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There is no doubt that the German experience is fundamentally a success, primarily economically. The foundations of this system were laid by Chancellor Bismarck in the 19th century, who was known as the Iron Chancellor. He is credited with establishing the pension and health insurance system. This means that pension and health insurance costs are "e;paid equally by employers and employees,"e; as Werner Schreiber, former Minister of Social Affairs in the state of Saxony-Anhalt, in eastern Germany, explains. Bismarck's principles remain in place today, whether in family policy, the social welfare system, or other areas. Furthermore, the German economic system includes the right to open negotiation between employers and unions. This means that both parties have the right to set wages without state intervention. While the markets of neighboring European countries are suffering from widespread unemployment, Germany is experiencing a new economic miracle, with the number of employed people reaching a record 42 million. However, the main reason for this success lies in the economic reforms implemented by the government of former Chancellor Gerhard Schroder, known as Agenda 2010. Germany learned from its post-World War II history. Since then, it has been working to overcome the legacy of the Nazi era through a critical and courageous approach to this period. There is a consensus among the various German political forces to apply these lessons to a future based on resolving problems peacefully, avoiding violence and war, and upholding the right of peoples to self-determination. Accordingly, it undertook a costly reconciliation with its neighbors and former enemies. In this context, it was among the first to contribute to building the European home within which the European Union was born. It also built a democratic political system that is difficult for Nazis and their ilk to penetrate. Furthermore, it moved away from militarism, favoring comprehensive development based on civilian industries. This does not alter the fact that it remains a significant producer of light weapons and security equipment.
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