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As Europe's largest economy and second most populous nation (after Russia), Germany is a key member of the continent's economic, political, and defense organizations. European power struggles immersed Germany in two devastating World Wars in the first half of the 20th century and left the country occupied by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945. With the advent of the Cold War, two German states were formed in 1949: the western Federal Republic of Germany (FRG) and the eastern German Democratic Republic (GDR). The democratic FRG embedded itself in key Western economic and security organizations, the EC, which became the EU, and NATO, while the Communist GDR was on the front line of the Soviet-led Warsaw Pact. The decline of the USSR and the end of the Cold War allowed for German unification in 1990. Since then, Germany has expended considerable funds to bring Eastern productivity and wages up to Western standards. In January 1999, Germany and 10 other EU countries introduced a common European exchange currency, the euro.
border countries:
Austria 784 km, Belgium 167 km, Czech Republic 646 km, Denmark 68 km, France 451 km, Luxembourg 138 km, Netherlands 577 km, Poland 456 km, Switzerland 334 km
emissions from coal-burning utilities and industries contribute to air pollution; acid rain, resulting from sulfur dioxide emissions, is damaging forests; pollution in the Baltic Sea from raw sewage and industrial effluents from rivers in eastern Germany; hazardous waste disposal; government established a mechanism for ending the use of nuclear power over the next 15 years; government working to meet EU commitment to identify nature preservation areas in line with the EU's Flora, Fauna, and Habitat directive
18 January 1871 (German Empire unification); divided into four zones of occupation (UK, US, USSR, and later, France) in 1945 following World War II; Federal Republic of Germany (FRG or West Germany) proclaimed 23 May 1949 and included the former UK, US, and French zones; German Democratic Republic (GDR or East Germany) proclaimed 7 October 1949 and included the former USSR zone; West Germany and East Germany unified 3 October 1990; all four powers formally relinquished rights 15 March 1991
civil law system with indigenous concepts; judicial review of legislative acts in the Federal Constitutional Court; has not accepted compulsory ICJ jurisdiction
elections:
president elected for a five-year term (eligible for a second term) by a Federal Convention, including all members of the Federal Assembly and an equal number of delegates elected by the state parliaments; election last held on 23 May 2009 (next scheduled for 23 May 2014); chancellor elected by an absolute majority of the Federal Assembly for a four-year term; Bundestag vote for Chancellor last held after 27 September 2009 (next to follow the legislative election to be held no later than 2013)
election results:
Horst KOEHLER reelected president; received 613 votes of the Federal Convention against 503 for Gesine SCHWAN; Angela MERKEL reelected chancellor; vote by Federal Assembly 323 to 285 with four abstentions
bicameral legislature consists of the Federal Council or Bundesrat (69 votes; state governments sit in the Council; each has three to six votes in proportion to population and are required to vote as a block) and the Federal Assembly or Bundestag (622 seats; members elected by popular vote for a four-year term under a system of personalized proportional representation; a party must win 5% of the national vote or three direct mandates to gain proportional representation and caucus recognition)
elections:
Bundestag - last held on 27 September 2009 (next to be held no later than autumn 2013); note - there are no elections for the Bundesrat; composition is determined by the composition of the state-level governments; the composition of the Bundesrat has the potential to change any time one of the 16 states holds an election
election results:
Bundestag - percent of vote by party - CDU/CSU 33.8%, SPD 23%, FDP 14.6%, Left 11.9%, Greens 10.7%, other 6%; seats by party - CDU/CSU 239, SPD 146, FDP 93, Left 76, Greens 68
Alliance '90/Greens [Claudia ROTH and Cem OZDEMIR]; Christian Democratic Union or CDU [Angela MERKEL]; Christian Social Union or CSU [Horst SEEHOFER]; Free Democratic Party or FDP [Guido WESTERWELLE]; Left Party or Die Linke [Lothar BISKY and Oskar LAFONTAINE]; Social Democratic Party or SPD [Sigmar GABRIEL]
three equal horizontal bands of black (top), red, and gold; these colors have played an important role in German history and can be traced back to the medieval banner of the Holy Roman Emperor - a black eagle with red claws and beak on a gold field
The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. The modernization and integration of the eastern German economy - where unemployment can exceed 20% in some municipalities - continues to be a costly long-term process, with annual transfers from west to east amounting in 2008 alone to roughly $12 billion. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment, which in 2008 reached a new post-reunification low of 7.8%. These advances, as well as a government subsidized, reduced working hour scheme, have helped to explain the relatively modest increase in unemployment during Germany's 2008-09 recession - the deepest since World War II. GDP grew just over 1% in 2008 and contracted roughly 5% in 2009. Germany crept out of recession in the second and third quarters of 2009, thanks largely to rebounding manufacturing orders and exports - primarily outside the Euro Zone - and relatively steady consumer demand. The German economy probably will recover to about 1.5% growth for the year 2010. However, a relatively strong euro, tighter credit markets, and an anticipated bump in unemployment could cloud Germany's medium-term recovery prospects. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term will increase Germany's record budget deficit, which is expected to exceed 5% of GDP in 2010. The EU has given Germany until 2013 to get its consolidated budget deficit below 3% of GDP. A new constitutional amendment likewise limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016.
note:this is the International Labor Organization's estimated rate for international comparisons; Germany's Federal Employment Office estimated a seasonally adjusted rate of 10.8%
note:see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders
among the world's largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles
general assessment: Germany has one of the world's most technologically advanced telecommunications systems; as a result of intensive capital expenditures since reunification, the formerly backward system of the eastern part of the country, dating back to World War II, has been modernized and integrated with that of the western part
domestic:
Germany is served by an extensive system of automatic telephone exchanges connected by modern networks of fiber-optic cable, coaxial cable, microwave radio relay, and a domestic satellite system; cellular telephone service is widely available, expanding rapidly, and includes roaming service to many foreign countries
international:
country code - 49; Germany's international service is excellent worldwide, consisting of extensive land and undersea cable facilities as well as earth stations in the Inmarsat, Intelsat, Eutelsat, and Intersputnik satellite systems (2001)
by type:
bulk carrier 2, cargo 43, chemical tanker 13, container 284, liquefied gas 5, passenger 5, passenger/cargo 27, petroleum tanker 11, roll on/roll off 3
foreign-owned:
11 (China 2, Cyprus 2, Denmark 1, Finland 4, Netherlands 1, Sweden 1)
registered in other countries:
2,998 (Antigua and Barbuda 941, Australia 2, Bahamas 44, Bermuda 22, Brazil 6, Bulgaria 63, Burma 1, Canada 3, Cayman Islands 15, Cyprus 189, Denmark 9, Denmark 1, Estonia 1, Finland 1, France 1, Georgia 2, Gibraltar 129, Hong Kong 6, India 2, Indonesia 1, Isle of Man 56, Jamaica 4, Liberia 849, Luxembourg 5, Malaysia 1, Malta 91, Marshall Islands 235, Mongolia 4, Morocco 2, Netherlands 75, Netherlands Antilles 43, Norway 1, NZ 1, Panama 44, Portugal 20, Russia 1, Saint Vincent and the Grenadines 3, Singapore 24, Slovakia 3, Spain 5, Sri Lanka 5, Sweden 5, Turkey 1, UK 76, US 5) (2008)
Federal Armed Forces (Bundeswehr): Army (Heer), Navy (Deutsche Marine, includes naval air arm), Air Force (Luftwaffe), Joint Support Services (Streitkraeftbasis), Central Medical Service (Zentraler Sanitaetsdienst) (2010)
source of precursor chemicals for South American cocaine processors; transshipment point for and consumer of Southwest Asian heroin, Latin American cocaine, and European-produced synthetic drugs; major financial center
The online Factbook is updated bi-weekly. ISSN 1553-8133
For additional information on government leaders in selected foreign countries, go to World Leaders.
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