Farewell, welfare state – hello, welfare regions? Chances and constraints of welfare management in the German federal system

The German welfare state is in crisis. Alarming long-term demographic trends, the still not fully digested consequences of German unification and the current economic downturn in much of the Eurozone have combined to create an urgent need for welfare reform. Yet the constitutional arrangements which govern the German political system, and well-entrenched political practice, mean that any such reform process is a daunting challenge. Thus, the welfare crisis is also a crisis of German-style co-operative federalism. Current empirical evidence makes for uncomfortable reading, and triggers debate on the nature of the German federation: have the two constitutional principles of federalism and establishing equal living conditions throughout the federation become mutually exclusive? However, as much of the welfare state is centred on the best utilisation of scarce financial resources, it is debatable to what extent alterations in the functional distribution of welfare responsibilities among the territorial levels of government can be regarded as a solution for the current problems. The article concludes that in the search for long-term sustainability of the welfare state the territorial dimension is likely to remain a secondary issue.

Germany as the EU's reluctant hegemon? Of economic strength and political constraints

This article explores the growing perception, prompted by the eurozone crisis, of Germany as a hegemonic power in the European Union. The article explores the realignments in the power balance within the European Union (EU) by making an original application of the insights from the literature on hegemony. It reviews the evidence for Germany playing a hegemonic role, but then emphasizes three sets of constraints. First, German pre-eminence is largely confined to the economic sphere. Even in this area Germany has not acted fully in line with the role ascribed by hegemonic stability theory. Second, its pre-eminence in the EU encounters problems of international legitimacy. Third, growing constraints arising from German domestic politics further hamper playing the role of hegemon. In consequence, Germany is intrinsically a reluctant hegemon: one whose economic leadership is recognized but politically contested. The conclusion considers the significance of these findings on the EU's most important member state. © 2013 Taylor & Francis.