German parliament approves reform of federal system

Germany’s parliament today approved a plan to reform the tangled federal system, a package aimed at smoothing decision-making in Europe’s biggest economy.

The lower house voted 428-162, with three abstentions, in favour of the plan - giving it the two-thirds majority that was required because the plan alters the constitution.

Officials have said the plan would cut the proportion of bills that need state approval from about 60% now to 30-40%. However, all bills that require financial outlay by state governments – which are represented by the upper house of parliament – will require their approval.

The package also is aimed at clarifying which level of government is responsible for what areas of policy.

“With this project, we are showing courage to change,” Chancellor Angela Merkel told parliament before the vote.

Still, recent weeks saw tensions between Merkel’s conservatives and their centre-left coalition partners, the Social Democrats, over details of the package.

The support of most Social Democrats was secured only after a compromise that gave the federal government more influence over education policy – which is largely a matter for state authorities.

Germany has long struggled to agree on reform of its cumbersome federal system.

Former Chancellor Gerhard Schroeder’s centre-left government faced an opposition-controlled upper house, which sometimes blocked legislation or forced him into time-consuming negotiations to secure its passage.

The upper house of parliament, which Merkel’s coalition now controls, is expected to vote on the project on July 7.