Demographic change and limited public-sector resources require an efficient use of funds and a long-term reduction in public debt. In a nation where both the federal government and its subordinate members are accorded financial autonomy, realizing such efficiencies is a particular challenge. According to Article 20, Sect. 1 of the country's Grundgesetz (Basic Law), the Federal Republic of Germany's existence as a federalist state rests on four fundamental principles: the federalist system's unassailable right to existence, autonomy for the country's states, state participation in writing federal laws, and budgetary autonomy for both federal and state governments. A unique aspect of Germany's federalist system is the high level of cooperation between the federal and state levels. The distribution of responsibilities and funding is constantly undergoing revision in order to ensure that it reflects current political and social realities.

Through its project activities, the Bertelsmann Stiftung wants to bring together academic and political actors representing opposing viewpoints in order to explore possibilities for achieving consensus and, as a result, contribute to a reduction in the number of conflicts and stalemates. Our efforts focus less on the development of normative standards than on combining federalist structures and systems in a practical manner, depending on the area under consideration. Leaving current reform efforts behind, we attempt to identify, analyze and design different options for distributing responsibilities and funding among Germany's federal and state governments.