It's a little bit of both. While there exists a fair bit of local pride and each state has its own parliament (Germany is a republic of states, much like the US

It's a little bit of both. While there exists a fair bit of local pride and each state has its own parliament (Germany is a republic of states, much like the US), the government of the federal republic in Berlin holds most of the power and it's not like people from different states are much different (speaking in differences like being German or French). Regional dialects are mostly dead in the cities.