This paper examines the structure and governance of the European Union, describing its seven core institutions and their respective roles in legislative, executive, judicial, and monetary functions. It evaluates what has worked and what has struggled within the EU framework, with particular attention to the transition to the euro and the Eurozone debt crisis. The paper then turns to Germany specifically, analyzing its political landscape, educational system, the outcomes of reunification, immigration dynamics, and current economic performance. It also contrasts German and American approaches to business culture and education, drawing on historical and contemporary developments to assess integration successes and ongoing challenges.
The paper demonstrates comparative analysis as a primary technique. Whether contrasting German and American educational systems, East and West Germany's economic conditions, or EU institutional roles against one another, the author consistently structures observations around similarities and differences, giving each comparison a clear evaluative conclusion.
The paper is organized around two major topics — EU governance broadly and Germany specifically — each subdivided into numbered thematic questions. The EU section covers institutional structure, performance evaluation, and the euro. The Germany section covers politics, education, reunification, immigration, economic performance, and business culture. Each subsection functions as a self-contained analytical response, making the paper well-suited as a structured study reference.
The European Union (EU) is a unique cooperation of 27 states in the form of an economic and political partnership. It emerged from a series of treaties and a commitment by member states to integration through the harmonization of laws and the adoption of common policies across a wide range of issues. Sovereignty has been pooled among member states in most economic and social matters, and decision-making is supranational in quality. Decisions in certain areas, such as foreign policy, still require consensus among member states. Seven common institutions have been established to set and promote the collective interests of the EU: the European Commission, the Council of the European Union (Council of Ministers), the European Parliament, the European Council, the Court of Auditors, the Court of Justice, and the European Central Bank (Hoskyns and Michael, 2000).
The common interest of the Union is upheld by the European Commission, which acts as the EU's executive body. The Commission is responsible for the implementation and management of the Union's decisions and common policies, and for ensuring that member states adhere to the provisions of EU treaties, regulations, and directives. It comprises 27 commissioners — one from each member state — appointed through agreement for a five-year term. The Commission handles international representation and negotiations on behalf of the EU and is also regarded as the primary administrative unit of the Union.
The Council of the European Union represents the 27 national governments. It enacts legislation following recommendations from the Commission, and in most cases must reach agreement with the European Parliament. Council meetings are attended by ministers from each country, with the subject under discussion determining which ministers participate. Some decisions can be made through a complex qualified majority voting system, while other sensitive matters — such as amending EU treaties or accepting new members — must be agreed upon unanimously (Hoskyns and Michael, 2000).
The citizens of the EU are represented by the European Parliament, which is composed of 736 members directly elected for five-year terms. Seats are distributed proportionately among member states according to population size. Although the European Parliament cannot initiate legislation, it shares legislative power with the Council of the European Union across a number of policy areas. This shared power gives the Parliament the right to accept, amend, or reject most proposed EU legislation through a process known as "co-decision."
The European Council, made up of Heads of State or Government of the member states, its President, and the President of the European Commission, meets at least four times per year. This body guides and drives EU policy. The Court of Justice interprets EU law and issues binding rulings, while the Court of Auditors monitors the financial management of the EU. The European Central Bank is responsible for managing the euro and EU monetary policy (Hoskyns and Michael, 2000). These institutions are supported by various advisory committees.
The formation of the EU has produced notable successes, including the introduction of a common currency and a central banking system. These developments have helped lift and stabilize economies operating under certain constraints and have created a wider market for member states along with greater bargaining power in both economic and political affairs. However, challenges have emerged as well, such as opposition to the common currency in certain countries including Germany. Weaker economies have also suffered under the common currency regime, with their debt burdens increasing year after year.
The introduction of the euro as the common currency followed a three-stage plan. The first stage began on July 1, 1990, with the abolition of all restrictions on capital movement between member states. During this stage, the issues to be addressed were identified and a working program to implement the anticipated changes was developed. On January 1, 1994, the European Monetary Institute (EMI) was established, marking the second stage. The EMI was responsible for coordinating monetary policy and strengthening cooperation among central banks. It also prepared for the establishment of the European System of Central Banks, including a single monetary policy and a single currency. The name "euro" for the single currency was adopted in December 1995 at the European Council meeting.
On January 1, 1999, "irrevocably fixed exchange rates" were established, marking the final stage. These fixed rates applied to the currencies of 11 member states. Although the euro became the official currency within these states, its use was initially restricted to non-cash transactions. Euro coins and banknotes entered circulation on January 1, 2002, at which point membership had grown to 12 states, with Greece having joined in January 2001 (Sear, 2011).
The single currency system has achieved notable successes, and recent events have highlighted several of its advantages. The euro helped limit the effects of the Eurozone debt crisis in a number of ways. First, it prevented exchange rate and interest rate turbulence among member states — turbulence that had been common during past periods of financial stress. The euro area also benefited from a stability-oriented macroeconomic framework, which lowered inflation and interest rate levels and reduced volatility as well as output fluctuations. The consolidation of budgetary deficits made it possible for fiscal policy to stabilize economies during the crisis. The accommodative monetary policy stance adopted since the beginning of the turmoil also eased conditions in the interbank market. Despite these successes, significant challenges have remained.
There are five major political parties in Germany: the Christian Democratic Union (CDU), which includes its Bavarian sister party the Christian Social Union (CSU); the Free Democratic Party (FDP); the Social Democratic Party (SPD); the Green Party; and the Left Party (die Linke). The Left Party is the most recent entrant into Germany's political arena, having been formed in 2007 from a merger of leftist parties from the former East and West Germany. Its membership consists largely of former left-wing SPD members (Nees, 2010).
The CDU/CSU lost ground in four state elections held early in 2011, suffering significant setbacks in Hamburg and Baden-Württemberg — states long considered key strongholds. The Green Party won in Baden-Württemberg, giving it the opportunity to control four of the six Bundesrat (upper house) seats allocated to that state. Having already lost its majority in the Bundesrat in 2010, the centre-right ruling coalition of Chancellor Merkel suffered further losses, making it more difficult for the government to advance its legislative agenda in areas requiring state approval.
One of the most pressing political issues is European integration, which has created a divide in Germany's party system. While all democratic parties support integration, it is strongly opposed by the two right-wing extremist parties — the German People's Union and the Republicans. Among the democratic parties, broad consensus exists, though differences remain. The Left Party supports European integration but opposes the Lisbon Treaty and what it characterizes as the neoliberal tendency of the European Union.
In the German educational system, pupils begin at the pre-school level known as kindergarten between the ages of 3 and 6. They then proceed to primary education in elementary schools, which may be state-run or privately owned. State schools do not charge tuition fees. Primary education is completed at age 10, after which pupils enter secondary schooling. At the secondary level, four tracks are available: Hauptschule, the least academically oriented, running through grade nine; Realschule, through grade ten; Gymnasium, through grade 12 or 13, concluding with an examination that qualifies students for university entrance; and Gesamtschule, a more comprehensive school model. After completing any of these secondary programs, pupils have the option of beginning a career through an apprenticeship in a vocational school (Nees, 2010).
By contrast, the American system keeps students together in the same school through age 12, rather than dividing them into differentiated tracks after primary school as Germany does. German pupils also receive less vacation time than their American counterparts. School in Germany typically ends at 1 p.m., while American schools run until 3 or 4 p.m. In Germany, teachers are regarded as highly skilled professionals, are better compensated, and undergo longer training. In the United States, teacher training is shorter and the profession is not held in comparably high esteem.
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