Dignity is the basic concept of the German constitution, which is called »Grundgesetz«.
In the explanatory literature of the judicial text, the explanation is as follows: The very basis of the law system is the idea of rights. There are absolut and relativ rights, and subjective and objetive rights. An objective right would be the legal entitlement of a certain state of society or the world, that's why the liberal constitution does not know this kind. Subjective rights are the allowence to do something. In the American case, there are servial absolute subjetive rights like Free-Speech. The German one, on the other hand, knows only one absolute subjective right, the human dignity. All other rights, such as the »freedom of opinion«, »freedom of religion« and so on are seen as a derivation from this one super-right.
In the light of this idee, the German courts can weight freespeech against the right of the individual in cases of slander, defamation etc.
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