The National And The Global Economy : Germany

Reducing unem: ployment is a central task of government policy. The key to job creation lies in heavier investment. To secure an adequate return on investment, the Federal Government is trying to strengthen the market’s own forces, especially through incentives for individual enterprise. State influence on the economy is being reduced, and regulations that obstruct market activity are being eliminated. This makes for freer competition and easier adaptation to new developments.

Germany is an advocate of free world trade and rejects all forms of protectionism. Because it exports a third of its GDP, it depends on open markets. The economy therefore needs a growing European internal market. But outside the European Union as well, Germany must maintain traditional markets and develop new ones. This persistent pursuit of open markets and free wjDrld trade is in keeping with the country’s internal market economy.