Germany Federal state

Reforms

Except for minor changes mainly technical in nature, Germany’s territorial organisation has undergone very few modifications in recent years.

The country’s federal structure, with four levels of government (Central state, Länder, districts and municipalities) has not changed of late. However, a process to merge municipalities, particularly in the new Länder in the east of the country, is still underway: the country had 12 431 municipalities in 2006 and only 11 252 in 2013.

The Land of Saxony-Anhalt, for example, underwent a threequarters reduction in the number of its municipalities between 2010 and 2011, with their number dropping from 840 to 220. There are also incentives to promote intermunicipal cooperation.

Mainly as a result of a significant increase in expenditure linked to local governments’ social expenditure due to the economic and social crisis, the federal authorities are now covering these expenses, which ease some of the burden on local and regional budgets. Moreover, local and regional authorities’ resources were greatly diminished at the beginning of the crisis as a result of how their tax revenue was calculated.

Most Länder also set up programmes to improve services and reduce the costs of administrations, both at regional and local levels.

Local self-government in Germany:

In spite of on going financial difficulties at the local level, the Congress of Local and Regional Authorities of the Council of Europe’s visit in 2011 showed that improvements had been made by the authorities and that the country respected the provisions of the European Charter of Local Self-Government. Although budgets had been affected by the crisis, local and regional self-government as a whole was preserved.

KEY REFORMS

• Municipal mergers in West Germany between 1967 and 1974.
• 1990: German reunification
• Municipal mergers (38% cut) in the new states between 1995 and 2005 (territorial division and reunification).
• Municipal merger process still ongoing.
• Strong encouragement for inter-municipal cooperation.
• Local government social spending covered by central government.
• Cost-cutting and service improvement programmes.