Federalism in Germany: Unity and Diversity
PARTICIPATORY FEDERALISM AND DECENTRALIZATION: FROM FRAMEWORK TO FUNCTIONALITY ISLAMABAD/PAKISTAN, 25TH – 27TH SEPTEMBER, 2013
FEDERALISM IN GERMANY: UNITY AND DIVERSITY
[email protected] FEDERALISM IN GERMANY: UNITY AND DIVERSITY
Basic Data Functions and Types Distribution of Powers Exclusive and Concurrent Competences Intergovernmental Relations/Inter-Unit-Relations Bicameralism Jurisdiction Financial Regulations Value of Comparisons
2 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Basic Data (1)
80 m inhabitants 137.8 k sq mi 38.1 k$ GDPpc PPP Berlin EU
3 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Basic Data (2)
16 Länder (after reunification 1990) Constitutions 962, 1871, 1949, 1990, (Ref 2006, 2008)
German (Min: Danish, Sorbish, Immigrants) Germans 81%, Euro 7, Turks 4, Asean 2%, Other 6% Culturally relatively homogenous (but: Eastern G) 65% Christian (Catholic+Protestants), Secular, Other
.
4 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Basic Data (3)
West - East: Two socio-economic systems until 1990 North - South: Wealthier Länder Bavaria, Hesse, B-W Structural problems of old industries Urban agglomeration < > Countryside No significant natural resources
.
5 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Basic Data (4)
Democracy
Social State (Welfare)
Federalism
Legal State (Constitutional)
Republic
.
6 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Basic Data (5)
Parliamentary System> proportional vote Executive: Chancellor (Prime Minister) > Election by National Council (1st chamber) President (Representation) > Election by special assembly (BT + LR)
7 8 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Functions and Types (1)
Enhancing democracy and pluralism
Facilitating political participation
Political will on several levels
Power limitation
Advancing junior politicians/newcomers
Improvement of solving political problems
9 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Functions and Types (2): Solving Thematic Issues
Economy/Fiscal Policy/Energy (Oil/Gas etc.)
Environment/Climate Change
Public Security/Immigration/Integration
Culture/ Education/ Language/ Religion
Local Governments/Metropol-Regions/Capitals
10 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Functions and Types (3)
Unitary F (co-operative F) Competitive F (strong competition among CU; e.g. CAN, CHE)
Symmetric F (equal rights) Asymmetric F (different rights (e.g. ESP, CAN)
•••
11 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Functions and Types (4)
Co-operative Federalism (DEU, AUT)
> PRO: Reduction of Conflicts
> CONTRA: Undermining political accountability ?
“Interlocking” Federalism ?
Germany: Equality of Living Conditions
12 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Functions and Types (5): Cooperation < > Competition
Competitive Federalism (CAN, AUS, IND, BRA, NIG)
> PRO: Producing beneficial results ?
> CONTRA: Intergovernmental conflict Divisive impact Taxation: “race to the bottom” (CHE)
13 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Functions and Types (6): Finding an Equilibrium
centrifugal powers centripetal powers
Integration > Unity Independence
Equality of living conditions Diversity
CONFEDERATION < > FEDERATION < > UNITARY STATE
14 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (1)
Horizontal: Legislative Executive Jurisdiction
+
Vertical: Legislation/Administration on different levels Co-decision Center/Sub-States Fiscal Federalism (Taxes, Expenditures, Contributions)
15 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (2): Exclusive Competences Example: Germany
Federal Government Constituent Units
Representation of Language Culture/Education State Religion Foreign Policy International Trade Police Defence Municipalities TaxesCurrency Taxes
16 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (3): Concurrent Competences Example:Federal Germany Government Laender Enumerated tasks Everything but (not by Federal G.) - Civil law - Criminal law Reality: most are federal - Economic law But: Residual Power - Labor law - Social law Co-Decision by Bundesrat -
Framework: - Equal living conditions Administration -
17 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (4): Intergovernmental Relations
Inevitability of overlaps/interdependences
Partnership Functions
Consultation Conflict resolution Co-operation Adapting to changing Co-ordination circumstances
18 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (5): Intergovernmental Relations
Forms Extent > Formal > Federal - Unit > Informal > Inter-Unit
Other devices for Flexibility/Adjustments
19 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (6): Inter Unit-Relations
Reasons: Cross-boundary issues Co-operation of regional groups Jointly shared Rivers Transportation Routes Environment
Institutions: Conference of Minister-Presidents (D) Council of the Federation (CAN) Conference of Cantonal Governments (SUI)
20 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (8a): Bicameralism
Bicameral System: Bundestag < > Bundesrat
21 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (8b): Bicameralism - Bundestag
598 + (22) members > electorate/population Elections regularly 4 years proportional vote (mainly parties) slight personal element Law making Election of Chancellor/Other Tasks
22 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (8c): Bicameralism - Bundesrat
16 countries > 69 votes Representation slightly weighted to population (6/3) Appointed by Laender Governments (bloc vote)
Veto (Laws affecting the Laender 40% after reform) Suspensive Veto (all other Laws) (can be overridden by “Chancellor’s majority”) Other Tasks: Nomination of Constitutional Judges
23 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (10): Bicameralism - Democracy
CONTRA PRO
Alternative political arenas Violation of One person - One vote Decisions closer to the people > 2nd Chamber Veto-players Protection of minorities DEU: Saarland 13 x NRW (weighted) Limitation of potential tyranny USA: Wyoming 65 x California of the majority
BRA: 43% pop > 74% of the vote
24 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (11): Jurisdiction - Constitution
Supremacy of the Constitution Old Constitutions > Minimum principles: USA
DEU Young Constitutions > Elaborated: IND
Exclusion States: AUS, BRA, CHE, DEU, MEX
Inclusion States: CAN, IND
25 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Distribution of Powers (12): Jurisdiction - Umpire
Constitutional Courts: AUT, BEL, BH, DEU, ESP, RUS
Supreme Courts: USA, CAN, AUS, IND, LatA, MAL, PAK, NIG, PAK, MicroF
House of Federation (2nd Chamber): ETH
Referendum (Federal) + Tribunal (Cantonal): CHE Under Discussion: DEU (some items)
26 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Financial Regulations (1): Relevance
> Enabling/Constraining Governments in achieving their policies
> Taxing/Expenditure Powers
> Affecting/Regulating the Economy
27 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Financial Regulations (2): Revenues
Taxes
Fees
Contributions (e.g. Social Insurance)
Federal Bank Profits
Incomes/Sales of state-run companies
Fines
New Debts
28 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Financial Regulations (3a): Revenues -Taxes
Federal Taxes Legal Power Laender Taxes Income Power Municpalities Taxes Administrative Power
29 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Financial Regulations (3b): Taxes – joint/separate
F: IncT 42.5%, CIncT 42.5%, FRT 44 %, VAT 51.4%, (LicT 7%) EnSt, TobT, InsT, CarT, ElT, SpD, SWT, CofT, SolT
L: IncT 42.5%, CIncT 42.5%, FRT 44 %, VAT 46.5%, (LicT 7%) LegT, LandPT, BetT, BeerT, (PrT)
M: IncT 15%, CIncT 15%, FRT 12 %, VAT 2.1%, (LicT 86%) LandT, DogT, EntT, AlcBT, HunT, FiT, PubLT, SecRT
30 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Financial Regulations (4): Harmonization
Harmonization of Taxes
> vertical (F/L, L/M) > horizontal (L/L)
Assignments of Tasks
> Administration mainly by Laender > Common Tasks > Debt Break for Laender
31 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Financial Regulations (5): Autonomy
PRO CONTRA
> Accountability > Economic efficiency Race to the bottom > Responsiveness to local preferences > Administrative simplicity
> Equal Living Conditions Sharing of taxes + Transfers > Mix
32 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Value of Comparisons (1)
Positive and negative lessons
Caution: No single pure model
Different circumstances
Each country has to find its own way(s)
.
33 FEDERALISM IN GERMANY: UNITY AND DIVERSITY Value of Comparisons (2)
A look over the borders could help by
> Identifying similarities and differences
> Identifying options
> Anticipating consequences of arrangements
> Possible learning effects from successes but also from difficulties and failures .
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