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By law, "the Sundays and the public holidays remain protected as days of rest from work and of spiritual elevation" (Art. 139 WRV, part of the German constitution via Art. 140 GG). Thus all Sundays are, in a manner, public holidays – but usually not understood by the term "holiday" (except for, normally, Easter Sunday and Pentecost Sunday).
Public holidays apart from the Sundays (there must be some of them constitutionally) can be declared by law either by the Federation or by the Länder for their respective jurisdictions. At present the only federal holiday is German Unity Day (Unity Treaty, Art. 2 sect. 2); all the other holidays, even those celebrated all over Germany, are prescribed by state legislation.