GERMANY
P.E.L.T. ENVIRONMENT
 
 
 
 
 

POLITICAL ENVIRONMENT

FORM OF GOVERNMENT
Federal republic 
POLITICAL STABILITY
Germany is politically stable and was united under one constitution on October 3, 1990.  This constitution, known as Basic Law, has represented West Germany since May 23, 1949. 
FOREIGN POLICY
Participation in the Atlantic Alliance (NATO), Organization for Security and Cooperation in Europe, and United Nations. 
STATE COMPANIES
The German government promotes competition between privately held companies and attempts to exist in a mild regulatory role. 
ROLE OF THE MILITARY
The military is comprised of the Army, Navy, Air Force, Medical Corps, Border Police, and Coast Guard. 
LEVEL OF TERRORISM
Germany supports the UN in fighting terrorism and has participated in efforts to fight terrorism following the September 11 terrorist attacks on its ally, the United States. 
IMPORT/EXPORT RESTRICTIONS
 Restrictions are covered under the Foreign Trade and Payments Law.

 

ECONOMIC ENVIRONMENT

ECONOMIC SYSTEM
Free-market system 
STAGE OF DEVELOPMENT
Developed country 
ECONOMIC STABILITY
Germany is among the top three economically stable countries which include the United States, Japan, and Germany. 
GROSS NATIONAL PRODUCT
$1.936 trillion (2000 est.) 
INTERNATIONAL FINANCIAL STANDING
Number three in the world behind the U.S. and Japan respectively. 
MONETARY/FISCAL POLICY
The federal government attempts to improve conditions for businesses and hence improve unemployment rates by reducing required taxes and social insurance contributions.
FOREIGN INVESTMENT
Foreign investment is welcomed by the German government. 

 

LEGAL ENVIRONMENT

LEGAL SYSTEMS
Civil law system with indigenous concepts; judicial review of legislative acts in the Federal Constitutional Court; has not accepted compulsory ICJ jurisdiction. 
PREVAILING INTERNATIONAL LAWS
Germany participates in the Atlantic Alliance (NATO), Organization for Security and Cooperation in Europe, and United Nations.  There are many international environmental laws which Germany complies with. 
PROTECTIONIST LAWS
Rejects protectionism. 
TAX LAWS
The primary federal taxes of Germany are turnover (value-added) taxes, wage taxes, assessed income taxes, petroleum taxes, and corporation taxes.  "Horizontal financial equalization" is utilized to more fairly distribute the country's state taxes. 
ROLE OF CONTRACTS
Written contracts are used for proof of terms and conditions in the event of a dispute.  UN law can be utilized on the sale of goods internationally. 
PROPRIETARY PROPERTY INFORMATION
Member of the World Intellectual Property Organization to protect proprietary property. 

 

TECHNOLOGICAL ENVIRONMENT

LEVEL OF TECHNOLOGY
Among the top three technologically, including the U.S., Japan, and Germany. 
AVAILABILITY OF LOCAL TECHNICAL SKILLS
Local technical skills are available as R&D based industries make up more than half of all industrial production. 
NATIONAL TECHNICAL REQUIREMENTS
Germany places an extremely high level of importance on technology as it bases its economic and social development on them. 
APPROPRIABILITY
Member of the World Intellectual Property Organization to protect proprietary property. 
TRANSFER OF TECHNOLOGY
Technology transfer is limited by security and proprietary rights. 
INFRASTRUCTURE
Railways:  40,826 km
Highways:  656,140 km
Waterways:  7,500 km
Airports:  613 (2000 est.)
ENVIRONMENTAL PROTECTION
Agreements party to:  Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Sulphur 85, Air Pollution-Sulphur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling.  Agreements signed, but not ratified:  Air Pollution-Persistent Organic Pollutants, Climate Change-Kyoto Protocol. 

 

Sources
CIA - World Factbook - Germany
Encyclopedia Breatanica
www.germany-info.org
www.wipo.org