Germany has become the most innovative economy in the world. It is a federal parliamentary republic located in Central Europe. It borders Denmark to the north, the Netherlands, Belgium, Luxembourg and France to the west, Switzerland and Austria to the south, and the Czech Republic and Poland to the east. It is composed of 16 federal states and its capital is Berlin. Germany is a highly developed capitalist country, the largest economy in Europe, the first of the four largest European economies, and one of the founding members of the European Union. It is also the North Atlantic Treaty Organization, the Schengen Agreement, the Group of Seven, and the Organization for Economic Cooperation and Development. And other important member states of international organizations. Its social security system is perfect, and its citizens have an extremely high standard of living. High-end manufacturing, represented by automobiles and precision machine tools, is also an important symbol of Germany.