The text contains description and analysis of changes of 2006 and 2009 in the Basic Law for the Federal Republic of Germany concerning legislative powers and financial relations of federation and länder. The text begins with a description of advancing for over 50 years “process of policies’ merging”, described already in seventies of 20th century as a “trap”. Therefore, it was important to try to resolve the problem by two large amendments of the German constitution in 2006 and 2009 (i.e. the 1st and the 2nd reforms of federalism). The author describes assumptions and instruments applied by the first reform, ie. strengthening of legislative competences of the Union and länder, reducing the number of cases towards which the Bundesrat may apply the absolute veto, limiting so-called “mixed funding”, making “blocking up” of the Union and the countries through new regulation of matters more difficult by requiring the approval of the Bundesrat, as well as the adjustment of the Basic Law to the challenges of membership of Germany in the European Union. In this context the second reform of federalism was also the subject of analysis. The reform amended the system of mutual financial relations of the Union and countries and introduced a so-called “debt brake” (Schuldenbremse) but also limited some solutions which had been introduced three years before.