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More transparency, greater efficiency, faster decision-making processes and a clearer assignment of responsibilities - those were the intentions of the German “commission for the modernization of the federal order.“ Representatives of the federal and state governments joined forces in proclaiming the benefits of a reform of German federalism; party-political differences were kept at bay. The complex financial flows related to joint tasks were supposed to be simplified under a competitive federalism concept. Each level of government and each individual state were supposed to finance their respective projects. The number of laws subject to the approval of the Bundesrat, the parliamentary chamber representing the states, was to be reduced. In light of the imminent enlargement of the European Union and the resulting altered competitive environment, Germany wanted to simplify and speed up its political decision-making processes. And policy-makers had a democratic principle in mind, too: The voter should know which level of government is responsible for which issue and why.
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