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 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)

 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 Germany Plights(2)

The solutions of Germany`s trade surplus  Investment in public infrastructure  Raising 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!