ABSTRACT
This chapter explains the development toward centralization in West German federalism. It explores the historical context in which the constitution, labeled the 'Basic Law', was drafted in 1948/49, the formal separation of powers between Federation and Lander, the bicameral arrangement and the resulting intergovernmental relations in their centralizing development over time. The chapter outlines how and where the Single European Act (SEA) of 1986, which led to the completion of the Single European Market by the end of 1992, impeded the powers of the German substates. It examines the reaction of the Lander to the proposed treaty, as well as their role in the domestic ratification of the SEA. The chapter provides the implications for both the study's null hypothesis and the fiscal federalist hypotheses. It presents the Treaty on European Union, commonly referred to as the Maastricht Treaty, signed in 1991 and having come into effect on 1 January 1993.
