Changes

<blockquote>

<blockquote>

Germany's recent debate about immigration misses an important reality: for Germany, and most all developed countries, attracting educated and skilled foreign workers is a matter of economic survival. <ref>[http://www.cfr.org/germany/germanys-immigration-dilemma/p24213 Germany's Immigration Dilemma.]</ref>

Germany's recent debate about immigration misses an important reality: for Germany, and most all developed countries, attracting educated and skilled foreign workers is a matter of economic survival.<ref>[http://www.cfr.org/germany/germanys-immigration-dilemma/p24213 Germany's Immigration Dilemma.]</ref>

</blockquote>

</blockquote>

At the university level, however, there has been a dramatic decline in quality from the days before Hitler, when German universities were the best in the world. Since the student revolts of 1968, conditions at the once-famous universities have deteriorated badly. A strong egalitarianism prevents the re-emergence of world class faculties and no German university ranks among the top 40 in the world.<ref>Gebhard Schweigler, "Heidelberg is Not Harvard …and Germany is embarrassed." [http://www.atlantic-times.com/archive_detail.php?recordID=83 ''The Atlantic Times'' Dec. 2004]</ref>  

At the university level, however, there has been a dramatic decline in quality from the days before Hitler, when German universities were the best in the world. Since the student revolts of 1968, conditions at the once-famous universities have deteriorated badly. A strong egalitarianism prevents the re-emergence of world class faculties and no German university ranks among the top 40 in the world.<ref>Gebhard Schweigler, "Heidelberg is Not Harvard …and Germany is embarrassed." [http://www.atlantic-times.com/archive_detail.php?recordID=83 ''The Atlantic Times'' Dec. 2004]</ref>  

The conservative government has tried to reverse the decline by offering €1.9 billion (about $2.7 billion) in excellence grants to numerous schools spread over a period of five years--far less money than Harvard spends in one year. Little improvement has been reported from this small investment.  The leading schools are Freiburg, Heidelberg and Konstanz (all in the southern state of Baden-Württemberg), Aachen, Göttingen, the Free University of Berlin, two schools in Munich and Karlsruhe’s Technical University.<ref> Lutz Lichtenberger, "Selective Upgrades The government’s 'Excellence Initiative' grants German universities small packs of ivy seeds," [http://www.atlantic-times.com/archive_detail.php?recordID=1080 ''The Atlantic Times'' Nov. 2007]]</ref> Meanwhile, top German scientists and engineers migrate to the United States, where their talents are appreciated.

The conservative government has tried to reverse the decline by offering €1.9 billion (about $2.7 billion) in excellence grants to numerous schools spread over a period of five years—far less money than Harvard spends in one year. Little improvement has been reported from this small investment.  The leading schools are Freiburg, Heidelberg and Konstanz (all in the southern state of Baden-Württemberg), Aachen, Göttingen, the Free University of Berlin, two schools in Munich and Karlsruhe’s Technical University.<ref>Lutz Lichtenberger, "Selective Upgrades The government’s 'Excellence Initiative' grants German universities small packs of ivy seeds," [http://www.atlantic-times.com/archive_detail.php?recordID=1080 ''The Atlantic Times'' Nov. 2007]</ref> Meanwhile, top German scientists and engineers migrate to the United States, where their talents are appreciated.

===Standard of Living===

===Standard of Living===

===Religion===

===Religion===

[[Image:St Stephens Cathedral interior.jpg|thumb|left|300px|St. Stephens Cathedral (''Stephansdom'') in Passau, Bavaria. ]]

[[Image:St Stephens Cathedral interior.jpg|thumb|left|300px|St. Stephens Cathedral (''Stephansdom'') in Passau, Bavaria.]]

In 2006 the Roman Catholic Church reported a membership of 25.7 million. The Evangelical Church, a confederation of the Lutheran, Uniate, and Reformed Protestant Churches, has 25.3 million members. Together, these two churches account for nearly two-thirds of the population.<ref> According to [http://www.state.gov/g/drl/rls/irf/2008/108448.htm U.S. State Department, "International Religious Freedom Report 2008"]</ref>  

In 2006 the Roman Catholic Church reported a membership of 25.7 million. The Evangelical Church, a confederation of the Lutheran, Uniate, and Reformed Protestant Churches, has 25.3 million members. Together, these two churches account for nearly two-thirds of the population.<ref>According to [http://www.state.gov/g/drl/rls/irf/2008/108448.htm U.S. State Department, "International Religious Freedom Report 2008"]</ref>  

[[File:Church pipe organ St Stephen s Cathedral of Passau Germany..jpg|thumb|Church pipe organ, St. Stephen's Cathedral of Passau.]]

[[File:Church pipe organ St Stephen s Cathedral of Passau Germany..jpg|thumb|Church pipe organ, St. Stephen's Cathedral of Passau.]]

Protestant Christian denominations include: New Apostolic Church, 371,305; Ethnic German Baptists from the former Soviet Union (FSU), 85,000; and Baptist, 75,000. Muslims number 3.5 million, including Sunnis, 2.5 million; Alevis, 410,000; and Shi'a, 225,000. Until 2004 the annual number of conversions to Islam was 300, largely Christian women native citizens marrying Muslim men; however, since 2004 the annual numbers of conversions have jumped into the thousands. There are approximately 2,600 Islamic places of worship, including an estimated 150 traditional architecture mosques, with 100 more mosques being planned. One million Muslims are citizens. Orthodox Christians number 1.4 million, including Greek Orthodox/Constantinople Patriarchate, 450,000; Serbian Orthodox, 250,000; Romanian Orthodox, 300,000; and Russian Orthodox/Moscow Patriarchate, 150,000. Buddhists number 245,000, Jehovah's Witnesses 165,000, and Hindus 97,500. The Church of Scientology operates 18 churches and missions, and according to press reports, it has 30,000 members. However, according to the Offices for the Protection of the Constitution (OPC) in Brandenburg and Hamburg, the Church of Scientology has 5,000-6,000 members.

Protestant Christian denominations include: New Apostolic Church, 371,305; Ethnic German Baptists from the former Soviet Union (FSU), 85,000; and Baptist, 75,000. Muslims number 3.5 million, including Sunnis, 2.5 million; Alevis, 410,000; and Shi'a, 225,000. Until 2004 the annual number of conversions to Islam was 300, largely Christian women native citizens marrying Muslim men; however, since 2004 the annual numbers of conversions have jumped into the thousands. There are approximately 2,600 Islamic places of worship, including an estimated 150 traditional architecture mosques, with 100 more mosques being planned. One million Muslims are citizens. Orthodox Christians number 1.4 million, including Greek Orthodox/Constantinople Patriarchate, 450,000; Serbian Orthodox, 250,000; Romanian Orthodox, 300,000; and Russian Orthodox/Moscow Patriarchate, 150,000. Buddhists number 245,000, Jehovah's Witnesses 165,000, and Hindus 97,500. The Church of Scientology operates 18 churches and missions, and according to press reports, it has 30,000 members. However, according to the Offices for the Protection of the Constitution (OPC) in Brandenburg and Hamburg, the Church of Scientology has 5,000-6,000 members.

<blockquote>

<blockquote>

Muslim population is around 3 million (3.6%); the majority of the Muslim population is Turkish, with many retaining strong links to Turkey. Others arrived from Bosnia and Kosovo during the Balkan wars. Until recently Muslims were considered "guest workers", who would one day leave the country - a view that is changing. Racist violence is a sensitive issue, with the authorities trying a range of strategies to beat it. Steps are being taken to improve integration. <ref>[http://news.bbc.co.uk/2/hi/europe/4385768.stm#germany Muslims in Europe.]</ref>

Muslim population is around 3 million (3.6%); the majority of the Muslim population is Turkish, with many retaining strong links to Turkey. Others arrived from Bosnia and Kosovo during the Balkan wars. Until recently Muslims were considered "guest workers", who would one day leave the country - a view that is changing. Racist violence is a sensitive issue, with the authorities trying a range of strategies to beat it. Steps are being taken to improve integration.<ref>[http://news.bbc.co.uk/2/hi/europe/4385768.stm#germany Muslims in Europe.]</ref>

</blockquote>

</blockquote>

<blockquote>

<blockquote>

Public schools in Germany must offer religion classes, and pilot courses in Islam are now being offered in addition to established programs in Judaism, Catholicism, and Protestantism. <ref>[http://www.csmonitor.com/World/Europe/2010/0120/Why-German-public-schools-now-teach-Islam Why German public schools now teach Islam.]</ref>

Public schools in Germany must offer religion classes, and pilot courses in Islam are now being offered in addition to established programs in Judaism, Catholicism, and Protestantism.<ref>[http://www.csmonitor.com/World/Europe/2010/0120/Why-German-public-schools-now-teach-Islam Why German public schools now teach Islam.]</ref>

</blockquote>

</blockquote>

===State support for religion===

===State support for religion===

In order to help support [[Protestant]], [[Catholic]], and [[Jewish]] religious institutions, the German state collects [[taxes]] on members of those religions and passes the funding along to the relevant religious administrative body. <ref>[http://www.bbc.co.uk/news/world-europe-19737983]</ref>

In order to help support [[Protestant]], [[Catholic]], and [[Jewish]] religious institutions, the German state collects [[taxes]] on members of those religions and passes the funding along to the relevant religious administrative body.<ref>[http://www.bbc.co.uk/news/world-europe-19737983]</ref>

===Data===

===Data===

*Religions: Protestants (26 million); Roman Catholics (26 million); approximately 3.2 million Muslims.

*Religions: Protestants (26 million); Roman Catholics (26 million); approximately 3.2 million Muslims.

*Language: German.  

*Language: German.  

*Education: Years compulsory--9-13 (depending on the Land); attendance--100%; literacy--99%.

*Education: Years compulsory—9-13 (depending on the Land); attendance—100%; literacy—99%.

*Health: Infant mortality rate (2006 est.)--4.12/1,000; life expectancy (2006 est.)--women 81.96 years, men 77.81 years.

*Health: Infant mortality rate (2006 est.)--4.12/1,000; life expectancy (2006 est.)--women 81.96 years, men 77.81 years.

*Persons employed (2006 avg.): 39.08 million; unemployed (2006 avg.): 9.8% of labor force.

*Persons employed (2006 avg.): 39.08 million; unemployed (2006 avg.): 9.8% of labor force.

[[File:Germ-vote-2009.jpg|200px|thumb|Exit polls from Sept. 2009 election won by the conservative coalition CDU and FDP]]

[[File:Germ-vote-2009.jpg|200px|thumb|Exit polls from Sept. 2009 election won by the conservative coalition CDU and FDP]]

:''Main article: [[Christian Democratic Union]] and [[Christian Social Union]]

:''Main article: [[Christian Democratic Union]] and [[Christian Social Union]]

An important aspect of postwar German politics was the emergence of a moderate, ecumenical Christian party--the Christian Democratic Union (CDU)--operating in alliance with a related Bavarian party, the Christian Social Union (CSU). Although each party maintains its own structure, the two form a common caucus in the Bundestag and do not run opposing campaigns. The CDU/CSU has adherents among Catholics, Protestants, rural interests, and members of all economic classes. It is generally conservative on economic and social policy and more identified with the Roman Catholic and Protestant churches.

An important aspect of postwar German politics was the emergence of a moderate, ecumenical Christian party—the Christian Democratic Union (CDU)--operating in alliance with a related Bavarian party, the Christian Social Union (CSU). Although each party maintains its own structure, the two form a common caucus in the Bundestag and do not run opposing campaigns. The CDU/CSU has adherents among Catholics, Protestants, rural interests, and members of all economic classes. It is generally conservative on economic and social policy and more identified with the Roman Catholic and Protestant churches.

The September 2009 elections were a major win for the conservative forces led by Chancellor [[Angela Merkel]], breaking a stalemate and opening the way for more conservative economic policies.  Previously since an indecisive election in 2005 the Christian Democrats ([[CDU]]) (on the center-right) formed a "grand coalition" with the Social Democrats ([[SPD]]) (on the center-left). From 2009 to 2013 Merkel and her CDU formed a coalition with the libertarian, pro-business [[Free Democratic Party|Free Democrats]] (FDP). Left in the cold was the SPD, the [[Alliance '90/The Greens|Greens]], and the ex-Communists who remain strong in the former East Germany under the name "[[The Left]]". Merkel moved forward on tax cuts, reform of the tax code, reduction of bureaucracy and a possible extension of the time that nuclear power plants can continue to operate.<ref>Craig Whitlock, "Germany's Merkel Reelected Easily, Will Form New Coalition," [http://www.washingtonpost.com/wp-dyn/content/article/2009/09/27/AR2009092700631.html?nav=emailpage ''Washington Post'' Sept. 28, 2009]</ref> Merkel's program announced as she took office Oct. 28 includes $36 billion in income tax cuts, lower business taxes, and higher family benefits. The budget will be in deficit for the next four years, as the government believes the economy is too fragile for spending cuts  and that more stimulus is needed to end the recession.  By law the budget must be balanced by the year 2016. Nuclear power plants will be given an extension, and Merkel wants to move more of the welfare costs from corporations to households.

The September 2009 elections were a major win for the conservative forces led by Chancellor [[Angela Merkel]], breaking a stalemate and opening the way for more conservative economic policies.  Previously since an indecisive election in 2005 the Christian Democrats ([[CDU]]) (on the center-right) formed a "grand coalition" with the Social Democrats ([[SPD]]) (on the center-left). From 2009 to 2013 Merkel and her CDU formed a coalition with the libertarian, pro-business [[Free Democratic Party|Free Democrats]] (FDP). Left in the cold was the SPD, the [[Alliance '90/The Greens|Greens]], and the ex-Communists who remain strong in the former East Germany under the name "[[The Left]]". Merkel moved forward on tax cuts, reform of the tax code, reduction of bureaucracy and a possible extension of the time that nuclear power plants can continue to operate.<ref>Craig Whitlock, "Germany's Merkel Reelected Easily, Will Form New Coalition," [http://www.washingtonpost.com/wp-dyn/content/article/2009/09/27/AR2009092700631.html?nav=emailpage ''Washington Post'' Sept. 28, 2009]</ref> Merkel's program announced as she took office Oct. 28 includes $36 billion in income tax cuts, lower business taxes, and higher family benefits. The budget will be in deficit for the next four years, as the government believes the economy is too fragile for spending cuts  and that more stimulus is needed to end the recession.  By law the budget must be balanced by the year 2016. Nuclear power plants will be given an extension, and Merkel wants to move more of the welfare costs from corporations to households.

====The Left====

====The Left====

:''Main article:'' [[The Left]]

:''Main article:'' [[The Left]]

The PDS (for 'Partei des demokratischen Sozialismus'; "Party of Democratic Socialism", the renamed communist party of the former East Germany, and follow-up of the [[SED]]) and the WASG (for 'Wahlalternative Arbeit und Soziale Gerechtigkeit'; "Voting alternative work and social justice") composed of west-German leftists) merged in June 2007 to form a party simply known as "[[The Left]]." The party's foreign policy is largely shaped by its rigid opposition to foreign military deployments, for example in [[Afghanistan]], and insists on an immediate pull-out. On domestic policy, the party opposes economic and social reforms, such as Hartz IV, which aim to increase free markets and reduce unemployment benefits. The Left proposes to weaken the free market system with a new orientation to democratic socialist principles. The Left also experienced a lot of criticism due to its communist wing, the 'communist platform' which makes up 4.4% of the national vote, an insufficient total to clear the 5 percent hurdle. <ref>[http://www.germanculture.com.ua/library/facts/bl_electoral_system.htm German Culture.com; Electoral System of Germany (next to last paragraph]</ref>

The PDS (for 'Partei des demokratischen Sozialismus'; "Party of Democratic Socialism", the renamed communist party of the former East Germany, and follow-up of the [[SED]]) and the WASG (for 'Wahlalternative Arbeit und Soziale Gerechtigkeit'; "Voting alternative work and social justice") composed of west-German leftists) merged in June 2007 to form a party simply known as "[[The Left]]." The party's foreign policy is largely shaped by its rigid opposition to foreign military deployments, for example in [[Afghanistan]], and insists on an immediate pull-out. On domestic policy, the party opposes economic and social reforms, such as Hartz IV, which aim to increase free markets and reduce unemployment benefits. The Left proposes to weaken the free market system with a new orientation to democratic socialist principles. The Left also experienced a lot of criticism due to its communist wing, the 'communist platform' which makes up 4.4% of the national vote, an insufficient total to clear the 5 percent hurdle.<ref>[http://www.germanculture.com.ua/library/facts/bl_electoral_system.htm German Culture.com; Electoral System of Germany (next to last paragraph]</ref>

{{Clear}}

{{Clear}}

===Principal Government Officials===

===Principal Government Officials===

*President--Joachim Gauck  

*President—Joachim Gauck  

*President of the Bundestag--Norbert Lammert (CDU)

*President of the Bundestag—Norbert Lammert (CDU)

*Chancellor--Angela Merkel (CDU)

*Chancellor—Angela Merkel (CDU)

*Vice Chancellor and Minister of Economics and Technology--Sigmar Gabriel (SPD)

*Vice Chancellor and Minister of Economics and Technology—Sigmar Gabriel (SPD)

*Minister of Defense--Ursula von der Leyen (CDU)

*Minister of Defense—Ursula von der Leyen (CDU)

*Minister of Finance--Wolfgang Schäuble (CDU)

*Minister of Finance—Wolfgang Schäuble (CDU)

*Minister of Interior--Thomas de Maizière (CDU)

*Minister of Interior—Thomas de Maizière (CDU)

*Minister of Labor and Social Affairs--Andrea Nahles (SPD)

*Minister of Labor and Social Affairs—Andrea Nahles (SPD)

*Minister of Justice--Heiko Maas (SPD)

*Minister of Justice—Heiko Maas (SPD)

*Minister of Minister of Foreign Affairs--Frank Walter Steinmeier (SPD)

*Minister of Minister of Foreign Affairs—Frank Walter Steinmeier (SPD)

*Minister of Food, Agriculture and Consumer Protection--Christian Schmidt (CSU)

*Minister of Food, Agriculture and Consumer Protection—Christian Schmidt (CSU)

*Minister for Family Affairs, Senior Citizens, Women and Youth--Manuela Schwesig (SPD)

*Minister for Family Affairs, Senior Citizens, Women and Youth—Manuela Schwesig (SPD)

*Minister of Health--Hermann Gröhe (CDU)

*Minister of Health—Hermann Gröhe (CDU)

*Minister of Transport, Building and Urban Affairs--Alexander Dobrindt (CSU)

*Minister of Transport, Building and Urban Affairs—Alexander Dobrindt (CSU)

*Minister for the Environment, Nature Conservation and Nuclear Safety--Barbara Hendricks (SPD)

*Minister for the Environment, Nature Conservation and Nuclear Safety—Barbara Hendricks (SPD)

*Minister of Education and Research--Johanna Wanka (CDU)

*Minister of Education and Research—Johanna Wanka (CDU)

*Minister for Economic Cooperation and Development--Gerd Müller (CSU)

*Minister for Economic Cooperation and Development—Gerd Müller (CSU)

*Head of the Federal Chancellery and Minister for Special Tasks--Peter Altmaier (CDU)

*Head of the Federal Chancellery and Minister for Special Tasks—Peter Altmaier (CDU)

===Foreign Relations===

===Foreign Relations===

U.S. policy toward Germany remains the preservation and consolidation of a close and vital relationship with Germany, not only as friends and trading partners, but also as allies sharing common institutions. During the 45 years in which Germany was divided, the U.S. role in Berlin and the large American military presence in West Germany served as symbols of the U.S. commitment to preserving peace and security in Europe. Since German unification, the U.S. commitment to these goals has not changed. The U.S. made significant reductions in its troop levels in Germany after the Cold War ended, and, on July 12, 1994, President Clinton "cased the colors" at the Berlin Brigade's deactivation ceremony. The U.S., however, continues to recognize that the security and prosperity of the United States and Germany significantly depend on each other.  

U.S. policy toward Germany remains the preservation and consolidation of a close and vital relationship with Germany, not only as friends and trading partners, but also as allies sharing common institutions. During the 45 years in which Germany was divided, the U.S. role in Berlin and the large American military presence in West Germany served as symbols of the U.S. commitment to preserving peace and security in Europe. Since German unification, the U.S. commitment to these goals has not changed. The U.S. made significant reductions in its troop levels in Germany after the Cold War ended, and, on July 12, 1994, President Clinton "cased the colors" at the Berlin Brigade's deactivation ceremony. The U.S., however, continues to recognize that the security and prosperity of the United States and Germany significantly depend on each other.  

As allies in NATO, the United States and Germany work side by side to maintain peace and freedom. This unity and resolve made possible the successful conclusion of the 1987 U.S.-U.S.S.R. Intermediate-Range Nuclear Forces Treaty (INF), the Two-plus-Four process--which led to the Final Settlement Treaty--and the November 1990 Conventional Armed Forces in Europe (CFE) Treaty.  

As allies in NATO, the United States and Germany work side by side to maintain peace and freedom. This unity and resolve made possible the successful conclusion of the 1987 U.S.-U.S.S.R. Intermediate-Range Nuclear Forces Treaty (INF), the Two-plus-Four process—which led to the Final Settlement Treaty—and the November 1990 Conventional Armed Forces in Europe (CFE) Treaty.  

[[File:President and First Lady Obama with Chancellor Merkel.jpg|thumb|left|320px|President Barack Obama and First Lady Michelle Obama are welcomed by German Chancellor Angela Merkel and her husband, professor Joachim Sauer, to Rathaus in Baden-Baden, Germany, 2009.]]

[[File:President and First Lady Obama with Chancellor Merkel.jpg|thumb|left|320px|President Barack Obama and First Lady Michelle Obama are welcomed by German Chancellor Angela Merkel and her husband, professor Joachim Sauer, to Rathaus in Baden-Baden, Germany, 2009.]]

More recently, the two allies have cooperated closely in peacekeeping efforts in the Balkans and have worked together to encourage the evolution of open and democratic states throughout central and eastern Europe. Germany is also a strong contributor to our common effort to secure peace and stability in Afghanistan, contributing almost 3,000 troops to the NATO ISAF mission.  

More recently, the two allies have cooperated closely in peacekeeping efforts in the Balkans and have worked together to encourage the evolution of open and democratic states throughout central and eastern Europe. Germany is also a strong contributor to our common effort to secure peace and stability in Afghanistan, contributing almost 3,000 troops to the NATO ISAF mission.  

[[Image:The_castle3.jpg|right|thumb|270px|Neuschwanstein Castle, a popular tourist destination.]]

[[Image:The_castle3.jpg|right|thumb|270px|Neuschwanstein Castle, a popular tourist destination.]]

Germany is the world's third-largest economy and the largest in Europe.  

Germany is the world's third-largest economy and the largest in Europe.  

From the 1948 currency reform until the early 1970s, West Germany experienced almost continuous economic expansion. Real gross domestic product (GDP) growth slowed down, and even declined, from the mid-1970s through the recession of the early 1980s. The economy then experienced 8 consecutive years of growth that ended with a downturn beginning in late 1992. Since unification, Germany has seen annual average real growth of only about 1.5% and stubbornly high unemployment. In 2006, Germany had its best year since 2000 with 2.7% growth; for 2007, growth was at 2.5% despite a 3 percentage point VAT hike at the beginning of the year. The government forecasts 1.7% growth in GDP for 2008. Unemployment in 2007 dropped to an annualized average of 9.0% nationwide, but it is still significantly higher--15.1%--in the German states that make up the former East Germany.  

From the 1948 currency reform until the early 1970s, West Germany experienced almost continuous economic expansion. Real gross domestic product (GDP) growth slowed down, and even declined, from the mid-1970s through the recession of the early 1980s. The economy then experienced 8 consecutive years of growth that ended with a downturn beginning in late 1992. Since unification, Germany has seen annual average real growth of only about 1.5% and stubbornly high unemployment. In 2006, Germany had its best year since 2000 with 2.7% growth; for 2007, growth was at 2.5% despite a 3 percentage point VAT hike at the beginning of the year. The government forecasts 1.7% growth in GDP for 2008. Unemployment in 2007 dropped to an annualized average of 9.0% nationwide, but it is still significantly higher—15.1%--in the German states that make up the former East Germany.  

Germans often describe their economic system as a "social market economy." The German Government provides an extensive array of social services. The state intervenes in the economy by providing subsidies to selected sectors and by owning some segments of the economy, while promoting competition and free enterprise. The government has restructured the railroad system on a corporate basis, privatized the national airline, and is privatizing telecommunications and postal services.  

Germans often describe their economic system as a "social market economy." The German Government provides an extensive array of social services. The state intervenes in the economy by providing subsidies to selected sectors and by owning some segments of the economy, while promoting competition and free enterprise. The government has restructured the railroad system on a corporate basis, privatized the national airline, and is privatizing telecommunications and postal services.  

The German economy is heavily export-oriented, with exports accounting for more than one-third of national output. As a result, exports traditionally have been a key element in German macroeconomic expansion, accounting for over half of the economic growth in recent years. Germany is a strong advocate of closer European economic integration, and its economic and commercial policies are increasingly determined within the European Union (EU). Germany uses the common European currency, the euro, and the European Central Bank sets monetary policy.  

The German economy is heavily export-oriented, with exports accounting for more than one-third of national output. As a result, exports traditionally have been a key element in German macroeconomic expansion, accounting for over half of the economic growth in recent years. Germany is a strong advocate of closer European economic integration, and its economic and commercial policies are increasingly determined within the European Union (EU). Germany uses the common European currency, the euro, and the European Central Bank sets monetary policy.  

[[File:German transmission lines.jpg|thumb|left|340px|Transmission lines and generating stations.]]

[[File:German transmission lines.jpg|thumb|left|340px|Transmission lines and generating stations.]]

In the early-mid 2000s, Germany adopted a complex set of labor/social welfare reforms to overcome structural weaknesses of the German welfare state and to create policies more conductive to employment. Defying a skeptical German public, the coalition government of Chancellor Angela Merkel initiated additional reform measures, such as the gradual increase in the mandatory retirement age from 65 to 67--a move that would add 2.5 million to the workforce by 2030. Subsequently, however, there has been active political debate and some rollback of these labor reforms; most notably the government decided to extend the payment period of unemployment benefits to older workers in early 2008.  

In the early-mid 2000s, Germany adopted a complex set of labor/social welfare reforms to overcome structural weaknesses of the German welfare state and to create policies more conductive to employment. Defying a skeptical German public, the coalition government of Chancellor Angela Merkel initiated additional reform measures, such as the gradual increase in the mandatory retirement age from 65 to 67—a move that would add 2.5 million to the workforce by 2030. Subsequently, however, there has been active political debate and some rollback of these labor reforms; most notably the government decided to extend the payment period of unemployment benefits to older workers in early 2008.  

Fifteen years after reunification (October 3, 1990), Germany had made great progress in raising the standard of living in eastern Germany, introducing a market economy and improving its infrastructure. At the same time, the process of convergence between east and west is taking longer than originally expected and, on some measures, has stagnated since the mid-1990s. Eastern economic growth rates have been lower than in the west in recent years, unemployment is twice as high, prompting many skilled easterners to seek work in the west, and productivity continues to lag. Eastern consumption levels are dependent on public net financial transfers from west to east totaling about $13 billion per year. In addition to social assistance payments, the government will extend funds to promote eastern economic development through 2019.  

Fifteen years after reunification (October 3, 1990), Germany had made great progress in raising the standard of living in eastern Germany, introducing a market economy and improving its infrastructure. At the same time, the process of convergence between east and west is taking longer than originally expected and, on some measures, has stagnated since the mid-1990s. Eastern economic growth rates have been lower than in the west in recent years, unemployment is twice as high, prompting many skilled easterners to seek work in the west, and productivity continues to lag. Eastern consumption levels are dependent on public net financial transfers from west to east totaling about $13 billion per year. In addition to social assistance payments, the government will extend funds to promote eastern economic development through 2019.  

The United States is Germany's second-largest trading partner, and U.S.-German trade has continued to grow strongly. Two-way trade in goods totaled $184 billion in 2007. U.S. exports to Germany were $ 71 billion while U.S. imports from Germany were more than $113 billion. At nearly $45 billion, the U.S.'s fifth-largest trade deficit is with Germany. Major U.S. export categories include aircraft, electrical equipment, telecommunications equipment, data processing equipment, and motor vehicles and parts. German export sales are concentrated in metalworks, motor vehicles, machinery, chemicals and heavy electrical equipment. Much bilateral trade is intra-industry or intra-firm.  

The United States is Germany's second-largest trading partner, and U.S.-German trade has continued to grow strongly. Two-way trade in goods totaled $184 billion in 2007. U.S. exports to Germany were $71 billion while U.S. imports from Germany were more than $113 billion. At nearly $45 billion, the U.S.'s fifth-largest trade deficit is with Germany. Major U.S. export categories include aircraft, electrical equipment, telecommunications equipment, data processing equipment, and motor vehicles and parts. German export sales are concentrated in metalworks, motor vehicles, machinery, chemicals and heavy electrical equipment. Much bilateral trade is intra-industry or intra-firm.  

Germany has a liberal foreign investment policy. For 2005, the most recent year for which statistics are available, German investment in the U.S. amounted to 233 billion euros (29 % of all German foreign direct investment, or FDI; the U.S. is the number-one destination for German FDI), while U.S. investment in Germany was 45 billion euros (11.5 % of all FDI invested in Germany; U.S. is third-largest source of FDI in Germany).  

Germany has a liberal foreign investment policy. For 2005, the most recent year for which statistics are available, German investment in the U.S. amounted to 233 billion euros (29% of all German foreign direct investment, or FDI; the U.S. is the number-one destination for German FDI), while U.S. investment in Germany was 45 billion euros (11.5% of all FDI invested in Germany; U.S. is third-largest source of FDI in Germany).  

U.S. firms employ about 510,000 people in Germany; German firms likewise employ about 746,000 people in the United States.  

U.S. firms employ about 510,000 people in Germany; German firms likewise employ about 746,000 people in the United States.  

*Inflation rate (consumer prices, 2007): 2.2%.

*Inflation rate (consumer prices, 2007): 2.2%.

*Natural resources: Iron, hard coal, lignite, potash, natural gas.

*Natural resources: Iron, hard coal, lignite, potash, natural gas.

*Agriculture (0.9% of GDP): Products--corn, wheat, potatoes, sugar, beets, barley, hops, viticulture, forestry, fisheries.

*Agriculture (0.9% of GDP): Products—corn, wheat, potatoes, sugar, beets, barley, hops, viticulture, forestry, fisheries.

*Industry (29.1% of GDP): Types--car-making; mechanical, electrical, and precision engineering; chemicals; environmental technology; optics; medical technology; biotech and genetic engineering; nanotechnology; aerospace; logistics.

*Industry (29.1% of GDP): Types—car-making; mechanical, electrical, and precision engineering; chemicals; environmental technology; optics; medical technology; biotech and genetic engineering; nanotechnology; aerospace; logistics.

*Trade (2006): Exports--$1.03 trillion: chemicals, motor vehicles, iron and steel products, manufactured goods, electrical products. Major markets--France, U.S., and U.K. Imports--$844 billion: food, petroleum products, manufactured goods, electrical products, motor vehicles, apparel. Major suppliers--France, Netherlands, U.S.

*Trade (2006): Exports--$1.03 trillion: chemicals, motor vehicles, iron and steel products, manufactured goods, electrical products. Major markets—France, U.S., and U.K. Imports--$844 billion: food, petroleum products, manufactured goods, electrical products, motor vehicles, apparel. Major suppliers—France, Netherlands, U.S.

The German economy showed substantial improvement in 2007 at 2.5% growth due to the effect of recent economic reforms and strong global economic growth. The export-led recovery is now filtering through to the domestic economy where private consumption has long been at a low level.  

The German economy showed substantial improvement in 2007 at 2.5% growth due to the effect of recent economic reforms and strong global economic growth. The export-led recovery is now filtering through to the domestic economy where private consumption has long been at a low level.