Impact the German state on Europe economy - Term Paper Example

Impact the German state on Europe economy Abstract This paper seeks to give a detailed discussion on the influence that the German state has in the entire Europe economy particularly the largest European economic integration body which is called the European Union. This economic block brings together many European countries in economic matters that are aimed at boosting the prosperity of member states. It has even established and agreed over a common currency which is the euro. Germany is one of the decision making figure heads in this body and this explains why its influence is under discussion in this research paper. This will factor in the different economics aspects of any economy which include the political institutions, social organization and the overall economic policies or the overriding political ideology. In that respect the comprehensive explanation of the economic structure of Germany will have to be exposed in this paper to form an acceptable basis of argument for its role in the European Union. Background information The world has taken a change in trend where countries form economic groups based on the regions in which they belong. The economic blocks in which countries are grouped are strategies through which they get advantage in terms of bargaining for the economic benefits of individual countries. Besides, the economic blocks open the trading frontier in these regions. The implication is that these countries when they come as regional blocks open up trading platforms in a bigger scale that they would individually. Germany is historically one of the most prominent countries that ring in the ears of many people. Of notable reference is its involvement in the great world wars that took place in two phases i.e. World War I and World War II. Its political structuring began from these two historic events which were fuelled by technological and other economics adjustments for survival. Fulbrook asserts, “From the period of the great world was, it has undergone a lot of political and economic realignments that place it among the most influential nations in the world today” (23). German’s place in the economic world has significantly been important. This draws relevance from previous occurrences as well as historical incidences. Currently, there are situations which warrant interceptions from economically superior countries. In the recent past, the world has experienced what could be described as tumultuous times. The uncertainty that rocked the zone within which Germany falls was in deed affected. Germany was not much affected by the times and crises that were felt globally. In analyzing the significance of Germany, it is imperative that its military as well as economic involvements on the global scene be brought into perspective. This is what the following discourse delves in. Politically, Germany has come from its dark past where it had been even been split up into two states with completely different economic ideologies in which one state which was the democratic west with capitalist economic ideology. The other state was the communist east with the communist economic system. According to Leininger, “Later the two factions brought down the Berlin wall and formed one nation with the same economic policies that has seen it rise to the list of the most developed countries in the world” (234). It is this level of economic prosperity that is making it of particular interest in this research paper. Aim of the study This paper focuses on establishing the factors that make Germany to be at the center of focus in establishment, management and performance of the European Union. It therefore targets all the observable economic aspects of this country in respect with its role and extent of influence in the European continent at large and European Union specifically. Significance of this study The current economic challenges are uphill task to many nations and therefore some critical approaches need to taken up by the developing and developed states to improve and sustain their economies respectively. It is in this regard that the Germany is used to give some hints on what other nations should adopt to realize some improvement on their economies. The German social, political and economic policies will be discussed in depths to unravel the reality behind their overwhelming influence in the European Union. As these are done, ideas found are of good lesson to both individuals and countries on what it takes to achieve desired economic goals. Discussions Germany has been at the central point of economic discussion across the entire world due to its widely felt influence in the world economy. This has either been directly or indirectly felt by nations. The European nations whose economies are heavily dependent on the Germany through its involvement in the European Union experience these directly. On the other hand the developing nations that have many subsidiary firms from Germany that cut across the different sectors also feel their economic policy adjustments indirectly. Germany has from the time of industrial revolution in Europe been the most scientifically improved nation that is investing in research and development hence giving it an upper hand in economic power (Katzenstein 34). Germany has from the period of the industrialization a powerful economic hub that was fuelled by its great scientific research and advancement. From the world records on the contributions towards science and technology, German nationals have topped the list as the greatest contributors in technological research. Economic development is one of the tools for political power and the German state is not an exceptional considering the level of political influence it has across the world .This country is also known for quality and superior products and good economic policies that are viable for success and sustainable development. Edstrom stated that, “These have made it to be a significant decision maker in the European Union which is the giant economic block in the European continent” (42). During the recently experienced global economic melt down, some European member states were badly ravaged and their survival rested with Germany. The exemplary example is the Greece huge debt that caused ripples even across the nation triggering workers strife. Hardach argues that, “Greece required the decision of Germany for its bailout and this was a clear indication of the Germanys position as the unquestioned figure head in the midst of Europeans economic problems and the huge debt crisis in Europe” (50). This on the other hand triggered discomfort among other European member states. Germany has been at the forefront of instituting economic policies in the European Union and therefore the decision of the chancellor and the finance minister are of great meaning to the block. Looking at the profile fact box of Germany some important economics aspects are noted. Germany is said to be centrally placed in Europe with a well established infrastructure that make it one of the best transport and business hub. Its economy is driven by the service industry and this means that it enjoys high technological advancement that other countries in the region can not match. It has four major cities with other larger commercial town which is an indicator of its robust economies ability compared to the other nations and this further boost its power in setting the pace in the political and economic issues in the European region and even other countries. Due to its technological advancement and being the venue of various economic activities it has also invested in hotels. Hospitality industry is one of the thriving entrepreneurial ventures in the world as the services it renders go directly to the satisfaction of people. It includes hotels, lodging premises and restaurants where foods are prepared, served, guests are treated to the feeling of home away from home and therefore it is a very sensitive business venture that requires requisite skills. The contemporary economic changes have not spared any business and the hospitality industry is not exceptional. In that respect, this paper seeks to focus on the issues emerging and the remedial measures for the business challenges in the hospitality industry. This will be done along with the review of a given article that gives the economic analysis surrounding this centuries-old industry. It has been using euro which is one of the strongest currencies and its push to bring in the euro as the as the common monetary unit in European Union is motivation on its part to tighten its grip in controlling the activities in the euro zone. It is one of the G20 member countries that have pledged $ 430 billion in new funding for the International Monetary Fund an amount which is more than double its holding meant for lending to protect the hard hit countries from the euro zone debt crisis. Ireland, Greece and Portugal are some of the states that have benefited from this program of receiving bail out. The deep seated power and influence of Germany has in the G20 group makes it more powerful even in the European Union zone. The constitutional structure of the German is formulated in such away that it some level of autonomy among the states within it something that exhibit some extent of economic federalism that is in turn responsible for its strong economic system. This is of little matching by other European union member states leaving it to wield power in the block. The respect with which the German constitution is held has been buoyancy to their control of most of the European economic businesses. This however has been an obstruction to the transfer of their national currency. From the CDU party from which the current chancellor rules, the power of Germany can be seen as they decide to push for a complete overhaul of the legal system pertaining to the currency to speed up the euro bail out efforts. And it is said that owing to the significance of this Germany constitution to the euro zone bail out, it is already creating political heat. Karl argues that, “Their ability to seek for support of single currency is seen by the government as the best test for their political influence in the region” (76). This is the reason as to why the signature of the minister of finance and chancellor holds the key to the euro zone crisis. The statements from the minister of finance when conferring with chancellor clearly shows that the main interest that the Germany has to alter the crisis position is further their political authority in the region by realigning the political path of all the European states to its own advantage and economic schemes. It is also noted that Germany is considered economically superior as manifested by the CDU party resolutions to recognize the European policy and to set this as the platform on which the European Union reforms can be attained. This aims at amending some of the union treaties supervision of Brussels. This would help in tighten economic rules and streamline political and economic policies within the block (Gloannec 45). Due to the powers of Germany the chancellor wants the law approved faster to hasten these policies. Finally other factors that make Germany an economic force to recon with include their ever dynamic economic plans that pertain to its different sectors. Transport is currently in a shift from roads to high speed railway and the increased expansion of the air transport that sees Germany as the leading economic and business destination in Europe and the entire globe. Suffice is that due to its large and stable economy, it sets the standard for other countries that develop an impression of it as being an exemplary economic performer. Germany has gained its political mileage from the participation in peace keeping missions especially in the Middle East and Parts of Africa by social and political decisions even to the European Union board on matters related to the international community (Mills 33). It has one of the highest demographic populations that provide it with a large market domestically with a relatively high per capita income. This makes it more promising to be at the helm of the economic decisions body internationally and within the region. Findings The economic superiority must always be internally generated by the citizen. This is something that should always be inculcated within the people so that a tradition is coined out of it to act as the propelling mechanism behind any development. The Germany community from the regime of Nazi had developed the spirit of hard work which was partially pushed by The Hitler and his men during the World War II. During this period some technological development had to be initiated to enhance the chances of survival in the war. Some of the earliest time development machinery includes the famous Volkswagen which was built with the aim of going through un sooth paths over a long distance. Germany also re organized themselves to come up with a comprehensive leadership structure with socially, economically and politically sound constitution. This formed the basis of their good economic restructuring especially after the ravaging war in which they were the most affected. Hakan asserts, “Besides these, media freedom is a powerful tool that keeps the actions of the government under checks and balances and these has been the case with Germany” (56). Media seeks public opinion of the government under checks union on this uneconomical war. Besides, media plays a role in creating awareness among the citizens, which ensures that the public express their view in order to salvage their national sovereignty. Works Cited Britain, Germany and the future of the European Union. Basingstoke [England: Palgrave Macmillan, 2007. Print. Edstrom, Hakan. NATO the power of partnerships. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, 2011. Print. Fulbrook, Mary. The divided nation: a history of Germany, 1918-1990. New York: Oxford University Press, 1992. Print. Gloannec, Anne. Non-state actors in international relations: the case of Germany. Manchester: Manchester University Press, 2007. Print. Hardach, Karl. The political economy of Germany in the twentieth century. Berkeley: University of California Press, 1980. Print. Katzenstein, Peter J. Tamed Power: Germany in Europe. Ithaca, N.Y: Cornell University Press, 1997. Print. Leininger, Anne. Think big!: future prospects of the international summit architecture-- the G20, G8, G5, and the Heiligendamm dialogue process. Bonn: German Development Institute, 2009. Print. Mills, C W. The Power Elite. London: Oxford University Press, 1970. Print. Read More