| Contents | 6 |
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| List of contributors | 8 |
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| Preface | 9 |
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| Hellmut Wollmann and Geert Bouckaert State Organisation in France and Germany between Territoriality and Functionality | 11 |
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| 1. Introduction | 11 |
| 2. Methodological Issues and Conceptual Framework | 12 |
| 3. The Intergovernmental Systems of France and Germany between “ Territoriality” and “ Functionality” | 18 |
| 4. Describing Drivers for Territorialisation and Functionalisation of and in the Public Sector | 24 |
| 5. Reform Agendas | 27 |
| 6. And what about “Governance”? | 33 |
| References | 35 |
| Jean-Claude Thoenig Modernizing Sub- National Government in France: Institutional Creativity and Systemic Stability | 38 |
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| 1. Two sides of the same coin | 38 |
| 2. Stylized characteristics of the system | 40 |
| 3. Key systemic properties | 47 |
| 4. Consensual corridors for modernization action | 54 |
| References | 57 |
| Arthur Benz and Anna Meincke Sub- National Government and Regional Governance in Germany | 58 |
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| 1. Introduction: Regional Government and Governance | 58 |
| 2. The Evolution of Sub-National Government Between Territorial and Functional Differentiation | 59 |
| 3. Regional Governance as a New Form of Space-orientated Policy-Making | 64 |
| 4. Revival of Regional Government? | 69 |
| References | 71 |
| Pierre Sadran The Evolution of Public Personnel Systems in France: Structure and Reforms | 74 |
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| 1. Introduction | 74 |
| 2. A Necessary Reform | 76 |
| 2.1 The French Fonction Publique is an Impressive Statutory Structure | 76 |
| 2.2 Assessing the Performances of the Fonction Publique | 77 |
| 2.3 The Controversy over the Number of Civil Servants | 78 |
| 2.4 An Inventory of the Necessary Reforms | 79 |
| 3. Statutory Logic vs. Reforms | 79 |
| 4. The Orientations of the Reform | 81 |
| 4.1 Towards a Culture of Results: Efficiency and Performance | 81 |
| 4.2 Maximising Existing Potentialities within the Administration | 82 |
| 4.3 New Coherence in the Public Employment Market | 83 |
| 5. The Necessary Conditions | 83 |
| 5.1 The Affirmation of a Strong Political Will | 84 |
| 5.2 Taking Advantage of a New Window of Opportunity | 84 |
| 5.3 A Strategy Based on the Articulations of the System | 84 |
| 6. Conclusion | 85 |
| References | 85 |
| Sabine Kuhlmann and Manfred Röber Civil Service in Germany: Between Cutback Management and Modernization | 87 |
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| 1. Introduction | 87 |
| 2. Legal Framework and Structure of the Civil Service in Germany | 88 |
| 3. Size, Structure and Development of Public Personnel in Germany: A “ Lean” and Decentralised Public Sector? | 94 |
| 4. Civil Service Reform | 100 |
| References | 105 |
| Gérald Orange French Territorial Administration and Changes in Public Management | 108 |
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| 1. State Apparatus and Fragmented Public Powers | 108 |
| 2. The Purpose of the NPM and the Changes in Public Action in France | 111 |
| 3. The Modernisation of Public Action and its Consequences at the Local Level | 115 |
| References | 120 |
| Gerhard Banner Local Government - A Strategic Resource in German Public Management Reform | 122 |
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| 1. State Architecture and the Public Administration Landscape | 122 |
| 2. The Management Reform Movement in Local Government | 123 |
| 3. Modernising the Länder Bureaucracies: In Search of Management Capacity | 130 |
| 4. The New Land- local Relationship: How can it Contribute to better Public Management? | 136 |
| References | 140 |
| Bertrand Blancheton French Public Finances against Globalization: Resistance, Transformation, Reform | 142 |
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| 1. Attempt at an Overview: The Resistance of the Budget | 143 |
| 1.1 Inertia of Public Expenditure | 143 |
| 1.2 Relative stability of the tax burden | 144 |
| 1.3 Constant Budget Deficits | 145 |
| 1.4 Increasing Debt | 146 |
| 2. Macroeconomic Explanations for the Resistance of the Tax System to External Constraints | 147 |
| 2.1Weak Empirical Foundation of the Supposed Effects of Budget Deficits | 147 |
| 2.2 The Relativity of the Debt Level | 148 |
| 2.3 Necessity of Budget Pragmatism: The Budget as France’s only Tool to Stabilise the Rate of Economic Activity | 150 |
| 2.4 Public Spending and Local Power of Attraction | 150 |
| 3. Aspects of the Restructuring of Public Finances in France in Recent Times | 151 |
| 3.1 Some Salient Transformations in Terms of Revenues: The Reduction in Income Tax and the Emergence of the CSG | 151 |
| 3.2 A System that has Become Decreasingly Redistributive since the Middle of the 1980s | 152 |
| 4. Conclusion | 153 |
| References | 153 |
| Bernd Reissert Public Finance as Drivers and Constraints for Public Sector Reform in Germany | 155 |
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| 1. The Role of Public Finance in Public Sector Reform | 155 |
| 2. The Vertical Dimension: Public Sector Reform in the Federal System 2.1 The Division of Responsibilities and the Structure of Public Budgets in the Federal System | 156 |
| 3. The Horizontal Dimension: The Variation of Public Sector Reform among Individual Units of Government | 162 |
| References | 166 |