The federal states as constituent states and the Federation as the state as a whole each have public authority of their own. The federal states each have their own state constitution, parliament, administrative structures and responsibilities.

Division of responsibilities between the Federation and the federal states

Germany’s constitution, the Basic Law, divides the exercise of state authority between the federal and state levels. The exercise of state powers and the discharge of state functions is generally the responsibility of the federal states (Articles 30, 70, 83 of the Basic Law). The Federation is responsible for legislation, administration and court decisions only if explicitly provided for in the Basic Law. Furthermore, the Federation is responsible if the responsibility for a specific subject matter is derived from an interpretation of the constitution, even if it is not explicitly mentioned in the constitution.

The details regarding the division of responsibilities and especially the financial relations between the Federation and the federal states were the subject of a reform of Germany’s federal system which was implemented in two stages in 2006 and 2009.

In good time before the expiry of the Solidarity Pact II in 2020, the financial relations between the Federation and the federal states as well as the financial equalisation mechanism between the federal states were fundamentally reformed through comprehensive constitutional amendments.

Local authorities are part of the federal states

Under law relating to the organisation of the state, local authorities (municipalities and associations of municipalities) are part of the federal states and not a third level within the federal system.

At the same time, the constitutionally guaranteed right to local self-government gives local authorities a certain independence. The Basic Law stipulates that they must be given the opportunity “to regulate all local affairs on their own responsibility, within the limits prescribed by the laws” (Article 28 (2) of the Basic Law).

The local authorities are also entrusted with many state tasks designated by law, which they carry out as local administrative bodies of the federal states.

German federalism aims at cooperation instead of division

Generally speaking, the federal system enshrined in the Basic Law aims to foster cooperation between the Federation and the federal states rather than creating a division between them. The principle of federalism anchored in the Basic Law obligates the Federation and the federal states to show mutual consideration and provide mutual assistance (principle of loyalty within the federal system/principle of pro-federal behaviour).

The cooperative nature of Germany’s federalism is also reflected in the fact that, through the Bundesrat, the federal states are involved in the legislative process at federal level, in federal administration and in matters related to the European Union.

The division of the Federation into federal states and their participation in the legislative process at federal level are core principles of Germany’s constitution that cannot be changed (Article 79 (3) of the Basic Law).