Federal Republic of Germany

D

Tourism

The German tourist industry relies on both Germany’s rich history and culture, and its natural beauties, especially the Rhine valley, the Bavarian Alps, and the Jura Mountains. Receipts from tourism amounted to around US$12.3 billion in 1995. Visitor arrivals in the same period numbered around 13.8 million.

E

Energy

Coal was formerly the major source of electrical power in Germany, but its use decreased in the 1970s and 1980s, although lignite is still a prime source in the east. Petroleum and nuclear power currently supply much of the country’s electricity. In the south, hydroelectric dams draw power from the great rivers. Germany produces some natural gas and oil of its own, but imports most of what it uses. Although the West German government has previously encouraged the development of nuclear power facilities, in 1989 it reversed its position, partly in a delayed response to the 1986 nuclear disaster in Chernobyl in the former USSR. The policy reversal has led to the closing of some facilities and, in the face of widespread public protest, abandonment of plans to build others. In 2001 it was agreed to totally phase out reliance on nuclear power over a 20-year period. Output of electricity in 2003 was 558.1 billion kWh.

F

Currency and Banking

The basic monetary unit was formerly the deutschmark of 100 pfennig, but as part of Germany’s commitment to the European single currency it adopted Euro notes and coins as from January 1, 2002. As at early 2008, 0.68 Euros equalled US$1.

The bank of issue is the Deutsche Bundesbank, a non-governmental, autonomous institution with its headquarters in Frankfurt. The largest of Germany’s many private commercial banks include the Deutsche Bank A.G., the Dresdner Bank A.G., and the Commerzbank A.G. Many savings banks and credit institutions exist. Following reunification, the country’s largest banks rapidly established a presence in the former East Germany.

The basic unit of currency in East Germany was the East German mark, or ostmark, subdivided into 100 pfennigs. In July 1990 the currencies of East and West Germany were merged. Most East Germans were allowed to redeem up to 4,000 ostmarks for West German marks, or Deutsche marks (DM), at par, and to exchange additional ostmarks for West German currency at a two-for-one ratio. Under the provisions of the Maastricht Treaty and related agreements, the new European Central Bank was established in Frankfurt and inaugurated in 1999.

G

Commerce and Trade

Germany is a great trading nation. It is the world’s second biggest exporter. In 2004 it paid US$718 billion for its imports, recouping US$912 billion from its exports. From the early 1950s through the 1980s West Germany generally received much more each year from foreign sales than it spent on purchases abroad. East Germany was a major trading nation within the Soviet bloc. After unification, however, Germany’s trade surplus narrowed. The country’s main exports are motor vehicles, machinery, chemicals, iron and steel, and textiles and clothing. Its principal imports include crude and refined petroleum, machinery, food, chemicals, clothing, and motor vehicles. Germany continues to be a leading trade partner both of western nations—including other members of the EU, the United States, Switzerland, and Austria—and of Eastern European countries. In addition to free trade within the EU, most German industrial products are traded freely with member states of the European Free Trade Association (EFTA).

H

Labour

The workforce in Germany in 2006 comprised about 41 million people. About 40 per cent of the labour force in 1995 was employed in industry. Trade unions comprised about 11 million members, 9.4 million of whom belonged to a union affiliated with the Deutscher Gewerkschaftsbund (German Federation of Trade Unions). Relatively few strikes occur in the country. Some enterprises, notably in the coal and steel industry, operate under a system of co-determination, in which workers and management have roughly equal say in establishing the major policies of their firm. In the past, West Germany had very low unemployment, and East Germany had full employment under its Communist system; in 1996, however, unemployment ran at almost 11 per cent nationwide (15.9 per cent in the east and 9.6 per cent in the west).