German Economy

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German Economy Basic Facts
Population 82 million Size approximately the
area of Montana Political System parliamentary
democracy Government Grand Coalition (SPD and
CDU) Major Parties CDU, SPD, FDP, Greens,
PDS EU founding member Economy third largest in
the world (after US and Japan) Economic system
social market economy Foreign trade largest
exporter in the world Currency
Euro Unemployment ca. 10 Stock exchange
Frankfurt www.deutsche-boerse.com
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Economic Institutions I
Federal Government Political influence depends
on major government party (coalition) states
enjoy certain degree of financial independence
and can pursue building regionally
lucrative industries German Federal
Bank Established 1957 to protect currency and
government economic policy independent, it
maintains monetary stability (money supply and
interest rates based in Frankfurt has six
members
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Economic Institutions II
Federal Cartel Office Founded 1958 to ensure
competition and prevent monopolies Banks Over
4000 banks in Germany two large national banks,
Deutsche Bank and Commerzbank, plus numerous
Regional banks European Central Bank European
version of German Federal Bank (served as model
to a degree), located in Frankfurt
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Interest Groups
Trade Unions Very strong and powerful
negotiators for their members twin goals of
co-determination and improved working conditions
(shorter working week, more holidays, equal pay,
etc.) combined number of members in most
important unions about 16 million Employers
associations the major association represents
about 80 000 companies other associations
represent small businesses, farmers, Etc.