ABSTRACT

Government structures vary broadly among countries. While some countries show a more unitary structure others are widely decentralised. In Germany, for historical reasons, the federal character of political and administrative relations is pronounced. Consequently a highly independent and powerful position of the federal states, the Länder, is intended by the Basic Law (Grundgesetz). However, the constitution also always aimed for establishing nationwide uniform living conditions. In the proper sense both objectives generate an inherent target conflict. On the one hand the diversity of regions is pronounced. On the other hand uniform standards are desired. The conflict manifests itself within a type of competitive federalism. While Basic Law assigns formal autonomy to the Länder, their scope to act is limited. An increasing number of federal laws predominate the expenditure side while the tax setting power of the Länder — which had always been limited — has been reduced during the last six decades.