By Matthias Zimmer
As Germany techniques the twenty-first century, it faces quite a few political, monetary and social difficulties that placed the lately united kingdom to the try out. Experiencing a twin quandary, Germany's problem is to regulate either the transformation to a postindustrial society and the consequences of unification. overseas students tackle different elements of the predicaments Germany reveals itself in, and mirror matters and questions which were raised in regards to the way forward for the German version within the broadest experience.
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Extra resources for Germany: Phoenix in Trouble?
Sample text
Lander governments argued that the domestic division of powers should not be altered by the process of European integration so that the federal government became responsible exclusively for representing in Brussels matters that domestically were in their jurisdiction. As Brussels became active in some of these areas, Lander governments saw their remaining modest jurisdictional base eroding further, with little participation by them in the decision-making process leading to the transfer of powers to the European institutions and no guarantee of influence in the implementation of the policies subsequently made in Brussels.
27 With the accession of former EFTA countries in 1995, the intra-EU trade proportions will now be considerably higher. The EC/EU has over the years provided and continues now to provide Germany with secure access to the markets of other member states without fear of trade disruption through protectionist measures. Germany's economy is and continues to be closely integrated with the EU. Another set of figures provides an indication of the costs of Germany s membership in the EU (which we have already referred to in our discussion of the CAP).
In the event, the consequences of German unification for the EC/EU were not as smooth as the Dublin Summit's communique had predicted. Indeed, financing the huge financial transfers to the five new Lander by the German government in the adjustment period after unification led to substantial government borrowing, inflationary pressures in the old Lander as the increased demand stimulated by spending in the former East Germany was met, and unprecedented increases in German interest rates mandated by the Bundesbank.