The Federal Cartel Office, however, is considered the strictest in Europe on mergers and acquisitions by domestic and foreign companies alike. The antitrust authority uses not only market share but also financial resources as criteria in merger evaluation. It participates in the fulfillment of the ESCB s tasks to maintaining the stability of the Euro, and it ensures the orderly execution of domestic and foreign payments. The Bundesbank's nine main offices known as Land Central Banks oversee regional business and civil affairs with credit institutes and the public administration and have full autonomy. Foreign Exchange Germany has no exchange controls on normal commercial transactions, and corporations have unrestricted access to both borrowing and lending abroad.
Companies face no restrictions when borrowing foreign currencies from abroad for use in Germany.
They can make direct investments in Germany without permission from the Bundesbank or other regulatory authorities. Foreign corporations and non-residents are permitted to acquire nearly all types of securities of any maturity, whether they are German stocks, bonds, money market instruments or any other portfolio instruments. There are no restrictions on leading, lagging and netting, remittance of dividends and profits transferred abroad, on interest and principal. No exchange controls apply to royalties and fees paid to recipients abroad or to repatriation of capital. Because of generous depreciation and other allowances, effective rates are currently much lower.