Government Type: federal republic

Capital: Berlin Geographic Coordinates: 52 31 N, 13 24 E

Independence: 18 January 1871 (German Empire unification); divided into four zones of occupation (UK, US, USSR, and France) in 1945 following World War II; Federal Republic of Germany (FRG or West Germany) proclaimed 23 May 1949 and included the former UK, US, and French zones; German Democratic Republic (GDR or East Germany) proclaimed 7 October 1949 and included the former USSR zone; West Germany and East Germany unified 3 October 1990; all four powers formally relinquished rights 15 March 1991; notable earlier dates: 10 August 843 (Eastern Francia established from the division of the Carolingian Empire); 2 February 962 (crowning of OTTO I, recognized as the first Holy Roman Emperor)

National holiday: Unity Day, 3 October (1990)

Constitution: 23 May 1949, known as Basic Law; became constitution of the united Germany 3 October 1990

Legal system: civil law system with indigenous concepts; judicial review of legislative acts in the Federal Constitutional Court; accepts compulsory ICJ jurisdiction with reservations

Suffrage: 18 years of age; universal

Economy Overview: The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and declining net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms. The modernization and integration of the eastern German economy - where unemployment can exceed 20% in some municipalities - continues to be a costly long-term process, with annual transfers from west to east amounting in 2008 alone to roughly $12 billion. Reforms launched by the government of Chancellor Gerhard SCHROEDER (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth in 2006 and 2007 and falling unemployment, which in 2008 reached a new post-reunification low of 7.8%. These advances, as well as a government subsidized, reduced working hour scheme, have helped to explain the relatively modest increase in unemployment during Germany's 2008-09 recession - the deepest since World War II. GDP grew just over 1% in 2008 and contracted roughly 5% in 2009. Germany crept out of recession in the second and third quarters of 2009, thanks largely to rebounding manufacturing orders and exports - primarily outside the Euro Zone - and relatively steady consumer demand. The German economy probably will recover to about 1.5% growth for the year 2010. However, a relatively strong euro, tighter credit markets, and an anticipated bump in unemployment could cloud Germany's medium-term recovery prospects. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Angela MERKEL's second term will increase Germany's record budget deficit, which is expected to exceed 5% of GDP in 2010. The EU has given Germany until 2013 to get its consolidated budget deficit below 3% of GDP. A new constitutional amendment likewise limits the federal government to structural deficits of no more than 0.35% of GDP per annum as of 2016.

International Disputes: none