Germany is a federal democratic republic of 16 states, or "LΣnder." The government is led by the chancellor, who is elected by the "Bundestag" (Federal Assembly). The president's role is largely ceremonial. The "Basic Law" of West Germany, drawn up in 1948, became the 1990 constitution of reunified Germany.
Main Political Issues
Reunification
Although, in 1989, 85% of Germans voted for reunification, the general rejoicing at the fall of the Berlin Wall at the end of that year has soured as the true costs of the process have become clear. Unemployment in the east has risen to 30% with the collapse of inefficient industries. In the west, taxes have gone up to pay the costs of privatization as well as a growing social security bill. However, long-term German policy remains to raise east German living standards up to the west German average.
The recession
Germans, used to constant growth since the 1950s, have been shocked by the recession that began in 1991. For the first time in living memory, car firms such as Volkswagen have been laying off workers. The recession has been doubly painful because it has coincided with the enormous and unexpected costs of reunification.
Nationalism
The problems of unemployment have led to anti-immigrant attacks and an increase in support for far-right parties. Some young Germans resent foreigners holding jobs. Turks have suffered particular vilification and were the subjects of the Rostock attack in 1992. The problem of racism is no worse than in many other European states, but is more sensitive given Germany's history.
Profile
Germany's politics remains strongly democratic and essentially stable. It has a long tradition of federative association. Before unification in 1871, Germany was a mass of separate principalities, kingdoms and city-states. This tradition was in many ways maintained by Bismarck in his unification constitution; some of the "LΣnder" even retained their own monarchies until 1918. The 1933û1945 Nazi period, during which the federal system was abolished, was very much a hiatus. The Allies reestablished the system in West Germany in 1945; in the east, the "LΣnder" were restored after reunification in 1990.
In many ways, the "LΣnder" are at the heart of German political life. Each "Land" has its own elected parliament and is able to raise many of its own taxes and run its own investment policies. The decentralized nature of German politics continues down to city level and below. German cities have larger budgets than their European counterparts and city mayors wield considerable power. By general consensus the system works well, delivering efficient and commercially astute democratic government.
Nationally, a conservative CDUûCSU coalition dominated the "Bundestag" from 1949 to 1969, followed by an SPDûFPD coalition, with Willy Brandt and Helmut Schmidt as chancellors, from 1969 to 1982. Since then, a conservative government has again been in power, led by Chancellor Helmut Kohl. The two coalitions have little to distinguish them. Their economic policies, based on low inflation, stable growth and an independent central bank, are almost identical. All parties still support the "Sozialmarktwirtschaft," the social market economy, on which West Germany's prosperity was built.
