Germany: A European Economic Leader

Germany is arguably the single most important country in bringing about the changes which led to the formation of the European Union. Germany has been known as a nation with great power and one that demands respect ever since World War II.

The United Kingdom and their allies were particularly aware of German ingenuity and productive power after other key nations on the continent fell under German control. Germany's rise to its current position as a European powerhouse started at the beginning of this millennium.

The first records we have about Germanic peoples date all the way to before 100 AD. The Germanic tribes located in central Europe would form a central part of the Holy Roman Empire all the way until the beginning of the nineteenth century. However, the country would not be unified as a nation state until the Franco-Prussian war of 1871.

The repercussions of World War I would see the country divided into East and West Germany (along the lines of Allied occupation of Germany) all the way until 1990. Deliberate efforts to bring the standard of living up in Eastern Germany, which on the average fairs a bit worse than Western Germany, started after the reunification will continue through the year 2019. The results of initiatives to strengthen modern Germany as whole can be witnessed through the economy.

Germany's economy ranks as the third largest in the entire world. Perhaps surprisingly, given its geographic size, Germany was the top exporter in the world in both 2006 and 2007, exporting over $1 trillion worth of goods in 2006.

Common goods exported include automobiles, machinery, chemicals and energy equipment for both solar and wind energy. Other exports include tech based products like Nero AG's popular software Nero Burning Rom, SAP's Enterprise Resource Planning, LaserSoft Imaging AG's SilverFast, and several video game developers just to name a few. The German economy includes multiple Global Fortune 500 companies.

Daimler, Volkswagen, and Siemens are all examples of these companies. Brands like Audi, Porsche, Adidas, and Nivea are all highly popular even though they may not be on the Fortune Global 500. Also, while the German GDP relies in part on highly visible international companies, the service sector comprises the largest share at roughly 70 percent.

After the service sector industry comes next at about 29 percent of the GDP and agriculture only 1 percent. Besides establishing a strong service sector and exporting by the trillions, Germany also seeks the welfare of Europe as a whole.

One evidence of this trend is the adoption of the Euro in 1999. German fiscal policy makers also adhere to the decisions of EU members and EU single market legislation. Strengthening these policies is one way that Germany leads out as a centralizing force in the EU today.