The term, dating from the Early Middle Ages, is derived from the Latin term cancellarius. The modern office of chancellor evolved from the position created for Otto von Bismarck in the North German Confederation in 1867; this federal state evolved into a German nation-state with the 1871 Unification of Germany. The role of the chancellor has varied greatly throughout Germany's modern history. Since the founding of the Federal Republic, the chancellor has been the country's effective leader, although in formal protocol, the Bundespräsident and Bundestagspräsident are ranked higher.
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