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About Germany

Germany Population: 82,424,609 (July 2004 est.)
Languages: German
Capital: Berlin
Government Type: Federal Republic
Independence Day: 18 January 1871 (German Empire unification), Unity Day, 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.
Currency: euro (EUR)

Executive Branch:

Chief of State: President Horst KOEHLER (since 1 July 2004).

Head of Government: Chancellor Gerhard SCHROEDER (since 27 October 1998) cabinet: Cabinet or Bundesminister (Federal Ministers) appointed by the president on the recommendation of the chancellor.

American Embassy: Neustaedtische Kirchstrasse 4-5, 10117 Berlin (New Location near the Brandenburg Gate is under construction).
Mailing Address: PSC 120, Box 1000, APO AE 09265
Telephone: [49] (030) 8305-0 FAX: [49] (030) 8305-1215

General Overview: As Europe's largest economy and most populous nation, Germany remains a key member of the continent's economic, political, and defense organizations. European power struggles immersed Germany 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, which became the EU, 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 introduced a common European exchange currency, the euro.

Economic Overview: Germany's affluent and technologically powerful economy- the fifth largest national economy in the world - has become one of the slowest growing economies in the entire euro zone, and a quick turnaround is not in the offing in the foreseeable future. Growth in 2001-03 fell short of 1%. The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $70 billion. Germany's ageing population, combined with high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities in the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Corporate restructuring and growing capital markets are setting the foundations that could allow Germany to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. The government is also starting long-needed structural reforms designed to revitalize the country's economy. In the short run, however, the fall in government revenues and the rise in expenditures have raised the deficit above the EU's 3% debt limit.

International Disputes: None but known as 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; major financial center.