Definition and Purpose of the Economic Security Assurance Act
The Economic Security Assurance Act (WiSiG) is a central German law in the field of civil emergency preparedness and is designed to ensure the supply of the population and the economy in the event of tensions and situations of defense. It forms the legal framework for state intervention in the economic order during extraordinary crises. The WiSiG allows the Federal Government to initiate temporary and targeted measures to maintain economic and supply security.
Legal Bases and Scope of Application
Statutory Foundation
The Economic Security Assurance Act was first enacted in 1968 as part of the emergency laws and is now an essential component of German legislation for emergency preparedness. It primarily applies during phases of impending or actual extraordinary danger, especially during a state of defense as set out in Article 115a et seq. of the Basic Law (Grundgesetz, GG).
Personal and Material Scope
The law applies to natural and legal persons, companies, and institutions that are relevant for the supply of essential and defense-critical goods, services, or infrastructure. It affects all sectors of the economy, including energy, food, health, transport, and communications.
Relationship to Other Legal Provisions
The WiSiG is closely linked to other laws for crisis preparedness, including the Federal Services Act (BLG), civil protection and disaster management law, as well as numerous ordinances and administrative regulations at the federal and state level. It supplements the Basic Law with specific powers of action for the Federal Government.
Content and Regulatory Areas of the Economic Security Assurance Act
Securing Supply
The Act authorizes the Federal Government to order comprehensive measures to ensure food, energy supply, healthcare, and the supply of the population. This includes, among other things, the right to stockpile, to requisition companies or facilities, and to control the production and distribution of essential goods.
Regulations on Stockpiling
Through the WiSiG, the Federal Government can issue regulations for the establishment and use of economic reserves. Companies and individuals may be required to maintain certain goods in specified quantities.
Intervention in Supply Chains and Distribution
To avoid or remedy supply shortages, the Act provides extensive powers to manage supply chains, regulate the distribution of goods, and, where necessary, intervene in prices or conditions.
Company-Related Measures
Orders and Requisition
In case of a defense situation or relevant emergencies, the WiSiG enables orders for production changes, allocation of raw materials, as well as the temporary requisition of companies, facilities, and vehicles to meet war-critical needs.
Duty to Cooperate
Companies and institutions can be obliged to cooperate in security assurance measures. This includes providing information, cooperating with authorities, and carrying out specific orders.
Price Regulations and Market Stabilization Measures
Within the framework of the Act, the Federal Government is permitted to set price controls for vital goods and services in order to prevent profiteering, speculative price increases, and supply gaps.
Legal Procedures and Legal Protection
Administrative Procedures
Measures issued under the Economic Security Assurance Act are generally implemented by administrative acts of the competent state authorities. The provisions of the Administrative Procedures Act (VwVfG) apply, insofar as the WiSiG does not provide for divergent regulations.
Legal Remedies
Persons affected by measures under the WiSiG have access to the administrative courts. Lawsuits and applications for interim legal protection can be filed with the administrative courts. Restrictions of fundamental rights are expressly provided for under the Act but are subject in scope and duration to review by the Federal Constitutional Court.
Significance in Constitutional Law and Interference with Fundamental Rights
Interference with Fundamental Rights
The Act permits significant interference with fundamental rights, especially the guarantee of property (Art. 14 GG), freedom of occupation (Art. 12 GG), and general freedom of action (Art. 2 (1) GG). However, such measures are limited in time and scope to the case of ‘extraordinary emergency’ and must be proportionate.
Review by the Federal Constitutional Court and Bundestag
Measures taken under the WiSiG are subject to parliamentary oversight and, in cases of interference with fundamental rights, judicial oversight by the Federal Constitutional Court.
Practical Application and Significance
Historical Application
The Economic Security Assurance Act has not yet been comprehensively applied in the Federal Republic of Germany during a state of defense, but it has been used in modified form during particular supply shortages (e.g., the oil crisis in 1973).
Current Significance
In light of new threat scenarios such as hybrid warfare, cyberattacks, pandemics, and natural disasters, the practical significance of the WiSiG as part of the national security architecture is increasing. It forms an important component of nationwide crisis prevention and response capability.
Summary
The Economic Security Assurance Act is an instrument for maintaining supply security and the stability of the German economy in times of crisis. It grants the Federal Government extensive powers to manage and safeguard economic processes, but at the same time, it establishes strict legal and temporal requirements to protect fundamental rights and ensure the proportionality of state measures. The Act thus constitutes a key pillar of statutory emergency and crisis preparedness in Germany.
Frequently Asked Questions
What are the authorities’ responsibilities under the Economic Security Assurance Act?
Responsibilities under the Economic Security Assurance Act (WiSiG) are divided between various federal and state authorities. In principle, the federal government has the lead for measures to ensure the supply of vital goods and services in the case of defense or crisis situations. Implementation, however, is generally carried out by the states as prescribed by Art. 83 GG, unless the law stipulates otherwise. The Federal Ministry for Economic Affairs and Climate Action (BMWK) exercises supreme federal oversight and can issue legal ordinances and individual orders. The states are responsible for carrying out and supervising these measures, and may delegate tasks to subordinate authorities. In specific cases, local authorities may be involved, for instance, in the implementation of storage or management orders. Furthermore, the federal government coordinates, together with the states, the conduct of exercises to ensure efficient economic management.
What is the procedure for ordering economic regulatory measures under the Economic Security Assurance Act?
The ordering of economic regulatory measures follows an administrative procedure defined in the Act. First, the competent authority examines the necessity of a measure, which must be assessed strictly under legal standards, particularly regarding the risk of a significant supply crisis or a state of defense. If the conditions are met, the Federal Ministry for Economic Affairs and Climate Action may, if necessary in consultation with other departments or with the approval of the federal cabinet, issue ordinances or individual measures. These must meet the statutory minimum requirements of proportionality, definiteness, and legal certainty. Affected companies and citizens generally have the right to be heard and to object, unless the law allows for immediate enforcement in emergencies. Measures may also be carried out by state authorities on behalf of the federal government. Administrative legal recourse is open against such orders.
To what extent does the Economic Security Assurance Act restrict fundamental rights?
The Economic Security Assurance Act provides for significant interference with fundamental rights, especially property rights (Art. 14 GG), freedom of occupation (Art. 12 GG), and, if applicable, general freedom of action (Art. 2 GG). This is done in consideration of the principle of proportionality. Measures such as management, stockpiling, or regulation of production directly affect the entrepreneurial freedom of private enterprises. Such interventions are permitted by law or on the basis of statutory authorization, provided that any restriction is clearly defined in law, necessary, and appropriate to achieve the intended objective – safeguarding the economy. The law also provides compensation rules in case of expropriation or unreasonable burdens. The lawfulness of such interventions is, like all executive measures, subject to judicial review.
What legal remedies are available to those affected by measures under the Economic Security Assurance Act?
Affected parties can use the general legal remedies of administrative law against administrative acts and economic management measures issued under the Economic Security Assurance Act. These include, primarily, lodging an objection and, if rejected or unsuccessful, filing an action for annulment before the administrative court. In particularly urgent cases, applications for interim legal protection in accordance with § 80 (5) VwGO can be filed. However, in cases of defense, specific statutory provisions may contain reservations that suspend or restrict the right of objection or suspensive effect. Claims for damages for unlawful disadvantages can also be brought before the ordinary courts. Access to judicial review is generally ensured.
What compensation provisions exist under the Economic Security Assurance Act?
The Economic Security Assurance Act contains explicit compensation provisions for cases in which state measures result in financial losses or expropriation. Compensation is granted both for direct interventions, such as the use of property or business facilities, and for indirect economic burdens, such as reduced production or loss of sales, provided these are actually and causally attributable to WiSiG measures. The amount of compensation is generally based on the current value of the affected goods or the proven economic loss. The law regulates the administrative procedure for asserting compensation claims, whereby a claim must first be made in administrative proceedings before the competent authority. If no agreement is reached, a right of action exists before the ordinary courts. The calculation and granting of compensation are governed by the specific provisions of the WiSiG and, subsidiarily, the general principles of state liability law.
How does the Economic Security Assurance Act relate to European legal requirements?
The Economic Security Assurance Act is fundamentally national law. However, its application must not conflict with European law, particularly the fundamental freedoms of the single market and EU competition law. When issuing ordinances and measures under the WiSiG, the federal government must observe the requirements of the TFEU, such as restrictions on the free movement of goods and services, state aid law, and antitrust law. In exceptional cases, such as the threat to essential security interests under Art. 36 or Art. 52 TFEU, restrictions may be permissible, but these must be proportionate and necessary. Measures with cross-border effects may also require notification or coordination with the European Commission.
Are there special data protection provisions under the Economic Security Assurance Act?
As part of economic management measures under the WiSiG, personal and company-related data are generally processed. The Act therefore provides for specific procedural rules on data protection, which are based on the GDPR and national data protection laws. Processing is only permitted to the extent required and appropriate for fulfilling the statutory tasks. Authorities are obliged to maintain the confidentiality and integrity of the data, especially when transmitting to other authorities or in the context of inspections and orders. Data subjects have the usual rights to information, correction, deletion, and objection, insofar as this is not precluded by the security assurance tasks. Compliance audits and data protection impact assessments may also be required depending on the sensitivity of the measures.
