Germany and Austria

1. Germany and Austria Robert Kauffman European Economic Integration: Country Presentation Monday, May 9th, 2005

2. Location Federal Republic of Germany Berlin Republic of Austria Vienna

3. Area357,021 sq km Population 82,431,390 (2005 est.) 231 ppl/sq km (est. 2005) Pop. Growth Rate 0.0% (2005) 2.18 migrants/1000 pop. Life Expectancy Total- 78.65 years Area 83,870 sq km Population 8,184,691 (2005 est.) 98 ppl/sq km (est. 2005) Pop. Growth Rate 0.11% (2005) 1.97 migrants/1000 pop. Life Expectancy Total- 78.92 years General Information

4. Who are the…. Germans • 91.5% of Germans are native Germans • 2.4% of Germans are Turks • 6.1% of the German population is made up of: Greeks, Italians, Poles, Russians, Spaniards Austrians • 88.5% of Austrians are native Germans • 1.5% of Austrians are from indigenous minority groups: Croatians, Slovenes, Hungarians, Czechs, Roma • 10% of Austrians are immigrants: Turks, Bosnians, Croatians

5. 2004 GDP Estimates GDP- $2.362 trillion GDP/Capita- $28,700 GDP Growth- 1.7 % GDP by Sector Agriculture- 1% Industry- 31% Services- 68% Inflation Rate- 1.6% Unemployment- 10.6% 2004 GDP Estimates GDP- $255.9 billion GDP/Capita- $31,300 GDP Growth- 1.9 % GDP by Sector Agriculture- 2.3% Industry- 30.8% Services- 66.9% Inflation Rate- 1.8% Unemployment- 4.4% Economic Information

6. Government Budget Revenue- $1.2 trillion Expenditure- $1.3 trillion Balance- $-100 billion Public Debt 65.8% of GDP Account Balance $73.59 billion Government Budget Revenue- $142.5 billion Expenditure- $146.4 billion Balance- $-3.9 billion Public Debt 64.2% of GDP Account Balance $-3.283 billion Government Accounts

7. European Monetary Union • Price stability. the average rate of consumer price inflation over the previous 12 months must not exceed by more than 1.5 percentage that of the three best performing member states and this performance should be sustainable • Public finance. The financial position of the member country's government must be sustainable (I) the general government deficit should not exceed the treaty's reference value of 3 percent of GDP and (ii) the gross debt total of the general government should not exceed the reference value of 60 percent of GDP • Interest rates. Long-term government bond yields averaged over the previous 12 months should not exceed by more than 2 percentage points the three countries with the lowest inflation

8. Fiscal Policy • Germany: Always by far the largest net contributor, Germany’s role in financing the EU was at the forefront of the ‘04 Budget debate • Austria: As EU President in 1998, Austria made tax harmonization, recruitment, and business transparency a main focus

9. Agricultural Products Wheat, potatoes, barley, fruit; poultry, cattle, hogs Fisheries N. Atlantic and North Sea Subsidy Dispute -EU farmers vs. American -Franco-German Issue -Common Ag Policy (CAP) Agricultural Products Grains, wheat, wine; poultry, hogs; lumber Fisheries Received 5 yr grant to revitalize stock in ’94 Subsidies Mountain terrain makes graduated subsidies necessary Agricultural and Fisheries Policies

10. Unemployment -10.6% nationally -Strict layoff/wage policies fuel unemployment Social Security -Negative balance -Aging population -$70 billion/year East Germany Immigration Unemployment -4.4% nationally -Does not face same problems as Germany Social Security -High Pension/Health costs -Aging population -Welfare/tax system threatened Immigration Social Policies

11. External Relations • Both Germany and Austria are members of numerous international organizations in addition to being members of the EU: Interpol, the UN, The Paris Club, IDA, IEA, IFAD, NATO (G), and many more NGO’s and IGO’s,

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