About
Germany

Economy of Germany

The German economy--the fifth-largest in the world in purchasing power parity (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 declining net immigration are increasing pressure on the country's social welfare system and have compelled the government to undertake structural reforms. The modernization and integration of the eastern German economy--where unemployment can exceed 20% in some municipalities--continues to be a costly long-term process, with total transfers from west to east amounting to roughly $3 trillion so far.

GDP contracted by nearly 5% in 2009, which was the steepest dropoff in output since World War II. The turnaround has been swift: Germany’s export-dependent economy is expected to grow by 3.5% in 2010 and a further 2% in 2011, with exports to emerging markets playing an increasingly important role. The German labor market also showed a strong performance in 2010, with the unemployment rate dropping to 7.5%, its lowest level in 17 years. Economists attribute the decrease in unemployment to the extensive use of government-sponsored "short-time" (Kurzarbeit) work programs, as well as to structural reforms implemented under the government of former Chancellor Gerhard Schroeder. Thanks to stronger-than-expected tax revenues, Germany’s deficit will reach €50 billion (U.S. $68.5 billion) in 2010, or roughly 4% of GDP, significantly less than previously forecast. The European Union (EU) has given Germany until 2013 to get its consolidated budget deficit below 3% of GDP, and a new constitutional amendment limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016. The government’s 4-year fiscal consolidation program worth approximately €80 billion (U.S. $109.6 billion) is intended to meet both targets. Positive economic trends make it likely that Germany may achieve its goals ahead of schedule.

GDP (2009 nom.): $3.339 trillion.
Annual growth rate: (2010 est.) 3.5%; (2009) -4.7%; (2008) 1.7%.
Per capita GDP (2009 nom.): $44,525.
Inflation rate (September 2010): 1.3%.
Unemployment rate (October 2010): 7.5%.
Agriculture (0.9% of GDP in 2010): Products--corn, wheat, potatoes, sugar, beets, barley, hops, viticulture, forestry, fisheries.
Industry (26.8% of GDP in 2010): Types--car-making; mechanical, electrical, and precision engineering; chemicals; environmental technology; optics; medical technology; biotech and genetic engineering; nanotechnology; aerospace; logistics.
Trade (2009): Exports--$1.124 trillion: chemicals, motor vehicles, iron and steel products, manufactured goods, electrical products. Major markets (2009)--France, Netherlands, U.S. Imports--$937 billion: food, petroleum products, manufactured goods, electrical products, motor vehicles, apparel. Major suppliers--Netherlands, China, France.

Geography of Germany

Location: Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark

Geographic coordinates: 51 00 N, 9 00 E

Map references: Europe

Area:
total: 356,910 sq km
land: 349,520 sq km
water: 7,390 sq km
note: includes the formerly separate Federal Republic of Germany, the German Democratic Republic, and Berlin, following formal unification on 3 October 1990

Area—comparative: slightly smaller than Montana

Land boundaries:
total: 3,621 km
border countries: Austria 784 km, Belgium 167 km, Czech Republic 646 km, Denmark 68 km, France 451 km, Luxembourg 138 km, Netherlands 577 km, Poland 456 km, Switzerland 334 km

Coastline: 2,389 km

Maritime claims:
continental shelf: 200-m depth or to the depth of exploitation
exclusive economic zone: 200 nm
territorial sea: 12 nm

Climate: temperate and marine; cool, cloudy, wet winters and summers; occasional warm, tropical foehn wind; high relative humidity

Terrain: lowlands in north, uplands in center, Bavarian Alps in south

Elevation extremes:
lowest point: Freepsum Lake -2 m
highest point: Zugspitze 2,962 m

Natural resources: iron ore, coal, potash, timber, lignite, uranium, copper, natural gas, salt, nickel

Land use:
arable land: 33%
permanent crops: 1%
permanent pastures: 15%
forests and woodland: 31%
other: 20% (1993 est.)

Irrigated land: 4,750 sq km (1993 est.)

Natural hazards: flooding

Environment—current issues: emissions from coal-burning utilities and industries and lead emissions from vehicle exhausts (the result of continued use of leaded fuels) 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

Environment—international agreements:
party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Sulphur 85, Air Pollution-Sulphur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling
signed, but not ratified: Air Pollution-Persistent Organic Pollutants, Climate Change-Kyoto Protocol

Geography—note: strategic location on North European Plain and along the entrance to the Baltic Sea.

Government of Germany

The government is parliamentary, and a democratic constitution emphasizes the protection of individual liberty and division of powers in a federal structure. The chancellor (prime minister) heads the executive branch of the federal government. The duties of the president (chief of state) are largely ceremonial; the chancellor exercises executive power. The Bundestag (lower, principal chamber of the parliament) elects the chancellor. The president normally is elected every 5 years on May 23 by the Federal Assembly, a body convoked only for this purpose, comprising the entire Bundestag and an equal number of state delegates. President Christian Wulff (Christian Democratic Union - CDU) was elected on June 30, 2010.

The Bundestag, which serves a 4-year term, consists of at least twice the number of electoral districts in the country (299). When parties' directly elected seats exceed their proportional representation, they may receive additional seats. The number of seats in the Bundestag was reduced to 598 for the 2002 elections. The Bundesrat (upper chamber or Federal Council) consists of 69 members who are delegates of the 16 Laender (states). The legislature has powers of exclusive jurisdiction and concurrent jurisdiction with the Laender in areas specified in the Basic Law. The Bundestag has primary legislative authority. The Bundesrat must concur on legislation concerning revenue shared by federal and state governments and those imposing responsibilities on the states.

Germany has an independent federal judiciary consisting of a constitutional court, a high court of justice, and courts with jurisdiction in administrative, financial, labor, and social matters. The highest court is the Bundesverfassungsgericht (Federal Constitutional Court), which ensures a uniform interpretation of constitutional provisions and protects the fundamental rights of the individual citizen as defined in the Basic Law.

Political Parties
Christian Democratic Union/Christian Social Union (CDU/CSU). 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. Angela Merkel, Germany’s current Chancellor, is the leader of the CDU and Horst Seehofer leads the Christian Social Union. The CDU/CSU currently holds 239 seats in the Bundestag.

Social Democratic Party (SPD). The SPD is one of the oldest organized political parties in the world. It originally advocated Marxist principles, but in the 1959 Godesberg Program abandoned the concept of a "class party" while continuing to stress social welfare programs. Under the leadership of Gerhard Schroeder, the SPD-Greens government implemented in 2003 the centrist Agenda 2010 reforms, designed to modernize the country's social system and labor market. The SPD elected Franz Muentefering as chairperson on October 18, 2008 replacing Kurt Beck, who had resigned in September 2008. The SPD also chose Foreign Minister Frank-Walter Steinmeier to lead the party against incumbent Chancellor Angela Merkel's CDU in the September 27, 2009 national parliamentary elections. Following the SPD's poor showing in the federal election of 2009, Franz Muntefering resigned from the position of party chairman of the SPD. Sigmar Gabriel was nominated as his successor and was elected as party chairman on November 13, 2009. Steinmeier became SPD Bundestag caucus leader. The SPD has a powerful base in the bigger cities and industrialized states. Currently, 146 seats in the Bundestag are held by the SPD.

Free Democratic Party (FDP). The FDP has traditionally been composed mainly of middle and upper class Protestants who consider themselves heirs to the European liberal tradition. It supports free trade and reducing the role of the state in economic policy. It is libertarian on social issues. The party has participated in all but three postwar federal governments but was in opposition from 1998-2009. After its strong showing in the September 2009 elections, the FDP joined with the CDU/CSU to form the current government coalition. Guido Westerwelle, Germany’s current Foreign Minister, is the leader of the Free Democratic Party. The FDP currently holds 93 seats in the Bundestag.

The Left. The PDS (composed largely of former East German communists) and the WASG (composed of western leftists) merged in June 2007 to form a party simply known as "The Left Party." The party's foreign policy is largely shaped by its rigid opposition to foreign military deployments. 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 Party proposes to replace the free market system with a return to socialist principles. The Left Party is currently lead by Gesine Lotzsch and Klaus Ernst and holds 76 seats in the Bundestag.

Alliance 90/Greens. In the late 1970s, environmentalists organized politically as the Greens. Opposition to nuclear power, military power, and certain aspects of highly industrialized society were principal campaign issues. In the December 1990 all-German elections, the Greens merged with the Eastern German Alliance 90, a loose grouping of civil rights activists with diverse political views. The Greens joined a federal government for the first time in 1998, forming a coalition with the SPD. Alliance 90 and the Greens are currently lead by Claudia Roth and Cem Ozdemir. Currently, 68 seats in the Bundestag are held by the Greens.

Other parties. Because of the instability caused by the need for multi-party coalitions in the Weimar Republic, Germany's Basic Law today requires parties reach 5% of the vote to win seats in the Bundestag. In addition to those parties that won representation in the Bundestag in 2009, a variety of minor parties won a cumulative 6% of the vote, up from 2.7% in 2005. Several other parties were on the ballot in one or more states but did not qualify for representation in the federal Bundestag.

2005 and 2009 Federal Elections
The 2005 federal elections were held after Chancellor Schroeder asked for a Bundestag "vote of confidence" on the SPD-Greens coalition. The July 1, 2005, confidence motion failed, and President Koehler called for elections to be held on September 18, 2005, a year earlier than planned. The results of the 2005 Bundestag elections were as follows: CDU/CSU 35.2% (226 seats); SPD 34.2% (222 seats); FDP 9.8% (61 seats); LP/PDS 8.7% (54 seats); Greens 8.1% (51 seats). After several weeks of negotiations, the CDU/CSU and SPD agreed to form a "grand coalition" under the leadership of Chancellor Angela Merkel. Angela Merkel and the new cabinet were sworn in on November 22, 2005.

Bundestag elections were held again on September 27, 2009. The results were as follows: CDU/CSU 33.8% (239 seats); SPD 23% (146 seats); FDP 14.6% (93 seats); LP 11.9% (76 seats); Greens 10.7% (68 seats). The CDU/CSU received a slightly lower proportion than in the previous election, with the Bavarian CSU receiving its lowest vote share in decades. In contrast, their preferred coalition partner, the liberal FDP, gained nearly 5% points to give it 14.6% of the vote, the best result of its history. The big loser of the election was the SPD, which received its worst result ever in a federal election, receiving only 23% of the total party vote and suffering the biggest percentage loss of any party in German federal election history in 60 years. The two other parties represented in the Bundestag, the Left Party and the Greens, both made large gains and received the highest vote share of their respective histories. For the first time, The Left Party won constituency seats outside its traditional stronghold of East Berlin. As a result of the losses by the SPD and the gains by the FDP, the alliance of the CDU/CSU and FDP received an outright majority of seats, ensuring that Angela Merkel would continue as Chancellor.

The Christian Democratic Union, the Christian Social Union of Bavaria, and the Free Democratic Party were able to form a center-right government, with Angela Merkel continuing as the Chancellor and Guido Westerwelle becoming Foreign Minister and Vice-Chancellor.
Principal Government Officials
President--Christian Wulff (CDU)
President of the Bundestag--Norbert Lammert (CDU)
Chancellor--Angela Merkel (CDU)
Vice Chancellor and Minister of Foreign Affairs--Guido Westerwelle (FDP)
Minister of Defense--Karl-Theodor zu Guttenberg (CDU)
Minister of Finance--Wolfgang Schaeuble (CDU)
Minister of Interior--Thomas de Maiziere (CDU)
Minister of Labor and Social Affairs--Ursula von der Leyen (CDU)
Germany maintains an embassy in the United States at 4645 Reservoir Road NW, Washington, DC 20007 (tel. 202-298-4000). Consulates general are located in Atlanta, Boston, Chicago, Detroit, Houston, Los Angeles, Miami, New York, San Francisco, and Seattle. Germany has honorary consuls in more than 30 U.S. cities.

Government Type: Federal republic.
Founded: 1949 (Basic Law, i.e., Constitution, promulgated on May 23, 1949). On October 3, 1990, the Federal Republic of Germany and the German Democratic Republic unified in accordance with Article 23 of the FRG Basic Law.
Branches: Executive--president (titular chief of state), chancellor (executive head of government); legislative--bicameral parliament; judicial--independent, Federal Constitutional Court.
Administrative divisions: 16 Laender (states).
Major political parties: Social Democratic Party (SPD); Christian Democratic Union (CDU); Christian Social Union (CSU); Alliance 90/Greens; Free Democratic Party (FDP); Party of Democratic Socialism (PDS).
Suffrage: Universal at 18

History of Germany

The rise of Prussian power in the 19th century, supported by growing German nationalism, eventually ended in the formation of the German empire in 1871 under the chancellorship of Otto von Bismarck. Political parties developed during the empire, and Bismarck was credited with passing the most advanced social welfare legislation of the age.

However, Emperor William II's dynamic expansion of military power contributed to tensions on the continent. The fragile European balance of power, which Bismarck had helped to create, broke down in 1914. World War I and its aftermath, including the Treaty of Versailles, ended the German Empire.

Fascism's Rise and Defeat
The postwar Weimar Republic (1919-33) was a peaceful, liberal democratic regime. This government was severely handicapped and eventually doomed by economic problems and the rise of the political extremes. The hyperinflation of 1923, the world depression that began in 1929, and the social unrest stemming from resentment toward the conditions of the Versailles Treaty worked to destroy the Weimar government.

The National Socialist (Nazi) Party, led by Adolf Hitler, stressed nationalist and racist themes while promising to put the unemployed back to work. The party blamed many of Germany's ills on the alleged influence of Jewish and non-German ethnic groups. The party also gained support in response to fears of growing communist strength. In the 1932 elections, the Nazis won a third of the vote. In a fragmented party structure, this gave the Nazis a powerful parliamentary caucus, and Hitler was asked to form a government. He quickly declined. The Republic eroded and Hitler had himself nominated as Reich Chancellor January 1933. After President Paul von Hindenburg died in 1934, Hitler assumed that office as well. Once in power, Hitler and his party first undermined and then abolished democratic institutions and opposition parties. The Nazi leadership immediately jailed Jewish opposition and other figures and withdrew their political rights. The Nazis implemented a program of genocide, at first through incarceration and forced labor and then by establishing death camps. Nazi revanchism and expansionism led to World War II, which resulted in the destruction of Germany's political and economic infrastructures and led to its division.

After Germany's unconditional surrender on May 8, 1945, the United States, the United Kingdom, the U.S.S.R. and, later, France occupied the country and assumed responsibility for its administration. The commanders in chief exercised supreme authority in their respective zones and acted in concert on questions affecting the whole country.

The United States, the United Kingdom, and the Soviet Union agreed at Potsdam in August 1945 to treat Germany as a single economic unit with some central administrative departments in a decentralized framework. However, Soviet policy turned increasingly toward dominating that part of Europe where their armies were present, including eastern Germany. In 1948, the Soviets, in an attempt to abrogate agreements for Four Power control of the city, blockaded Berlin. Until May 1949, the Allied-occupied part of Berlin was kept supplied only by an Allied airlift. The Berlin airlift succeeded in forcing the Soviets to accept, for the time being, the Allied role and the continuation of freedom in a portion of the city, West Berlin.

Political Developments in West Germany
The United States and the United Kingdom moved to establish a nucleus for a future German government by creating a central Economic Council for their two zones. The program later provided for a constituent assembly, an occupation statute governing relations between the Allies and the German authorities, and the political and economic merger of the French with the British and American zones. The western portion of the country became the Federal Republic of Germany.

On May 23, 1949, the Basic Law, which came to be known as the constitution of the Federal Republic of Germany, was promulgated. Conrad Adenauer became the first federal Chancellor on September 20, 1949. The next day, the occupation statute came into force, granting powers of self-government with certain exceptions.

The FRG quickly progressed toward fuller sovereignty and association with its European neighbors and the Atlantic community. The London and Paris agreements of 1954 restored full sovereignty (with some exceptions) to the FRG in May 1955 and opened the way for German membership in the North Atlantic Treaty Organization (NATO) and the Western European Union (WEU).

The three Western Allies retained occupation powers in Berlin and certain responsibilities for Germany as a whole, including responsibility for the determination of Germany's eastern borders. Under the new arrangements, the Allies stationed troops within the FRG for NATO defense, pursuant to stationing and status-of-forces agreements. With the exception of 45,000 French troops, Allied forces were under NATO's joint defense command. (France withdrew from NATO's military command structure in 1966.)

Political life in the FRG was remarkably stable and orderly. After Adenauer's chancellorship (1949-63), Ludwig Erhard (1963-66) and, Kurt Georg Kiesinger (1966-69) served as Chancellor. Between 1949 and 1966 the united caucus of the Christian Democratic Union (CDU) and Christian Social Union (CSU), either alone with the smaller Free Democratic Party (FDP), formed the government. Kiesinger's 1966-69 "Grand Coalition" included the FRG's two largest parties, CDU/CSU and the Social Democratic Party (SPD). After the 1969 election, the SPD, headed by Willy Brandt formed a coalition government with the FDP. Brandt resigned in May 1974, after a senior member of his staff was uncovered as an East German spy.

Helmut Schmidt (SPD) succeeded Brandt, serving as Chancellor from 1974 to 1982. Hans-Dietrich Genscher, a leading FDP official, became Vice Chancellor and Foreign Minister, a position he would hold until 1992.

In October 1982, the FDP joined forces with the CDU/CSU to make CDU Chairman Helmut Kohl the Chancellor. Following national elections in March 1983, Kohl emerged in firm control of both the government and the CDU. He served until the CDU's election defeat in 1997. In 1983, a new political party, the Greens, entered the Bundestag for the first time.

Political Developments in East Germany
In the Soviet zone, the Communist Party forced the Social Democratic Party to merge in 1946 to form the Socialist Unity Party (SED). Under Soviet direction, a constitution was drafted on May 30, 1949, and adopted on October 7 when the German Democratic Republic was proclaimed. On October 11, 1949, a SED government under Wilhelm Pieck was established. The Soviet Union and its East European allies immediately recognized the GDR. The United States and most other countries did not recognize the GDR until a series of agreements in 1972-73.

The GDR established the structures of a single-party, centralized, communist state. On July 23, 1952, the GDR abolished the traditional Laender and established 14 Bezirke (districts). Formally, there existed a "National Front"--an umbrella organization nominally consisting of the SED, four other political parties controlled and directed by the SED, and the four principal mass organizations (youth, trade unions, women, and culture). However, control was clearly and solely in the hands of the SED. Balloting in GDR elections was not secret. On July 17, 1953, East Germans revolted against totalitarian rule. The FRG marked the bloody revolt by making the date the West German National Day, which remained until reunification.

Inter-German Relations
During the 1950s, East Germans fled to the West by the millions. The Soviets made the inner German Border increasingly tight, but Berlin's Four Power status countered such restrictions. Berlin thus became as escape point for even greater numbers of East Germans. On August 13, 1961, the GDR began building a wall through the center of Berlin, slowing down the flood of refugees and dividing the city. The Berlin Wall became the symbol of the East's political debility and the division of Europe.

In 1969, Chancellor Brandt announced that the FRG would remain firmly rooted in the Atlantic Alliance but would intensify efforts to improve relations with Eastern Europe and the GDR. The FRG commenced this "Ostpolitik" by negotiating nonaggression treaties with the Soviet Union, Poland, Czechoslovakia, Bulgaria, and Hungary. Based upon Brandt's policies, in 1971 the Four Powers concluded a Quadripartite Agreement on Berlin to address practical questions the division posed, without prejudice to each party's view of the city's Four Power status.

The FRG's relations with the GDR posed particularly difficult questions. Though anxious to relieve serious hardships for divided families and to reduce friction, the FRG under Brandt was intent on holding to its concept of "two German states in one German nation." Relations improved, however, and in September 1973, the FRG and the GDR were admitted to the United Nations. The two Germanys exchanged permanent representatives in 1974, and, in 1987, GDR head of state Erich Honecker paid an official visit to the FRG.

German Unification
During the summer of 1989, rapid changes took place in the GDR. Pressures for political opening throughout Eastern Europe had not seemed to affect the GDR regime. However, Hungary ended its border restrictions with Austria, and a growing flood of East Germans began to take advantage of this route to West Germany. Thousands of East Germans also tried to reach the West by staging sit-ins at FRG diplomatic facilities in other East European capitals. The exodus generated demands within the GDR for political change, and mass demonstrations in several cities--particularly in Leipzig--continued to grow. On October 7, Soviet leader Mikhail Gorbachev visited Berlin to celebrate the 40th anniversary of the establishment of the GDR and urged the East German leadership to pursue reform.

On October 18, Erich Honecker resigned and was replaced by Egon Krenz. The exodus continued unabated, and pressure for political reform mounted. Finally, on November 9, the GDR allowed East Germans to travel freely. Thousands poured through the Berlin Wall into the western sectors of Berlin. The Wall was opened.

On November 28, FRG Chancellor Kohl outlined a 10-point plan for the peaceful unification of the two Germanys. In December, the GDR Volkskammer eliminated the SED's monopoly on power. The SED changed its name to the Party of Democratic Socialism (PDS), and numerous political groups and parties formed. The communist system had been eliminated. A new Prime Minister, Hans Modrow, headed a caretaker government that shared power with the new, democratically oriented parties.

In early February 1990, Chancellor Kohl rejected the Modrow government's proposal for a unified, neutral Germany. Kohl affirmed that a unified Germany must be a member of NATO. Finally, on March 18, the first free elections were held in the GDR, and Lothar de Maiziere (CDU) formed a government under a policy of expeditious unification with the FRG. The freely elected representatives of the Volkskammer held their first session on April 5, and the GDR peacefully evolved from a communist to a democratically elected government.

Four Power Control Ends
In 1990, as a necessary step for German unification and in parallel with internal German developments, the two German states and the Four Powers--the United States, U.K., France, and the Soviet Union--negotiated to end Four Power reserved rights for Berlin and Germany as a whole. These "Two-plus-Four" negotiations were mandated at the Ottawa Open Skies conference on February 13, 1990. The six foreign ministers met four times in the ensuing months in Bonn (May 5), Berlin (June 22), Paris (July 17), and Moscow (September 12). The Polish Foreign Minister participated in the part of the Paris meeting that dealt with the Polish-German borders.

Of key importance was overcoming Soviet objections to a united Germany's membership in NATO. The Alliance was already responding to the changing circumstances, and, in NATO, issued the London Declaration on a transformed NATO. On July 16, after a bilateral meeting, Gorbachev and Kohl announced an agreement in principle to permit a united Germany in NATO. This cleared the way for the signing of the "Treaty on the Final Settlement With Respect to Germany" in Moscow on September 12. In addition to terminating Four Power rights, the treaty mandated the withdrawal of all Soviet forces from Germany by the end of 1994. This made it clear that the current borders were final and definitive, and specified the right of a united Germany to belong to NATO. It also provided for the continued presence of British, French, and American troops in Berlin during the interim period of the Soviet withdrawal. In the treaty, the Germans renounced nuclear, biological, and chemical weapons and stated their intention to reduce German armed forces to 370,000 within 3 to 4 years after the Conventional Armed Forces in Europe (CFE) Treaty, signed in Paris on November 19, 1990, entered into force.

German unification could then proceed. In accordance with Article 23 of the FRG's Basic Law, the five Laender (which had been reestablished in the GDR) acceded to the FRG on October 3, 1990. The FRG proclaimed October 3 as its new national day. On December 2, 1990, all-German elections were held for the first time since 1933.

The Final Settlement Treaty ended Berlin's special status as a separate area under Four Power control. Under the terms of the treaty between the F.R.G. and the G.D.R., Berlin became the capital of a unified Germany. The Bundestag voted in June 1991 to make Berlin the seat of government. The Government of Germany asked the Allies to maintain a military presence in Berlin until the complete withdrawal of the Western Group of Forces (ex-Soviet) from the territory of the former G.D.R. The Russian withdrawal was completed August 31, 1994. On September 8, 1994, ceremonies marked the final departure of Western Allied troops from Berlin.

In 1999, the formal seat of the federal government moved from Bonn to Berlin. Berlin also is one of the Federal Republic's 16 Laender.

People of Germany

Most inhabitants of Germany are ethnic German. There are, however, more than 7 million foreign residents, many of whom are the families and descendents of so-called "guest workers" (foreign workers, mostly from Turkey, invited to Germany in the 1950s and 1960s to fill labor shortages) who remained in Germany. Germany has a sizable ethnic Turkish population (2.4% at the beginning of 2010). Germany is also a prime destination for political and economic refugees from many developing countries. An ethnic Danish minority lives in the north, and a small Slavic minority known as the Sorbs lives in eastern Germany. Due to restrictive German citizenship laws, most "foreigners" do not hold German citizenship even when born and raised in Germany. However, since the German Government undertook citizenship and immigration law reforms in 2002, more foreign residents have had the ability to naturalize.

Germany has one of the world's highest levels of education, technological development, and economic productivity. Since the end of World War II, the number of youths entering universities has more than tripled, and the trade and technical schools of the Federal Republic of Germany (F.R.G.) are among the world's best. Germany is a broadly middle class society. A generous social welfare system provides for universal medical care, unemployment compensation, and other social needs. Millions of Germans travel abroad each year.

With unification on October 3, 1990, Germany began the major task of bringing the standard of living of Germans in the former German Democratic Republic (G.D.R.) up to that of western Germany. This has been a lengthy and difficult process due to the relative inefficiency of industrial enterprises in the former G.D.R., difficulties in resolving property ownership in eastern Germany, and the inadequate infrastructure and environmental damage that resulted from years of mismanagement under communist rule.

Economic uncertainty in eastern Germany is often cited as one factor contributing to extremist violence, primarily from the political right. Confusion about the causes of the current hardships and a need to place blame has found expression in harassment and violence by some Germans directed toward foreigners, particularly non-Europeans. The vast majority of Germans condemn such violence.

Nationality: Noun and adjective--German(s).
Population (January 1, 2010 estimate): 82,329,758.
Population growth rate (% per annum, 2010 est.): -0.053%.
Urban population (2008): 74%.
Ethnic groups (2010): German 91.5%, Turkish 2.4%, other 6.1% (made up largely of Greek, Italian, Polish, Russian, Serbo-Croatian, Spanish); Danish minority in the north, Sorbian (Slavic) minority in the east.
Religions: Protestant 34%; Roman Catholic 34%; Muslim 3.7%; unaffiliated or other 28.3%.
Language: German.
Education: Years compulsory--10; attendance--100%; literacy--99%.
Health: Infant mortality rate (2010)--3.99/1,000; life expectancy (2010)--women 82.42 years, men 76.26 years.
Persons employed (second quarter 2010): 40.3 million.