were only predominant in higher elevations. Today, hardwood trees comprise only one-third of the forests. Principal softwood species include silver fir, pine, spruce, and Douglas fir, which was introduced from the northwest United States late in the 19th century. The most thickly wooded of the federal Länder are Hessen and Rhineland-Pfalz. A total of 54 million cu m (1.9 billion cu ft) of timber was cut in 2005. The wood products industry consists of about 185,000 companies employing more than 1.3 million people, larger than the German automotive industry. Almost half of the raw timber is used by sawmills for lumber production. The German sawmilling industry consists of about 2,500 sawmills producing around 17 million cu m (600 million cu ft) of softwood lumber and 1.2 million cu m (42.4 million cu ft) of hardwood lumber. Total trade in forest products during 2004 included $14.8 billion in imports and $6.3 billion in exports. Output of paper and paperboard totaled 20.4 million tons in 2004, highest in Europe. High domestic labor costs compel Germany to import substantial quantities of value-added products such as veneers and panels.

MINING

Germany's export-oriented economy was the largest in Europe. Approximately one-third of Germany's gross domestic product (GDP) depended upon exports. Germany was also a major processing nation, relying on imports of raw materials for the metals processing industry and the manufacture of industrial mineral products. The country was a leader in the mining equipment manufacturing sector, and was among the largest and most technologically advanced producers of iron, coal, and cement. Although the underground mining sector has steadily declined, certain minerals remained important domestically and worldwide. In 2003, Germany was the world's largest lignite producer, the world's third-largest producer of potash, a leading producer of kaolin in Western Europe, a major European producer of crude gypsum, and self-sufficient in feldspar and salt. The only metal mineral still mined in Germany was uranium.

Except for the very large lignite and potash operations, most of the producing and processing facilities in operation were small. The restructuring and privatization of facilities in the former German Democratic Republic (GDR) continued in 2003, including of the mineral-resource industries. Production figures for 2003 were, in million tons: potash, 3.563; kaolin, 3.5; marketable gypsum and anhydrite, 1.748, down from 1.761 in 2001; feldspar, 0.5; industrial dolomite and limestone, 106, up from 76 in 2001; and marketable salt (evaporated, rock, and other), 16.3, up from 15.6 in 2001. In 2003, Germany also produced barite; bromine; chalk; clays (bentonite, ceramic, fire, fuller's earth, brick); diatomite; fluorspar; graphite; lime; quicklime; dead-burned dolomite; nitrogen; phosphate materials, including Thomas slag; mineral and natural pigments; pumice; dimension stone; quartz; quartzite; slate; building sand; gravel; terrazzo splits; foundry sand; industrial glass sand; talc; and steatite. In terms of overseas developments, Süd-Chemie AG was the largest bentonite producer in Europe. Between 140 and 160 small- to medium-sized clay mines were in operation; about one-half of the high-quality refractory and ceramic clays produced were from the Rhineland-Palatinate area. No iron ore was mined in 1999 and 2000; demand was met by imports of 47 million tons.

ENERGY AND POWER

Germany is the greatest consumer of electric power in Europe. In 2003, total installed capacity was estimated at 119.8 GW. Total production of electric power in that year amounted to an estimated 558.1 billion kWh, of which 63% was produced in conventional thermal plants (mainly fueled by hard coal), 28% in nuclear installations, and 6% from other renewable sources. As of November 2005, there were 17 nuclear plants, and as of 2003, Germany ranked fourth internationally in nuclear power generation. In 2001, the German government and its utility companies signed an agreement to gradually phase out nuclear power over the coming decades due to environmental concerns.

Proven natural gas reserves were estimated at 9.9 trillion cu ft, as of 1 January 2005. Domestic production in 2003 accounted for slightly more than 24% of the natural gas consumed in 2003. In that year, domestic demand for natural gas was put at an estimated 3.3 trillion cu ft, while domestic production that year was estimated at 0.8 trillion cu ft. Major natural gas suppliers to Germany are Russia, the Netherlands, and Norway. In 2000 production began at Germany's first offshore gas field in the North Sea. It is expected to produce 3.3 billion cu m (116 billion cu ft) of gas per day for 16 years. Production of oil was estimated at 169,300 barrels per day in 2005, of which 38% was crude oil. Local production is not sufficient to cover consumption, which totaled an estimated 2.6 million barrels per day in 2005.

Germany has extensive coal reserves. In 2003, recoverable reserves of coal totaled an estimated 7,428.5 million short tons, with consumption and production estimated at 273 million short tons and 229.1 million short tons, respectively, for that same year. Germany's hard coal (anthracite and bituminous) deposits lie deep underground and are difficult to mine economically. As a result, hard coal extraction is subsidized by the government, which for 2005, plans to spend $3.5 billion for subsidies. However, by 2012, coal subsidies are slated to fall to $2.3 billion, the result of a pact with the coal industry reached in 1997. Brown coal, or lignite, however, is easier to obtain and does not require subsidies from the government. It also accounts for the vast bulk of German coal output. In 2003, of the 273.0 million short tons of coal produced, brown coal accounted for 86% of production, with 13% for bituminous and 1% for anthracite. The lignite industry, which is centered in the eastern part of the country, was drastically changed as a result of unification and the introduction of the strict environmental and safety laws of the pre-1991 FRG.

Germany is also looking at renewable energy sources. Under the Renewable Energy Sources Act, Germany is looking to have 12.5% of its energy supplied by renewable sources by 2010, and 20% by 2020. During the 1990s, more than 5,000 electricity-generating windmills were installed in Germany, mostly along the North Sea coast, and wind power is expected to supply 3.5% of electricity by 2010. As of November 2005, Germany had 14,600 MW of installed wind power capacity and 390 MW of installed solar voltaic capacity.

INDUSTRY

Germany is the world's third-largest industrial power, behind the United States and Japan. The major industrial concentrations of western Germany are the Ruhr-Westphalia complex; the Upper Rhine Valley, Bremen and Hamburg, notable for shipbuilding; the southern region, with such cities as Munich and Augsburg; and the central region, with such industrial cities as Salzgitter, Kassel, Hanover, and Braunschweig. In the east, most of the leading industries are located in the Berlin region or in such cities as Dresden, Leipzig, Dessau, Halle, Cottbus, and Chemnitz.

The main industrial sectors in the former GDR were electrical engineering and electronics, chemicals, glass, and ceramics. The optical and precision industries were important producers of export items. Following unification, wages in the east were allowed to reach levels far exceeding productivity. As a result, many factories closed and industrial production plunged by two-thirds before stabilizing.

German industry has been struggling with high labor costs, stiff international competition, and high business taxes. Large industrial concerns like Daimler-Benz have spun off unprofitable companies, cut staff, and are looking for ways to boost productivity. Policies such as these have led to a loss of some two million industrial jobs since 1991. Other companies, like the electronics giant Siemens, have moved plants abroad in search for lower labor costs and to secure positions in developing economies like China and Thailand.

Despite the costs of restructuring the former GDR, Germany had some of the largest and most successful companies in the world as of late 2005, from automobiles to advanced electronics, steel, chemicals, machinery, shipbuilding, and textiles. German industrial products are known for their high quality and reliability. Nevertheless, the global recession that began in 2001 negatively affected German industry, with 45,000 insolvencies in 2002, including Holzmann, the large construction company. The construction industry, which experienced a post-reunification boom in the early 1990s, experienced an 8% drop in orders at the beginning of 2002. Although German industry (excluding construction) as a percentage of GDP declined from 26.9% in 1992 to 22.6% in 2002, manufacturing in 2005 remained at the heart of the German economy.

SCIENCE AND TECHNOLOGY

The reunification of East and West Germany has created great opportunities for the entire population but has also placed great strains on the nation. Perhaps nowhere is this more evident than in science, engineering and technical education, and vocational training. Germany maintains an excellent science and technology educational system and vocational training in many fields. About 140,000 science and engineering students graduated per year in the last years of the 20th century. Still, the challenge of incorporating the former German Democratic Republic (GDR) into a complete and modern German nation is daunting. Public and university research facilities in the former East Germany are old and poorly maintained, and science and engineering students have been found to be poorly trained and equipped to work in more modern West German institutions and companies. It is believed that the German government will need to completely rebuild the science and technology infrastructure in the former GDR before it can compare with more modern German facilities.

The German national science and technology budget is applied to many areas of science and technology, and leading fields include traditional areas of German strength, like chemical, automotive and telecommunications research and development. Current policy emphasizes the application of science and technology to enhance Germany's economic and competitive standing, while protecting the nation's health and the environment. Support for science and technology also occurs at other levels. There are independent laboratories, comprised of both the national laboratories and private research institutes like the Max Planck and Fraunhofer Societies. In addition, German industry supports many important types of research and development, and the German states, or Länder, provide still more resources for scientific research. The Ministry for Science and Technology (BMFT), an organization without parallel in the United States, both coordinates and sets priorities for the entire national science and technology program. Finally, Germany's participation in the European Union also has a significant science and technology component—Germany provides funding, scientists, and laboratories for broad European research and development. In 2003 total research and development (R&D) expenditures in Germany amounted to $56,592.7 billion, or 2.64% of GDP. Of that total, 65.5% came from the business sector, followed by the government at 31.6%, the foreign sector at 2.3%, and by higher education at 0.4%.

In 2002, there were 3,222 scientists and engineers and 1,435 technicians per million people that were actively engaged in R&D. High-tech exports that same year were valued at $86.861 billion, accounting for 17% of manufactured exports.

Germany has numerous universities and colleges offering courses in basic and applied sciences. In 1987–97, science and engineering students accounted for 47% of university enrollment. In 2002, of all bachelor's degrees awarded, 30.2% were in the sciences (natural, mathematics and computers, and engineering).

The Natural History Museum in Berlin (founded in 1889) has geological, paleontological, mineralogical, zoological, and botanical components. The country has numerous specialized learned societies concerned with agriculture and veterinary science, medicine, the natural sciences, and technology.

DOMESTIC TRADE

Wholesalers, retailers, mail-order houses, door-to-door salespersons, department stores, consumer cooperatives, and factory stores all engage in distribution. There are about 630,000 commercial enterprises in Germany, with over than 760,000 local units. Nearly 5 million people are employed in domestic trade, which has a yearly turnover of over €1 trillion.

Chain stores are common, with the top 10 German retail organizations accounting for almost 80% of total German retail turnover. Convenience shops are a fast growing market outlet in Germany.

The economy is generally described as a "social market economy." The state continues to own some major sections of the economy and provides subsidies for the growth and development of some sectors. However, free enterprise and competition are encouraged. Privatization of public utilities has resulted in greater competition and lower prices. The economy as a whole is primarily export oriented, with nearly one-third of national product exported.

Usual business hours for retail stores are from 9 am to 6 or 6:30 pm on weekdays and from 9 am to 4 pm on Saturday. Retail stores are not open on Sundays or holidays unless they have a special limited permit allowing them to be open. Twenty-four-hour shopping is available only at certain gas stations and at other sites related to travel. Wholesale houses and industrial plants usually have a half day (noon closing) on Saturday. Banks are open Monday–Friday from 8:30 am to 1 pm and from 2:30 pm to 4 pm (5:30 pm on Thursday).

FOREIGN TRADE

Germany is one of the world's great trading nations. In 2003 and 2004 it was the largest exporter in the world. In 2004, Germany's exports amounted to $909.7 billion, compared with the United

Country	Exports	Imports	Balance
World	748,531.3	601,761.0	146,770.3
France-Monaco	78,002.5	54,904.7	23,097.8
United States	68,614.2	42,098.1	26,516.1
United Kingdom	61,340.5	35,356.2	25,984.3
Italy-San Marino-Holy See	53,914.0	37,926.5	15,987.5
Netherlands	44,117.2	46,495.2	-2,378.0
Austria	38,872.0	23,437.7	15,434.3
Belgium	37,109.9	28,711.2	8,398.7
Spain	36,266.2	18,393.2	17,873.0
Switzerland-Liechtenstein	28,571.8	21,011.6	7,560.2
China	20,401.4	28,259.7	-7,858.3
(…) data not available or not significant.

States' $811.1 billion. German imports stood at $717.9 billion, resulting in a trade surplus of $191.8 billion in 2004.

Manufactured products are the leading exports. Germany supplies a large portion of the world with automobiles and car parts. Germany's motor vehicle exports made up 18.4% of its total exports in 2004. Diverse machinery exports, including nonelectrical and electrical parts, also account for a large percentage of the world's exports in those commodities (and 14% of Germany's total exports in 2004). Chemical products, telecommunications technology, in addition to devices for electricity production and distribution, are the next leading exports. The leading markets for Germany's goods in 2004, in order of importance, were France, the United States, the United Kingdom, Italy, and the Netherlands.

In 2004, Germany's major imports were chemical products (11% of total imports), motor vehicles (10.3%), petroleum and natural gas (6.8%), machinery (6.7%), and computers and related products (4.8%). Germany's leading suppliers in 2004, in order of importance, were France, the Netherlands, the United States, Italy, and the United Kingdom.

BALANCE OF PAYMENTS

After experiencing deficits during 1979–81, Germany's current accounts balance rebounded to a surplus of about dm9.9 billion in 1982 and then kept rising to dm76.5 billion in 1986, primarily because of falling prices for crude oil and other imports, combined with appreciation of the deutsche mark relative to other European currencies. By 1989, Germany's current account surplus was nearly 5% of GNP. With reunification, however, this changed immediately. Imports rushed in as former-GDR residents sought newly available consumer goods, and exports fell as goods and services were diverted to the east. As a result, Germany recorded current account deficits since 1991, created in part because of the substantial foreign borrowing undertaken to finance the cost of unification. Even so, large current account surpluses from the 1970s and 1980s helped Germany to maintain its position as the world's second-largest creditor with net foreign assets estimated at $185 billion in 1995. From 1990 to 1996, however, Germany's share of world exports dropped from 12% to 9.8% due in large part to high

Revenue and Grants	653.46	100.0%
Tax revenue	245.87	37.6%
Social contributions	378.34	57.9%
Grants	10.54	1.6%
Other revenue	18.71	2.9%
Expenditures	698.61	100.0%
General public services	95.55	13.7%
Defense	25.47	3.6%
Public order and safety	3.0	0.4%
Economic affairs	46.59	6.7%
Environmental protection	0.37	0.1%
Housing and community amenities	6.19	0.9%
Health	134.55	19.3%
Recreational, culture, and religion	0.83	0.1%
Education	3.09	0.4%
Social protection	382.97	54.8%
(…) data not available or not significant.

labor costs which were making it hard for Germany to compete in the global economy. Germany in 2001 ranked second behind the United States in numbers of both exports and imports, and ran a current account surplus. By 2004, it was the world's leading exporter, and had a current account surplus estimated at $73.59 billion.

BANKING AND SECURITIES

The central banking system of Germany consists of the German Federal Bank (Deutsche Bundesbank), currently located in Frankfurt am Main (but which is expected to move to Berlin, the capital), one bank for each of the Länder (Landeszentralbanken), and one in Berlin, which are the main offices for the Federal Bank. Although the Federal Bank is an independent institution, the federal government holds the bank's capital and appoints the presidents as well as the board of directors; the Central Bank Council acts as overseer. All German banks are subject to supervision by the German Federal Banking Supervisory Authority (Bundesaufsichtsamt für das Kreditwesen) in Berlin.

The Federal Bank is the sole bank of issue. Until the advent of the euro in 1999 it set interest and discount rates. These functions are now the domain of the European Central Bank (ECB). However, the Federal Bank maintains a leading role in domestic banking. The largest commercial banks are the Deutsche Bank, Dresdner Bank, and Commerzbank. In 1997 Germany had 232 commercial banks, including the "big three," 56 subsidiaries or branches of foreign banks, and 80 private banks. There are also 13 central giro institutions. In addition, there are 657 savings banks and 18 credit institutions with special functions, including the Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation), which is the channel for official aid to developing countries. In all, there were over 45,000 bank offices in 2002. The German financial system includes just under 2,700 small industrial and agricultural credit cooperatives and allied institutions, in addition to four central institutions; 33 private and public mortgage banks that obtain funds from the sale of bonds; the postal check and postal savings system; and 34 building societies. In April 2000, a proposed merger between two of the "big three," Deutsche Bank and Dresdner Bank, collapsed. The deal would have reduced operating costs by relieving both banks of their branch networks.

After the Bundesbank just missed its target range for M3 growth for 1996 of 4% to 7%, it decided on a two-year target for monetary supply growth to cover the 1997-98 period leading up to the planned hand-over of responsibility to the ECB on 1 January 1999.

In 1996 Moody's Investments Service capped an extremely poor year for Deutsche Bank by reducing its triple A rating to Aa1. This reflects the fact that elite banks are finding it harder to retain the triple A rating as banking becomes internationally more competitive. Deutsche Bank announced that it hoped to shed 1,300 employees through attrition by 2000.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $544.8 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $1,849.3 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 4.37%.

Under the constitution, the governments of the Länder regulate the operations of stock exchanges and produce exchanges. Eight stock exchanges operate in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, Munich, and Stuttgart. Germany has several other independent exchanges for agricultural items. There are no restrictions on foreign investments in any securities quoted on the German stock exchanges. However, a foreign (or domestic) business investor that acquires more than 25% of the issued capital of a German quoted company must inform the company of this fact. The most notable recent banking legislation is the January 2002 elimination of the capital gains tax on holdings sold by one corporation to another. In 2004, a total of 660 companies were listed on the Deutsche Borse AG. Market capitalization in 2004 totaled 41,194.517 billion. The DAX in 2004 rose 7.3% from the previous year to 4,256.1.

INSURANCE

In 2003, the value of direct premiums written totaled $170.811 billion, of which nonlife premiums accounted for $94.073 billion. Germany's top nonlife insurer in that same year was Allianz Versicherungswirtschafe with gross nonlife premiums written of $9,071.1 million. The country's leading life insurer that year was Allianz Leben, with $11,554.2 billion in life insurance premiums written. Worker's compensation, third party automobile liability, legal liability for drug companies, airlines, hunters, auditors, tax advisors, security firms, architects, lawyers, nuclear power station operators, and accident and health insurance are compulsory. The insurance sector is highly regulated and, despite the opening of the European Union (EU) market, it will be difficult for foreign companies to win the confidence of potential German customers.

PUBLIC FINANCE

The 1967 Law for the Promotion of Economic Stability and Growth requires the federal and state governments to orient their budgets to the main economic policy objectives of price stability, high employment, balanced foreign trade, and steady commensurate growth. The Financial Planning Council, formed in 1968, coordinates the federal government, states, municipalities, and the Bundesbank in setting public budgets. Income, corporate turnover, mineral oil, and trade taxes account for more than 80% of all tax revenue, with the federal government controlling just under half of it. Since the 1960s, social insurance provisions have accounted for the largest share of federal expenditures. Germany's reunification in 1990 raised special problems with regard to economic and financial assimilation. The Unification Treaty provided that the new states should be incorporated in the financial system established by the Basic Law as much as possible from the onset. Therefore, since 1991, the new states have basically been subject to the same regulations with regard to budgetary management and tax distribution as the western states. A "German Unity Fund" was initiated to provide financial support for the new states (and their municipalities); it is jointly financed by the western states, with most of the money being raised in the capital market.

The US Central Intelligence Agency (CIA) estimated that in 2005 Germany's central government took in revenues of approximately $1.2 trillion and had expenditures of $1.3 trillion. Revenues minus expenditures totaled approximately -$113 billion. Public debt in 2005 amounted to 68.1% of GDP. Total external debt was $3.626 trillion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were €653.46 billion and expenditures were €698.61 billion. The value of revenues was us$738 million and expenditures us$788 million, based on a market exchange rate for 2003 of us$1 = €.8860 as reported by the IMF. Government outlays by function were as follows: general public services, 13.7%; defense, 3.6%; public order and safety, 0.4%; economic affairs, 6.7%; environmental protection, 0.1%; housing and community amenities,

Current Account			54.9
Balance on goods		151.7
Imports	-601.4
Exports	753.1
Balance on services		-50.4
Balance on income		-13.9
Current transfers		-32.5
Capital Account			0.4
Financial Account			-79.7
Direct investment abroad		-1.5
Direct investment in Germany		11.3
Portfolio investment assets		-37.6
Portfolio investment liabilities		103.5
Financial derivatives		-0.7
Other investment assets		-170.3
Other investment liabilities		15.7
Net Errors and Omissions			23.8
Reserves and Related Items			0.7
(…) data not available or not significant.

0.9%; health, 19.3%; recreation, culture, and religion, 0.1%; education, 0.4%; and social protection, 54.8%.

TAXATION

In 2000, the German tax system underwent a major reform featuring a dramatic reduction in taxes on business (from a corporate income tax rate of 40% to 25%, and the elimination altogether of a 53% tax on investment profits), as well as a scheduled reduction in the top income tax rate to 42% by 2005 from 56% in the 1980s, and 53% in 2000. As of 2005, Germany's corporate income tax rate was 25%, plus a 5.5% surcharge. There is also a 5% basic trade tax, although rates in the main cities range from 20–25%. A nonresident corporation, whose headquarters and management are outside of Germany, does not have to pay the surcharge. Business related capital gains are taxed as income, with a 95% exemption on gains from the sale of most shareholdings by companies for tax years ending after 31 December 2003. Business activities are also subject to municipal trade taxes of 12–20.5%, depending upon the municipality.

As of 2005, Germany's progressive individual income tax had a top rate of 42%, plus a 5.5% surcharge. Although self-employed persons are subject to the country's trade tax, the tax can be credited against a person's individual income tax. In 2005 the progressive schedule of income tax rates saw an increase in the 0%, tax-free base to €7,665, with decreases in other brackets. However, the threshold for the highest tax rate decreased from €55,008 in 2002 to €52,293 in 2003 to €52,152 in 2005. Rates and exemptions depend on the number of children, age, and marital status of taxpayer. Individuals also pay an 8–9% church tax, although non-churchgoers, and members of the Orthodox or Anglican Churches are exempt from paying any church tax. Other direct taxes include an inheritance and gift tax, a net worth tax, and a 2% real estate transfer tax.

The main indirect tax in Germany is a value-added tax (VAT) introduced in 1968 with a standard rate of 10%. By 2003, the standard rate had risen to 16%. A reduced rate of 7% applies to some basic foodstuffs, water supplies, medical care and dentistry, medical equipment for disabled persons, books, newspapers and periodicals, some shows, social housing, agricultural inputs, social services, and public transportation. Items exempt from the VAT include admissions to cultural events, building land, supplies for new buildings, TV licenses, telephones and faxes, basic medical and dental care, the use of sports facilities, and some waste disposal services. Exports are also zero-rated.

CUSTOMS AND DUTIES

Germany is a member of the European Union and thus has a common import customs tariff and complies with trade agreements put in place by the EU. Germany is also a contracting party to the Harmonized System Convention. In regard to trade with non-EU countries, most raw materials enter duty-free, while most manufactured goods are subject to varying rates between 5% and 8%. Germany levies a 15% value-added tax on industrial goods.

FOREIGN INVESTMENT

All foreign investment must be reported to the German Federal Bank (Bundesbank), but there are no restrictions on the repatriation of capital or profits. Until the 1998 deregulation of Deutsche Telekom, telecommunications remained closed to foreign investment. There is no special treatment for foreign investors. As of 2005, incentives for investment in the former GDR deemed to be desirable included accelerated depreciation, loans at below-market interest rates, and cash investment grants and subsidies. Still applicable in all of Germany as of 2005 were cash grants; tax incentives such as capital reserve allowances and special depreciation allowances; investment grants; and credit programs, including low-interest loans. Foreign firms may also participate in government and/or subsidized research and development programs.

Although few formal barriers exist, high labor costs have discouraged foreign companies from setting up manufacturing plants in Germany. Nevertheless, the German government and industry enthusiastically encourage foreign investment in Germany. German law provides foreign investors national treatment.

There are eight free ports in Germany operated under EU Community law. These duty-free zones within the ports are open to both domestic and foreign entities.

Across the 10-year period 1991 to 2001, total foreign direct investment (FDI) totaled $393 billion, the third highest total in the world. Half of this came in 2000, when FDI inflow reached over $195 billion. Annual FDI inflow had been $12 billion in 1997, rising to $24.5 billion in 1998, to $54.7 billion in 1999. With the bursting of the dot.com bubble in 2001, FDI inflow to Germany fell to about $21.1 billion in 2001 and was estimated at $36.2 billion in 2002.

According to the Bundesbank, FDI in Germany in 2003 (the latest figures available) had fallen to $12.9 billion, about two-thirds less than the 2002 high. In GDP terms, 2003 flows of FDI represented 0.6% of Germany's GDP, while the total stock of FDI in 2003 equaled 26.1% of GDP.

FDI outflows from Germany peaked at almost $106.5 billion in 1999. FDI outflows were about $36.9 billion in 2001 and $8.7 billion in 2002. German flows of direct investment abroad plunged to $2.6 billion in 2003.

ECONOMIC DEVELOPMENT

Germany describes its economy as a "social market economy." Outside of transportation, communications, and certain utilities, the government has remained on the sidelines of entrepreneurship. Beginning in 1998, and in line with EU regulations, the German government began deregulating these fields as well. It has, nevertheless, upheld its role as social arbiter and economic adviser. Overall economic priorities are set by the federal and Land governments pursuant to the 1967 Stability and Growth Act, which demands stability of prices, a high level of employment, steady growth, and equilibrium in foreign trade. In addition to the state, the independent German Federal Bank (Bundesbank), trade unions, and employers' associations bear responsibility for the nation's economic health. With the advent of the euro in 1999, much of the Federal Bank's authority in monetary matters was transferred to the European Central Bank (ECB). In the international arena, Germany has acted as a leader of European economic integration.

Government price and currency policies have been stable and effective. Less successful have been wage-price policies, which have been unable to control a continued upward movement. Inflationary pressures have increased and combined with a general leveling off in productivity and growth. Attempts to neutralize competition by agreements between competitors and mergers are controlled by the Law Against Restraints of Competition (Cartel Act), passed in 1957 and strengthened since then. The law is administered by the Federal Cartel Office, located in Bonn.

Unemployment remained at an average 9% in the early 2000s; it was twice as high in eastern Germany as in western Germany. As of the first quarter of 2005, the unemployment rate stood at 12.4%. Although much effort has been expended to integrate the former East German economy with the West's (infrastructure has improved drastically and a market economy has been introduced), progress in causing the two economies to converge slowed in the late 1990s and early 2000s. Annual transfers from West to East amounted to approximately $70 billion in 2005. Germany had the weakest GDP growth in the EU from 1994–2003, when Germany's economy was moribund.

The aging population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Corporate restructuring and growing capital markets are setting the foundations allowing Germany to thrive globally and to lead the process of European economic integration, particularly if labor-market rigidities are addressed. However, in the short run, rising expenditures and lowered revenues have raised the budget deficit above the EU's 3% debt limit.

SOCIAL DEVELOPMENT

The social security system of the FRG remained in place following unification with the German Democratic Republic. However, the GDR system continued to apply on an interim basis within the former GDR territory. The two systems were merged effective 2 January 1992. The social insurance system provides for sickness and maternity, workers' compensation, disability, unemployment, and old age; the program is financed by compulsory employee and employer contributions. Old age pensions begin at age 65 after five years of contribution. Worker's medical coverage is comprehensive, including dental care. Unemployment coverage includes all workers, trainees, apprentices, and at-home workers in varying degrees. The government funds a family allowance to parents with one or more children.

Equal pay for equal work is mandated by law, but women continue to earn less than men. Women continue to be underrepresented in managerial positions. Sexual harassment of women in the workplace is recognized and addressed. Although violence against women exists, the law and government provides protection. Victims of violence can receive police protection, legal help, shelter and counseling. Children's rights are strongly protected.

Freedom of religion is guaranteed by the Basic Law in Germany, although there have been reports of some discrimination against minority religions. Extremist right-wing groups continue to commit violent acts against immigrants and Jews although the government is committed to preventing such acts. The Basic Law also provides for the freedom of association, assembly, and expression.

HEALTH

Health insurance in Germany is available to everyone. Benefits are broad and nationally uniform, with only minor variations among plans. They include free choice of doctors; unlimited physician visits; preventive checkups; total freedom from out-of-pocket payments for physician services; unlimited acute hospital care (with a nominal co-payment); prescription drug coverage (with a minimal co-payment); comprehensive dental benefits (with a 25–30% co-payment); vision and hearing exams, glasses, aids, prostheses, etc.; inpatient and psychiatric care (and outpatient psychiatric visits); monthly home care allowances; maternity benefits; disability payments; and rehabilitation and/or occupational therapy. Health care expenditure was estimated at 10.5% of GDP. Expenditures on health are among the highest in the world.

In 2004, there were approximately 362 physicians, 951 nurses, 78 dentists, and 58 pharmacists per 100,000 people. There were about 2,260 hospitals in Germany, with about 572,000 beds. A gradual deinstitutionalization of people with chronic mental illness has taken place, with the number of hospital beds declining from 150,000 in the former West Germany in 1976 to a total of 69,000 in Germany as a whole as of 1995. Germany immunized 85% of children up to one year old against diphtheria, pertussis, and tetanus.

Average life expectancy was 78.65 years in 2005. Infant mortality was 4.16 per 1,000 live births in the same year, one of the lowest in the world. As of 2002, the birth rate was estimated at 8.9 per 1,000 live births and the overall death rate at 10.4 per 1,000 people. Contraceptive use is high. Nearly 75% of married women 15–49 used some form of birth control. The total fertility rate in 2000 was 1.4 children per woman throughout her childbearing years. The maternal mortality rate was low at 8 deaths per 100,000 live births.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 43,000 people living with HIV/AIDS in the country. There were an estimated 1,000 deaths from AIDS in 2003.

Tobacco consumption has decreased significantly from 2.4 kg (5.3 lbs) in 1984 to 2.1 kg (4.6 lbs) a year per adult in 1995. The heart disease average in Germany was higher than the European average.

HOUSING

Nearly 2.8 million of the country's 12 million dwellings were destroyed or made uninhabitable as a result of World War II. In the early 1950s, there were 10 million dwellings available for 17 million households. From 1949 to 1978, over 18 million housing units were built, a construction rate of over 500,000 a year; since then, new construction has slowed, averaging 357,000 new units annually during the period 1980–85. Over 4.2 million housing units were built in 1991 or later (excluding residential homes).

Over half of the population live in residential buildings of three or more dwelling units. Nearly 98% of all dwelling units are in such multiunit residential buildings; of these, about 42.6% are owner occupied. About 69% of the dwelling units in residential buildings have central heating systems. Gas and oil are the most common energy sources. In 2002, there was a total of about 38,957,100 dwelling units nationwide; only 254,900 were residential homes. The average number of persons per household is 2.2.

EDUCATION

Most schools and kindergartens are the responsibility of the states, not of the federal government. Therefore, though the overall structure is basically the same, it is difficult for a pupil to transfer from one school to another. German teachers are civil servants. They are required to have a teaching degree and are paid according to a uniform salary scale. Attendance at all public schools and universities is free.

Children start school after their sixth birthday and are required to attend on a full-time basis for nine or ten years, depending on the state of residence. After four years of primary or elementary school (Grundschule ), students choose from three types of secondary school. The best pupils go to a gymnasium, which prepares them for the university matriculation examination, or abitur. A second option is the realschule, leading to technical job training and middle-management employment. The third type is the hauptschule, or general school.

However, a network of correspondence courses has developed, geared for those who wish to continue their studies while working. In Germany, vocational training is the rule. On-the-job training in an authorized company is combined with instruction in a vocational school. Vocational training is concluded by taking a theoretical and practical examination before a Board of the Chamber, and those who pass are given a certificate. This system of vocational training has clearly reduced youth unemployment.

In 2001, nearly all children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment has been estimated at about 84% of age-eligible students. In 2003, secondary school enrollment was about 88% of age-eligible students. Nearly all students complete their primary education. The student-to-teacher ratio for primary school was at about 14:1 in 2003; the ratio for secondary school was also about 14:1.

Higher education is represented by three types of institutions: universities (technische universitäten ), colleges of art and music, and universities of applied sciences (fachhochscchulen ). There are also several fachschulen, which offer continuing vocational training for adults. In 2003, about 51% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate has been estimated at about 99%.

As of 2003, public expenditure on education was estimated at 4.8% of GDP, or 9.5% of total government expenditures.

LIBRARIES AND MUSEUMS

Germany had no national library until 1913, when the German Library (7.2 million volumes in 2002) in Leipzig brought together an extensive collection literature of the German language under one roof. The library also contains 3.9 million volumes of works written in exile by German authors during the Nazi era. In 1990 a further consolidation of German libraries was completed with the establishment of the German Library in Frankfurt, which had 18 million volumes in 2002. Other prominent libraries are the Bavarian State Library in Munich (7.6 million books) and the Prussian Cultural Property State Library (10 million books) in Berlin. The Herzog-August Library in Wolfenbüttel (848,000 volumes) has archives of 12,000 handwritten medieval books. One of the most important collections of German literature is at the Central Library of German Classics in Weimar. The Berlin Central and Regional Library, the public library network for the area, contains over 3.1 million print and electronic sources. The German Library for the Blind in Leipzig was founded in 1894. It serves as a publishing house and production center for Braille texts and audio books, as well as a public lending library containing 40,000 book titles and 5,000 titles of sheet music in Braille.

Germany has more than 4,500 state, municipal, association, private, residential, castle, palace, and church and cathedral treasures museums, which annually attract over 100 million visitors. Berlin has the Egyptian and Pergaman Museums, the Painting Gallery of Old Masters, and the National Gallery of Modern Art. The Jewish Museum opened in Berlin in 2001 offering exhibits on the history and culture of the Jewish people in the region. The Germanic National Museum in Nüremberg has the largest collection on the history of German art and culture from antiquity to the 20th century. The German Museum in Munich is one of the most well known natural sciences and technology museums in Europe. The Pinakothek Moderne, opened in 2003, houses a huge modern art collection in Munich. In addition, there are hundreds of smaller museums, ethnological and archaeological institutions, scientific collections, and art galleries.

The Bach Archive in Leipzig contains a museum, research institute, and library dedicated to the life and work of the composer J.S. Bach, who once served as the city's music director. Beethoven Haus in Bonn and the Richard Wagner Museum Haus in Bayreuth honor two more famous German composers. Museums on the life and work of Goethe are located in Frankfurt (birthplace) and Weimer. Lutherhaus in Wittenberg serves as a historical museum for both the life and work of Martin Luther and the Protestant Reformation that he ignited.

MEDIA

Since reunification, postal services have been under the jurisdiction of the Deutsche Bundespost Postdienst and telecommunications under Deutsche Bundespost Telekom. Intensive capital investments since reunification have rapidly modernized and integrated most of the obsolete telephone network of the former GDR. In 2003, there were an estimated 657 mainline telephones for every 1,000 people. The same year, there were approximately 785 mobile phones in use for every 1,000 people.

There are 11 regional broadcasting corporations, including Zweites Deutsches Fernsehen, which operates Channel Two nationally. In 1999 there were 77 AM, 1,621 FM, and 373 television stations. In 2003, there were an estimated 570 radios and 675 television sets for every 1,000 people. About 250.8 of every 1,000 people were cable subscribers. Also in 2003, there were 484.7 personal computers for every 1,000 people and 473 of every 1,000 people had access to the Internet. There were 13,847 secure Internet servers in the country in 2004.

There are about 305 national, regional, and local newspapers in Germany, as well as a large number of other periodicals. Of the newspapers sold on the street, the Bild has the largest circulation at about 3.8 million in 2005. The Berliner Zeitung, founded in 1945 but completely redesigned in 1997, is a nationally prominent daily with a circulation on 2005 of about 180,000. Other influential daily national newspapers (with 2005 circulation rates unless noted) are: the Express (Cologne, 468,800 in 2004), Rheinische Post (Duesseldorf, 443,100 in 2004), the Sachsische Zeitung (Dresden, 416,800 in 2004), the Frankfurter Allgemeine Zeitung (Frankfurt, 377,000), Die Welt (244,000 in 2004), Frankfurter Rundschau (167,000), Suddeutsche Zeitung (Munich, 437,000), Der Tagesspiegel (135,000), and Die Tageszeitung (59,000).

Over 20,000 periodicals are published in Germany. The best-known internationally is the news magazine Der Spiegel which is modeled after the American Time magazine. The German Press Agency, owned by German newspaper publishers and publishers' organizations, furnishes domestic and international news. There are hundreds of small press agencies and services.

The Basic Law provides for free press rights, and the government mostly supports these rights in practice, though propaganda of Nazi and certain other proscribed groups is illegal, as are statements endorsing Nazism.

ORGANIZATIONS

The Federation of German Industries, the Confederation of German Employers' Associations, the Federation of German Wholesale and Foreign Traders, and the Association of German Chambers of Commerce represent business in the FRG. There are about 14 regional associations of chambers of business and industry located in the largest cities; many maintain branch offices in smaller cities. The chambers are organized into provincial associations and are headed by the Permanent Conference of German Industry and Trade. The cooperative movement is well developed. Consumer cooperatives are represented in the International Cooperative Alliance by the Central Association of German Cooperatives, founded in 1949; it also represents credit cooperatives. The central association of agricultural cooperatives, the German Raiffeisen Society, is located in Wiesbaden. The Association of German Peasants is the largest society of farmers. There is also a Central Association of German Artisan Industries. The private Association of Consumers operates more than 150 local advisory centers. Professional societies and associations are numerous and represent a wide variety of occupations and fields of study.

Civil action groups (Bürgerinitiativen) have proliferated in recent years. August 13 Working Committee serves in part as a human rights awareness organization. Deutscher Frauenring serves as an umbrella organization for national women's groups. The Red Cross is active. There are national chapters of Habitat for Humanity, CARE and Caritas.

The German Academy of Arts in Berlin and the Academy of Fine Arts in Dresden are well-known arts organizations. There is a network of seven academies of science in Germany. The UNESCO Institute for Education has an office in Hamburg. A few cultural and learned associations particular to Germany include the International Gottfried Wilhelm Leibniz Society, the International Heinrich Schutz Society, and the International Hegel Gesellschaft Society. There are numerous organizations dedicated to research and education in scientific fields, particularly those relating to medicine.

There are about 80 youth associations, most of which belong to the Federal Youth Ring. The scouting movement is highly active and political parties sponsor groups associated in the Ring of Political Youth. In total there are about 90 national youth organizations and youth associations. Many of them are part of the umbrella organization known as the German Federal Youth Association.

There are thousands of groups and associations sponsoring various arts and cultural activities and special organizations for various hobbies and sports. The German Sports Confederation serves as an umbrella organization for over 88,000 sports clubs nationwide. There are also many patriotic and religious organizations in the country.

TOURISM, TRAVEL, AND RECREATION

Germany is famous for its beautiful scenery, particularly the Alps in the south and the river valleys of the Rhine, Main, and Danube; the landscape is dotted with castles and medieval villages. Theater, opera, and orchestral music abound in the major cities. The area that was formerly the German Democratic Republic offers a number of Baltic beach resorts and scenic Rügen Island. Residents of the United States and Canada need only a valid passport to enter Germany for a period of no more than three months; citizens of other countries need a visa. All border formalities for residents of other European Community countries were abandoned with the lifting of trade barriers in 1993.

Facilities for camping, cycling, skiing, and mountaineering are abundant. Football (soccer) is the favorite sport; Germany hosted and won the World Cup competition in 1974, and was scheduled to host in 2006. Tennis has become more popular since Boris Becker won the Wimbledon Championship in 1985; German Steffi Graf was inducted into the International Tennis Hall of Fame in 2004. The Olympic Games were held in Berlin in 1936, during the Hitler years, and in Munich in 1972.

Approximately 16,357,037 tourists visited Germany in 2003, almost 34% of whom came from Western Europe. There were 892,302 hotel rooms with about 1.6 million beds and an occupancy rate of 33%. The average length of stay was two nights. Tourism receipts totaled $31.6 billion that year.

In 2005, the US Department of State estimated the daily expenses in Munich at $350; in Cologne, $323; and in Berlin, $353.

FAMOUS GERMANS

The roster of famous Germans is long in most fields of endeavor. The name of Johann Gutenberg (1400?–1468?), who is generally regarded in the Western world as the inventor of movable precision-cast metal type, and therefore as the father of modern book printing, might well head the list of notable Germans. Martin Luther (1483–1546), founder of the Reformation, still exerts profound influence on German religion, society, music, and language.

The earliest major names in German literature were the poets Wolfram von Eschenbach (1170?–1220?), Gottfried von Strassburg (d.1210?), and Sebastian Brant (1457?–1521). Hans Sachs (1494–1576) wrote thousands of plays, poems, stories, and songs. Hans Jakob Christoffel von Grimmelshausen (1620?–76) created a famous picaresque novel, Simplicissimus. The flowering of German literature began with such renowned 18th-century poets and dramatists as Friedrich Gottlieb Klopstock (1724–1803), Gotthold Ephraim Lessing (1729–81), Christoph Martin Wieland (1733–1813), and Johann Gottfried von Herder (1744–1803), and culminated with the greatest German poet, Johann Wolfgang von Goethe (1749–1832), and the greatest German dramatist, Johann Christoph Friedrich von Schiller (1759–1805). Leaders of the Romantic movement included Jean Paul (Jean Paul Friedrich Richter, 1763–1825), August Wilhelm von Schlegel (1767–1845), Novalis (Friedrich von Hardenberg, 1772–1801), Ludwig Tieck (1773–1853), E. T. A. (Ernst Theodor Wilhelm—the A stood for Amadeus, the middle name of Mozart) Hoffmann (1776–1822), and Heinrich Wilhelm von Kleist (1777–1811). The brothers Jakob Grimm (1785–1863) and Wilhelm Grimm (1786–1859) are world-famous for their collections of folk tales and myths. Heinrich Heine (1797–1856), many of whose poems have become folksongs, is generally regarded as the greatest German poet after Goethe. Other significant poets are Friedrich Hölderlin (1770–1843), Friedrich Rückert (1788–1866), Eduard Mörike (1804–75), Stefan Georg (1868–1933), and Rainer Maria Rilke (1875–1926). Playwrights of distinction include Friedrich Hebbel (1813–63), Georg Büchner (1813–37), Georg Kaiser (1878–1945), Ernst Toller (1893–1939), and Bertolt Brecht (1898–1957). Two leading novelists of the 19th century were Gustav Freytag (1816–95) and Theodor Storm (1817–88). Germany's 20th-century novelists include Ernst Wiechert (1887–1950), Anna Seghers (Netty Reiling, 1900–1983), and Nobel Prize winners Gerhart Johann Robert Hauptmann (1862–1946), Thomas Mann (1875–1955), Nelly Sachs (1891–1970), and Heinrich Böll (1917–86). Other major writers of the 20th and 21st centuries include German-born Erich Maria Remarque (1898–1970), Günter Grass (b.1927), Christa Wolf (b.1929), and Peter Handke (b.1942).

Leading filmmakers include G. W. (Georg Wilhelm) Pabst (b.Czechoslovakia, 1885–1967), F. W. (Friedrich Wilhelm Plumpe) Murnau (1888–1931), Fritz Lang (b.Austria, 1890–1976), German-born Ernst Lubitsch (1892–1947), Max Ophüls (Oppenheimer, 1902–57), Leni (Helene Bertha Amalie) Riefenstahl (1902–2003), Volker Schlöndorff (b.1939), Werner Herzog (b.1942), Rainer Werner Fassbinder (1946–82), Wim Wenders (b.1945), and Doris Dörrie (b.1955). Outstanding performers include Emil Jannings (Theodor Friedrich Emil Janenz, b.Switzerland, 1886–1950), Marlene Dietrich (1901–1992), and Klaus Kinski (Claus Günther Nakszynski, 1926–91).

The two giants of German church music were Heinrich Schütz (1585–1672) and, preeminently, Johann Sebastian Bach (1685–1750). Significant composers of the 18th century were German-born Georg Friedrich Handel (1685–1759), Carl Philipp Emanuel Bach (1714–88), and Christoph Willibald von Gluck (1714–87). The classical period and music in general were dominated by the titanic figure of Ludwig von Beethoven (1770–1827). Romanticism in music was ushered in by Carl Maria von Weber (1786–1826), among others. Outstanding composers of the 19th century were Felix Mendelssohn-Bartholdy (1809–47), Robert Schumann (1810–56), Richard Wagner (1813–83), and Johannes Brahms (1833–97). Major figures of the 20th and 21st centuries are Richard Strauss (1864–1949), Paul Hindemith (1895–1963), Carl Orff (1895–1982), German-born Kurt Weill (1900–50), Hans Werner Henze (b.1926), and Karlheinz Stockhausen (b.1928). Important symphonic conductors included Otto Klemperer (1885–1973), Wilhelm Furtwängler (1886–1954), Karl Böhm (1894–1981), and Eugen Jochum (1902–87). Among Germany's outstanding musical performers are singers Elisabeth Schwarzkopf (b.1915) and Dietrich Fischer-Dieskau (b.1925), and pianists Walter Gieseking (1895–1956) and Wilhelm Kempff (1895–91).

Veit Stoss (1440?–1533) was one of the greatest German sculptors and woodcarvers of the 15th century; another was Tilman Riemenschneider (1460?–1531). Outstanding painters, engravers, and makers of woodcuts were Martin Schongauer (1445?–91), Matthias Grünewald (1460?–1528?), Hans Holbein the Elder (1465?–1524), Lucas Cranach (1472–1553), Hans Holbein the Younger (1497?–1543), and above all, Albrecht Dürer (1471–1528). More recent artists of renown are the painters Emil Nolde (1867–1956), Franz Marc (1880–1916), Max Beckmann (1884–1950), the US-born Lyonel Feininger (1871–1956), Otto Dix (1891–1969), Max Ernst (1891–1976), and Horst Antes (b.1936); the painter and cartoonist George Grosz (1893–1959); the sculptors Ernst Barlach (1870–1938) and Wilhelm Lehmbruck (1881–1919); the painter-etcher-sculptor Käthe Kollwitz (1867–1945); the Dadaist Hannah Höch (1889–1978); the painter-sculptor-installation artist Joseph Beuys (1921–1986); the painter and sculptor Anselm Kiefer (b.1945); and the architects Walter Gropius (1883–1969), leader of the Bauhaus School of Design, Ludwig Mies van der Rohe (1886–1969), Erich Mendelsohn (1887–1953), Gottfried Böhm (b.1920), and Helmut Jahn (b.1940).

Scholars and Leaders

German influence on Western thought can be traced back at least as far as the 13th century, to the great scholastic philosopher, naturalist, and theologian Albertus Magnus (Albert von Bollstädt, d.1280) and the mystic philosopher Meister Eckhart (1260?–1327?). Philipp Melanchthon (Schwartzerd, 1497–1560) was a scholar and religious reformer. Gottfried Wilhelm von Leibniz (1646–1716) was an outstanding philosopher, theologian, mathematician, and natural scientist. The next two centuries were dominated by the ideas of Immanuel Kant (1724–1804), Moses Mendelssohn (1729–86), Johann Gottlieb Fichte (1762–1814), Friedrich Ernst Daniel Schleiermacher (1768–1834), Georg Wilhelm Friedrich Hegel (1770–1831), Friedrich Wilhelm Joseph von Schelling (1775–1854), Arthur Schopenhauer (1788–1860), Ludwig Andreas Feuerbach (1804–72), Karl Marx (1818–83), Friedrich Engels (1820–95), and Friedrich Wilhelm Nietzsche (1844–1900). In the 20th century, Edmund Husserl (1859–1938), Oswald Spengler (1880–1936), Karl Jaspers (1883–1969), Martin Heidegger (1889–1976), and Hans-Georg Gadamer (1900–2002) are highly regarded. Figures of the Frankfurt School of social and political philosophy include Theodor Adorno (1903–1969), Max Horkheimer (1895–1973), Walter Benjamin (1892–1940), Herbert Marcuse (1898–1979), and Jürgen Habermas (b.1929). Political theorist Hannah Arendt (1906–1975) is also highly regarded, as is Carl Schmitt (1888–1985). One of the founders of modern Biblical scholarship was Julius Wellhausen (1844–1918). Franz Rosenzweig (1886–1929) was one of the most influential modern Jewish religious thinkers, as was Gershom Scholem (1897–1982).

Among the most famous German scientists are Johann Rudolf Glauber (1694–1768), Justus von Liebig (1803–73), Robert Wilhelm Bunsen (1811–99), and Nobel Prize winners Hermann Emil Fischer (1852–1919), Adolf von Baeyer (1835–1917), Eduard Buchner (1860–1917), Wilhelm Ostwald (1853–1932), Otto Wallach (1847–1931), Richard Martin Willstätter (1872–1942), Fritz Haber (1868–1934), Walther Nernst (b.Poland, 1864–1941), Heinrich Otto Wieland (1877–1957), Adolf Otto Reinhold Windaus (1876–1959), Carl Bosch (1874–1940), Friedrich Bergius (1884–1949), Otto Hahn (1879–1968), Hans Fischer (1881–1945), Friedrich Bergius (1884–1949), Georg Wittig (1897–1987), Adolf Butenandt (1903–1995), Otto Diels (1876–1954), Kurt Alder (1902–58), Hermann Staudinger (1881–1965), Karl Ziegler (1898–1973), Manfred Eigen (b.1927), Ernst Otto Fischer (b.1918), Johann Deisenhofer (b.1943), Robert Huber (b.1937), and Hartmut Michel (b.1948) in chemistry; Karl Friedrich Gauss (1777–1855), Georg Simon Ohm (1787–1854), Hermann Ludwig Ferdinand von Helmholtz (1821–94), Heinrich Rudolf Hertz (1857–1894), and Nobel Prize winners Wilhelm Konrad Röntgen (1845–1923), Max Karl Ernst Ludwig Planck (1858–1947), Albert Einstein (1879–1955), Gustav Ludwig Hertz (1887–1975), Werner Heisenberg (1901–76), Walter Bothe (1891–1957), Carl-Friedrich von Weizsäcker (b.1912), Rudolf Mössbauer (b.1929), Hans Bethe (1906–2005), Klaus von Klitzing (b.1943), Ernst Ruska (1906–1988), Gerd Binnig (b.1947), Johannes Georg Bednorz (b.1950), Hans Georg Dehmelt (b.Germany, 1922), Wolfgang Paul (1913–1993), Wolfgang Ketterle (b.1957), and Theodor Wolfgang Hänsch (b.1941) in physics; Rudolf Virchow (1821–1902), August von Wassermann (1866–1925), and Nobel Prize winners Robert Koch (1843–1910), Paul Ehrlich (1854–1915), Emil von Behring (1854–1917), Otto H. Warburg (1883–1970), Konrad Lorenz (Austria, 1903–89), Konrad Emil Bloch (1912–2000), Feodor Felix Konrad Lynen (1911–1979), Max Delbrück (b.Germany 1906–1981), Sir Bernard Katz (b.Germany 1911–2003), Georges Jean Franz Köhler (1946–1995), Erwin Neher (b.1944), Bert Sakmann (b.1942), Christiane Nüsslein-Volhard (b.1942), and Günter Blobel (b.1936), in physiology or medicine; earth scientists Alexander von Humboldt (1769–1859) and Karl Ernst Richter (1795–1863); and mathematician Georg Friedrich Bernhard Riemann (1826–66). Notable among German inventors and engineers are Gabriel Daniel Fahrenheit (1686–1736), developer of the thermometer; Gottlieb Daimler (1834–1900), Rudolf Diesel (b.Paris, 1858–1913), and Felix Wankel (1902–88), developers of the internal combustion engine; airship builder Count Ferdinand von Zeppelin (1838–1917); and rocketry pioneer Wernher von Braun (1912–77). Leading social scientists, in addition to Marx and Engels, were the historians Leopold von Ranke (1795–1886) and Theodor Mommsen (1817–1903), Nobel Prize winner in literature; the political economist Georg Friedrich List (1789–1846); the sociologists Georg Simmel (1858–1918) and Max Weber (1864–1920); and the German-born anthropologist Franz Boas (1858–1942). Johann Joachim Winckelmann (1717–68) founded the scientific study of classical art and archaeology. Heinrich Schliemann (1822–90) uncovered the remains of ancient Troy, Mycenae, and Tiryns; Wilhelm Dörpfeld (1853–1940) continued his work.

Outstanding figures in German political history are the Holy Roman emperors Otto I (the Great, 912–973), Frederick I (Barbarossa, 1123–90), Frederick II (1194–1250), and Spanish-born Charles V (1500–58); Frederick William (1620–88), the "great elector" of Brandenburg; his great-grandson Frederick II (the Great, 1712–86), regarded as the most brilliant soldier and states-man of his age; Otto Eduard Leopold von Bismarck (1815–98), the Prussian statesman who made German unity possible; Austrian-born Adolf Hitler (1889–1945), founder of Nazism and dictator of Germany (1933–45); and Konrad Adenauer (1876–1967), FRG chancellor (1948–63). Walter Ernst Karl Ulbricht (1893–1973), chairman of the Council of State (1960–73), and leader of the SED from 1950 to 1971, was the dominant political figure in the GDR until his death in 1973. Erich Honecker (1912–94) became first secretary of the SED in 1971 and was chairman of the Council of State and SED general secretary from 1976 until the FRG and GDR merged in 1990. Willi Stoph (1914–1999), a member of the Politburo since 1953, served as chairman of the Council of Ministers in 1964–73 and again from 1976 on. Willy Brandt (1913–1992), FRG chancellor (1969–74) won the Nobel Peace Prize for his policy of Ostpolitik. Other Nobel Peace Prize winners were Ludwig Quidde (1858–1941), Gustav Stresemann (1878–1929), Carl von Ossietzky (1889–1938), and Albert Schweitzer (1875–1965).

Baron Friedrich Wilhelm Ludolf Gerhard Augustin von Steuben (1730–94) was a general in the American Revolution. Karl von Clausewitz (1780–1831) is one of the great names connected with the science of war. Important military leaders were Hellmuth von Moltke (1800–1891); Gen. Paul von Hindenburg (1847–1934), who also served as president of the German Reich (1925–34); and Gen. Erwin Rommel (1891–1944).

Pope Benedict XVI (b.Joseph Alois Ratzinger, 1927) became the 265th pope in 2005. He is the ninth German pope, the last being the Dutch-German Adrian VI (1522–1523).

DEPENDENCIES

Germany has no territories or colonies.

BIBLIOGRAPHY

Annesley, Claire (ed.). A Political and Economic Dictionary of Western Europe. Philadelphia: Routledge/Taylor and Francis, 2005.

Berg-Schlosser, Dirk and Ralf Rytlewski (eds.). Political Culture in Germany. New York: St. Martin's Press, 1993.

Briel, Holger (ed.). German Culture and Society: The Essential Glossary. London: Arnold, 2002.

Bullock, Alan Louis Charles. Hitler and Stalin: Parallel Lives. London: Harper-Collins, 1991.

Eckhart, Karl, et al. (eds.). Social, Economic and Cultural Aspects in the Dynamic Changing Process of Old Industrial Regions: Ruhr District (Germany), Upper Silesia (Poland), Ostrava Region (Czech Republic). Piscataway, N.J.: Transaction Publishers, 2003.

Gortemaker, Manfred. Unifying Germany, 1989–1990. New York: St. Martin's Press, 1994.

Hiden, John. Republican and Fascist Germany: Themes and Variations in the History of Weimar and the Third Reich, 1918–45. New York: Longman, 1996.

International Smoking Statistics: A Collection of Historical Data from 30 Economically Developed Countries. New York: Oxford University Press, 2002.

Mitcham, Samuel W. Retreat to the Reich: The German Defeat in France, 1944. Westport, Conn.: Praeger, 2000.

Sarkar, Saral K. Green-alternative Politics in West Germany. New York: United Nations University Press, 1993.

Shirer, William L. The Rise and Fall of the Third Reich. New York: Simon and Schuster, 1960.

Summers, Randal W., and Allan M. Hoffman (ed.). Domestic Violence: A Global View. Westport, Conn.: Greenwood Press, 2002.

Tipton, Frank B. A History of Modern Germany Since 1815. Berkeley: University of California Press, 2003.

Verhey, Jeffrey. The Spirit of 1914: Militarism, Myth and Mobilization in Germany. New York: Cambridge University Press, 2000.

Vogt, Henri. Between Utopia and Disillusionment: A Narrative of the Political Transformation in Eastern Europe. New York: Berghahn Books, 2004.

Wessels, Wolfgang, Andreas Maurer, and Jürgan Mittag (eds.). Fifteen into One?: the European Union and Its Member States. New York: Palgrave, 2003.