Election Issues

Germany's To-Do List

  • Why it matters

    Why it matters

    Germany’s economy is thriving, but the current government still faces making crucial policy challenges that affect growth.

  • Facts


    • Since November 2013, Chancellor Angela Merkel, head of the Christian Democratic party, has been ruling Germany with Social Democrats in a grand coalition.
    • German unemployment is at a 25-year low, the federal budget is running a surplus and there is little political inclination to push through important reforms.
    • Germany’s economy, Europe’s largest, is forecast to grow 1.4 percent this year after expansion rates between 1.6 and 1.9 percent the past three years.
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main source Reuters 75301562 – Angela Merkel Chancellor Horst Seehofer Bavaria state premier Munich Feb 6 2017 Munich CSU CDU party conference
On Monday, Chancellor Angela Merkel, head of the Christian Democratic Union, met with leaders of Bavarian sister party, the Christian Social Union, to discuss the federal election in September. Source: Reuters

Make no mistake: there’s been a lot of positive news out of Germany lately. Finance Minister Wolfgang Schäuble recently presented balanced budgets for 2014, 2015 and 2016. The economy is set to grow 1.4 percent this year and exports are peaking. To top it off, unemployment is at a 25-year low.

These solid numbers, however, mask a number of problems Chancellor Angela Merkel and her coalition government of the Christian Democrat Union (CDU), Christian Social Union (CSU) and Social Democrat PArty (SDP) have not yet tackled.

In addition to dramatic changes internationally – from Brexit to the election of U.S. President Donald Trump and the Ukraine conflict  – Germany also faces several domestic challenges.

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