Background Note the British German Forum This Background Note Provides Some Basic Information on the British and German Political Systems

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British German Forum A smarter Europe: cooperation, competition, and innovation in the 2020s

Sunday 13 – Thursday 17 July 2014 | WP1320

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Background note The British German Forum This background note provides some basic information on the British and German political systems. A table at the back of the document (section 3) summarises some relevant data.

The overall note comprises:1

1. Germany  Governing architecture  Local government  Legislature  Federal electoral system  Federal government  Political parties at the federal level  Bundestag parties  Other significant parties 2. United Kingdom  Governing architecture  Devolution  Local government – county and city councils  Legislature  National electoral system  UK government  Political parties in the UK parliament  The government and the opposition  Significant parties without seats in the House of Commons 3. Germany and the UK compared: key figures & education systems 4. ‘Smartness’ in the EU

Acknowledgements and caveats Any opinions expressed in this document are the author’s own and do not necessarily reflect the views of Wilton Park, the Foreign and Commonwealth Office or the UK Government. Comments and suggestions can be sent to [email protected]. Alexandra Craven, Wilton Park June 2014.

1 If reading this electronically: each heading in the contents page is hyperlinked to the appropriate part of the document.

Germany Governing architecture Germany’s democratic system is based on the 1949 constitution of the Federal Republic of Germany (West Germany), otherwise known as the Grundgesetz or Basic Law. Upon reunification of the two Germanys in 1990, the former East German states acceded to West Germany and adopted the Basic Law. Local government – Germany’s federal structure  Germany has a federal structure. Most decisions affecting the day to day lives of German citizens are taken at the local level.  There are sixteen Länder (singular: ‘Land’) or federal states in Germany. Each functions as a partly sovereign state in its own right.  Citizens living in each Land elect representatives to their Land’s government every four or five years. In most states, representatives are elected to a unicameral chamber, usually called a Landtag. The Landtag then elects the Land’s Head of Government, usually called a Minister-President who in term appoints a Cabinet.  The Federal Government exercises exclusive responsibility in some areas of policy including: national defence, foreign affairs, immigration and transportation. In most other policy areas, Länder can legislate with relative freedom.  The Länder are represented at the Federal level by the Bundesrat.

Legislature – the Bundestag Germany has a bicameral legislature consisting in an upper house (the Bundesrat) and a lower house (the Bundestag). This note will focus on the Bundestag. Bundestag

2  The Bundestag is composed of over 600 representatives. Half of these representatives are directly elected and serve geographically-defined constituencies of which there are 299. The remaining half are elected through a system of proportional representation (PR) via a party lists system. The federal election system will be examined in greater detail below.  Members of the chamber are called MdBs (Mitglied des Bundestag).  The Bundestag has a number of functions. It is the seat of parliament in Germany and a main player, alongside the Federal Government and the Bundesrat, in the process of legislation. It formally elects the German Chancellor. MdBs exercise oversight on the activity of the Federal Government through standing committees.

Federal electoral system Germany’s federal electoral system is described as ‘personalised proportional representation’ as it balances the direct election of representatives within an overarching system of proportional representation (PR). The system makes coalition government the norm and ensures that such alliances are stable.

 Federal elections occur every four years in Germany.  German voters get two votes.  The first vote elects a candidate standing in the constituency the elector resides in. Candidates running in such elections win if they gain a plurality of the vote.  The second vote has, in effect, two functions:  The remaining seats in the Bundestag are reserved for candidates standing on the basis of a party list in individual Länder. From the voter’s point of view, the second vote allows them to contribute to the election of their favoured party’s candidates.  The second vote also structures the maximal representation any one party can realise across the Bundestag. So, for example, a political party winning 25% of the second votes nationally has their overall seat share in the Bundestag capped at 25%.  No party can win representation in the Bundestag unless it either wins over 5% of the national vote or gets three representatives elected through the first vote. This means that it is relatively hard for new parties to enter the Bundestag.

2 The precise number of seats in the Bundestag will be discussed below in the context of the German electoral system.

 The Federal Bundestag does not have a fixed size, as strong returns in the first vote in a given Land do not necessarily map on to strong second (list) returns nationally. Parties can, therefore, end up with more directly elected MdBs than would strictly be allowed due to their share of the second vote. In such cases, ‘Overhang Seats’ are created to ensure that directly elected representatives get a seat in the Bundestag.  The next Federal election will take place between August and October 2017.

Federal Government: the Chancellor and the Cabinet  The Federal Government is headed by the Chancellor.  The Bundestag elects the Chancellor on the advice of the Federal President. Success in this election requires a majority of all members of the Bundestag.  The Chancellor is usually the head of the political party with the largest block of votes in the Bundestag.  The Federal Cabinet, together with the Chancellor, forms the Federal Government.

Political parties at the federal level There are five parties represented in the 18th (current) Bundestag, although two (the CDU and the CSU) cooperate as one party at the national level. The makeup of the current Bundestag represents a significant political shift for Germany. Three further parties merit discussion here despite lacking representation at the federal level. Parties with representation in the 18th Bundestag CDU/CSU  The Christian Democratic Union (CDU) and Christian Social Union (CSU) function as an electoral pact at the Federal level.  The CDU is a conservative political party whose main foundational principle is the maintenance of Germany’s social market economy.  The CSU is the only political party that operates at the Federal level that is primarily a Land party. The CSU is based in the Land of Bavaria  The CSU is more socially and fiscally conservative than their partners in the CDU.  The CDU/CSU control roughly 49% of the seats in the 18th Bundestag, the single largest block and over 100 more than their nearest rivals (the SPD) (Deutscher Bundestag, 2013).

SPD  The Social Democratic Party (SPD) is a centre-left political party committed to social justice in the economic and political life of Germany.  The SPD is Germany’s oldest political party (founded in 1875). Traditionally it has supported the interests of the German working class.  The SPD has led governing coalitions for twenty of the sixty five years of the Federal Republic’s history.  The SPD is presently the second largest party in the 18th Bundestag, with 193 of the 631 seats. (Deutscher Bundestag, 2013)

 Reached 27.3% in the May 2014 European Elections a gain on their 20.8% in 2009.

The Left Party  The Left Party is the most left-wing party represented in the Bundestag.  The Left Party seeks to replace Germany’s social market economy with a socially managed economy. It supports a redistributive fiscal policy funded, in part, by higher taxation of corporations. It advocates an isolationist foreign policy.  The Left Party controls the third largest number of seats in the 18th Bundestag, holding 64 of the 631 seats (Deutscher Bundestag, 2013).

Alliance 90/The Greens  Alliance 90/The Greens (more usually known as ‘The Greens’) is a centre-left political party that started life as the political organisation of the environmental movement in Germany. It has since broadened its platform to various aspects of social policy (e.g. support for same sex marriage).  Founded in the 1970s, the Greens entered the Bundestag in 1983. It first entered government in 1998 in coalition with the SPD.  The Greens currently hold 63 of the 631 seats in the 18th Bundestag (Deutscher Bundestag, 2013).

Other significant parties FDP  The Free Democratic Party (FDP) is driven by a classically liberal ideology emphasising the primacy of free market economics and individual liberty.  The FDP has historically been a smaller party than the CDU/CSU and the SPD and has usually acted as a junior partner in a coalition led by one of those larger parties. The Party has been in governing coalitions for a total of 45 years, more than any other German political party. Making their lack of representation in the 18th Bundestag exceptional.  In the previous (17th) Bundestag, the FDP controlled 93 of the 620 seats and were the junior partner in Angela Merkel’s government.  The European Elections of May 2014 also saw a further decline in voter support for the FDP, their share of the vote decreasing from 11% to 3.4%

AfD  Alternative for Germany (AfD) formed in early 2013 to contest the September 2013 Federal elections. AfD has a conservative platform focused on advocating an end to the single European currency. AfD is not a Euro-sceptic party – it is broadly in favour of further European integration.  The party won 4.7% of the vote in the 2013 federal elections, coming 0.3% short of winning seats in the Bundestag.  AfD holds one seat in Germany’s local government system after an FDP representative in Hesse switched to the AfD in May 2013.  AfD gained 7 seats in the European Elections of May 2014 and now has a good chance of entering state parliaments in Saxony, Brandenburg or Thuringia in their regional elections this summer.  Their emergence has been seen as a bellwether for a perceived growing euro-scepticism in Germany (albeit one of a type markedly different from such scepticism in the UK - see section on UKIP below).

The Pirate Party  Founded after the success of the Pirate Party in Sweden, the German Pirates have become increasingly popular at the local level. They have won seats in Berlin, Saarland, Schleswig-Holstein and North Rhine- Westphalia.  The Pirates have a broad policy platform which is mostly decided by party members through internal polling. Core beliefs include guaranteeing freedom of expression online, increased government transparency, reform of copyright and patent law and an unconditional basic income.  The Pirates are seen as an expression of protest by younger voters who feel that the system does not represent them.  In 2013 the Pirate Party received about 2.2% of the votes, a 0.2% increase on the 2009 federal elections. They did however gain a few new seats, mainly in Berlin and in Dresden.

United Kingdom Governing architecture A collection of laws, judicial decisions and treaties define the governance architecture of the UK. A number of core institutions are at the heart of the UK’s governing system. The UK is a constitutional monarchy with an established church: the reigning monarch (Queen Elizabeth II) acts as the Head of State and as the Head of the Church of England. The UK Parliament is the central democratic institution from which the UK Government and Opposition are formed. Many executive powers are devolved to the three UK regions. Local Governance – Devolution in the United Kingdom  Since 1999, significant powers have been transferred (devolved) from the UK Parliament at Westminster to regional bodies in Northern Ireland, Wales and Scotland.  The Scottish Parliament can legislate on matters including health and social services, housing, law and order, local government and transport.3  The Parliament currently has 128 seats. The Scottish National Party (SNP), which controls 64 of these seats, forms the Government of Scotland. Alex Salmond is the Scottish First Minister, the Head of Government for Scotland. The Next Scottish Parliamentary General Election is due to be held 5 May 2016.  The upcoming Scottish Referendum of September 18th 2014 on its independence from the UK could potentially change the system entirely as if it is successful Scotland will become an independent country in its own right. In line with the significance of this referendum there has been much discussion in the British Media on the potential political and economic consequences for both Scotland and the remaining countries of the United Kingdom if the Scots do indeed vote for secession. (www.scotreferendum.com)  The Welsh Assembly can legislate within defined fields including health and social policy, education and public services.  The Assembly has 60 seats. The Welsh Labour Party controls the largest bloc of these seats (30) and forms the Welsh Government. This is led by First Minister Carwyn Jones.  The Northern Ireland Assembly can legislate on a smaller set of policy areas than in Scotland or Wales: principally education and health policy, social services and justice and policing.  The Assembly has 108 seats. Representatives returned to the Assembly are referred to as Members of the Legislative Assembly (MLAs). The two largest parties are the Democratic Unionist Party (DUP) and Sinn Fein (SF) with 38 and 29 seats respectively.  These two parties have historically represented rival communities in Northern Irish politics – representing, respectively, Unionist (i.e. in favour of staying in the UK) and Nationalist (i.e. in favour of seceding from the UK) sentiments. In 2007 these two parties signed a power-sharing agreement that sought to stabilise Northern Irish politics.  The present Northern Irish government is headed by First Minister Peter Robinson (DUP) and Deputy First Minister Martin McGuinness (Sinn Fein).4

Local government – county and city councils  Most public services are administered locally in the UK. Local governments exercise oversight over these services.  There are over 22,000 local government seats in the UK.  Most government decision-making takes place at Westminster. The outcomes of local elections are usually seen as important nationally insofar as they reflect changing levels of support for parties in the House of Commons.

3 (The Scottish Parliament, 2013) 4 (Northern Ireland Assembly, 2013)

The legislature – the UK parliament The UK Parliament consists of two bodies: the House of Lords (HoL) and the House of Commons (HoC). The HoL is principally an advisory chamber, but does have some powers to amend legislation. Whilst the HoL is not insignificant in the legislative process, this note will focus on the HoC for reasons of space.

The House of Commons (HoC)  The HoC is the principle legislative organ in the UK Parliament. The UK Government also depends on the number of MPs it can field in the Chamber in order to govern. There are presently 650 seats in the chamber.  The UK Government is formed from whichever political party (or group of parties in coalition) commands a majority in the HoC.  The HoC provides scrutiny over government activity. Individual MPs can propose legislation, but business in the Chamber is driven by the government. MPs use their membership of the Chamber to represent their constituents and to lobby on their behalf.

National electoral system  Elections to the HoC use a system informally called ‘First Past the Post’ (FPTP). Voters have one vote to use for a candidate standing in their constituency. The candidate with a plurality of votes wins the election.5  There are currently 650 parliamentary constituencies – over 80% of which lie in England.6 7  This system tends to create large parliamentary majorities for governments.  National elections are held at least every five years (except in cases where the Government loses its majority). The next national election will be held on 7th May 2015.

The government – the Prime Minister and cabinet  The UK Government is formed by whichever party (or parties in coalition) command a majority of votes in the HoC.8  The government is headed by the Prime Minister. This is almost always the head of the political party with that wins the most seats in the HoC. The current Prime Minister is David Cameron, the Leader of the Conservative Party.  The role of Deputy Prime Minister is filled by the Leader of the Liberal Democrats, Nick Clegg.  The Prime Minister appoints a Cabinet of colleagues to run various government departments.

5 Note that this means mandates for UK MPs can be very low as electoral victory only requires the winning candidate to poll more votes than other candidates – not necessarily a majority of all votes cast. Quite frequently, in excess of 60% of the electorate in any constituency will vote for a candidate other than the one elected. 6 (Parliament.uk, 2013) 7 This has not always been the case. During both the 1970s and from 2010, the FPTP system has not endowed a single party with parliamentary majority. 8 This is not always the case. A party with a plurality of seats in the House of Commons but no overall majority may elect to form a ‘minority government’. The formation of minority governments has historically not led to stable governments.

Political parties in the UK parliament

9 Twelve political parties presently have seats in the HoC. Nine of these parties collectively field fewer than ten MPs in the Commons.10 Consequently, this note will focus on the three largest parties in the UK. One other party (the UK Independence Party) lacks representation in the HoC but remains a significant actor. The government and the opposition The Conservative Party  The Conservative Party is a right of centre political party.  Core values include emphasis on individual liberty and responsibility and the importance of the free market.  The most recent parliamentary election, in 2010, resulted in no single majority party in the HoC (a ‘hung parliament’). The Conservatives remain the party with the largest number of seats in the HoC with 304 of the 650 seats. The Conservatives entered into a coalition government with the Liberal Democrats, giving them a working government majority of 77.

The Liberal Democrats  The Liberal Democrats (the Lib Dems) are a centrist political party. The core of the Lib Dem platform consists in emphasising social liberalism, civil liberties, progressive taxation and electoral and constitutional reform.  The Liberal Democrats held the balance of power during post-electoral coalition forming after the 2010 general election due to their ownership of 57 seats in the HoC (out of 650)

The Labour Party

 The Labour Party is a left of centre political party.  Core values relate to social justice, keeping rights related to responsibilities and progressive taxation.  The Labour Party won the second highest number of votes of any national party in the 2010 general election. They were unable to form a coalition with the Liberal Democrats (despite being a more natural 11 ideological partner than the Conservatives). Labour consequently formed Her Majesty’s Official Opposition after the 2010 election.  The current leader of the Labour Party is Ed Milliband.  Labour presently controls 257 of the 650 seats in the HoC.

Significant parties without seats in the House of Commons The United Kingdom Independence Party (UKIP)  UKIP is a right-wing political party.  The core of UKIP’s platform is a policy of removing the UK from the European Union. Other policy themes are structured by ‘traditional conservative and libertarian values’.  The present leader of UKIP is MEP Nigel Farage.  UKIP should be considered a significant party in spite of not controlling seats in the HoC  The results of the European Elections (which occurred between the 22 and 25 May 2014) saw UKIP’s share of the seats in European Parliament almost double from 13 to 24. UKIP received 27.49% of the overall UK vote in the European Elections.  They also saw a considerable upsurge in voter support in the local elections of the 23rd May 2014, gaining 128 seats to reach a total of 163. Although it is important to note that despite this increase in support they still do not control any local council.

10 Technicalities abound for a discussion of relative party strength in the House of Commons. For example, Sinn Fein, an Irish nationalist party from Northern Ireland, controls five seats in the House of Commons but has a policy of their elected representatives not taking up their seats in the chamber. The Speaker of the House of Commons is technically a Member of Parliament, but does not vote in divisions. 11 Such a coalition would also have resulted in a minority government, as Labour and the Lib Dem’s combined share of seats would not have granted them a majority of votes in the House of Commons.

 As demonstrated by the results in both the local elections and European elections UKIP’s electoral popularity at the local level has grown in recent years. The party has capitalised on discontent within the Conservative Party regarding the government’s policy towards Europe. UKIP’s recent electoral success has largely been attributed to disaffected Conservative voters shifting their support to UKIP.  It is hard to say how influential UKIP will be during the 2015 General Election. Their success is likely to hinge on the UK’s overall economic performance and how far Prime Minister David Cameron is able to reform the dynamics of the UK’s relationship with the EU prior to 2015.

Germany and the UK compared: key figures12 This section presents some key data that may prove useful during discussions at the Forum.

Germany United Kingdom 13 Population (millions) 81.0 63.7

GDP (PPP, trillions US$)14 3.227 2.378 GDP Per Capita (PPP, US$)15 39,500 37,300

Public Debt (% GDP) 79.9% 91.1%

Most significant Trading Partners:

Imports (by % of total Imports)

1.) The Netherlands (10%) Germany (12.6%) 2.) France (7.61%) China (8%)

3.) China (6.25%) Netherlands (7%)

Most significant Trading Partners:

Exports (by % of total Exports)

1.) France (9.21%) Germany (11.3%) 2.) United States (8.1%) United States (10.5%)

3.) United Kingdom (6.53%) The Netherlands (8.8%)

Ethnic Groups (% population)16 1.) German (91.5%) White (86.0%)

2.) Turkish (2.4%) Asian/Asian British (7.5%)

Black (African/Caribbean/British) 3.) Other (6.1%)17 (3.3%)

Germany and the UK compared: education systems UK In the United Kingdom, the majority of schools are provided by the local government authority (state schools) and are free for all pupils. Academy Schools have been introduced in the UK, these are still state-financed (although funding is received directly from the Education Funding Authority) but may also have support from outside businesses or charities and will often have a sponsor, whose vision and leadership are vital to the project. The objective of academies is to improve the performance of previously underperforming schools.

12 All figures from (Central Intelligence Agency, 2014) unless otherwise noted. 13 Estimated, July 2013 14 2013 figure 15 2013 figure 16 British Figures – 2011 Census. German Figures – 2011 census 17 Main groups include Greek, Italian, Polish, Russian, Serbo-Croatian and Spanish.

Aside from government funded schools, there are also a number of independent schools in the UK. These are either financed through fee-paying pupils or may be charitable schools with endowments. Unlike state schools and academies they are not required to follow the National Curriculum. State Schools in England and Wales follow a National Curriculum which was introduced in 1998, whilst Scotland follows a curriculum of its own. The National Curriculum provides a framework for education between the ages of 5 and 18. It is legally required for all children to attend full-time education till the age of 16, however many pupils stay on until 18 in order to prepare themselves for university or other careers. Within the national curriculum the most significant elements for pupil’s futures are their GCSEs and A Levels. GCSE (General Certificate of Secondary Education) examinations are typically taken at the age of 16 and pupils are normally entered in about eight to ten subjects (of which English and Mathematics are obligatory). Advanced Level exams (or ‘A Levels’) are typically taken between 16 and 18, and the results from these exams are used by universities to determine which candidates to accept onto their degree courses. On average pupils will take three A levels in subjects that are of interest to them. Germany Before the period of compulsory schooling begins, 3 to 6 year old children in Germany have the opportunity to attend pre-school institutions. Unlike schools, pre-school education is not free. However, attendance is entirely voluntary. Compulsory education does not begin until children reach the age of six, when children attend a Grundschule’ (Primary Level education) for four years (six in Berlin and Brandenburg). Secondary school typically begins at age 11 (grade 5) and is divided into a less academic Hauptschue (to Grade 10) leading to a vocational education, an intermediate Realschule leading to a technical or business school and the academically orientated Gymnasium that leads to the Abitur and a university education. School is compulsory until the age of 15, but most students attend until the age of 18 or 19 when they graduate from Gymnasium or Advanced vocational school. Education and teachers are generally held in high regard in Germany. Teachers are well-paid state employees and university professors often have more prestige than German business executives. The concept of ‘smartness’ in the EU context The concept of ‘smartness’ is a central theme for our discussion during BGF 2014. In the context of the EU, this concept refers to achieving lasting, substantive reforms to make European institutions deliver more value to the citizens of member states whilst being more sustainable, in the light of reduced resources. Improving ‘smartness’ in Europe therefore touches on a host of policies including economic and growth policy, employment, research and development, climate change and energy, education, social inclusion and poverty reduction. A ‘smarter’ Europe, and ‘smarter’ member states, would be able to improve the status quo in these areas through reform. Participants may wish to challenge this definition (or the conceptual utility of the term) through discussion at the meeting.