Party Politics and Economic Policy in the New Germany

Germany experienced economic malaise in the 1990s, raising the question of whether or not the political system is capable of reform. The reactions of the political parties to economic problems demonstrate an enduring set of norms about economic policy which include a generous social welfare system and an emphasis on co-operation between business and labour. However, there is a general agreement about the need for policy reform, and recent moves by the Red-Green coalition indicate a willingness to undertake significant steps towards a slightly more pluralist and liberal set of policies. The dynamic of party politics over the last decade indicate a mature, stable political system capable of reform.