global market leaders in their segment and are labelled hidden champions

Germany is a federal, parliamentary, representative democratic republic. The German political system operates under a framework laid out in the 1949 constitutional document known as the Grundgesetz (Basic Law). Amendments generally require a two-thirds majority of both chambers of parliament; the fundamental principles of the constitution, as expressed in the articles guaranteeing human dignity, the separation of powers, the federal structure, and the rule of law are valid in perpetuity.[69]
The president is the head of state and invested primarily with representative responsibilities and powers. He is elected by the Bundesversammlung (federal convention), an institution consisting of the members of the Bundestag and an equal number of state delegates. The second-highest official in the German order of precedence is the Bundestagspräsident (President of the Bundestag), who is elected by the Bundestag and responsible for overseeing the daily sessions of the body.
2011 Joachim Gauck-2.jpg    Angela Merkel (August 2012) cropped.jpg
Joachim Gauck
President since 2012    Angela Merkel
Chancellor since 2005
The third-highest official and the head of government is the Chancellor, who is appointed by the Bundespräsident after being elected by the Bundestag.[28] The chancellor, currently Angela Merkel, is the head of government and exercises executive power, similar to the role of a Prime Minister in other parliamentary democracies.
Federal legislative power is vested in the parliament consisting of the Bundestag (Federal Diet) and Bundesrat (Federal Council), which together form the legislative body. The Bundestag is elected through direct elections, by proportional representation (mixed-member).[1] The members of the Bundesrat represent the governments of the sixteen federated states and are members of the state cabinets.[28]
Since 1949, the party system has been dominated by the Christian Democratic Union and the Social Democratic Party of Germany. So far every chancellor has been a member of one of these parties. However, the smaller liberal Free Democratic Party (which has had members in the Bundestag since 1949) and the Alliance '90/The Greens (which has had seats in parliament since 1983) have also played important roles.[70]
Minor parties such as The Left, Free Voters and the Pirate Party are represented in some state parliaments

Germany has a civil law system based on Roman law with some references to Germanic law. The Bundesverfassungsgericht (Federal Constitutional Court) is the German Supreme Court responsible for constitutional matters, with power of judicial review.[28][71] Germany's supreme court system, called Oberste Gerichtshöfe des Bundes, is specialised: for civil and criminal cases, the highest court of appeal is the inquisitorial Federal Court of Justice, and for other affairs the courts are the Federal Labour Court, the Federal Social Court, the Federal Finance Court and the Federal Administrative Court. The Völkerstrafgesetzbuch regulates the consequences of crimes against humanity, genocide and war crimes, and gives German courts universal jurisdiction in some circumstances.[72]
Criminal and private laws are codified on the national level in the Strafgesetzbuch and the Bürgerliches Gesetzbuch respectively. The German penal system is aimed towards rehabilitation of the criminal and the protection of the general public.[73] Except for petty crimes, which are tried before a single professional judge, and serious political crimes, all charges are tried before mixed tribunals on which lay judges (Schöffen) sit side by side with professional judges.[74][75]
Many of the fundamental matters of administrative law remain in the jurisdiction of the states, though most states base their own laws in that area on the 1976 Verwaltungsverfahrensgesetz (Administrative Proceedings Act) covering important points of administrative law. The Oberverwaltungsgerichte are the highest level of administrative jurisdiction concerning the state administrations, unless the question of law concerns federal law or state law identical to federal law. In such cases, final appeal to the Federal Administrative Court is possible.
Constituent states
Main article: States of Germany
Germany comprises sixteen states which are collectively referred to as Länder.[76] Each state has its own state constitution[77] and is largely autonomous in regard to its internal organisation. Because of differences in size and population the subdivisions of these states vary, especially as between city states (Stadtstaaten) and states with larger territories (Flächenländer). For regional administrative purposes five states, namely Baden-Württemberg, Bavaria, Hesse, North Rhine-Westphalia and Saxony, consist of a total of 22 Government Districts (Regierungsbezirke). As of 2009 Germany is divided into 403 districts (Kreise) at a municipal level; these consist of 301 rural districts and 102 urban districts


Germany has a network of 229 diplomatic missions abroad[79] and maintains relations with more than 190 countries.[80] As of 2011 it is the largest contributor to the budget of the European Union (providing 20%)[81] and the third largest contributor to the UN (providing 8%).[82] Germany is a member of NATO, the Organisation of Economic Co-operation and Development (OECD), the G8, the G20, the World Bank and the International Monetary Fund (IMF). It has played a leading role in the European Union since its inception and has maintained a strong alliance with France since the end of World War II. Germany seeks to advance the creation of a more unified European political, defence, and security apparatus.[83][84]
The development policy of the Federal Republic of Germany is an independent area of German foreign policy. It is formulated by the Federal Ministry for Economic Cooperation and Development (BMZ) and carried out by the implementing organisations. The German government sees development policy as a joint responsibility of the international community.[85] It is the world's third biggest aid donor after the United States and France.[86][87]
During the Cold War, Germany's partition by the Iron Curtain made it a symbol of East–West tensions and a political battleground in Europe. However, Willy Brandt's Ostpolitik was a key factor in the détente of the 1970s.[88] In 1999, Chancellor Gerhard Schröder's government defined a new basis for German foreign policy by taking part in the NATO decisions surrounding the Kosovo War and by sending German troops into combat for the first time since World War II.[89] The governments of Germany and the United States are close political allies.[28] The 1948 Marshall Plan and strong cultural ties have crafted a strong bond between the two countries, although Schröder's vocal opposition to the Iraq War suggested the end of Atlanticism and a relative cooling of German-American relations.[90] The two countries are also economically interdependent: 8.8% of German exports are US-bound and 6.6% of German imports originate from the US


Germany's military, the Bundeswehr, is organised into Heer (Army), Marine (Navy), Luftwaffe (Air Force), Bundeswehr Joint Medical Service and Streitkräftebasis (Joint Support Service) branches. The role of the Bundeswehr is described in the Constitution of Germany (Art. 87a) as absolutely defensive only. Its only active role before 1990 was the Katastropheneinsatz (disaster control). Within the Bundeswehr, it helped after natural disasters both in Germany and abroad. After 1990, the international situation changed from East-West confrontation to one of general uncertainty and instability. Today, after a ruling of the Federal Constitutional Court in 1994 the term "defense" has been defined to not only include protection of the borders of Germany, but also crisis reaction and conflict prevention, or more broadly as guarding the security of Germany anywhere in the world.

Leopard 2 tanks of the German Army
In 2011, military spending was an estimated 1.3% of the country's GDP, which is low in a ranking of all countries; in absolute terms, German military expenditure is the 9th highest in the world.[92] In peacetime, the Bundeswehr is commanded by the Minister of Defence. If Germany went to war, which according to the constitution is allowed only for defensive purposes, the Chancellor would become commander-in-chief of the Bundeswehr.[93]
As of March 2012 the Bundeswehr employs 183,000 professional soldiers and 17,000 volunteers.[94] The German government plans to reduce the number of soldiers to 170,000 professionals and up to 15,000 short-term volunteers (voluntary military service).[95] Reservists are available to the Armed Forces and participate in defence exercises and deployments abroad.[95] As of April 2011, the German military had about 6,900 troops stationed in foreign countries as part of international peacekeeping forces, including about 4,900 Bundeswehr troops in the NATO-led ISAF force in Afghanistan and Uzbekistan, 1,150 German soldiers in Kosovo, and 300 troops with UNIFIL in Lebanon.[96]
Until 2011, military service was compulsory for men at age 18, and conscripts served six-month tours of duty; conscientious objectors could instead opt for an equal length of Zivildienst (civilian service), or a six-year commitment to (voluntary) emergency services like a fire department or the Red Cross. On 1 July 2011 conscription was officially suspended and replaced with a voluntary service.[97][98] Since 2001 women may serve in all functions of service without restriction, but they have not been subject to conscription. There are presently some 17,500 women on active duty and a number of female reservists

Germany has a social market economy with a highly skilled labour force, a large capital stock, a low level of corruption,[101] and a high level of innovation.[102] It has the largest and most powerful national economy in Europe, the fourth largest by nominal GDP in the world,[103] the fifth largest by PPP,[104] and was the biggest net contributor to the EU budget in 2011.[105] The service sector contributes approximately 71% of the total GDP, industry 28%, and agriculture 1%.[1] The official average national unemployment rate in June 2013 was 6.6%.[106] However, the official average national unemployment rate also includes people with a part-time job that are looking for a full-time job.[107] The unofficial average national unemployment rate in 2011 was 5.7%.[1]
Germany is an advocate of closer European economic and political integration. Its commercial policies are increasingly determined by agreements among European Union (EU) members and by EU legislation. Germany introduced the common European currency, the euro, on 1 January 2002.[108][109] Its monetary policy is set by the European Central Bank, which is headquartered in Frankfurt. Two decades after German reunification, standards of living and per capita incomes remain significantly higher in the states of the former West Germany than in the former East.[110] The modernisation and integration of the eastern German economy is a long-term process scheduled to last until the year 2019, with annual transfers from west to east amounting to roughly $80 billion.[111] In January 2009 the German government approved a €50 billion economic stimulus plan to protect several sectors from a downturn and a subsequent rise in unemployment rates.[112]
Of the world's 500 largest stock-market-listed companies measured by revenue in 2010, the Fortune Global 500, 37 are headquartered in Germany. 30 Germany-based companies are included in the DAX, the German stock market index. Well-known global brands are Mercedes-Benz, BMW, SAP, Siemens, Volkswagen, Adidas, Audi, Allianz, Porsche, Bayer, Bosch, and Nivea.[113] Germany is recognised for its specialised small and medium enterprises. Around 1,000 of these companies are global market leaders in their segment and are labelled hidden champions.

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