Germany's Role in the EU
Group 5 Day 3
Chien-Hui Chan, Julian Yang, Yi-Hau, Luigi Gonzalez
GERMANY

federal parliamentary republic in western-central Europe. It includes 16
constituent states and covers an area of 357,021 square kilometres
(137,847 sq mi) with a largely temperate seasonal climate.

Its capital and largest city is Berlin. With 81 million inhabitants, Germany is
the most populous member state in the European Union. After the United
States, it is the second most popular migration destination in the world
Reasons for GERMANY’s importance in EU


Geography : Situated in the middle of Europe
Economy:
 Successful
economic integration
after German reunification
 Trade Surplus.
 Mainly Creditor for countries with debts in EU .
 High Contribution for EU Budget ( € 29 billion).
 Lack of comparable economic growth partners
(France and Italy two other founding members).
The GDP of Germany ranks the forth in the word.
PARTS OF THE
GERMAN ECONOMY
ECONOMY PARTS FACTS

NOW WE SEE THAT 11 % OF THE ECONOMY OF GERMANY IS THE INDUSTRY OF
CARS

MEDICAMENTS TAKES THE 4 %

ALSO PETROLEUM OIL, REFINED IS AN IMPORTANT PART OF GERMAN
ECONOMY

PARTS AND ACCESSORIES ALSO 4 %
What Germany does in EU

Germany is an advocate of closer European economic and political
integration. Its commercial policies are increasingly determined by
agreements among European Union (EU) members and EU single
market legislation. Germany introduced the common European
currency, the euro on 1 January 1999. Its monetary policy is set by
the European Central Bank in Frankfurt.

Germany has a social market economy characterized by a highly
qualified labor force, a developed infrastructure, a large capital
stock, a low level of corruption, and a high level of innovation. It
has the largest national economy in Europe, the fourth largest by
nominal GDP in the world, and ranked fifth by GDP (PPP) in 2009.
The Germany Plights(1)

Germany is the last country in Europe that could afford
austerity policy

Germany cannot simply tolerate Greek-style indifference
to fiscal prudence.

Only currency union without fiscal union.

Criticize for its trade surplus. (financial imbalance in EU)
The Germany Plights(2)

Germany benefited from its membership in the EU, and its adoption of the
euro. Like many other eurozone members, the power of the euro meant
interest rates stayed low, which spurred investment.

In fact, many say Germany profited the most from its membership. Its strong
manufacturing base meant it had plenty to export to other members of the
eurozone, and could do so more cheaply. This gave German companies a
competitive advantage, which only improved over time.
The solutions of Germany`s trade surplus
 Investment
 Raising
in public infrastructure
the Wages of German workers
 Increase
domestic spending
Conclusions

Germany has the most successful development on
renewable energy. (30% in the German electricity
sector)

Should Germany continues Austerity Policy or
support Monetary Policy?
Thanks for your attentions!