Germany

   

Democratic Government

#5

Vertical Accountability

#6
Germany performs well in international comparison (rank 6) in the category of vertical accountability.

Independent and party-affiliated candidates can run for election to the Bundestag as long as they meet registration requirements. Donors of contributions above €10,000 must be identified. All German citizens aged 18 and over can vote. Voter registration is automatic when registering an address.

Germany’s election system is transparent, with little evidence of voter fraud. Political parties must adhere to democratic principles. Those that do not can be banned by the Federal Constitutional Court. Parties must cross a 5% vote threshold to enter parliament. A recent but unimplemented reform threatens the parliamentary standing of some high-profile parties.

The far-right AfD party has been accused of being extremist, and other parties have refused to form coalitions with it at the federal level. The party’s increasing strength is making that exclusion more difficult. The Freedom of Information Act offers broad public access to information with some areas of exception.

Diagonal Accountability

#6
Germany performs well in international comparison (rank 6) in the area of diagonal accountability.

Media freedom, including the freedom of speech and the prohibition on media censorship, is a protected right. The government is barred from influencing public media content. The frequency of attacks on journalists is rising, often linked to far-right or conspiracy groups. Russian state-owned media websites have been blocked during the Ukraine war.

Laws mandate the removal of hate speech and misinformation from social networks. The lack of judicial oversight in this process has raised free speech concerns. The public media are required to allow expression of diverse opinions. Pluralism in the private media has decreased.

Business and labor organizations autonomously negotiate wages, and play an advisory role in policymaking. Social welfare associations participate on various advisory councils. Environmental groups often propose new regulations. The government and parliament are not obliged to consider any of these organizations’ recommendations.

Horizontal Accountability

#4
In the category of horizontal accountability, Germany falls into the sample’s top group (rank 4).

The independent Court of Audit is responsible for reviewing public finances. The national data protection authority is also independent, advising lawmakers on data protection matters and responding to citizen complaints.

The judiciary is independent, enabling judges to interpret and review laws without outside interference. The Federal Constitutional Court acts only when a complaint is submitted. The Basic Law guarantees personal freedom and equality before the law, and the country is highly ranked for enforcement of civil justice.

Corruption is rare due to strong legal frameworks. Some cases have nevertheless emerged, for instance relating to pandemic-era procurement scandals. The parliament has sufficient resources and powers to monitor the executive and help guide policymaking.

Governing with Foresight

#6

Coordination

#6
Germany performs well in international comparison (rank 6) in the category of coordination.

Communication between the Federal Chancellery and line ministries is robust, though this does not guarantee smooth cooperation, as conflicts within a coalition can cause tensions. The Chancellery has a large analytical staff, some of whom mirror line ministry responsibilities.

Line ministries largely design and prepare policy proposals, while the chancellor sets priorities. Formal and informal coordination mechanisms are meant to prevent major conflicts, but coalition parties occasionally seek to obtain political advantage by taking differences into the public. The coalition committee is the most important informal meeting venue.

Public service provision in Germany is well-organized across different levels of government, with subnational governments enjoying significant autonomy. Cooperation between the federal government and the states is highly institutionalized. States hold more power than the national government in areas such as education, and meet regularly to discuss issues.

Consensus-Building

#6
Germany performs well in international comparison (rank 6) in the category of consensus-building.

Political decisions on long-term issues and in immediate crises like the pandemic rely on consultations with the scientific community. This process involves routine advice from numerous expert advisory boards as well as ad hoc consultations in more urgent situations.

There is no official, regularized process for meetings between the government, trade unions and business organizations. However, such organizations play an advisory role in the political process, wielding appreciable influence. Social welfare and environmental organizations primarily serve in advisory capacities, and do not participate directly in policymaking.

The Federal Open Data Act requires federal authorities to publish data in open formats. Basic government data is broadly available, and the government scores well on open government indexes. Availability of research data and data reuse are weak points.

Sensemaking

#10
In the category of sensemaking, Germany falls into the sample’s upper-middle ranks (rank 10).

Strategic foresight has gained importance via a strategic foresight group in the Federal Chancellery and a separate center supporting the government more broadly. This has increased attention to long-term trends.

Regulatory impact assessments are mandatory for all laws and regulations, even in emergencies. The primary focus has been on costs, with less attention given to potential benefits. Stakeholders are often integrated into the assessment process. Sustainability issues are included, and the country has a formal sustainability strategy in place.

Any law or regulation entailing significant aggregate compliance costs must be evaluated after three to five years. Ministries have flexibility in how they conduct these evaluations, leading to varied approaches. Stakeholders are often involved, but this is not legally required.

Sustainable Policymaking

#5

Economic Sustainability

#4
Germany places in the sample’s top group (rank 4) with respect to economic sustainability.

A circular economy strategy aimed at reducing the use of primary raw materials is being developed. A critical infrastructure strategy focuses on prevention, reaction and sustainability, but is not legally binding. A number of laws and plans contain legally binding targets for emissions reductions and the shift to renewable energy sources.

Labor market shortages are increasing, pushing employers to retain employees and develop their skills. A well-established short-time work scheme has helped the economy weather crises such as the COVID-19 pandemic. Social protection is comprehensive, including a minimum-income support program.

The tax system produces robust revenues, but high marginal rates serve as a disincentive to employment and investment. Corporate taxes are not internationally competitive. A “debt brake” fiscal rule helped reduce the debt-to-GDP ratio before the pandemic. The use of off-budget funds to address recent crises has raised concerns about budgetary transparency.

Social Sustainability

#5
Germany performs well in international comparison (rank 5) with respect to social sustainability.

Municipalities and states share responsibility for the public school system, with national educational standards in place since 2004. The country faces a shortage of teachers, especially in STEM fields. Access to higher education is strongly influenced by family income and education levels.

Health care insurance is mandatory. Per capita health care spending is the EU’s highest. Hospitals and rural doctor’s practices face staffing shortages. A comprehensive gender equality strategy is in place, including some quota polices. Corporate boards must include women. However, a gender pay gap persists.

Children have a legal claim to childcare beginning at age 1, but childcare is not free. All regular employees participate in the statutory pension system, but self-employed workers do not. Restrictions on immigration of skilled workers are low. Migrants’ unemployment rates are lower than the OECD average. Employment rates among migrants are rising.

Environmental Sustainability

#5
Germany receives high comparative rankings (rank 5) with regard to its environmental sustainability.

Climate policy is built around numerous plans and programs. A 2021 court ruling mandated stronger goals. The target for net climate neutrality was shifted forward to 2045, and the new greenhouse gas emissions-reduction targets are 65% by 2030 and 88% by 2040, compared to 1990 levels. The building and transport sectors still lag behind their interim targets.

The country lacks a comprehensive pollution prevention strategy but has separate plans for air, water and soil pollution, with some linked to European initiatives. A National Water Strategy addresses responsible use and water pollution, aiming to reach zero pollutants by 2050. A new biodiversity action plan is ongoing, with monitoring systems being developed.

The country is a very strong participant in global and regional multilateral environmental agreements. It leads the EU in terms of contributions to climate finance initiatives.
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