The public service in Germany

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1 The public service in Germany

2 - 1 - TABLE OF CONTENTS Preface... 2 The public service in numbers...3 Federal Republic of Germany...4 I. The structure of the state and of the public administration in Germany Tiers of state governance and administration The administration of the Federation The administration of the Länder The administration of local authorities The indirect public administration The non-public institutions The judiciary...24 II. Modernising the Public Administration Modern State - Modern Administration ( 2. Bund Online2005 ( III. The foundations of employment in the public service Employment in the public service Eligibility for the public service Foundations of the employment of civil servants The foundations of the relationship between public employer and employee General terms of employment for civil servants and public employees Occupational health and safety...81 IV. The pay systems in the public service The remuneration of civil servants The pay of public employees Special payments Salaries and wages in the new Länder Salary and wage increases The remuneration of members of the government Reform measures Developments in personnel expenditure V. The pension systems in the public service The pensions of civil servants The pensions of public employees VI. Annex Summary of the most important sources of legislation...128

3 - 2 - Preface Dear reader The public administration of the Federation, the federal states (Länder) and the local authorities with their 4.8 million staff, of which approximately 1.6 million are civil servants, is at the service of the citizens of our country. Close contact with citizens, quality and efficiency are the guiding principles of the public service in performing its diverse tasks. All reform efforts aim at constantly improving performance while at the same time reducing costs. With this second edition of the brochure about the public service in Germany, the first edition of which was published in 1999, I would like to inform the interested public about the evolution of the public service, covering, for example, the Federal, Länder and local authority administrative structure in Germany, working conditions, remuneration and pensions of civil servants and public employees. The esteemed reader may also gain insight into the Federal Government's initiatives for reforming the Public Service Law under the programme "Modern State - Modern Administration". The preparedness of our staff to take responsibility and to perform, combined with high motivation, are essential prerequisites without which the public service could not fulfil its demanding tasks on behalf of Germany's citizens so effectively. I have good reason to thank all our public service staff members - working in the schools and universities, the police and security authorities, the health sector and the general administration, as well as in other authorities and institutions - for their responsible work. Otto Schily Federal Ministry of the Interior

4 - 3 - The public service in numbers (as per 30 June 2000) Total number of persons in gainful employment in Germany 1 36,6 million Men 20,7 million Women 15,9 million Public service staff: 2 4,8 million Men 2,3 million Women 2,5 million Area of employment Federation 502,000 Indirect public service 488,000 Länder 2,273,300 Local authorities 1,572,000 Employment relationship Civil servants 1,588,600 Judges, public prosecutors 27,400 Professional and fixed-term military personnel 186,600 Salary earners in the public service 2,351,500 Wage earners in the public service 681,200 Indirect public service 10% Federation 10% Wage earners 14% Civil servants, judges 33% Local level 33% Länder 47% Salary earners 49% Professional and fixed-term military personnel 4% 1) Source: Federal Statistical Office, series 1, vol. 3, ) Source: Federal Statistical Office, series 14, vol. 6, 2000

5 - 4 - Federal Republic of Germany Schleswig-Holstein 2.8 million inhabitants Bremen 0.7 million inhabitants Hamburg 1.7 million inhabitants Mecklenburg-Western Pomerania 1 8 million inhabitants Lower Saxony 7.9 million inhabitants Berlin 3.4 million inhabitants Saxony-Anhalt 2.6 million inhabitants Brandenburg 2.6 million inhabitants North-Rhine Westphalia 18.0 million inhabitants Hesse 6.1 million inhabitants Thuringia 2.4 million inhabitants Saxony 4.4 million inhabitants Rhineland-Palatinate 4.0 million inhabitants Saarland 1.1 million inhabitants Bavaria 12.2 million inhabitants Baden-Württemberg 10.5 million inhabitants

6 - 5 - Area 357,000 km 2 Total population 82.2 million inhabitants - Men 40.1 million (48.8%) - Women 42.1 million (51.2%) of whom: foreigners 7.3 million (8.9% of the total population) of whom: EU citizens 1.9 million (2.3% of the total population) Source: Federal Statistical Office, population statistics 2000

7 - 6 - I. The structure of the state and of the public administration in Germany 1. Tiers of state governance and administration In the Federal Republic of Germany, the fundamental order of the state is governed by the constitution, the Basic Law of 23 May A fundamental principle enshrined in the Basic Law is the rule of law, which is the very basis of the order of the state. It determines the relationship between the state and its citizens. Three principles enshrined in the Basic Law are of particular significance for the structure of the state and the administration, namely: the separation of powers, the federal system of government, the self-government for local authorities. The separation of powers is at the core of the rule of law. In order to safeguard the interests of the citizens vis-à-vis the state and to prevent the state from becoming allpowerful, state power is divided into three functions - legislative, executive and judicial - which are each assigned to special bodies. The principle of the separation of powers is intended to allow these state functions to limit and control each other. Germany was constituted as a Federal Republic on the basis of the Basic Law. The Federal Republic is a federation of subnational states (Länder) in one country with a federal government (Bund). As members of this Federation, the Länder are states with sovereign rights and responsibilities which are not devolved from the Federation but are granted to them by the Basic Law. State power is divided between the Federation and the Länder according to the tasks and functions they perform. The Basic Law assigns everything that has to be regulated and managed in the general interest of the public to the Federation. The Länder have been assigned responsibility in all other matters. Accordingly, the main force of the legislative lies with the Federation, and the focus of the administrative apparatus with the Länder. In

8 - 7 - the Federation and the Länder, the vast majority of administrative tasks are carried out by the "direct state administration" (i.e. by Federal or Land authorities), but also in part by legally independent administrations, known as "indirect" public administration. The legally and organisationally independent institutions of the "indirect" administration are subject only to limited state supervision - or are completely independent, as is the case with the German Central Bank (Bundesbank). Many links between the different institutions force the decision-makers of the Federation and the Länder, which are autonomous under constitutional law, to work together in carrying out tasks. The Länder influence the legislation and administration of the Federation, as well as matters concerned with the European Union, through the Bundesrat. In a federal system, a certain degree of co-ordination both among the Länder and between the Länder and the Federation is necessary in the interest of functionality. Therefore the state and administrative apparatus are largely structured along uniform lines. The following make a major contribution to this uniformity: the legal system, which is largely uniform throughout the Federation, the public service, which is largely standardised throughout the Federation, and the economic and financial system, which is uniform throughout the Federation. Responsibility for the public administration, however, does not lie with the Federation and the Länder alone. Under the Basic Law, local matters are dealt with independently by the bodies of local self-government (local authorities). In addition, local authorities also perform state functions on commission. Three main, independent levels can be distinguished as a basic layout in the structure of the administration: the administration of the Federation, the administration of the Länder, and the administration of the local authorities.

9 - 8 - In principle, each of these administrative tiers has its defined group of functions. There is no hierarchical pyramid of agencies from local authority through a Land to the Federation. In total, the direct state administration, the administration of the local authorities and the indirect public administration employ a staff of almost 4.8 million. Of these, 502,000 (of whom 187,000 are military personnel) work in the Federal administration, 2.3 million in the Länder administrations, 1.6 million in the local authorities' administrations, and 488,000 in the indirect public administration. In Germany the proportion of public service staff in the total population is in line with the international average. in % Australia Proportion of public service staff as a percentage of the entire population by countries as of 1998 Source: OECD, publication by PUMA/Human Resources Management (2000) Austria Canada Czech Republic Denmark Finland France Germany Hungary Italy Korea New Zealand Portugal Spain Sweden UK USA

10 The administration of the Federation The - numerically rather small - direct federal administration with approx. 315,000 public service staff members (excluding the military) performs those public tasks which need to be carried out specifically by the Federation and which are necessary or expedient in the interest of the state as a whole. The federal administration includes the Federal Government in its policy-making role, and authorities which carry out administrative functions of the Federation. Accordingly, we distinguish between the highest federal authorities and the subordinate federal authorities. Highest federal authorities The Federal Government consists of the Federal Chancellor and the federal ministers. Three independent federal authorities report directly to the Federal Chancellor: the Federal Chancellery, the Press and Information Office of the Federal Government, and the Federal Government Commissioner for Cultural Affairs and the Media. Each federal minister is in charge of one federal ministry. According to the organisational provisions contained in the Basic Law (Art. 65), three principles guide the work of the Federal Government: The general policy principle: The Federal Chancellor determines and is responsible for general policy. The ministerial principle: Within the general policy determined by the Federal Chancellor, each federal minister conducts the business of his/her department autonomously and on his/her own responsibility. The collegiate principle: The Federal Government decides as a collegiate body on important matters, particularly concerning differences of opinion between the federal ministers. The Federal Chancellor plays a key role in organizing the government and assigning government posts. It is at his/her proposal that the Federal President appoints and dismisses federal ministers. The Federal Chancellor is hence entitled to form a Cabinet. He/she also has the power to determine the basic portfolios of the individual federal ministers on the basis of the entitlement to determine general policy. This organisational power of the Federal Chancellor may also not be restricted by the parliament.

11 The number of federal ministries has varied between 13 and 21 since the founding of the Federal Republic of Germany. The Federal Government has a total of approx. 23,000 staff members. The federal ministers decide whether a task is to be performed in the Ministry itself or assigned to subordinate federal authorities. As a rule, only matters of political significance, in particular preparing statutes, ordinances and other general regulations, are carried out in the Ministry. One task of the federal ministries is also to supervise subordinate federal authorities. Generally the federal ministries have no supervisory powers over Land authorities, the only exception being the (few) cases of federal administration by delegation of authority (e.g. in the area of civil use of atomic energy). Here the Federation retains its responsibility for the matter. The Federation has possibilities for supervision and intervention in order to ensure that tasks are performed in compliance with the law and the principle of usefulness. Example of the organisation of a federal ministry: Organisation of a federal ministry 1) Minister's Office Federal Minister Parliamentary State Secretary State Secretary State Secretary Directorate- General Central Tasks specialized Directorate- General specialized Directorate- General specialized Directorate- General Division Division Division Division Division Division Division Division Division Division Division Division Officer for Gender Equity Staff Council 1) Other forms of organisation are possible (Directorates-General may be divided into Directorates; working units may take the form of a division, a working group or a project group).

12 In addition to the Federal Government, the other constitutional bodies - the Federal President, the German Bundestag (Lower House of Parliament), the Bundesrat (Upper House of Parliament) and the Federal Constitutional Court - have their own administrative apparatus. The largest of these belongs to the German Bundestag, with a staff each of approx. 2,100. The administrations of the other constitutional bodies, on the other hand, are made up of more than 200 staff each. The Federal Court of Audit is also one of the highest federal bodies. It is independent of the Federal Government. The Federal Court of Audit, with a staff of approx. 600, examines the economic viability and proper financing of the federal administrative budget as a body of financial control. Areas of federal administration The Federation possesses administrative authority only to the extent that the Basic Law expressly invests it with such authority by virtue of a specific context or of the nature of a matter. The scope of the Federation's own administration, known as direct federal administration, is hence strictly controlled. These are matters which are closely linked to the ability of the state as a whole to take action. Under the Basic Law, of the administrative areas dealt with by the federal administration, the following matters fall within the responsibility of the Federation: Foreign Service: The Foreign Service employs a staff of 8,700, incl. local staff, at home and in the 200 diplomatic missions abroad (embassies, consulates and permanent representations at international organisations). Federal financial administration: The areas of fiscal and customs administration, amongst others, fall within the remit of the federal financial administration. The customs system has a three-tier structure of authorities with intermediate authorities (regional finance offices) and local authorities (customs offices). At the same time, the regional finance offices head the financial administration of the Federation and the Länder in their district. All in all, the financial administration oversees a complicated division of tasks between the Federation and the Länder, including local authority administration. The obligation to work together is

13 intended to contribute to involving all levels of the federal state structure in the collection of state revenues. The Federal administration has a staff of 48,000 in this area. Federal armed forces (Bundeswehr) and the defence administration: The armed forces are not counted as part of the administrative apparatus because of their military functions; the administration of the Bundeswehr, however, whose functions include personnel and resource management, is included. The armed forces are made up of 186,600 professional and fixed-term military personnel (not including conscripts). The number of civilian staff in the federal armed forces is about 135,000. Federal waterways and shipping: The Waterways and Shipping Administration, with a staff of 17,000, constitutes a separate federal administration with intermediate authorities (Waterways and Shipping Directorates) and subauthorities (Local Offices for Waterways and Shipping). Federal Border Police Authorities, Federal Criminal Police Office: The Federal Border Police (BGS) and the Federal Criminal Police (BKA) are federal police forces. The Federation assumes police tasks as far as needed on the federal level. The main tasks of the 38,000 staff of the Federal Border Police include border management and surveillance, railway police tasks and the protection of air transport at larger airports as well as providing assistance to the Länder at their request. The Federal Criminal Police Office is a higher federal authority and as such responsible for the co-operation with the Länder and for certain criminal police tasks. It has a total staff of 4,500. The intelligence services of the Federation are the Federal Intelligence Service (BND), the Federal Office for the Protection of the Constitution (BfV) and the Military Counterintelligence Service (MAD).

14 The railways, postal and telecommunications services, as well as air traffic control, which used to be part of the Federal administrative apparatus, have been privatised, with the exception of regulatory and supervisory functions. The German railways have been transferred to Deutsche Bahn AG. Postal and telecommunications services are also provided under private law by Deutsche Post AG, Deutsche Telekom AG and Deutsche Postbank AG. Air traffic control has been assigned to Deutsche Flugsicherung GmbH. A total of 1 million staff were employed in these areas in 1993, before privatisation started. The privatised enterprises still employ civil servants on the basis of interim provisions. The latter have however not been included in the statistical information on overall employment in the public service. 3. The administration of the Länder In addition to the local authorities, the Länder are the major administration level in Germany with a total of 2.3 million staff in the public service of the Länder. In Germany, the 16 Länder can be divided into two categories: territorial states (Baden-Württemberg, Bavaria, Brandenburg, Hesse, Mecklenburg Western-Pomerania, Lower Saxony, North-Rhine/Westphalia, Rhineland-Palatinate, Saxony, Saxony-Anhalt, the Saarland, Schleswig-Holstein, Thuringia) and city-states (Berlin, Bremen and Hamburg). There is also a fundamental distinction for the Land administration between political activities which are exercised by the Land government and the exercise of administrative tasks. In contrast to the federal administration, however, the focus is on administrative tasks. The Land Ministries, as the highest Land authorities, are hence much more involved than the Federal Ministries in the actual implementation of policies. The actual organisation of the Land administration is up to each individual Land. In spite of this autonomy, the Land administrations have developed along similar lines as a result of a two-hundred-year tradition. Most Länder with a large surface area have a three-tiered structure of authorities with the highest Land authorities (Land Ministries) at the top,

15 government commissioners or regional governments as an intermediate instance and the lower administrative authorities, some of which are also attached to the local administration (county district commissions and/or local authority offices), as state interfaces. Some of the smaller territorial states, as well as the city-states, do not have the intermediate levels. The city-states combine state and local administration. The Land governments (or Senates) carry out Land and local authority tasks at the same time. In addition to the general administrative authorities, the Land administration also has special Land authorities (higher Land authorities, higher and lower special authorities). These special authorities have been established as tasks have been removed from the Ministries and the general administrative authorities. Special authorities have been primarily formed at central and lower levels. Without having their own sub-structure of authorities, the higher Land authorities carry out specific administrative tasks from one location for the whole Land (examples: the Land statistical offices, the Land criminal police offices, the Land offices for the protection of the constitution, the Land offices for remuneration and pensions). Higher special authorities have the function of an intermediate authority between the Ministries and the lower special authorities (examples: regional finance offices, regional education offices and forestry directorates). The lower special authorities at local level, which may be part of local authorities, are numerous and varied. They include the tax offices, forestry offices, mining offices, factory and trade supervision offices, school offices, health offices, state offices for university building, road construction offices, local offices for waterways and shipping, Land survey offices and agriculture offices. State environmental offices have been established as special authorities in some of the Länder. In all the Länder, the largest number of staff is employed in the educational sector with schools and universities, the police and the financial administration.

16 In the academic year 2000/2001 a total of 785,000 teachers was employed at public schools (general and technical schools). The Ministries of Culture and Education of the Länder are responsible for the internal administration of the schools, i.e. for training and appointing teachers, as well as for curricula and designing lessons, and for supervising schools. The Länder's responsibility extends to all types of school, including vocational schools, and the supervision of private schools. The Länder coordinate the mutual recognition of school qualifications, amongst other matters, via the permanent institution of the Conferences of Ministers of Culture and Education. The local authorities are generally responsible for external school matters, i.e. for building and furnishing schools and providing teaching materials and administrative staff. Source: Federal Statistical Office, series 11, vol. 1, 2000 Higher education institutions combine research, teaching and training for the new generation of academics. A system of different kinds of higher education institutions (e.g. universities, polytechnics (Fachhochschulen), vocational academies) offers people various possibilities of qualifying for a profession and gaining a degree. Within that system, education at universities is more theoretical, whereas technical college education is more practically oriented. Vocational academies combine practical training in a company with classroom studies. The higher education institutions are assigned to the academic administration of the individual Länder. Germany has 350 higher education institutions with a total of 1.8 million students (2000). About 488,700 persons are employed at universities, Fachhochschulen and vocational academies, of whom 219,300 work in the arts and sciences, including 38,000 professors (who enjoy special academic freedoms anchored in the Basic Law) and 269,400 are administrative, technical or other personnel. The university hospitals employ about 189,200 staff. Source: Federal Statistical Office, series 11, vol. 4.4, 2000 In the area of law enforcement, the Länder employ approximately 273,600 staff, of whom 228,000 are police officers. In the Länder with a large surface area (territorial states), the authorities of the three levels of the general administrative apparatus are also responsible for fulfilling the duties of general police

17 authorities; in some cases there is a fourth level of mayors who are also responsible for fulfilling the duties of local police authorities.. With more than 153,600 public service staff, the financial administrative apparatus of the Länder collects taxes, as well as a large proportion of other levies. The financial administrative apparatus also manages state assets and the state's commercial holdings. Public service staff in the direct Land service as per Portfolio Staff in % Schools and pre-school institutions Higher education institutions Fiscal and financial administration 817, , , Judicial institutions 189, Police 273, Others 601, Total 2,273, Source: Federal Statistical Office, series 14, vol. 6, The administration of local authorities The local authorities - municipalities/towns and rural districts (local authority associations) - are parts of the Länder which have exclusive responsibility for regulating the structure of local administration and the territorial borders of the local authorities and districts in accordance with Land legislation. There are 440 rural districts and towns not belonging to a county and approx. 13,800 municipalities in Germany. The municipalities, local authorities and local joint authorities employ 1.57 million people. Enterprises organised under private law employ approx. 300,000 persons.

18 The local authorities are subject to the supervision and - where they carry out state tasks - to the instructions of the Land authorities. The municipalities deal with local matters on their own responsibility. This self-government for local authorities is protected by Art. 28 of the Basic Law. Self-government for local authorities is a major element of the political order in Germany. The local authority constitutions of the individual Länder provide for a variety of models for organising the administrative apparatus. Municipality/district administrations are led by fulltime civil servants. Depending on the type of the local authority constitution and the nature of the local authority, the official titles of these permanent civil servants differ (e.g. in municipalities: mayor or lord mayor, municipal councillor, city councillor or chief executive of a city; in rural counties: councillor or chief executive of a county). They are elected either by the local authority parliament or - increasingly - by direct vote. In addition, local authorities also perform state functions as charged. Most administrative matters that affect citizens are dealt with on the local level. Local authority administrations make up the third pillar of administration in Germany. Their tasks include above all the administration of construction in the broadest meaning of the word (incl. town planning, road building and housing), social and health services, as well as public facilities (e.g. swimming pools, kindergartens and sports facilities). The local authorities are also responsible for providing local public transport and refuse disposal and supplying the population with water, gas, electricity and district heating. These utilities are largely operated as enterprises organised under public law.

19 Staff employed by municipalities, associations of municipalities and local joint authorities as per Portfolio Staff in % General administration 249, Public safety, law and order 115, Schools 128, Science, research and culture 86, Social security 281, Health, sport and leisure 84, Construction and housing, transport 138, Public institutions, promotion of economic 155, development Hospitals 278, Others 58, Total 1,572, Source: Federal Statistical Office, series 14, vol. 6, The indirect public administration Institutions with special tasks constituted under public law which are not incorporated into the direct state or local authority administration are part of the indirect public administration. These are largely the social insurance institutions. They are part of the public service because they are bodies and institutions under public law and provide their services in accordance with federal statutes. They are however self-governing, autonomous institutions in which the honorary governing boards are in most cases equally composed of representatives of employers and insured parties - in almost all cases, the group of the insured parties is represented by the trade and labour unions. Specifically, these are: the agencies responsible for the statutory pension insurance (i.e. of the general system of pension, disability and surviving dependants insurance in Germany), namely the Federal Insurance Institute for Salaried Employees

20 (Bundesversicherungsanstal für Angestellte) and 17 Land Insurance Institute for Salaried Employees (Landesversicherungsanstalten) responsible for the pensions insurance of wage-earners, with a total staff of 73,000, the employment administration, carried out by the Federal Institute for Employment (Bundesanstalt für Arbeit) with a main office, ten Land Offices of Employment and 181 employment offices, as well as a total staff of 92,000, the agencies responsible for the statutory health insurance and old-age nursinghome insurance (local health insurance funds, substitute health insurance funds, guild's health insurance funds, company insurance funds, etc.) with a total staff of 139,000, the statutory accident insurance institutions (93 Berufsgenossenschaften and in the public sector accident insurance funds (Unfallkassen) or the like) with a total staff of 30,000, and the federal miners' insurance fund (Bundesknappschaft), with a staff of 14,000. Additionally, the German Central Bank (Deutsche Bundesbank) and other legally independent institutions are part of the indirect public administration. The indirect public service employs a total staff of 488,000. The Deutsche Bundesbank, which has its headquarters in Frankfurt am Main and employs a total staff of 16,500, is an integral part of the European System of Central Banks (ESCB) within the Economic and Monetary Union. 6. The non-public institutions Particularly in social and health services, the number of staff employed by the public agencies (i.e. by the Länder and the local authorities or local authority associations) does not represent the total number of staff providing these services for citizens. To a considerable extent, non-public institutions are also highly active here, in particular church or other non-profit organisations, and to a lesser extent also commercial service providers.

21 In 1998 a total of 573,000 staff was employed in the area of child and youth services (nursery schools, children's homes, youth centres, facilities for children and young people with disabilities, etc.). Public agencies employ 228,000 staff, followed by church agencies with a staff of 200,000. If institutions are operated by independent child and youth welfare agencies, public child and youth welfare agencies (run by counties and towns not belonging to a county, under Land law also municipalities) should not establish their own institutions. In 1998, about 67% of kindergartens were operated by independent child and youth welfare agencies on the territory of the former West-Germany, whereas this figure was about 31% in the new Länder. Approx million staff were working in hospitals in 2000, 1.05 million of them in general hospitals. Public hospitals employed 630,000 of these, the others were employed by hospitals operated by non-profit organisations or commercial enterprises. Approx. 45,000 teachers were working at a total of 2,326 independent private schools in the 2000/2001 academic year, teaching more than 560,000 pupils. The right to establish private schools is expressly provided by the Basic Law, and to some extent by corresponding provisions in the Land constitutions. The right to establish private schools rules out a state monopoly on schools. Private secondary schools, known as alternative schools, also fulfil the requirement of compulsory school attendance. Alternative schools may have a special focus or function, for instance as confessional schools, reform schools, boarding schools or international schools. Alternative schools require approval from the school authorities. The number of higher education institutions operating as independent agencies remains limited. The higher education system in Germany consists primarily of public higher education institutions of the Länder. Of the 350 higher education institutions approx. one-third is operated by independent agencies.

22 The judiciary Judges are entrusted with judicial authority in accordance with Art. 92 of the Basic Law; this authority is exercised by the Federal Constitutional Court, by the Federal Courts provided for in the Basic Law and by the courts of the Länder. Judicial power covers five separate branches of the court system: ordinary (civil and criminal) jurisdiction, administrative, financial, labour and social jurisdiction (Art. 95 (1) of the Basic Law). Added to these are the Constitutional Courts and special courts for certain professions (e.g. disciplinary tribunals for civil servants, judges and soldiers and those for lawyers and doctors). Courts-martial are only used for the armed forces abroad or on board ships of war and in wartime. Jurisdictional sovereignty is distributed between the Federation and the Länder in such a way that in each branch of the court system the highest courts are federal courts, and all other courts (with few exceptions) are Land courts. The structure varies within the branches of the court system, in most cases it is a three-tier structure. Justice is administered by professional and honorary judges. The judges are independent in the exercise of their judicial office, and are subject only to the law (personal and factual independence, Art. 97 of the Basic Law). Professional judges are appointed for life. Their appointment ends on retirement (apart from judges at the constitutional courts who are appointed for a specific term of office; at the Federal Constitutional Court the term of office is 12 years, ending upon mandatory retirement at the age of 68.

23 Judges and public prosecutors at federal and local level as per judges public prosecutors Federation Länder 21,500 5,350 Total 22,000 5,400 Source: Federal Statistical Office, series 14, vol. 6, 2000 Honorary judges act in criminal matters (as "lay judges") and at labour and social courts, as well as administrative courts of first instance; in civil jurisdiction only in the specific chambers for commercial matters. They have the same rights and duties in discussions and deliberations as professional judges. They are appointed for a specific term and may only be removed from office prematurely by judicial decision.

24 II. Modernising the Public Administration The State and its administrative apparatus do not exist as ends in themselves. They exist to serve the citizens, who rightly demand that their tax money be spent wisely. That means: better services geared to the changed requirements of citizens and industry. 1. Modern State - Modern Administration ( In December 1999 the Federal Government launched the "Modern State - Modern Administration" programme. Business administration tools such as target agreements, cost-output accounting, controlling, budgeting, creativity management have helped increase the capacity, efficiency and transparency of the federal administration's activities, as the statistics clearly prove. By now 306 federal agencies are using cost-output accounting, which provides the necessary transparency of outputs and costs. To be fully effective cost-output accounting must be used in conjunction with controlling in order to gain relevant management information. While in 1998 only 25 agencies had set out to implement controlling concepts, today the number has risen to 215 agencies. Another particularly effective means to enhance the public administration's operational efficiency is competition through benchmarking. Benchmarking is an appropriate tool to encourage competition and promote continuous improvement. Therefore, several interand intra-ministerial benchmarking rings have been established since summer Benchmarking has been applied to areas such as personnel management, information technology and bonus procedures. Experience gathered from projects carried out so far shows that benchmarking is the appropriate tool to increase the quality and efficiency of the public administration.

25 By 2002 more than 100 federal agencies were restructured. The number of agencies was reduced significantly, by a total of 90. In 1998 there were still as many as 654 federal authorities, while in early 2002 this number had fallen to 562. At the same time the federal administration trimmed a significant number of jobs. On 1 January 2002 the federal administration employed 291,000 staff, compared to 310,000 on 1 January Hence there were 6,000 fewer jobs within the federal administration than before German reunification in In this way, the federal administration is making a significant contribution to the necessary budget consolidation. With the "Modern State - Modern Administration" programme the Federal Government wants to extend the scope of action of the Länder and strengthen local self-government. In this context a project to transfer more responsibilities to the Länder has been launched. In a first step, federal framework legislation has been revoked in 26 cases, giving the Länder greater discretion in enforcing federal laws in certain areas. In a second step, an additional 183 proposals of the Conference of Minister-Presidents for changes in the rules regarding the discharge of state tasks were examined. Of these the Federal Government approved 107 proposals, in some cases under specific conditions; another 49 proposals have been or are now being taken into account in the framework of other projects. By early 2002, already 53 proposals had been implemented. The 183 proposals affected all key policy areas, such as financial, economic, environmental, social, agricultural, domestic, transport and housing policy. Now a Land can, for example, transfer local responsibility for the granting of social allowances to the municipalities, whereas the old federal framework legislation allowed such responsibility to be transferred only to counties and towns not belonging to a county. The same applies to setting up examiners' commissions for master craftmen's qualifying examinations; under the new framework legislation, responsibility no longer lies exclusively with the higher Land authorities. Where possible the Federation has not designated a specific Land authority at all, thus leaving it to the discretion of the Länder to assign responsibilities and to organise their administration. Human resources are the key to boosting efficiency and effectiveness in the public sector. The effectiveness of an organisation in the public sector directly depends upon the effectiveness of its workforce. This requires targeted measures to enhance employees' ability and preparedness to carry out their tasks. The modernisation programme of the Federal Government has dedicated a specific and separate area of reforms just to "highly motivated staff".

26 So the reform process aims above all at providing effective staff development targeted at making the most of the performance and creativity potentials of public service staff. Today all federal ministries have developed their own concepts to this end. They all use a jointly agreed framework based on key elements such as an institutionalised dialogue between superiors and staff, appraisals of senior staff, and plans involving the allocation of staff to a post or role. A modern administrative apparatus requires modern service regulations which encourage employees to take on responsibility and to render good performance. To this end the existing legal instruments must be constantly reviewed and adjusted, where necessary. Therefore the Federal Government's modernisation programme gives utmost priority to continuing the service regulations reform. 2. BundOnline 2005 ( Efficient and effective administration is no longer conceivable without the use of information technologies. In the past, hardware acquisition was the primary concern; with e-government the use of the new media has taken on a new quality and significance. With the "BundOnline 2005" e-government initiative, the Federal Government has pledged to provide online all services of the federal administration that can be placed on the Internet by The BundOnline 2005 programme is an important building block in the Federal Government's policy to turn Germany into an information society. BundOnline 2005 will provide citizens, the business community, the science and research sector and other administrative authorities with a simpler, faster and more economical means of using the federal administration's services. Following a comprehensive review, the Federal Government adopted an interministerial implementation plan on 14 November 2001, covering the whole range of federal administrative services. Today, 21 services are fully available on the Internet already. Here are a few examples: Already today it is possible to repay via the Internet grants received under the Federal Education Assistance Act. The 500,000 people who are

27 currently required to repay their scholarship grants can use the Internet to communicate with the responsible clerk, file applications for early repayment, partial or total waiver of payment or deferment of payment. Involving an overall repayment volume of 0.6 billion annually, the Internet thus provides enormous potential savings of time and cost. Since 1 November 2000, approx. 12,000 online applications have been filed. The electronic tax return form "ELSTER" was introduced by the Federation and the Länder to make the submitting and processing of tax returns more user-friendly and less time consuming through the use of modern communications technology. By early 2002 a total of 490,000 tax returns had been sent in electronically and more than 5.6 million applications for tax statements had been filed electronically. Since February 2001, the tax offices have offered official, interactive tax forms that can be filled out and sent online, supported by a tax filing program to guide taxpayers through the process. This marks a further step on the way to fully electronic, paperless tax returns and paperless taxassessment notices. The services offered by the federal administration can be accessed centrally via the service portal of the Federal Government at The Federal Minister of the Interior, Otto Schily, launched the portal at the CeBIT computer fair in March The service portal now includes more than 2,000 pages and more than 1,300 institutions and agencies of the Federation. A powerful search engine and a permanently updated catalogue facilitate the systematic search for authorities' web sites, addresses, contacts, and special information. In the second development stage, the portal's focus will move beyond more information-oriented content towards genuine electronic administration services. Modernisation is a major concern of both public and the federal administration, public service staff as well as elected officials and citizens. Progress in implementing the government programme "Modern State - Modern Administration" is being documented at Up-to-date information about the e-government initiative "BundOnline2005" is available at Visitors can send s directly to experts working on individual projects or discuss issues on the reform agenda in forums or chat rooms. More than 10 million hits on these two pages since December 1999 offer proof that people are making use of this opportunity for dialogue.

28 III. The foundations of employment in the public service Art. 33 Basic Law (Civic rights) (1) Every German shall have in every Land the same civic rights and duties. (2) Every German shall be equally eligible for any public office according to his aptitude, qualifications, and professional achievements. (3) Neither the enjoyment of civil and political rights, nor eligibility for public office, nor rights acquired in the public service shall be dependent upon religious affiliation. No one may be disadvantaged by reason of adherence or non-adherence to a particular religious denomination or philosophical creed. (4) The exercise of sovereign authority on a regular basis shall, as a rule, be entrusted to members of the public service who stand in a relationship of service and loyalty defined by public law. (5) The law governing the public service shall be regulated with due regard to the traditional principles of the professional public service. Public service staff (as per June 30, 2000) civil servants, judges 1,616,000 ( 33%) Professional and fixed-term military personnel 186,600 ( 4%) salary earners 2,351,500 ( 49%) wage earners 681,200 ( 14%) Total 4,835,300 (100%) Source: Federal Statistical Office, series 14, vol. 6, 2000

29 1. Employment in the public service In the Federal Republic of Germany, civil servants, judges and military personnel, as well as public employees (salary earners and wage earners in the public service) are employed to perform state tasks. In accordance with Art. 33 (2) Basic Law every German shall be eligible for any public office according to his aptitude, qualifications, and professional achievements. The exercise of State authority on a regular basis shall, as a rule, be entrusted to members of the public service who stand in a relationship of service and loyalty governed by public law (Art. 33 (4) of the Basic Law), that is to civil servants. The rights and duties of civil servants are governed by federal law, which means that the parliament determines the rights and duties as well as the remuneration and pensions of civil servants. The service of judges and military personnel, like that of civil servants, is governed by public law. In contrast, public employees are employed on the basis of a contract under private law. General labour law applies to them - as to all employees in Germany. Specific working conditions, however, are set out in collective agreements negotiated between the public employers (Federation/the Länder/local authorities) and the responsible trade and labour unions.

30 Members of the Federal Government, i.e. the Federal Chancellor and the federal ministers are not civil servants; their office is governed by public law and aimed at exercising governmental functions. Having said that, this office under public law has developed from the basis of employment as a civil servant and is governed by law, specifically the Act governing Federal Ministers. As office-holders who directly report to the parliament the federal ministers manage their departments independently and on their own responsibility in the framework of the general policy determined by the Federal Chancellor. They are not bound by instructions in individual cases and are not subject to any disciplinary power. Similar arrangements exist in the Länder for members of the Land governments. Depending on the size of their departments, the Cabinet members are assigned one or two parliamentary state secretaries who hold the title "Minister of State" at the Federal Chancellory and the Federal Foreign Office. Generally they must be members of parliament. Only direct assistants to the Federal Chancellor may assume this function even if they are not members of parliament. They represent and support the federal minister in fulfilling political and technical tasks, in particular in the plenary and in the committees of the German Bundestag, in the Federal Cabinet and in public. The office of Parliamentary State Secretary is also governed by public law. For information about remuneration and pensions of parliamentary state secretaries and of members of the Federal Government see: Distinction between civil servants and public employees According to Art. 33 (4) of the Basic Law the exercise of state authority as a permanent function shall as a rule be entrusted to civil servants (reservation of function).today this is generally no longer understood as being limited to what was known in the past as authoritarian administration. The public service is intended to guarantee sound administration based on expertise, professional ability and the loyal fulfilment of duties, and to ensure that essential tasks are continuously carried out in the public's interest. Therefore it is mainly civil servants who are employed in core areas of traditional administration, above all in supervisory positions and in areas involving the exercise of state authority. But civil servants are also employed in many areas of benefits administration, and most teachers are civil servants, too. In contrast, public employees are employed in health and social services and in technical professions. Since the relation between rule and exception is defined in the Basic Law, the domains of civil servants and public employees are delimited in general terms, which leave some

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