GERMANY
GEOGRAPHY
Germany (German: Deutschland) is a country in west-central Europe, that stretches from the Alps, across the North European Plain to the North Sea and the Baltic Sea. Germany has the second largest population in Europe (after the European part of Russia) and is seventh largest in area. The territory of Germany covers 357,021 km2 (137,847 sq mi), consisting of 349,223 km2 (134,836 sq mi) of land and 7,798 km2 (3,011 sq mi) of waters. Elevation ranges from the mountains of the Alps (highest point: the Zugspitze at 2,962 metres (9,718 ft)) in the south to the shores of the North Sea (Nordsee) in the northwest and the Baltic Sea (Ostsee) in the northeast. Between lie the forested uplands of central Germany and the low-lying lands of northern Germany (lowest point: Neuendorf-Sachsenbande at 3.54 metres (11.6 ft) below sea level), traversed by some of Europe’s major rivers such as the Rhine, Danube and Elbe. Germany shares borders with nine European countries, second only to Russia: Denmark in the north, Poland and the Czech Republic in the east, Switzerland (its only non-EU neighbor) and Austria in the south, France in the southwest and Belgium, Luxembourg and the Netherlands in the west. Germany also shares a maritime border with Sweden in the north and the United Kingdom in the northwest.
HISTORY
The name Germany has long described not a particular place but the loose, fluid polity of Germanic-speaking people that held sway over much of western Europe north of the Alps for millennia. Although Germany in that sense is an ancient entity, the German nation in more or less its present form came into being only in the 19th century, when Prussian Prime Minister Otto von Bismarck brought together dozens of German-speaking kingdoms, principalities, free cities, bishoprics, and duchies to form the German Empire in 1871. This so-called Second After gaining power in 1933, Hitler established the Third Reich and soon thereafter embarked on a ruinous crusade to conquer Europe and exterminate Jews, Roma, homosexuals and others.
The Third Reich disintegrated in 1945, brought down by the Allied armies of the United States, the United Kingdom, the Soviet Union, France, and other countries. Reich quickly became Europe’s leading power and acquired colonies in Africa, Asia, and the Pacific. The victorious powers divided Germany into four zones of occupation and later into two countries: the Federal Republic of Germany West. That overseas empire was dismantled following Germany’s defeat in World War I and the abdication of Emperor William II. Economic depression, widespread unemployment, and political strife that verged on civil war followed, leading to the collapse of the progressive Weimar Republic and the rise of the Nazi Party under Adolf Hitler. Germany and the German Democratic Republic (East Germany), separated for more than 40 years by a long boundary. In East Germany this boundary was, until the fall of its communist government in 1989, marked by defenses designed to prevent escape. The 185 square miles (480 square km) of the “island” of West Berlin were similarly ringed from 1961 to 1989 by the Berlin Wall running through the city and by a heavily guarded wire-mesh fence in the areas abutting the East German countryside. Although Berlin was a flashpoint between the United States and the Soviet Union during the Cold War, the city declined in national and international significance until 1989–90, when a popular and peaceful uprising toppled the East German government and soon after restored a united Berlin as the capital of a reunified Germany.
SOCIAL CULTURE AND RELIGION
Considered a country of thinkers, poets, and, nowadays, businesspeople, German culture and people are, to a large extent, all about reason and logic. Germany shares a lot of culture and tradition with neighboring countries, especially the Germanic-speaking Austria and Switzerland. German people traditionally have strong family values, and even today, it is not uncommon to find several generations of a family all living in or around the same town or city – even in the larger or more transient cities like Berlin – who meet up often and celebrate or go on vacation together. Generally, they are also quite neighborly, and most will invest in their neighbors by getting to know them and creating a sense of community again, not just in the smaller towns. Germans place a high priority on structure, privacy and punctuality. It is true that many Germans tend to place punctuality as a high priority. Hence the global observation that German trains often run perfectly on time. German people tend to be thrifty, be sensible, and respect one another’s privacy, and they typically respect the structure and laws of society to an above-average degree. There is no place that this sense of ‘order’ is more apparent than in German business culture. Germans are stoic people who strive for perfectionism and precision in all aspects of their lives. They do not admit faults, even jokingly, and rarely hand out compliments. At first their attitude may seem unfriendly, but there is a keen sense of community and social conscience and a desire to belong.
Religious Affiliations
- 23.76 million members of the Roman Catholic Church
- 22.27 million members of the Protestant Church
- 4.4 million Muslims
- 100,000 Jews
- 100,000 Buddhists
As one may expect from a country with 1300 years of Christian tradition, Christianity is still the predominant religion in Germany. Although the number of practicing Christians is on the decline. About two thirds of Germans believe in God, one third have no religious belief and are not affiliated to any religion. Germany guarantees religious freedom – everyone can make their own decision for or against a faith. The German government is committed to neutrality on religious matters, so that State and Church are separated from each other. Nevertheless, the German state levies a church tax, and religious instruction in schools is enshrined in Germany’s Basic Law. Christian public holidays – Easter, Christmas and Whitsun – are work free days. And because of the Christian tradition, Sunday is also a free day when shops are closed. Islam is Germany’s third-largest religious community; 4.4 million people profess the Muslim faith. Two-thirds of German Muslims come from Turkey. The other third come from south-east Europe, the Middle East, North Africa, and Central and South-east Asia. Some German federal states have introduced Islamic religious instruction in schools. The aim is to promote integration and to give students an opportunity to examine their religion and ask questions outside a mosque.
POLITICS
After the Second World War, until the 1980s, the German political system was designed on three main parties: the Christian Democratic Party, present throughout Germany with the name of Christian Union Democratic (CDU), with the exception of Bavaria, where it appears as the twin party of the Christian Social Union (CSU); the Social Democratic Party (SPD), which boasts a long history dating back to the second half of the 1800s; the Liberal-Democratic Party (FDP), which is part of the European liberal parties. During September 2017 elections, the CDU / CSU Union obtained 33% of the votes, while the SPD party was voted by 20.5% of the voters. Third party is the AfD, chosen by 12.6% of the voters, which precedes the FDP party (10.7%), Linke at 9.2% and the Greens at 8.9%. With these results the twenty-fourth Government of Germany during the 19th legislation of the Bundestag was born, as well as the fourth Merkel government. In the second half of 2018, the Chancellor Angela Merkel announced her withdrawal from politics in 2021. On 7 December 2018 Annegret Kramp-Karrenbauer was elected as the new president of the CDU. In the Government team, the Ministries attributed to CDU are 4 (plus the Minister for the Registry); 3 the CSU Ministers; 7 the SPD Ministers, including its leader Olaf Scholz, who also holds the position of Vice Chancellor. With the affirmation, in the 1980s, of the Alliance 90/The Greens (in German: Bündnis 90/Die Grünen) and after the collapse of the Berlin Wall, the left wing is represented by the Die Linke and penta-party system was developed. During the 2017 federal elections, the parliamentary landscape extended to the Eurosceptic movement Alternative für Deutschland (AfD) which became the third German party.
ECONOMY
Germany is the first economy of the European Union, with a GDP of 3,388.2 billion euros, about 29% of the GDP of the Eurozone and 25% of the European 27. The German GDP contributes above all to services (68% of GDP), and the manufacturing sector (about 26% of agricultural GDP, net of the building sector which accounts for more than 5%), while agriculture and fishing comprise approximately 1% of GDP. In 2018 the growth of the gross domestic product was 1.5%, slowing down compared to the previous year (+ 2.2%). The second half of 2018 had a negative impact on this overall trend: German GDP contracted 0.2% in the third quarter and no longer grew in the fourth quarter. However, the positive growth of the GDP is due to domestic demand and consumption (+ 1% of private consumption; + 1.1% of public consumption), determined by the positive labor market which registered an increase in employment of + 1.3% compared to the previous year (in 2017 it was + 1.4%). The labor market continues to be positive and it’s such an important factor for the economy: the number of employees has reached the highest value since reunification, equal to 44.8 million units and an unemployment rate of 3.2%. Foreign trade slightly contributed to the slowdown in GDP in 2018 (-0.2%), with a greater increase in imports (+ 3.3%) compared to exports (+ 2.4%). Regarding the public finance, 2018 ended with a budget surplus of € 59.2 billion (1.7% of GDP). This is the fifth consecutive year in which the public budget closes with a surplus.
IMPORT/EXPORT
Before entering this analysis, we present a basic overview of current bilateral trade relations, putting Germany in an EU framework. Germany Exports to Japan was US$24.24 Billion during 2018, according to the United Nations COMTRADE database on international trade.
- Japan exports to Germany
Japan Exports to Germany was US$20.89 Billion during 2018, according to the United Nations COMTRADE database on international trade. The situation between the exportation of the 2 countries are very similar we can deduce that the importation are almost the same, but what happened in 2015?
- Japan export to Germany (Sectors)
Electrical, electronic equipment value $4.56B
Machinery, nuclear reactors, boilers value $3.86B
Vehicles other than railway, tramway value $3.01B
Optical, photo, technical, medical apparatus value $2.73B
- Germany Exports to Japan
score a -15% below the previous period in 2015.
THE 2015 – 2016
TOKYO (Reuters), Japan’s exports slipped for a ninth straight month in August as the Sino-U.S. tariff dispute hit demand from China and other Asian trading partners, heightening risks for the world’s third-largest economy. The negative reading adds some pressure to the Bank of Japan to expand stimulus at its policy meeting to prop up business sentiment and manufacturing activity, which have been hit by global economic weakness. Exports in August slumped 8.2% from a year earlier, Ministry of Finance data showed, dragged down by autos, car parts and semiconductor production equipment. The fall was smaller than a 10.9% drop expected by economists but marked the longest run of declines in exports since a 14-month stretch from October 2015 to November 2016. “There’s no doubt that the Chinese economy is slowing down as the impact of the third round of U.S. tariffs is starting to be felt.” Exports in volume terms, which strips away the exchange rate impact, fell 6.0% year-on-year in August, more than reversing July’s increase, which was the first in nine months. We can summarize the concept, by saying that, fears about the global recession in those years drastically influenced the importations and exportations market of Japan and Germany.
INTERNATIONAL RELATIONS
German foreign policy is based on the adhesion to the European Union (of which Germany is a founding member), the belonging to the Atlantic Alliance, the promotion of multilateralism and human rights, the dialogue with emerging economies and the develop aid for low income countries. In relation with Italy, Germany has excellent bilateral relations, intense institutional contacts and a effective collaboration on the main priorities and international issues on the bilateral and multilateral level (EU, UN, NATO, OECD, G7, G20).
Relations with EU
Trade and economy
Intra-EU trade accounts for 59% of Germany’s exports (France 8% and the Netherlands 7%), while outside the EU 9% go to the United States and 7% to China. In terms of imports, 66% come from EU Member States (the Netherlands 14%, France 6% and Belgium 6%), while outside the EU 7% come from China and 4% from the United States.
Germany in the EU
European Commission
The Commissioner nominated by Germany to the European Commission is Günther Oettinger, who is responsible for Budget and Human Resources. The Commission is represented in each EU country by a local office, called a “representation”.
European Economic & Social Committee
Germany has 23 representatives on the European Economic and Social Committee. This advisory body – representing employers, workers and other interest groups is consulted on proposed laws, to get a better idea of the possible changes to work and social situations in member countries.
European Committee of the Regions
Germany has 21 representatives on the European Committee of the Regions, the EU’s assembly of regional and local representatives. This advisory body is consulted on proposed laws, to ensure these laws take account of the perspective from each region of the EU.
Permanent representation to the EU
Germany also communicates with the EU institutions through its permanent representationin Brussels. As Germany’s “embassy to the EU”, its main task is to ensure that the country’s interests and policies are pursued as effectively as possible in the EU.
Budgets and Funding
How much does Germany contribute and receive?
Member countries’ financial contributions to the EU budget are shared fairly, according to means. The larger your country’s economy, the more it pays – and vice versa. The EU budget doesn’t aim to redistribute wealth, but rather to focus on the needs of all Europeans as a whole.
Breakdown of Germany’s finances with the EU in 2017: • Total EU spending in Germany: € 10.927 billion
- Total EU spending as % of German gross national income (GNI): 0.33 %
- Total German contribution to the EU budget: € 19.587 billion • German contribution to the EU budget as % of its GNI: 0.59 %
Relations with Italy
Italy and Germany are both founding countries of the European Union and share the common membership of the Eurozone. NATO’s transatlantic relation has historically provided additional important grounds for cooperation. Regarding the economy, Germany is the first trading partner for our country, both as import and export. In 2018, the volume of bilateral trade was approximately 128 billion euros. In 2018 German exports reached an amount of approximately 70 billion euros and an import of 60 billion euros.
Import and export
According to the German Statistics Institute, Italy ranks sixth for exports, after the United States, France, China, the Netherlands and the United Kingdom and fifth for imports after China, the Netherlands, France and the United States. The most important sectors in trade with Germany are machinery, automotive and fruit and vegetables. In the first 9 months of 2018 there was an interesting increase in German imports of some categories, such as organic chemicals (+ 333.8%), steel and iron (+ 19.5%) and aluminum (+ 11.4%). The German market is the most important destination of Italian export of fruit and vegetable, while for German consumers Italy represents the third importing country after the Netherlands and Spain for vegetables, legumes and roots and the second for the fruit, after Spain.
Relations with Italy
According to data from ISTAT, National Statistics Institute, compared to 2015, trade between the two countries recorded a slight increase, for a total of almost 112.5 billion euros. Italy represented the 7th market importing German goods (around € 59.5 billion) and was ranked 5th in the overall ranking of supplier countries in the German market (almost € 53 billion). The most exported Italian goods in Germany are food products (8%), metallurgical products (6.72%), chemical products (6.58%), machinery and equipment (4%), automotive (4%) and computers and electronic and optical products (3.6%). Regarding to Italian imports from Germany in 2016, the growing sectors are automotive (+ 18.5%), machinery and equipment (+ 7.4%), computers and electronics and optics products (+ 7.3%), articles of clothing (+ 7.3%) and electrical and household appliances (+ 3.5%).
Germany and the Netherlands
The Netherlands has an embassy in Berlin and consulates-general in Düsseldorf and Munich, Frankfurt, Hamburg, and Stuttgart. Germany has an embassy in The Hague and consulsin Amsterdam, Arnhem, Eindhoven, Enschede, Groningen, Leeuwarden, Maastricht, Noord-Beveland, Rotterdam. Both nations are members of the European Union and NATO.
Economic relations
Germany and the Netherlands work closely together on political, social, administrative and personal level, but there is also a good cooperation in the field of economy. The Netherlands is Germany’s second most important trading partner in the world after China, and thus its most important European trading partner. Bilateral trade (imports and exports) amounted to approximately 189 billion euros in 2018. The port of Rotterdam plays an important role in trade for Germany. Tourism in both directions is a further element in economic relations between the two countries. Germany is economically of great importance to the Netherlands: a fifth of the total Dutch exports and a quarter of agricultural export products are shipped to Germany.