Federal Ministry of Finance

Federal Ministry of Finance

The Federal Ministry of Finance (German: Bundesministerium der Finanzen), abbreviated BMF, is the cabinet-level finance ministry of Germany, with its seat at the Detlev-Rohwedder-Haus in Berlin and a secondary office in Bonn. The current Federal Minister of Finance is Christian Lindner (FDP).

The Finance Ministry is responsible for all aspects of tax and revenue policy in Germany and plays a significant role in European Union policy. It has nine directorates-general:

• Directorate-General Z (Central Services): Deals with all ministerial organizational matters, including human resources, IT, occupational training, management, and administration
• Directorate-General L (Leading, Strategy and communication): Coordinates strategy development and policy planning to advance decision-making processes, also manages the ministry’s relations with the parliament and federal cabinet
• Directorate-General I (Fiscal and Macroeconomic Affairs): Determines the strategic focus of the Ministry’s fiscal policy instruments, forecasts public budget trends and conducts macroeconomic research
• Directorate-General II (Federal Budget): Responsible for drawing up the federal budget by calculating revenue and spending for each government policy area.
• Directorate-General III (Customs and Excise): Responsible for levying customs and excise duties, as well as for monitoring cross-border goods traffic.
• Directorate-General IV (Taxation): Together with the other member states of the EU, the Ministry works to improve coordination among the different systems of taxes.
• Directorate-General V (Financial Relations and Law): Coordinates financial relations between central, regional and local governments. Also responsible for public law, legal affairs, and handling proceedings before Germany’s Federal Constitutional Court and the European courts. Furthermore, this directorate-general deals with settlement of war burdens, compensation for National Socalist injustices, and unresolved property issues in eastern Germany
• Directorate-General VII (Financial Market Policy): Manages the federal debt, including issuance of securities for financial markets and private investors which ensure the budgeted volume of credit is obtained when needed and at market rates. Also responsible for the Bundesbank and the European Central Bank. Shapes the legal framework for financial markets through its capital market policy and exercises legal supervision over the German financial watchdog agency BaFin.
• Directorate-General VIII (Privatisation): Sets the policy for managing state holdings which is then undertaken by individual government departments. Operates a real estate institute that markets properties that the German Government no longer needs, and operates standardised facility management for federal properties.
• Directorate-General E (European Policy): Responsible for coordinating the German Government’s European economic and financial policy under the EU Treaty.