Three Levels o f Intergovernmental Relations - Cooperative Federalism 10

While the Bundesrat mainly embodies inter-governmental ism on the regional level, the practical operation of the federal system as a whole also requires that intergovernmental relations are conducted between all levels of government.

T h e r e a r e m a n y m o r e i n t e r g o v e r n m e n t a l o r g a n s in G e r m a n p o l i t i c a l p r a c t i c e , m o r e o r l e s s a l w a y s in c o m m u n i c a t i o n w i t h e a c h o t h e r :

a . T h e l e v e l o f t h e ‘ w h o l e s t a t e ’, o n w h i c h p o l i t i c a l i n s t i t u t i o n s b o t h o f t h e federation and the Lander, are represented on term of equal status.

b. O n th e l e v e l o f t h e f e d e r a l s t a t e w i t h i n s t i t u t i o n s d e a l i n g w i t h m a t t e r s w i t h i n federal competence or subject to federal procedure (also including the Joint Tasks, originally exercised by the Lander now based on specific, administrative

a g r e e m e n t s ) . T h e m o s t i m p o r t a n t b o d y is t h e B u n d e s r a t . T h e B u n d e s r a t ’ s p e r m a n e n t a d v i s o r y c o u n c i l o f t h e L a n d e r p r e s i d e n t s is t h e m a i n m a n a g e r o f t h e

institution’s political business.

c . T h e ‘t h i r d l e v e l ’ o f h o r i z o n t a l c o o p e r a t i o n b e t w e e n t h e L a n d e r t h e m s e l v e s preparing decisions that have to be taken between; (Conference of the Minister- Presidents - meets monthly and before the meeting of the Conferences of the

Lander Heads of Government with the Chancellor). The main functions of this institutional structure of intergovernmental relations,

w h i c h is i n t e r d e p e n d e n t a n d o v e r l a p p i n g m u c h m o r e in p r a c t i c e , a r c in s u m m a r y : •

M u t u a l c o n s u l t a t i o n a n d c o o p e r a t i o n in a l l f i e l d s , b u t p a r t i c u l a r in o v e r l a p p i n g fields of competence on the level of the Whole State

10 T l KW H/JACO BS, 2 0 0 1

Vol. 16, No. 2 December 2007 © Centre for Indonesian Accounting and Management Research

Postgraduate Program, Braw ijaya University

The International J o u rn a l o f A c c o u n tin g a n d B u sin ess S o c ie ty

C o o r d i n a t i o n a n d p r e p a r a ti o o o f v o t i n g , a n d f i n a l l y v o t i n g i t s e l f , o n l e g i s l a t i o n o n t h e l e v e l o f t h e f e d e r a l sta le

C o o r d i n a t i o n n o t j u s t in t i e p r e p a r a t i o n o f l e g i s l a t i o n b u t a l s o a n d s o m e t i m e s p r i m a r i l y o n m a t t e r s o f a d a f c iis tr a tio n o n t h e t h i r d le v e l.

G e n e r a l l y , t h e a d m i n i s t r a t i v e ro le o f t h e L a n d e r is r a t h e r i m p o r t a n t in t h i s m o d e l: The multi-faceted network of intergovernmental relations between the federation

a n d t h e L a n d e r r e f l e c t s t h e fe e t t h a t t h e L a n d e r h a v e a l w a y s b e e n t h e m a in administrators not just of their own laws but of most federal and directly applicable European legislation.

• State character of the Lander T h e L a n d e r a r e n o t m e r e l y l a r g e , s e l f - g o v e r n i n g e n t i t i e s in t h e s a m e w a y a s

local authorities and administrative districts but have the character of s t a t e s , w h i c h m a y b e se e n , f o r i n s t a n c e , f r o m t h e f a c t t h a t e a c h h a s its o w n constitution. The constitutions of the Lander are distinct from and

i n d e p e n d e n t o f t h e B asic L a w . •

Financial independence The Lander must have some degree of financial independence to enable

them to pursue their own policies. Hence they are vested with their own p o w e r s o f t a x a t i o n . T h e y a r e e m p o w e r e d t o c r e a t e a n d l e v y t a x e s , to

a d m i n i s t e r t h e r e v e n u e t h u s r a i s e d a n d t o d e c i d e h o w it is t o b e u s e d .

11 B y s t i p u l a t i n g th a t " T h e Federal R e p u b li c o f G e r m a n y shall b e a d e m o c r a t i c a n d social

f e d e r a l s ta te " (A r t ic le 2 0 paragraph 1 o f th e B a s ic L aw - G G -) th e c o n s titu tio n

e s t a b l i s h e s f e d e r a li s m a s a structural a n d r e g u l a t o r y p rin c ip le

A r ti c le 7 9 p a r a g r a p h 3 G G declares th e p r i n c ip l e o f fe d e ra lism to b e in v io l a b le a n d un- amendable. L’ T h e F e d e r a l R e p u b l ic o f G erm any is a t w o - t i e r fe d e ra l state c o m p r i s i n g the F e d e ra tio n

a n d th e L a n d e r . H c n c e t h e c o m m u n e s d o n o t f o r m a t h i r d t i e r o f t h e s t a t e , but are p a rt o f th e L a n d e r . Y e t towns, local a u t h o r it ie s a n d a d m i n i s tr a ti v e d is tric ts (in the

f o l l o w i n g c o l le c t iv e l y referred to as th e c o m m u n e s ) play a p r o m i n e n t ro le w ith in the

a d m i n i s t r a t i v e s tru c tu re . T h e i r p r o m i n e n t p o s i t i o n is b a s e d o n t h e r i g h t o f c o m m u n a l s e l f - g o v e r n m e n t s e t o u t in A rtic le 2 8 p a r a g r a p h 2 G G .

60 A C r is is o r C r i ti c a l D e v e lo p m e n t

Conversely, the federal state must also have at its disposal financial resources

independence from the constituent states.

sufficient to ensure

its political

Three Levels o f Intergovernmental Relations - Cooperative Federalism 10