POLITICAL AND LEGAL ISSUES IN GERMANY

Introduction:
Germany (German: Deutschland), officially the Federal Republic of
Germany,[e] is a country in Central Europe. It is the second-most populous
country in Europe after Russia, and the most populous member state of the
European Union. Germany is situated between the Baltic and North seas to the
north, and the Alps to the south; it covers an area of 357,022 square kilometres
(137,847 sq mi), with a population of over 83 million within its 16 constituent
states. It borders Denmark to the north, Poland and the Czech Republic to the
east, Austria and Switzerland to the south, and France, Luxembourg, Belgium,
and the Netherlands to the west. The nation's capital and largest city is Berlin,
and its financial centre is Frankfurt; the largest urban area is the Ruhr.
Various Germanic tribes have inhabited the northern parts of modern Germany
since classical antiquity. A region named Germania was documented before AD
100. In the 10th century, German territories formed a central part of the Holy
Roman Empire. During the 16th century, northern German regions became the
centre of the Protestant Reformation. Following the Napoleonic Wars and the
dissolution of the Holy Roman Empire in 1806, the German Confederation was
formed in 1815. In 1871, Germany became a nation-state when most of the
German states unified into the Prussian-dominated German Empire.
After World War I and the German Revolution of 1918–1919, the Empire was
replaced by the semi-presidential Weimar Republic.
POLITICAL ISSUES IN GERMANY
Competition
Competition is also found in politics. In democracies, an election is a
competition for an elected office. In other words, two or more candidates strive
and compete against one another to attain a position of power. The winner gains
the seat of the elected office for a predefined period of time, towards the end of
which another election is usually held to determine the next holder of the office.
In addition, there is inevitable competition inside a government. Because
several offices are appointed, potential candidates compete against the others in
order to gain the particular office. Departments may also compete for a limited
amount of resources, such as for funding. Finally, where there are party
systems, elected leaders of different parties will ultimately compete against the
other parties for laws, funding and power. Finally, competition also exists
between governments. Each country or nationality struggles for world
dominance, power, or military strength. For example, the United
States competed against the Soviet Union in the Cold War for world power, and
the two also struggled over the different types of government (in these
cases representative democracy and communism). The result of this type of
competition often leads to worldwide tensions, and may sometimes erupt
into warfare. Successful leaders recognize the need to adapt to the ever-rapidly
changing ways to do business in the global environment.

Demographic changes
Demographic change can influence the underlying growth rate of the
economy, structural productivity growth, living standards, savings rates,
consumption, and investment; it can influence the long‐run unemployment
rate and equilibrium interest rate, housing market trends, and the demand for
financial assets.
Unemployment
For 2021 thus far, the annual average unemployment rate was 5.8 percent.
Public deficit
The government deficit or reported deficit corresponds to the financing needs
(B9NF) of general government. It is the balance of the general government
capital account.
It is often presented in terms of points of GDP (ratio, expressed as a percentage,
between the financing need and the gross domestic product).
The government deficit measures the difference between all current
expenditure, non-financial investment expenditure and capital transfers of
general government on the one hand, and all of its non-financial resources, on
the other hand.

Reactivating east Germany

The reconstruction of Germany was a long process of
rebuilding Germany after the destruction endured during World War II.
Germany had suffered heavy losses during the war, both in lives and industrial
power. 6.9 to 7.5 million Germans had been killed, roughly 8.26 to 8.86% of the
population (see also World War II casualties).[1][2] The country's cities were
severely damaged from heavy bombing in the closing chapters of the war and
agricultural production was only 35% of what it was before the war.
LEGAL ISSUES IN GERMANY
Employees
Most European countries have similar laws to the US relating to distinguishing
between contractors and employees. Generally, if an individual is under the
management and direction of your business (and has office space and/or
business cards and an email address with your business name), then they’re
likely to be categorized as an employee. As well as filing and payroll
obligations, the employee is protected by the laws of their country of residence.
You should therefore ensure you provide them with a local employment
contract and definitely not a US offer letter: European employment laws offer
significant protection to employees and as an employer the contract is there to
protect you and clarify the terms under which the employee has been hired (and
can be fired).

Tax
Taxes vary from country to country, but one consistent approach is that every
Tax Authority prefers to maximize the contribution it receives from businesses
operating within its borders. Tax structuring advice can help minimize tax
obligations and inter-company agreements can clarify responsibilities under
global transfer pricing rules. Local payroll taxes and social security payments
often need to be deducted at source (and can be managed by payroll providers)
and many sales need to have sales tax 

Data protection
Europe has strict data protection laws which require businesses that receive or
process personal data to follow strict rules regarding it’s receipt, retention and
use. Specific consent or disclosure needs to be made to the owners of the data
and may not be transferred outside the EU without appropriate registrations
being made to ensure its protection and proper use.