Germany is a federal parliamentary republic and the [[European Union (EU)]]'s largest economy. As a founding EU member and eurozone country, it plays a central role in European politics and economics. The country's economic model (known as "social market economy") combines free-market capitalism with strong social welfare policies. Germany is a major industrial power, known for its export-oriented manufacturing sector, particularly in automobiles ([[BMW]], [[Mercedes-Benz]], [[Volkswagen]]), machinery, chemicals, and high-tech products. Key strengths include a highly skilled workforce, robust apprenticeship system, strong research and development, and the "Mittelstand" (network of specialized small and medium-sized companies). Despite its economic strength and low unemployment, Germany faces challenges with an aging population, energy transition (Energiewende), and maintaining competitiveness in global markets.