21th century
Germany is considered a founding state of the European Union, as it played a fundamental role in its construction. In 2001, one of the most important economic changes in the region takes place, establishing the euro as the common currency of the European Union.
It trade policies are increasingly determined by agreements between EU members. And its monetary policy is set by the European Central Bank in Frankfurt.
During Germany's parliamentary debate about the introduction of the euro, Chancellor Kohl highlighted the decision's historic dimensions. "The realization of the European economic and currency union is, in its consequences, the most significant decision since German reunification. It is the most deeply reaching change on our European continent since the collapse of Communism."
Although unification was more than a decade old, at the beginning of the 21st century its effects still weighed heavily on the German economy and its political institutions. However, in large measure unification gave way to other issues, such as globalization, the introduction of the euro as the single currency of the EU in 2002, and the enlargement of the EU to central and eastern Europe.
2000-2002
As the EU’s most powerful national central bank, the Bundesbank played a pivotal role in the planning of and preparation for the euro. One of its primary roles now is to implement the monetary policies of the European System of Central Banks to help maintain the euro’s stability.
2000-2002
2002-2004
2000-2002
2003-2008
Between 2002 and 2004, the government introduced several changes labor market reforms and an increase in the retirement age from 65 to 67.
Germany is a founding member of the EU, the G8 and the G20, and was the world's largest exporter from 2003 to 2008.
2000-2002
2002-2008
2000-2002
2008
Finally, between 2002 and 2008, was doing quite well in macroeconomics terms, with recovering growth, decreasing unemployment, inflation below 2% and a budget close to the balance. The main disadvantage was the increase in inequality.
The nominal GDP of Germany contracted in the second and third quarters of 2008, putting the country in a technical recession following a global and European recession cycle.
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