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The West German Law to Promote Economic Stability and Growth (June 8, 1967)

In order to avoid future recessions, the federal parliament passed a law in 1967 that sought to formalize cooperation between the government, employers, and unions, and to make fiscal interventions against a disturbance of the macroeconomic equilibrium mandatory.

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The Bundestag, with the approval of the Bundesrat, has passed the following law:

§ 1 (Economic Policy Requirements)
In their economic and fiscal measures, the Federation and the Länder [states] shall consider the requirements of general economic equilibrium. These measures shall be taken in such a way that they will, within the framework of the market economy, simultaneously help to stabilize prices, maintain a high level of employment, and achieve external balance, accompanied by steady and adequate economic growth.

§ 2 (Annual Economic Report)
(1) The Federal Government shall submit an annual economic report to the Bundestag and the Bundesrat in January of each year. This report shall contain:
1. Comments on the Annual Report of the Council of Experts according to the third sentence of § 6 (1) of the Law on the Appointment of a Council of Experts on Economic Development of 14 August 1963 (BGBl I, p. 685), as amended by the law dated 8 November 1966 (BGBl I, p. 633)
2. A survey of the Federal Government’s economic and fiscal aims (annual projection) for that current year; this annual projection shall employ the same methods and take the same form as the national accounts, alternative accounts being used where necessary.
3. A survey of planned economic and fiscal policy measures for that current year.

[ . . . ]

§ 3 (Data as Guide for Concerted Action)
(1) If any of the aims referred to in § 1 are in jeopardy, the Federal Government shall provide data as a guide for simultaneous concerted action by territorial administrative entities, trade unions, and employers’ associations in order to achieve the aims set out in § 1. These guiding data shall include, in particular, a survey of general economic conditions in light of the prevailing economic situation.
(2) The Federal Minister of Economics shall, upon the request of one of the parties concerned, explain the guiding data.

§ 4 (External Disturbances)
In the case of external disturbances of general economic equilibrium which cannot be corrected by domestic measures, except by impairing the aims set out in § 1, the Federal Government shall avail itself of all possible means of international coordination. Where this is insufficient, it shall use the available economic policy instruments in order to maintain external equilibrium.

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