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Region: Economics and Sociology

2009 year, number 1

Fiscal federalism in Germany: topical trends of how it develops

G. Ferber, K. Baranova


The paper shows how the executive federalism in Germany has transformed into the federalism of division of powers between the federal center and land governments in the result of the reform of intergovernmental fiscal relations. The paper presents a comparative analysis of the mechanisms provided financial equalization of lands and municipalities and existed in the pre- and after-reform periods. The paper shows the reasons of  the German public and lands' debts. The authors conclude that the reform of intergovernmental fiscal relations may further go in the way of strengthening positions of the federal center in all spheres.