Homepage > Germany at a Glance > Facts & Figures > Our Government
The Federal Republic of Germany has been successfully established as a democratic home to a modern, pluralist, and open-minded people. The principle of the division of powers guides our parliamentary democracy, and an immutable constitutional order guarantees its lawful administration. Our government is committed to transparency, its citizens’ rights, freedom of speech and the press, and – most importantly – respect and dignity for all. The interests of our 82 million citizens are represented and balanced, we have a multiparty, coalition-based system. These commitments to security, fairness, and transparency are also extended to those both living here and doing business in or with Germany – proudly and without reservation.
Investments require security. Germany actively maintains a legal environment known for its integrity, safety, reliability, and transparency. Accordingly, our judiciary is independent and the civil service highly professional. Contractual agreements are secure and intellectual property is strictly protected. Reliable laws provide clarity as to the rights and obligations of all parties, and stable fee and cost regulations allow for careful planning. There are no restrictions or barriers to capital transactions or currency transfers, real estate purchases, repatriation of profits, or access to foreign exchanges. Our relaxed liability laws reduce threats to company existence. Moreover, highly trained lawyers, numerous international law firms, and a well-developed arbitration system help settle disputes and guarantee that rights are protected.
Germany is a founding member of the European Union and an active and leading member of key European and international organizations. During its 2007 presidency of the European Union, Germany championed environmental protection and human rights. The position of trust enjoyed by Germany in the international community is reflected in its active role on the global political and economic stages. Germany has a strong voice in economic organizations such as the OECD, the World Bank, and the International Monetary Fund. 226 foreign offices in 191 countries, Chambers of Industry and Commerce, and organizations like Invest in Germany work hard to facilitate economic ties and guarantee that those relationships remain healthy and productive.
Globalization presents new challenges and competitiveness demands flexibility. Germany is taking advantage of its economic upswing to consolidate public financing, reform economic structures, and invest for the future. Lowered corporate tax burdens and labor market reforms will make Germany an even more attractive place to do business. We are making it easier for small and medium-sized firms to invest and expand their business. Binding support targets will reduce administrative burdens. Moreover, the government is committing massive resources to enhancing research and development and building innovation-friendly bridges between science and industry. In this legislation alone, the government will invest a further EUR 6.5 billion in research, technology, and innovation, thus contributing to the stated aim to invest three percent of GDP in research and development by 2010. Germany continues its rise in the World Economic Forum's Global Competitiveness Report, climbing from 17th to 5th place over the last six years.
Germany offers numerous incentives for all investors – whether German or from abroad. There is a large selection of programs available designed to support a wide variety of business activities at different stages of the investment process. Here, the advancement of small and medium sized enterprises (SMEs) forms a special area of focus. The "High-Tech Strategy" allows the Federal Government to consolidate its R&D promotion efforts in the high-tech sector, where it makes around EUR 5 billion available annually. Above and beyond this, the Renewable Energy Law (EEG) provides a strong incentive for the development of production capacities in the renewable energies sector. Wind, sun, biomass, and geothermal energies are guaranteed by legally set feed-in compensation.
