(Transparency; 03-02; p.3)

According to these findings, it can be stated for Germany that most business deals in which civil servants and other state officials participate are brought about correctly.
In a European comparison however, there are some shortfalls. These have to be overcome to avoid "Cologne solutions" (This is a quote of Harald Schmidt, a well-known political entertainer in Germany, who coined the phrase for a corruption scandal in Cologne involving city and party officials as well as entrepreneurs).

 

Legal framework

It needs initiative from legislators to prevent "boys-club"-tendencies from spreading or becoming a fact in the first place. To call on the individuals' morality might score in public opinion but does not remove the incentive for such rent-seeking behaviour.
Contracts, brought about by "boys-clubbing" - by "networking" to use a more recent term - reward the one better connected, not the one better calculating. Therefore, they are inefficient from a political economist's point of view; the extra-costs are paid by the public.

There is need for action also from a democracy-legitimating point of view. After all, a civil society is based on the idea of a treaty: people involved are concluding contracts to their respective advantages.
By this construction, people have liberated themselves from feudal societies since from that point on individuals provided with rights e.g. give parts of their sovereignty to a state which in turn renders the good of security to them. As relates to economics, no longer some powerful individuals rule, but according to Adam Smith scarce resources are distributed efficiently to the advantage of all by the "invisible hand" of the market.

Switching off this mechanism at least needs some explanations, be it in terms of welfare - existing inequalities in opportunities on markets shall be evened out - or be it in terms of economical steering - offering of some goods or services shall be supported or avoided. However, if unjustified exceptions occur, areas without legal or market-economical restrictions as they may be called, a state de-legitimates itself.
(read on here)