General background: 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 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, 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 2002, Germany and 11 other EU countries
introduced a common European currency, the euro.
Area comparative: Slightly smaller than Montana
Climate: Temperate and marine; cool, cloudy,
wet winters and summers; occasional warm foehn wind.
Terrain: Lowlands in north, uplands in center,
Bavarian Alps in south
Population: 83,251,851 (July 2002 est.)
Ethnic groups: German 91.5%, Turkish 2.4%, other
6.1% (made up largely of Serbo-Croatian, Italian, Russian,
Greek, Polish, Spanish)
Religions: Protestant 34%, Roman Catholic 34%,
Muslim 3.7%, unaffiliated or other 28.3%
Language: German
Government type: Federal republic
Capital: Berlin
Legal system: Civil law system with indigenous
concepts; judicial review of legislative acts in the
Federal Constitutional Court; has not accepted compulsory
ICJ jurisdiction.
Economic overview: Germany's affluent and technologically
powerful economy turned in a relatively weak performance
throughout much of the 1990s. The modernization and
integration of the eastern German economy continues
to be a costly long-term problem, 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. Business
and income tax cuts introduced in 2001 did not spare
Germany from the impact of the downturn in international
trade, and domestic demand faltered as unemployment
began to rise. The government expects growth to gain
pace in the second half of 2002, but to fall short of
1% for the year again. 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 addressed.
Communication/Telephone system: Germany has one
of the world's most technologically advanced telecommunications
systems.
Places of interest: Big-city charm, picture-postcard
small towns. A wealth of art and culture and the perennial
pleasures of huge tracts of forest, delightful castles
and fine wine and beer are all there for the enjoying.
Travel tips:
|
