Germany Destination News

Most schools and kindergartens are the responsibility of the states, 

not of the federal government. Th erefore, though the overall structure 

is basically the same, it is diffi cult for a pupil to transfer from 

one school to another. German teachers are civil servants. Th ey 

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 aft er their sixth birthday and are required 

to attend on a full-time basis for nine or ten years, depending on 

the state of residence. Aft er four years of primary or elementary 

school (Grundschule), students choose from three types of secondary 

school. Th e 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. Th e 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 certifi cate. Th is system of vocational 

training has clearly reduced youth unemployment. 

In 2001, nearly all children between the ages of three and fi ve 

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. Th e 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). Th ere are 

also several fachschulen, which off er continuing vocational training 

for adults. In 2003, about 51% of the tertiary age population 

were enrolled in some type of higher education program. Th e 

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.

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 

multi-unit 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. 

Th e average number of persons per household is 2.2.

Health insurance in Germany is available to everyone. Benefi ts are 

broad and nationally uniform, with only minor variations among 

plans. Th ey 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 benefi ts (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 benefi ts; 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. Th ere 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. Th e total fertility rate in 2000 

was 1.4 children per woman throughout her childbearing years. 

Th e maternal mortality rate was low at 8 deaths per 100,000 live 

births. 

Th e 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. Th ere were an estimated 1,000 deaths from 

AIDS in 2003. 

Tobacco consumption has decreased signifi cantly from 2.4 kg 

(5.3 lbs) in 1984 to 2.1 kg (4.6 lbs) a year per adult in 1995. Th e 

heart disease average in Germany was higher than the European 

average.

Th e social security system of the FRG remained in place following 

unifi cation with the German Democratic Republic. However, 

the GDR system continued to apply on an interim basis within the 

former GDR territory. Th e two systems were merged eff ective 2 

January 1992. Th e social insurance system provides for sickness 

and maternity, workers’ compensation, disability, unemployment, 

and old age; the program is fi nanced by compulsory employee and 

employer contributions. Old age pensions begin at age 65 aft er fi ve 

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. Th e 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. Th e Basic 

Law also provides for the freedom of association, assembly, and 

expression.

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 fi elds 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 

eff ective. Less successful have been wage-price policies, which 

have been unable to control a continued upward movement. Infl 

ationary 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. Th e law is administered 

by the Federal Cartel Offi ce, 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 fi rst quarter of 2005, the unemployment rate stood at 12.4%. 

Although much eff ort 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. 

Th e 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 defi cit above the EU’s 3% debt limit.