The German version of federalism, often called “cooperative federalism”, has been identified by many as one of the root causes of Germany’s becoming Europe’s new sick man. Now, a number of changes in the institutions defining the relationship between the federal, the state and the local level have been passed. This contribution describes the most important changes and evaluates them from the point of view of fiscal federalism. It concludes that the changes are only a first step in the right direction, but a number of important steps have yet to follow.
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* As of autumn 2006 professor of economics, Carinthia University of Applied Sciences, Klagenfurth, Austria.
** As of autumn 2006 professor for institutional and international economics, University of Marburg, Germany.
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Döring*, T., Voigt**, S. Reforming Federalism German Style. Intereconomics 41, 201–208 (2006). https://doi.org/10.1007/s10272-006-0191-6
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DOI: https://doi.org/10.1007/s10272-006-0191-6