Comparative Federalism

Experiences from

Germany

Conference

“Constructing Tomorrow‘s Federalism”

25/26 March 2004

Regina, Saskatchewan

presented by

Julian Würtenberger

Office of the Premier of Baden-Württemberg, Stuttgart (Germany)

What Kind of Federation is Germany ?

16

States/Provinces

(Länder)

Federation

(Bund)

What Kind of Federation is Germany ?

History:

Patchwork of independent States before 1871

Three occupation zones in West after World War II united in a federal structure (11Länder)

Reunification 1990:

5 newLänder-> 16Länder

What Kind of Federation is Germany ?

Constitution:

16Länderare the constituent units, with all institutions (parliament, government, law courts)

Länderare generally responsible for legislation, with many exceptions for federal legislation

What Kind of Federation

is Germany ?

Länderare generally responsible for

administration, with few exceptions

for federal administration

(e.g. customs, federal employment

agency)

Länderare less responsible for taxation; Federation often also has legislative power over provincial taxes, but revenues are shared between Federation andLänder

What Kind of Federation is Germany ?

Important institutions on the federallevel:

Federal Government

Federal Parliament (Bundestag): 598 MPs

(50 % directly elected; 50 % by proportional

representation)

Federal Chamber ofLänder(Bundesrat):

69 members sent by 16Ländergovernments

Mediation Committee (Vermittlungsausschuss) of BundestagandBundesrat

What Kind of Federation

is Germany ?

Important institutions on the Landlevel:

Landgovernment

Landparliament

What Kind of Federation is Germany ?

Intergovernmental relations on theLänderlevel

Conference of Premiers ofLänder:

4 meetings on Premiers‘ level per annum; 8-12

meetings on Under-secretaries‘ level per annum

Conferences of Ministers ofLänder(according

to their different fields):

50 -100 meetings on Ministers‘ or Under-

secretaries‘ level per annum

What Kind of Federation

is Germany ?

Intergovernmental relations on the level of Federation andLänder

Meetings of Federal Chancellor (Bundeskanzler) and Premiers ofLändertwice a year

Federal Ministers as guests in conferences of Ministers ofLänder

Current Challenges in German Federalism

The system has come down

to a “participatory federalism”

Current Challenges in German Federalism

Current Challenges in German Federalism

Problems

Participation weakens power for necessary reforms

BundestagandBundesratcan block each other

(esp. in case of different political majorities) or the

parties have to form “great coalitions”

Less competition of different policies on the level ofLänderor on the level of Federation andLänder

Voters cannot distinguish between political

responsibilities

-> less political competition of political parties

Current Challenges in German Federalism

Federalism: The most complicated, most time-consuming

and most boring game of all times…

Current Challenges in German Federalism

Problems

The legislative competences of the Land

parliaments have been effectively hollowed out

Federal Parliament often claims the right of

legislation, because it argues: “The creation of

equal living conditions throughout the country or

the maintenance of legal and economic unity

makes federal legislation necessaryin the national

interest” (Art. 72 II Basic Law)

Current Challenges in German Federalism

Federalism reform commission

(Bundesstaatskommission)

32 members (half Bundestag, halfBundesrat) and experts

Tasks:

*Decartelizationof legislation competences infavorof

Länder

* Reduction of competences ofBundesrat(less

blockades of federal legislation)

* Reform of financial relations between Federation

andLänder

* Participation ofLänderin EU legislation

Current Challenges in German Federalism

What do we want?

Modern governance

Out of:

Don Dennison

Intergovernmental

Relations in Canada

Current Challenges in German Federalism

What do we want?

Subsidiarity

* Decisions have to be taken as closely as

possible to the citizens

* Problems are best solved in the

subsystem where they arise

* Problems may only be referred to a

higher authority if the closer subsystem

cannot solve them

Current Challenges in German Federalism

What do we want?

Decartelizationof powers between federal

and regional level

Competitionof policies

Plurality of political ideas

Transparencyof political responsibilities

Current Challenges in German Federalism

What do we want? (from the regional view)

Assets of regional legislation

Sovereignty of organization of Land(administration and staff)

Education and culture

Security and risk management

All issues with local and regional references, e.g.:

* Social contributions

* Environmental issues

* Housing

* Local economic policy

Contributions to the Canadian Discussion on Federalism

Contributions to the Canadian Discussion on Federalism

Proportional representation through second vote (Zweitstimme)

Germany's list system reinforces the

power of parties, because

* the parties have to nominate the lists

* the voter cannot make several choices

or cross out a name on the list

Parties have to nominate lists for the election of Bundestag in each Land

Contributions to the Canadian Discussion on Federalism

Contributions to the Canadian Discussion on Federalism

Contributions to the Canadian Discussion on Federalism

Revenues of parties

Membership dues

Donations (40 % reimbursement through income tax up to 1,600 €)

Earnings of property

Grants depending on the sum of dues and donations

Contributions to the Canadian Discussion on Federalism

Appointing judges

Landlevel:

Judges are elected by government

(Ministry of Justice)

Federal level:

Judges are elected by election committee

(Federal Minister of Justice, equal number

of members representing Federal

Parliament and Landgovernments)

Contributions to the Canadian Discussion on Federalism

Referendums

No citizen initiatives allowed on federallevel

Citizen initiatives allowed on Landlevel, but high obstacles -> only few referendums

Citizen initiatives allowed on locallevel, medium or low obstacles -> multiple referendums occurring

Good experiences at the local level

Many proposals to ease the preconditions

Contributions to the Canadian Discussion on Federalism

Revenues of cities

Charges for services

City taxes and fees (e.g. dogs, entertainment)

Local business tax

Global and appropriated grants of Land

Participating shares of income tax and of sales tax

Raising of credit (many cities have a big deficit in their budgets, up to 1,000 € and more per head)

Some services (e.g. public swimming pools) have to be reduced because of deficits in city budgets

Contributions to the Canadian Discussion on Federalism

The municipal budget hole

Contributions to the Canadian Discussion on Federalism

Increasing costs of health care

Federal level responsible for social insurance and health care standards

Landlevel responsible only for hospital planning and hospital funding

Every employee or payee of social incomes has to be member of legal health care insurance (exception: people with high incomes and civil servants pay for private insurance)

Increasing costs will be reduced by exclusions of benefits and higher individual financial participation

Biggest problem in future: demography

Contributions to the Canadian Discussion on Federalism

Health expenses

in Germany

Total expenses (billions €)

Expenses per head (€)

Percentage of gross national product

Contributions to the Canadian Discussion on Federalism

Kyoto Protocol and Global Warming

Federal (or EU) legislation:

* Trading in emission certificates

* Emission and immission limits

* Taxation

Landand city level:

* Regional initiatives (Agenda 21)

* Grants for investments by private

households

Contributions to the Canadian Discussion on Federalism

Sustainable Transportation

Federal level:

* Technical measures for motors

* Taxation of fuel and cars, tolls (only for trucks)

* Funding of rail and road infrastructure

* Funding of public transport

Landand city level:

* Avoidance of circulation through housing

development and intermodal connections

* Benefits for sustainable means of transport

* Funding of public transport

Contributions to the Canadian Discussion on Federalism

Post-September 11 and the “War on Terror” measures

Federal level:

* New anti-terror security laws (especially penal law

and law on foreigners)

Landlevel

* New police laws

* Preparations for emergencies; task forces

In majority, new laws are politically accepted and have hardly been tested in law courts

Contributions to the Canadian Discussion on Federalism

The Federal Constitutional Court restricts listening devices

Contributions to the Canadian Discussion on Federalism

Protection of minorities

Proportional voting system

Human rights in constitution and special rights in anti-discrimination laws

Extra status in some parliaments

Also wanted: Integration, not isolation of minorities and immigrants

See You in Berlin !