The Europe Union and Euro Impacts on Germany - Case Study Example

The Europe Union and Euro Impacts on Germany Name: Course: Tutor: Institution: Date: Introduction Over the last decade, the global nations operations, structures and operational strategies have changed across Europe. This is especially so due to the role and contributions of the European Union (EU). Since its establishment, the union has acquired increased control and mandate of the EU nations, known as member states (Mermod and Dömbekci, 2011, p.346). In this regard, unlike other unions, the union serves a confederation through which individual member states to regulate a number of issues through the establishment of common institutions with legislative capabilities. However, despite the formal influence of the organisation on member states, the EU has increased indirect implications. One of the union’s advocates and earliest member is Germany, whose devotion and persuasion to support the union has been evidenced over the years (Díez, 2004, p.45). This essay evaluates the impacts of the union on Germany with respect to its political, economic, social and cultural perspectives. Discussion Political Impacts A nation’s political system is described as the ideologies and philosophies that dictate and influence nations operations. Since its establishment, the EU has largely implicated on the political orientation and approach by Germany. This has especially emerged due to Germans role in bailing out the current economic challenges in Greece (Busemeyer, 2006, p.402). The government under the Chancellor supported the financial bailout of Greece. However, this emerged as a major political issue of contention as evidenced by the 2013 German elections. In this case, the Social democratic party (SDP) that was highly against such use of Germany finances fronted this as the major campaign issue in support of its candidate Peer Steinbrueck. However, despite the win by the CDU party, it emerged that 49% voted for the SDP and affiliates such as the Green party (“The Guardian”, 2013). Therefore, this evidences the extent and nature to which the EU politics of the need for increased integration and cohesion have increased political differences in Germany, with the society currently divided almost into equal half’s. One other additional political influence of the union on German politics is its increased citizen’s discontent with the increased contribution towards diversification of funds. This can be historically cited back to the unification of both the West and East Germany upon the Soviet Union collapse. This led to increased discontent among the West Germany citizens for their advancement to the East German region. This discontent lingers in a majority of the German normal and average citizens. The Financial Times 2010 poll as argued by Atkins and Peel (2010)evidenced that a majority of the average citizens are against increased Germany financial bailout of the Southern Europe states where it recorded the highest resistance of over 40%.as evidenced under appendix 1. Economic Influence A nation’s economic performance is based on its GDP growth as well as a shift in its purchasing power as well as its overall balance of payment (BOP). Increased GDP as well as favourable BOP evidences a growing economic situation in a market. It is based on this evaluation that the EU economic influence on Germany will be evaluated. On one hand are the nation’s export rates in Europe. Among the EU members Germany had a superior manufacturing industry and thus increased its exports across the region through its increased organisations competitive edges. This assertion is statistically evidenced through its increased GDP values in the union. For instance, the nation’s 3.5% in 2010. This is besides the increasing export rates across Europe and the subsequent favourable terms of trade. In 2011, this increased Germans global ranking placing it sixth with an overall $3.085 trillion. A statistical review of this development is illustrated under appendix 2. An additional implication of EU on Germany economic measures is on its debt management policies. The union developed the Debt-to GDP ratio austerity measures that is capped at 3%. In this regard, the union regulates the rates to ensure that interest rates are retained at minimum. An example of a situation in which the factors came into play was in 2008 when the deficit was at 3.3% and had to be corrected through tax cuts in 2011. A further economic implication of the union on Germany is development and adoption of the Euro as its currency this led to the discarding of its Deutschmark (Christner, 2012, p.1051). Although its adoption relatively reduced interest rates, the current trends by the US is bound to negatively implicate on Germany due to the current rising trend of the Euro, a factor increasing the nations export prices, making them unfavourable against other member states who use their respective currencies such as the dollar and pounds. Social Implications A nation’s social implication can be evaluated based on its living standards as well as the existence of social structures and their nature in an economy. In this regard, a social evaluation focuses on the level and standards of living in a society. The EU has over the years developed and established a range of social regulations and implications across its member states. In this regard, the union established its social policies such as the 2000 Lisbon treaty on harmonisation of national policies on employment as well as equality among its member states (Daly, 2008, p.7). Consequently, the union has reduced wages disparities across its members. This can be evidenced in the German case of unemployment benefits. Traditionally, Germany offered its citizens access and the right to the entitlement of unemployment benefits in the society. However, through a January 2014 application to the European Court of Justice sought to change the German employment regulations. As such, the case sought to include other EU member states citizens in the nation’s unemployment benefit provisions (“Spiegel International”, 2014). An additional EU implication on Germany social settings is on its revised employment regulations on working conditions as well as wages in the market. This is illustrated by the increasing number of Germany employment regulatory systems such as increased control on contractual terms as well as regulation of the minimum wages. In order to counter these challenges and in order to uphold the EU social inclusion policies, the German government incorporated the gender and social regulations to ensure equality of gender and social stratifications in the market. Therefore, based on this analysis, it is apparent that the nations employment regulations especially on working conditions and minimum wages in East Germany. Cultural Implications A society’s culture is evaluated and based on the presence of habitual and repetitive ways of doing things. In this regard, such repeated approaches represent the societies believed and perceptions. Culture is classified into two key categories namely core and secondary cultures. On one hand, the core culture dictates on a society’s values and is hardly changed and its eventual changes occur only overall large span of time that a single generation cannot evidence the change. On the contrary is the secondary cultures, they represents a society’s perceptions that are easily changed. The establishment and Germans commitment in the EU formations and eventual growth has largely implicated on its cultural background (Spektorowski, 2004, p.86). On one hand, as already discussed under the social implications evaluation, it is apparent that the social and employment systems advocates for increased integration and mobility of the factors of production. In this case, the German society has experienced increased expatriate employees as well as its own labour force acting as expatriates in the EU member states. Consequently, this has altered the German culture previously hedged on socialism and cultural structures. Instead, this has increased the market’s overall capitalism approach. Consequently, this has reduced the previous German socialism culture and propagated increased capitalism. Although the advent of this culture has increased the overall economic performance of the nation since world war 11, the emergence of this culture has reduced the nation’s social cohesion, a virtue evidenced in the increased political challenges and disagreements against the leftist and the centre ideological disparities as evidenced in the 2013 general elections where the CDU party slightly won the elections (“Euronews”, 2013). Conclusion In summary, this essay develops an argument and review of the implications of the EU. Since its inception and formation, the union has implicated on the member states performances in a variety of approaches such as political, economic, social, and cultural approaches. In order to develop a practical evaluation the essay adopts Germany, a key member of the union since its formation as a case study. On one hand, an evaluation of the nation’s political system establishes increased political division n Germany with respect to its position and support of the southern EU nations in their financial challenges. On the other hand, an economic analysis of the nation establishes that its adoption of the Euro currency increased its overall economic performance. Moreover, the analysis establishes that through increased exportation in the EU market, the nation’s manufacturing industry has expanded exponentially. A further social analysis establishes that the EU policies on social inclusion and equality in employment have implications on the nation’s employment policies on gender balance, inclusion as well as minimum working conditions. Finally, an evaluation of the cultural impacts of the union establishes the evident shift of the culture form socialism to capitalism. Although the development has increased the nation’s economic performance, the essay evidences that the changes have destroyed the traditional German social structures and institutions such as family. References Asli Yüksel Mermod & Dömbekci, B. 2011, "Emission trading applications in the European Union and the case of Turkey as an emerging market", International Journal of Energy Sector Management, vol. 5, no. 3, pp. 345-360. Atkins, R, & Peel Q, 2010, German Oppose Greek aid, pool show, Financial Times [Online] Available at < http://www.ft.com/intl/cms/s/0/ee055e82-3529-11df-9cfb-00144feabdc0.html> [Accessed September 19, 2014]. Busemeyer, M.R. 2006, "Moving the Unmovable: Political Strategies of Pension Reform in Germany", German Policy Studies, vol. 3, no. 3, pp. 400-405,409-445. Christner, R. 2012, "An Evaluation Of The Prospects For The Euro Currency In 2012-2013", The International Business & Economics Research Journal (Online), vol. 11, no. 9, pp. 1051. Daly, M. 2008, "Whither EU Social Policy? An Account and Assessment of Developments in the Lisbon Social Inclusion Process", Journal of social policy, vol. 37, pp. 1-19. Díez, M. J. (2004). The shadow of the past: Empire, World War II, and attitudes toward European integration in Germany, Spain, and the United Kingdom. Princeton, N.J: Princeton University Press. Euronews, 2013, Merkel triumphs but falls just shy of absolute majority, [Online] Available at < http://www.euronews.com/2013/09/22/polls-suggest-angela-merkels-christian-democrats-on-course-for-victory-in-germa/> [Accessed September 19, 2014]. Spektorowski, A. 2004, "The eugenic temptation in socialism: Sweden, Germany, and the Soviet Union", Comparative Studies in Society and History, vol. 46, no. 1, pp. 84-106. Spiegel International, 2014, Welfare for Immigrants: EU Wants Fortress Germany to Open Up, [Online] Available at < http://www.spiegel.de/international/germany/brussels-may-force-germany-to-loosen-access-to-social-benefits-a-943224.html> [Accessed September 19, 2014]. The Guardian, September 22, 2013, German Elections 2013, [Online] Available at < http://www.theguardian.com/world/2013/sep/22/germany-election-results-merkel-live-updates> Accessed September 19, 2014]. Appendices Appendix 1: Germany Pool on Greece Support Appendix 2: Germany GDP Performance Read More