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Thanks for this enlightening rundown.

Two questions: what's the relationship between Finance and the Economy?

For example, France has a minister of Economy and Finance, with a Budget minister beneath her to look after the brass tacks. Britain has the Chancellor of the Exchequer, with a Permanent Secretary to the Treasury in a somewhat similar role to the French Budget minister. Who looks after what, and what's the pecking order, between the German Finance minister and the Economy minister?

Next, was Agriculture already twinned with Consumer Defence, or is that new? (It would feel very strange in France to have the MinAg looking after consumers...).

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Oct 26th, 2009 at 09:54:07 AM EST
Finance and economy -- well, it's difficult to answer otherwise than state the (to me) obvious, which may not capture the essential difference for you...
  • The finance minister looks after finances. That is, he interfaces with the national bank, controls tax income, the public debts, and tells the other ministries that "no you won't get more this year".
  • The economy minister controls economic policy. That is, he proposes market rule changes (and direct interventions into the economy), talks with the business and industrial and trade union associations, privatises state companies (and nationalises private ones).

There is no pecking order between the two, they control different things. But the finance minister is more powerful by the fact that all other ministries depend on him/her (he controls the money they spend).

(Now, since nowadays everything is economy, and everything is to be marketised, the economy ministry is more likely to have conflicts with the other ministries. The most high-profile of these was with the environment ministry throughout the Schröder I, II and Merkel I governments; above all the Wolfgang Clement - Jürgen Trittin war over the control of energy policy in the Schröder II government.)

As for consumer defence: this field was added at the time Rernate Künast of the Greens held the ministry. With her, the agriculture ministry was more a watchdog over agriculture than a lobbyist for them, but conflict of interest was indeed noted afterwards...

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Mon Oct 26th, 2009 at 01:01:09 PM EST
[ Parent ]
The BMWi (Federal ministry of economics) is emasculated, I'd say.

Back in the fifties and sixties it was different, and the BMWi had acquired a reputation and was able and willing to make use of it. As there is little sub-ordinated administration („Verwaltungsunterbau”), and, in a market economy, nobody to issue orders to, it is important to have a good and trustful relationship with the public. Erhardt knew this and worked hard for it; in his Frankfurt years he used to invite journalists to discuss/teach economics after office hours into the central station restaurant for a „Frankfurter Würstchen” and a beer.
This is all long gone. Helmut Schmidt, perhaps inspired by Giscard's  super minister status,  in any case in tune with his „Weltwirtschaftsführer” ambitions, captured the banking section („Geld und Kredit”) giving him, and his successors, television time at international events and a lot political influence. When Oskar Lafontaine became Superminister in 1998, the  political section („Grundsatzabteillung”) left for the finance ministry, too. What remains, is a torso. – And it is probably not a good idea to have the finance industry pertain to the finance ministry – a ministry should have a certain breadth, I presume.

The minister Rexroth,

by Humbug (mailklammeraffeschultedivisstrackepunktde) on Mon Oct 26th, 2009 at 06:43:50 PM EST
[ Parent ]
My notebook shocked me into posting this comment by flashing a warning “Empty battery – .5 minutes left”, so I overlooked the incomplete sentence at he end.

Rexroth came to my mind because he, at least, did someething good by fighting the plan of Kanther (interior minister) to bug everybody via the ISDN PBXes. (It's in the specs already, so perhaps he wanted to make ISDN PBXes mandatory?)

by Humbug (mailklammeraffeschultedivisstrackepunktde) on Mon Oct 26th, 2009 at 07:57:58 PM EST
[ Parent ]
The BMWi may not be what it was, but looking at sections of the outgoing zu Guttenberg BMWi, it still has some clout:

BMWi - Aufgaben und Struktur  BMWi - tasks and structure
  • Zentralabteilung - Z
  • Central unit - Z
  • Europapolitik - E
  • European Policy - E
  • Wirtschaftspolitik - I
  • Economic policy - I
  • Mittelstandspolitik - II
  • Mid-tier policy - II
  • Energiepolitik - III
  • Energy policy - III
  • Industriepolitik - IV
  • Industrial policy - IV
  • Außenwirtschaftspolitik - V
  • External economic policy - V
  • Kommunikations- und Postpolitik - VI
  • Communications and postal policy - VI
  • Technologiepolitik - VII
  • Technology Policy - VII


  • *Lunatic*, n.
    One whose delusions are out of fashion.
    by DoDo on Tue Oct 27th, 2009 at 03:16:11 AM EST
    [ Parent ]
    btw, i'm not certain, but i believe Mittelstandpolitick denotes policy medium-sized business.  In a sense, the entrepreneurial class.

    "Life shrinks or expands in proportion to one's courage." - Anaïs Nin
    by Crazy Horse on Tue Oct 27th, 2009 at 03:50:15 AM EST
    [ Parent ]
    I was unsure about the correct English term.

    *Lunatic*, n.
    One whose delusions are out of fashion.
    by DoDo on Tue Oct 27th, 2009 at 05:34:28 AM EST
    [ Parent ]

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