World economy and international economic relations

Characteristic features of the federal state economic function content (considering economic function of the Federal Republic of Germany)

Economic Annals-XXI

Economic Annals-ХХI: Volume 157, Issue 3-4(1), Pages: 25-27

Citation information:
Larina, O., & Kukanov, V. (2016). Characteristic features of the federal state economic function content (considering economic function of the Federal Republic of Germany). Economic Annals-XXI, 157(3-4(1)), 25-27. doi: https://doi.org/10.21003/ea.V157-0007

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Olga Larina
D.Sc. (Law),
Professor,
Head of the Faculty of Theory and History of State and Law,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
lelyc@mail.ru

Vitaliy Kukanov
PhD Student (Law),
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
legis-group@mail.ru

Characteristic features of the federal state economic function content (considering economic function of the Federal Republic of Germany)

Abstract. The purpose of the study is to develop theoretical principles concerning the content of the economic function of a modern federal state. The economic policy of the Federal Republic of Germany in terms of state budget stabilization as one of the objectives of sustainable development is considered as the main element of the economic function and the form of the federal states’ competence. The main types of the competences (rights and obligations) of the German federated states in financial and budget sphere are studied. On the basis of the conducted study, it can be concluded that the current legislation does not allow the federal states to fully implement their tasks. Introduction of the amendment called «debt brake» at the federated states level is a preventive measure aimed at initiating well-timed corrective actions to balance the budget. However, its implementation effectiveness in terms of solving the problem of budgets consolidation remains low due to the absence of the regulations providing a specific procedure for its implementation in German Federal Laws.

Keywords: State Economic Function; Economic Policy; Competence; Financial and Budget Sphere; National Debt; «Debt Break»; Germany; Regional Economics

JEL Classification: K00

DOI: https://doi.org/10.21003/ea.V157-0007

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Received 8.12.2015

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