The theory of federalism revisited

Research Paper (undergraduate) from the year 2005 in the subject Business economics - Economic Policy grade: 17 Friedrich-Alexander University Erlangen-Nuremberg (Finanzwissenschaften) course: The reform of federalism language: English abstract: The term federalism derives from the Latin word foedus and is rendered in the words alliance and treaty or agreement. Federalism describes a national form of organization consisting of at least two members who are joined together by means of a voluntary agreement or treaty into a unitary state having its own national characteristics1 but without discarding the distinctive national attributes. Through this coalition the individual / federal states surrender their jurisdiction and individual powers to the unitary state. In return the federal system makes sure that the unitary state and the individual states control and assist each other mutually when fulfilling their obligations.2 Federalism is especially characterized in that assignments revenues and expenses are distributed on several national levels.3 Furthermore federalism must safeguard a certain unit from a (foreign) political economic military and socially cultural point of view.4Basically federalism implements an equilibrium between decentralization and centralization.5 Aided by expenses and the division of assignments revenues and expenditure an optimal allocation is put from theory into practice.6 In Germany the 16 federal states (Länder) make up the federal state the German Federal Republic. Powers to and responsibility for national assignments in the government and governmental management legislation and the administration of justice is divided between the federal state and the individual states. The German constitution ensures that in addition to this vertical division between the federal and the individual states' authorities a horizontal division of powers exists between the legislative executive and judicial branch thereby formin