Summary germany

Running Head: POLITICAL ENVIRONMENT OF GERMANY 1

POLITICAL ENVIRONMENT OF GERMANY 1

Political Environment of Germany

Neel Patel

BUA 3345

Meghan Wright

October 2, 2020

According to the most recent survey that was sourced from the World Bank in the year 2020, the political stability of Germany was estimated to be at 0.60. This figure was laid down based on the World Bank collection of development indicator. The data was compiled from various source ranging from historical data, projections, estimate data, and actual values, all of which were sourced from the World Bank in the month of September 2020. Political stability including the absence of terrorism and violence has been used to measure Germany’s likelihood of political instability and/or violence that is motivated by politics inclusive of terrorist activities. It is evident that Germany has not witnessed a coup from the year. Owing to this, at least 80% of the German citizens consider national stability as one of their strengths.

Like the majority of the western countries, the tax system in Germany is designed in a way that every individual is expected to pay their income tax throughout the year. This is made possible because the employer deducts tax from the paychecks of every employee. In the event of possible over or under payments, the employers make necessary adjustments at the end of the year. Like most of the countries, Germany paves way for a number of deductions which can lower the taxable income. As such, deductions are granted specifically for individuals with children under the age of 18 years of age or those which children who are barely 27 years of age but are still enrolled in school without earnings (Dudášová, 2017). Furthermore, deductions are made to individuals under the following conditions; if they fall under four social programs that include health insurance, unemployment, long-term nursing care, and retirement.

Contract enforcement laws is a contributing aspect in the political environment of Germany. In fact, the contract enforcement law in Germany is considered as the most important aspect for businesses or organizations that go into business with other organizations. In Germany, the contract enforcement laws are set in place to ensure that employees are guaranteed to the right to enter into agreement with their employers. Employees in Germany have the power to enter into any contract whatsoever as long as they do not breach any other law that is related to the object of the contract whether oral or written. However, it is worth pointing out that the most common employment contract in Germany is written and not oral. It is worth noting that the contract employment laws in Germany are majorly based n individual employment contracts, Federal Legislations, bargaining agreements, and works council agreements. “Many labor and employment law matters are heavily influenced by case law so that judicial precedent is an important part of the legal framework.” (Siri, 2018)

Lastly, the employment laws in Germany often apply only to independent employee considering that the term “employment” has traditionally barely been defined by the laws of the country. Employees residing in Germany often practice employment agreement in writing even though it is not mandatory according to the employment laws. Nonetheless, the employer is expected to lay down the terms and conditions of the employment not more than 30 days after the commencement of the employment relationship. Also, the country’s employment laws clearly state the conditions of employment including the minimum wage, and employee vacation.

References

Dudášová, M. (2017). Alternative for Germany—more than a fleeting phenomenon. Society and Economy, 39(3), 429-449.

Siri, J. (2018). The alternative for Germany after the 2017 election. German Politics, 27(1), 141-145.