Archive for the 'About Germany' Category

PUBLIC FINANCE

Wednesday, June 13th, 2007
cheap cialis pill certified cialis cheap viagra in canada cialis buy drug buy generic cialis viagra buy 25mg viagra cheap viagra without prescription buy cheapest viagra on line purchase viagra cialis 10mg buying generic viagra cialis pills viagra from india cheapest sildenafil citrate cheap cialis no rx viagra india cialis bangkok viagra for order buy sildenafil internet buy generic viagra online buying cialis online where to order cialis tablet cialis find cialis no prescription required viagra cheap drug order cialis cheap online online pharmacy cialis cialis no rx order generic cialis price of cialis viagra soft drug viagra cheap viagra from uk order cialis no prescription order cheap viagra viagra drug order cheap cialis cheap cialis pharmacy best price for viagra cheap viagra from usa cost cialis cialis overnight shipping cheapest generic cialis online generic viagra online online viagra viagra sales cheap cialis in canada compare cialis prices online cialis online drug viagra online purchase discount cialis without prescription no rx viagra cialis overnight viagra uk cialis order cheap cialis from usa buying cialis cialis overnight delivery cialis in bangkok buy and purchase sildenafil online impotence treatment cheap price viagra viagra sale cheap cialis tablet drug cialis generic cialis online cheap viagra pharmacy find discount cialis online viagra malaysia cialis without a prescription buy cialis online cheap viagra rx buy no rx viagra cialis 20mg viagra in malaysia discount viagra online buy sildenafil cheap buy viagra low price buy cialis cialis cheap price cialis cheap generic viagra cialis canada low cost viagra buy cheap viagra cialis vs viagra order cialis from us cialis tablets find no rx cialis buy generic cialis online buy viagra overnight delivery cheapest cialis price buy cheapest cialis on line order cialis in canada viagra tablet viagra no online prescription find cheap cialis online viagra price order viagra no prescription cheap generic cialis buy viagra online cheap cialis uk cialis without rx generic cialis cheap viagra vs cialis order cialis on internet viagra tablets viagra purchase impotence drugs buy cialis generic cialis tablet cialis cheapest price order viagra from canada viagra generic cheap viagra from canada order cialis compare viagra prices online find cheap cialis impotence cure pfizer viagra find discount cialis cheapest cialis buy cialis from india impotence buy cheapest viagra online cialis side effects viagra order discount cialis online cialis in malaysia cialis in uk viagra in uk cialis online without prescription cialis online pharmacy order viagra buy viagra online viagra side effects cialis sale discount cialis no rx cheapest viagra find cialis order cialis no rx buy cialis low price buy viagra cheap drug cialis online purchase order discount viagra online 50 mg viagra 100 mg viagra 10mg cialis cost of cialis cheapest cialis prices buy discount viagra online cialis sales 50mg viagra cialis price buy viagra on internet cialis pill cheapest cialis online purchase viagra overnight delivery cheap cialis from canada cheapest viagra price cialis 20 mg buy sildenafil low cost order viagra without prescription buy viagra lowest price no prescription cialis order viagra on internet discount cialis overnight delivery cialis cheap drug viagra approved viagra no rx required compare viagra prices no rx cialis cheap cialis on internet buy viagra from india buy discount cialis online viagra pharmacy online order viagra from us cialis free delivery cialis for order buy cialis from canada viagra without rx viagra online review 10 mg cialis cheap viagra no rx cheapest viagra prices viagra prices cialis pharmacy order no rx cialis buy cialis in us buy cialis no prescription required order cialis from canada lowest price cialis cheap cialis internet online pharmacy viagra cheapest generic cialis generic drugs cialis india find cialis without prescription best price cialis buy viagra without prescription cheap cialis in uk where to buy viagra 20 mg cialis cheap cialis from uk buy sildenafil canada cialis no rx required cialis in us buy cialis overnight delivery cialis cheap price order cheap viagra online 20mg cialis buy cheap viagra online viagra internet viagra without prescription free cialis buy cialis us cialis buy buy viagra in canada order viagra cheap online find viagra without prescription viagra pills cheap cialis no prescription viagra online without prescription order generic viagra cialis discount viagra cheapest price purchase viagra no rx viagra no rx viagra cheap discount viagra overnight delivery sale cialis cialis pharmacy online purchase cialis without prescription pharmacy online cialis medication discount viagra buy cheap cialis impotence medication viagra medication find cialis on internet impotence pills cialis prices discount viagra without prescription cialis online cheap cialis online review find cheap viagra online buy viagra us purchase cialis online certified viagra where to order viagra buy cheapest viagra buy cialis internet order cialis online buy sildenafil online buy cialis cheap cheap viagra purchase cialis find discount viagra buy cialis on internet cialis buy online buy sildenafil online without a prescription viagra buy online order cheap cialis online viagra information no prescription viagra cost of viagra buy cialis in canada buy cialis online buy viagra cheapest generic viagra cialis us cialis australia fda approved cialis lowest price for viagra viagra bangkok cialis prescription cialis cost buy no rx cialis buy viagra internet viagra discount order viagra overnight delivery generic cialis viagra australia 25 mg viagra order viagra online viagra overnight cialis rx order cialis in us order viagra no rx order discount cialis online viagra vendors order viagra in us buy sildenafil in uk viagra us buy generic viagra viagra canada viagra no prescription viagra cheap price cheap viagra tablet viagra free delivery overnight viagra purchase viagra online find cheap viagra cialis malaysia best price viagra cialis free sample find viagra on internet cialis generic buy sildenafil in canada order cialis no prescription required cheapest viagra online purchase cialis no rx viagra in us order discount cialis cheap viagra internet free viagra cialis approved best price for cialis cialis from india find no rx viagra generic viagra viagra from canada viagra online pharmacy buy viagra from canada cheapest generic viagra online buy cheapest cialis discount cialis viagra overnight delivery cialis without prescription 100mg viagra cialis in australia price of viagra order cialis overnight delivery cheap viagra in uk buying generic cialis viagra pill buy cialis on line low cost cialis find discount viagra online buying viagra cheap cialis overnight delivery pharmacy cialis cheap viagra pill viagra prescription find viagra online buy cialis lowest price discount viagra no rx online cialis viagra free sample cheap viagra in usa find viagra cheap viagra online buy viagra no rx generic viagra cheap buy cialis without prescription buy viagra in us cheap viagra overnight delivery cheap cialis in usa cheap cialis online viagra order no rx viagra viagra soft tab find cialis online lowest price viagra cialis drug cialis vendors viagra online stores erectile dysfunction order viagra in canada buy viagra on line viagra overnight shipping viagra online cheap lowest price for cialis approved viagra pharmacy cialis 10 mg cialis no online prescription cialis purchase cialis from canada order cialis without prescription viagra for sale viagra in australia approved cialis pharmacy buy viagra generic buy sildenafil in spain find viagra no prescription required cialis no prescription buy viagra from us order viagra no prescription required cost viagra purchase viagra without prescription buy cialis no rx cialis cheap cialis internet tablet viagra cheap viagra on internet viagra cost pharmacy viagra cialis soft tab cialis information buy cheap cialis internet purchase cialis overnight delivery cheap cialis without prescription buy viagra no prescription required compare cialis prices buy cheap cialis online overnight cialis where to buy cialis cheap cialis buy cheap viagra internet buy discount cialis viagra buy drug cheap viagra no prescription buy sildenafil citrate buying viagra online buy discount viagra fda approved viagra cialis online stores cheap cialis tablets buy cheapest cialis online cheap viagra tablets order discount viagra sale viagra viagra online cialis for sale cialis soft viagra pharmacy buy cialis from us viagra without a prescription viagra in bangkok

Th e 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. Th e 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 

reunifi cation in 1990 raised special problems with regard to economic 

and fi nancial assimilation. Th e Unifi cation Treaty provided 

that the new states should be incorporated in the fi nancial system 

established by the Basic Law as much as possible from the onset. 

Th erefore, 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 fi nancial support for the new states (and their 

municipalities); it is jointly fi nanced by the western states, with 

most of the money being raised in the capital market. 

Th e 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. 

Th e 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. Th e 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 aff airs, 6.7%; environmental 

protection, 0.1%; housing and community amenities, 

0.9%; health, 19.3%; recreation, culture, and religion, 0.1%; education, 

0.4%; and social protection, 54.8%. 

INSURANCE

Wednesday, June 13th, 2007

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. Th e 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 fi rms, architects, lawyers, nuclear power station 

operators, and accident and health insurance are compulsory. Th e 

insurance sector is highly regulated and, despite the opening of 

the European Union (EU) market, it will be diffi cult for foreign 

companies to win the confi dence of potential German customers. 

BANKING AND SECURITIES

Wednesday, June 13th, 2007

Th e 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 offi ces 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. 

Th e Federal Bank is the sole bank of issue. Until the advent of 

the euro in 1999 it set interest and discount rates. Th ese functions 

are now the domain of the European Central Bank (ECB). However, 

the Federal Bank maintains a leading role in domestic banking. 

Th e 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. Th ere are also 13 central giro 

institutions. In addition, there are 657 savings banks and 18 credit 

institutions with special functions, including the Kreditanstalt für 

Wiederaufb au (Reconstruction Loan Corporation), which is the 

channel for offi cial aid to developing countries. In all, there were 

over 45,000 bank offi ces in 2002. Th e German fi nancial 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. Th e deal would have reduced operating costs by relieving 

both banks of their branch networks. 

Aft er 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. Th is 

refl ects the fact that elite banks are fi nding 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. 

Th e 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. Th e money 

market rate, the rate at which fi nancial 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. Th ere 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. 

Th e 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. Th e DAX in 2004 rose 7.3% from the previous 

year to 4,256.1.

BALANCE OF PAYMENTS

Wednesday, June 13th, 2007

Aft er experiencing defi cits 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 reunifi cation, 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 defi cits since 1991, created in part because of the substantial 

foreign borrowing undertaken to fi nance the cost of unifi 

cation. 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 

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.

FOREIGN TRADE

Wednesday, June 13th, 2007

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 

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. Th e 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.