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Germany: country overview

30 January 2017, 22:17 CET

As Europe's largest economy and second most populous nation (after Russia), Germany is a key member of the continent's economic, political, and defence organisations. The most important sectors of Germany's economy in 2015 were industry (25.9 %), public administration, defence, education, human health and social work activities (18.2 %) and wholesale and retail trade, transport, accommodation and food service activities (15.8 %). Germany's main export partners are France, the US and the UK while its main import partners are the Netherlands, France and China.

German flag

Capital: Berlin

Geographical size: 357 376 km2

Population: 81 197 537 (2015)

Population as % of total EU: 16 % (2015)

Gross domestic product (GDP): € 3.026 trillion (2015)

Official EU language(s): German

Political system: federal parliamentary republic

EU member country since: 1 January 1958

Seats in the European Parliament: 96

Currency: Euro. Member of the eurozone since 1 January 1999

Schengen area member? Yes, Schengen Area member since 26 March 1995.

Presidency of the Council: Germany has held the revolving presidency of the Council of the EU 11 times between 1958 and 2007. The next time will be in 2020.

Map of Germany

Country overview

Germany has the largest population of any EU country. Its territory stretches from the North Sea and the Baltic in the north to the Alps in the south and is traversed by some of Europe's major rivers such as the Rhine, Danube and Elbe.

Germany is a federal republic. The lawmakers at the national level are the Bundestag , whose members are elected every four years by popular vote and the Bundesrat , which consists of 69 representatives of the 16 states (Bundesländer).

After the Second World War, Germany was divided into the democratic West and the Communist East (German Democratic Republic). The Berlin Wall became the symbol of this division. It fell in 1989 and Germany was reunited a year later.

German is the most widely spoken first language in the European Union. Germany is the world's third largest economy, producing automobiles, precision engineering products, electronic and communications equipment, chemicals and pharmaceuticals, and much more besides. Its companies have invested heavily in the central and east European countries which joined the EU in 2004.

As birthplace of Johann Sebastian Bach, Ludwig van Beethoven, Johannes Brahms and Richard Wagner, among others, Germany's gift to European classical music is important. In thought and word, Germany's huge heritage includes the works of Luther, Goethe, Schiller, Nietzsche, Kant, Brecht and Thomas Mann.

Germany is the second largest producer of hops in the world and the country is known for its quality beers. Wine is produced in the Moselle and Rhine valleys.

Economy overview

The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.

Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II. The new German Government introduced a minimum wage of about $11.60 (8.50 euros) per hour that took effect in 2015.

Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term increased Germany's total budget deficit - including federal, state, and municipal - to 4.1% in 2010, but slower spending and higher tax revenues reduced the deficit to 0.8% in 2011 and in 2015 Germany reached a budget surplus of 0.9%. A constitutional amendment approved in 2009 limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016, though the target was already reached in 2012.

The German economy suffers from low levels of investment, and a government plan to invest 15 billion euros during 2016-18, largely in infrastructure, is intended to spur needed private investment. Following the March 2011 Fukushima nuclear disaster, Chancellor Angela MERKEL announced in May 2011 that eight of the country's 17 nuclear reactors would be shut down immediately and the remaining plants would close by 2022. Germany plans to replace nuclear power largely with renewable energy, which accounted for 27.8% of gross electricity consumption in 2014, up from 9% in 2000. Before the shutdown of the eight reactors, Germany relied on nuclear power for 23% of its electricity generating capacity and 46% of its base-load electricity production. Domestic consumption, bolstered by low energy prices and a weak euro, are likely to drive German GDP growth again in 2016..

Useful links

The Commission's Representation in Germany

European Parliament office in Germany

German Federal Government

Tourist information

Source: European Commission, CIA - The World Factbook

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