The constitutional reform of German federalism is divided into two stages. First stage of reform, feature the Law on amendments to the Basic law of Germany from August 28, 2006 the Second stage of the reform involves improving the order of financing of the German Federation, in particular in matters of financial aid and compensation. The essence of the main provisions of the second stage of the constitutional reform of German federalism is as follows. An important objective of the reform of the "financial Constitution" is the rejection of the system of joint financing of the Federation and the lands, which were regulated by article 91A and article 91b, paragraph. 4 of article 104A of the Basic law of Germany. In the end, to abandon the joint funding failed, what it expected. Financial assistance and compensation issues were re-settled in the course of establishing a new financial liability regulation. The second stage of the reform of federalism in Germany also touched upon the issues of financial regulation in relations with the European communities. In case of violation of the Federal Republic of Germany criteria for the debt established by this Agreement, private land will have to reckon with the possibility of introducing sanctions against them, if they have exceeded certain debt limits. In par. 5 article 109 the distribution of debt sanctions between the Federation and the lands of Germany: the punitive damages in the amount of 65 percent will be borne by the Federation and 35 per cent of the land. The issue of participation of German lands in the Affairs of the European Union. A significant problem in the process of reform of German federalism was the division of competence related to participation in the adoption of European regulations and the implementation of European directives through the publication of regulations of domestic action [2. S. 364]. Here, article 23 of the Basic law of Germany provided for a General right to information and participation. In those cases, when the question was raised by the legislative authority of the land, par. 6 art. 23 the Basic law provided for the direct participation of the lands and their representation of the German position in the institutions of the European Union. The concept of reform in the sphere of financial federalism is based on the idea of introducing the principle of competition between lands. As part of the new regulation of the competence of the Federation and lands in the field of Finance, there should be a redistribution of a number of powers to collect and receive taxes, as well as the abandonment of the system of mixed financing of the Federation and lands. So, the constitutional reform of federalism in modern Germany played an important role in improving the system of federal relations of the state. As a result of large-scale changes in the functioning of the German federal system as a whole, the "cooperative" German federalism was supplemented by the principle of competition (competition) between the lands.
