Efforts to promote e-government in Germany. The governance system in Germany is divided into the federal, state, and local level (Bund, Länder, Kommunen). The federal republic consists of sixteen states, which all in all are comprised of 300 districts and more than 13,000 municipalities. Because local authorities are in charge of most government services and the local community is the area where most contacts take place between politics, administration, and citizens, the development of egovernment chiefly originated at the local level. But, in the late nineties, the federal government took over the leading role. A first significant step on the federal level to facilitate the introduction of IT-solutions in the public sector was the 1997 ratification of the law on electronic signatures in attempt to provide a legal framework for an infrastructure that can be used for many different types of online transactions (Fricke, 2002, 49 ff). Since December 1999, all e-government-activities of the federal government are part of a drive for an overall modernization of public administration. This reform, called Modern State – Modern Administration (Die Bundesregierung, 1999; Federal Ministry of the Interior, 2004c), includes, besides the promotion of IT-solutions, a strong focus on New Public Management. In September 2000, the federal government launched the initiative Bund Online 2005 (Die Bundesregierung, 2001; Federal Ministry of the Interior, 2004a; Kleindieck, 2002, 118 ff), in an effort to provide all Internet-enabled services of the federal administration online by 2005. These services are, among other things, comprised of applications on the transactional level, e. g. when dealing with special taxation procedures for employers and employees, with student scholarships, or with registrations in the area of intellectual property and patents. The initiative Bund Online 2005 has been endowed with 1,65 billion euros and is coordinated by the Federal Ministry of the Interior. It has developed some basic components that are supposed to benefit all federal agencies: a file server for official forms, an epayment platform, online information about data security measures, a content-management system, a call center, and a federal Internet portal. Furthermore, an e-government handbook is available online, which aims to cover all aspects of e-government including managerial, technical, and legal aspects. A standards architecture (SAGA) has also been drafted and made available to all levels of the governance system. Additionally, a platform for eprocurement was developed that is supposed to be used by all German agencies.