Background: As Western Europe's richest and most populous nation Germany remains a key member of the continent's economic political and defense organizations. European power struggles immersed the country in two devastating World Wars in the first half of the 20th century and left the country occupied by the victorious Allied powers of the US UK France and the Soviet Union in 1945. With the advent of the Cold War two German states were formed in 1949: the western Federal Republic of Germany (FRG) and the eastern German Democratic Republic (GDR). The democratic FRG embedded itself in key Western economic and security organizations the EC and NATO while the communist GDR was on the front line of the Soviet-led Warsaw Pact. The decline of the USSR and the end of the Cold War allowed for German unification in 1990. Since then Germany has expended considerable funds to bring eastern productivity and wages up to western standards. In January 1999 Germany and 10 other EU countries formed a common European currency the euro.
Environment Current issues: emissions from coal-burning utilities and industries contribute to air pollution; acid rain resulting from sulfur dioxide emissions is damaging forests; pollution in the Baltic Sea from raw sewage and industrial effluents from rivers in eastern Germany; hazardous waste disposal; government currently attempting to define mechanism for ending the use of nuclear power; government working to meet EU commitment to identify nature preservation areas in line with the EU's Flora Fauna and Habitat directive
Independence: 18 January 1871 (German Empire unification); divided into four zones of occupation (UK US USSR and later France) in 1945 following World War II; Federal Republic of Germany (FRG or West Germany) proclaimed 23 May 1949 and included the former UK US and French zones; German Democratic Republic (GDR or East Germany) proclaimed 7 October 1949 and included the former USSR zone; unification of West Germany and East Germany took place 3 October 1990; all four powers formally relinquished rights 15 March 1991
National holiday: German Unity Day (Day of Unity) 3 October (1990)
Constitution: 23 May 1949 known as Basic Law; became constitution of the united German people 3 October 1990
Legal system: civil law system with indigenous concepts; judicial review of legislative acts in the Federal Constitutional Court; has not accepted compulsory ICJ jurisdiction
Legislative branch: bicameral Parliament or Parlament consists of the Federal Assembly or Bundestag (656 seats usually but 669 for the 1998 term; elected by popular vote under a system combining direct and proportional representation; a party must win 5% of the national vote or three direct mandates to gain representation; members serve four-year terms) and the Federal Council or Bundesrat (69 votes; state governments are directly represented by votes; each has 3 to 6 votes depending on population and are required to vote as a block)
Judicial branch: Federal Constitutional Court or Bundesverfassungsgericht half the judges are elected by the Bundestag and half by the Bundesrat
Political parties and leaders: Alliance '90/Greens [Gunda ROESTEL and Antje RADCKE]; Christian Democratic Union or CDU [Angela MERKEL]; Christian Social Union or CSU [Edmund STOIBER chairman]; Free Democratic Party or FDP [Wolfgang GERHARDT chairman]; Party of Democratic Socialism or PDS [Lothar BISKY chairman]; Social Democratic Party or SPD [Gerhard SCHROEDER chairman]
International organization participation: AfDB AsDB Australia Group BDEAC BIS CBSS CCC CDB (non-regional) CE CERN EAPC EBRD ECE EIB EMU ESA EU FAO G- 5 G- 7 G-10 IADB IAEA IBRD ICAO ICC ICFTU ICRM IDA IEA IFAD IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM ISO ITU MONUC NAM (guest) NATO NEA NSG OAS (observer) OECD OPCW OSCE PCA UN UNCTAD UNESCO UNHCR UNIDO UNIKOM UNITAR UNMIBH UNMIK UNOMIG UPU WADB (nonregional) WEU WHO WIPO WMO WToO WTrO ZC
Economy overview: Germany possesses the world's third most technologically powerful economy after the US and Japan but its basic capitalistic economy has started to struggle under the burden of generous social benefits. Structural rigidities - like a high rate of social contributions on wages - have made unemployment a long-term not just cyclical problem while Germany's aging population has pushed social security outlays to exceed contributions from workers. The integration and upgrading of the eastern German economy remains a costly long-term problem with annual transfers from the west amounting to roughly $100 billion. Growth slowed to 1.5% in 1999 largely due to lower export demand and still-low business confidence. Recovering Asian demand a push for fiscal consolidation and newly proposed business and income tax cuts - if passed - are expected to boost growth back to trend rates around 2.5% in 2000 and beyond. The adoption of a common European currency and the general political and economic integration of Europe will bring major changes to the German economy in the early 21st century.
Industries: among world's largest and technologically advanced producers of iron steel coal cement chemicals machinery vehicles machine tools electronics food and beverages; shipbuilding; textiles
Telephone system: Germany has one of the world's most technologically advanced telecommunications systems; as a result of intensive capital expenditures since reunification the formerly backward system of the eastern part of the country has been modernized and integrated with that of the western part
Illicit drugs: source of precursor chemicals for South American cocaine processors; transshipment point for and consumer of Southwest Asian heroin Latin American cocaine and European-produced synthetic drugs