The division of responsibilities between the Federation and the Federal States (Länder) is an important element of the division of constitutional powers in the Federation and is prescribed by the Basic Law. As a result of their membership in the Federation, the Länder have rights and duties. The legislative powers of the Federation are divided into exclusive and concurrent legislative rights. In case of concurrent legislation, the Länder have legislative powers, whenever the Federation does not enact its own laws on the same subject matter.

The reform of Germany’s federal system, which was adopted by the Bundestag and the Bundesrat in 2006, is the most extensive amendment of the Basic Law in the history of the Federal Republic of Germany. The purpose of the reform is to improve the capacity of the Federation and the Länder to take action or to make decisions, and it introduces a clearer assignment of political responsibilities. It especially includes new provisions governing the relations between the Federation and the Länder in legislative matters. The reform entered into force on 1 September 2006.

The Federal States (Länder)are states in their own right and with their own powers. The Länder each have their own state constitutions, their own parliaments and governments as well as their own administration and organisation. As a matter of principle, the Länder govern their own affairs. In the legislative process, the Länder are empowered to enact legislation in areas in which the Federation does not assume legislative responsibility itself or which have not been assigned to the Federation in the Basic Law. Consequently, the Länder have legislative rights for the overwhelming majority of education and cultural policy matters as an expression of their sovereignty in matters of culture and education.