(1) main features.

the german model, the so-called social market economy model. Germany believes that it implements a macro-controlled social market economy, which opposes both economic laissez-faire and tight control of the economy, but combines the principles of individual free creation with social progress. It not only guarantees the freedom of private enterprises and private property, but also brings benefits to the public. In the relationship between the state and the market, its principle is that the state should intervene as little as possible and only give necessary intervention. The state mainly plays a regulatory role in the market economy and provides a general framework for market operation. Therefore, the social market economy implemented in Germany is actually a market economy regulated by the state to ensure the balance between market freedom and social equity.

(2) the foundation of social market economy.

whatever the market economy can adjust itself should be solved by the market. The state only makes rules for the normal operation of the market and intervenes where the market fails. Therefore, the social market in Germany is market-based.

in Germany, the state basically does not stipulate wages and prices, nor does it stipulate specific production indicators. These are basically determined automatically by the relationship between market supply and demand. However, the price of agricultural products in Germany is not set by the lung field, but by the European common market. To this end, the government subsidizes several billion marks every year; The prices of German railways, posts and telecommunications are also set by the federal government, and they are subsidized by the federal government when losses occur.

since competition is a prerequisite for the normal operation of the market economy, there is no market without competition. Therefore, Germany has enacted a series of relevant laws, such as the Anti-Restrictive Competition Law, and established the corresponding institutions, namely the Cartel Bureau (actually the Anti-Cartel Bureau), which prohibits enterprises from reaching monopoly agreements on production, price, sales and market segmentation, from merging enterprises that hinder or destroy the market, from monopolizing foreign trade and from other monopolistic organizations or groups that harm consumers' interests; Encourage small and medium-sized enterprises to cooperate and actively participate in competition; Ensure that enterprises have freedom of production, operation, investment, employment and labor negotiation. Merger or cooperation agreement between enterprises, which is beneficial to competition, can be carried out, but it must be approved by the cartel bureau, and violators will be severely punished. In addition, Germany has enacted the Law against Unfair Competition, which severely punishes such improper behaviors as false advertisements, short weight, counterfeit trademarks, and shoddy goods, so as to protect the legitimate interests of competitors and consumers. Other relevant laws include: Adjustment of General Trading Conditions Law, Discount Law, Bonus Law, Trademark Law, Patent Law, etc. These laws provide guidelines for the normal operation of the market. Germany has also stipulated the preconditions for certain occupations to enter the market. For example, craftsmen told retailers that they must prove their professional knowledge before opening their business. For departments such as health, legal consultation, accounting consultation and tax consultation, the state requires applicants to undergo special training and have certain age standards.

Wages in Germany are basically freely formed in the labor market, and employers and employees negotiate freely and sign labor-management agreements. Labor-capital negotiations in Germany are conducted collectively. Generally, a trade union federation and an employers' federation in an industrial sector negotiate and sign an agreement once a year on behalf of both sides on issues such as wage increase. Regarding the number of days off, the period of notice of dismissal, overtime pay, bonuses and other issues, agreements are usually signed once every few years. In this process, the government takes a neutral attitude and does not interfere.

(3) Macroeconomic management.

in the social market economy, the state does not directly intervene in the economic process itself, but it does not mean that the state has no economic plan. The German government and local governments at all levels have certain economic plans, including medium-term, annual and short-term. However, these plans only stipulate some comprehensive indicators, which are not binding on enterprises, but should be adjusted by means of finance, taxation and credit. For example, in the four short-term plans from 1974 to 1975, the federal government used 111 billion marks to stimulate the economy, which played a certain role in alleviating the economic recession during this period. Another example is the current plan to transform the eastern region. Since 1991, the government has invested more than 111 billion marks in the eastern states every year, mainly to transform infrastructure such as railways, expressway and telecommunications, and to attract private capital to participate in the transformation of the eastern region by adopting tax incentives.

(4) the special role of the German Federal Bank.

(5) German enterprise organization system.