After long-lasting discussions about the international competitiveness of German students and the attractiveness of Germany for foreign students regarding the structure of German degree programmes, 3 years ago the 16 German Länder (the federal states) tentatively agreed to the establishment of a new course structure of Bachelor's and Master's degree programmes which will co-exist alongside the traditional course system. Moreover, the federal legislation has accepted accreditation as a new steering instrument in the approval procedures of new Bachelor's and Master's programmes in Germany. In 1999 the Joint Commission for the Co-ordination of Study and Examination Regulations of the Standing Conference of the Ministers of Education and Cultural Affairs of the Länder (KMK) and the Conference of Rectors and Presidents of Universities and Other Higher Education Institutions (HRK) appointed the Accreditation Council that operates nation-wide. Up to now (December, 2000), the Council has accredited three accreditation agencies owned by higher education institutions, scientific societies, or discipline-oriented foundations. The agencies take over the task of assessing and accrediting, acting in the framework of fixed and widely accepted procedures, criteria, and standards set by the Council. The implementation of accreditation procedures for new degree programmes within the traditional recognition procedures marks a fundamental shift in the relationship between higher education institutions and the state. This will offer further possibilities for the development and modernisation of the German higher education system in the framework of the European Bologna process.