Germany
The Federal Republic of Germany is a stable, high-performing democracy. In addition to having the world’s fourth largest and the Eurozone’s largest economy, Germany is a member of the G7. In 1951, the country became one of the six founding members of the European Coal and Steel Community, and to this day remains an influential member of its successor, the European Union. The 2021 election marked the end of sixteen years of Angela Merkel’s chancellorship. Germany performs in the high range across all attributes. Nevertheless, there have been declines in Judicial Independence and Media Integrity over the past five years, though both remain in the high performing range.
Since the Reunification of East and West Germany in 1990, the country has consisted of 16 federal states, the Länder, which enjoy a degree of administrative self-governance. Despite systematic efforts towards economic and social convergence, states in former East Germany still lag behind those in the west; as of 2020 their collective GDP was 20% lower, while their unemployment rates were at least 2 per cent higher. This chronic geographical-economic divide is reflected in the region’s political polarization, with many in the east voting for political parties on the extreme right and extreme left.
Germany, with its central geographic position in Europe and its financial power, has long been an immigration hub. Since the 2015 refugee crisis, Germany has ranked as the largest host country in the EU, as more than 1.24 million people sought asylum there. A 2021 survey revealed that 26.7 per cent of the population had a migration background (i.e. they were either foreign born or have one immigrant parent), and immigration policy and the integration of foreigners is one of the most salient political issues. Despite efficient integration schemes which helped 49 per cent of refugees find steady employment within five years, there has been a surge in ultra-nationalism and xenophobia, an increase in Islamophobic and antisemitic motivated violent crimes and threats to candidates from immigrant backgrounds.
Like most of its European counterparts, Germany has an ageing population. This demographic trend has already started to drive a wedge between generations, with polling data indicating that older voters support conservative or more traditional parties, while the youth overwhelmingly vote for more progressive options.
Recent GSoDI data reveal two concerning developments to watch. Though Impartial Administration remains in the high-performing range, a series of corruption scandals implicating mainstream politicians in corporate or foreign government bribes has raised concerns. A new law which requires interest groups to enter a “lobby registry” before contacting federal officials might foster positive change in this area, even though a 2021 OSCE report raised concerns over transparency in party financing. The current government’s agenda could impact Representative Government and Fundamental Rights by lowering the voting age, addressing homelessness, safeguarding transgender rights, and removing excessive barriers to citizenship.
Monthly Event Reports
January 2024 | Bundestag approves citizenship reform law
On 19 January, the German Bundestag (lower house of parliament), passed a law aimed at reducing the time required to obtain German citizenship from eight to five years for immigrants living legally in the country. In cases of a high level of integration such as special achievements in education, work, or language skills, this period is further shortened to three years. Dual citizenship will also be allowed. Parents can claim citizenship for German-born children if at least one parent has been a legal resident for five years. The law, proposed by Chancellor Olaf Scholz’s centre-left socially liberal coalition, received 382 votes in favour, 234 votes against, and 23 abstentions. The main opposition parties, the Christian Democrats and the Christian Social Union, along with the far-right party Alternative for Germany, voted against. The law seeks to provide integration incentives, bring more skilled workers and help relieve labor shortages. It was passed by the Bundesrat (upper house) on 2 February and is now awaiting signatures from Chancellor Olaf Scholz and President Frank-Walter Steinmeier, before entering into force three months later.
November 2023 | Federal and state governments agree on stricter migration measures
Chancellor Olaf Scholz and state governors reached an agreement to address the rising migrant influx, implementing measures such as expediting asylum procedures, making deportation easier, restricting benefits for asylum-seekers, and providing increased financial aid to affected states and local communities. The authorities said that the aim of these measures is to reduce irregular migration. Amid the ongoing refugee crisis, Germany has taken in over 1 million Ukrainians, prompting changes in the financing system for asylum seekers.
July 2023 | Parliament passes immigration law to attract skilled labour
In a major shift in Germany’s policy, the parliament passed a new immigration law that creates opportunities for non-EU citizens wishing to work in Germany, as well as for refugees already in the country. Bundesrat, Germany’s upper house, gave the final approval in July. The legislation aims at attracting skilled labour in order to target the current shortage deemed as slowing the economy’s growth by turning Germany into a more immigration-friendly country. The law reduces restrictions and bureaucratic bottlenecks for applicants, lowering eligibility criteria for Blue Card work visas, and introducing the “opportunity card” (Canada-style points-based system) that will be awarded to applicants who meet certain requirements to go to Germany for a year to find employment. Refugees who applied for asylum by 29 March, as well as those on a tourist visa will also be allowed to join the labour market under specific conditions. All three coalition parties voted for the legislation. The centre-right CDU/CSU parties and the far-right Alternative for Germany (AfD) voted against, while the left-leaning Linke abstained.
May 2023 | Federal government increases financial support for refugees
The federal government has agreed to the states’ demands for increased financial support in dealing with the growing number of refugees. Chancellor Olaf Scholz's administration will raise the lump sum provided to the 16 states by EUR 1 billion for 2023. However, the demand for a EUR 1,000 lump sum payment per refugee was not accepted by the federal government. The agreement also included the modernization of IT systems to accelerate asylum applications. Although the agreement shows some progress, a long-term funding agreement has not been reached, and a decision is expected to be taken in November.
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