The federal structure of Germany divides responsibilities between the federal government and the 16 federal states (Länder). According to the German constitution (Grundgesetz), culture and education – including the development and funding of libraries – fall under the primary responsibility of the different states. This decentralized cultural sovereignty (Kulturhoheit der Länder) allows each state to create its own library policies, funding schemes, and development strategies tailored to regional needs. However, this “federated” governance structure leads to a kind of fragmentation and makes it challenging to establish a coherent, nationwide library strategy or uniform funding program at the national level. As a result, library development across Germany varies more or less, with some states investing weightily in innovative services, digital transformation, usage of AI and inclusion, while others have to take into account more limited resources. This causes a lack of a unified framework, complicates national coordination and limits the potential for centralized innovation funding and nationwide service standards for all types of libraries. Common “standards” are mainly based on voluntary agreements between parties like the federal level, states and other stakeholder often coordinated by organizations like e.g., the National Library or DBV.