| | The September 2009 elections were a major win for the conservative forces led by Chancellor [[Angela Merkel]], breaking a stalemate and opening the way for more conservative economic policies. Previously since an indecisive election in 2005 the Christian Democrats (CDU) (on the center-right) formed a "grand coalition" with the Social Democrats (SPD) (on the center-left). Now Merkel and her CDU will form a coalition with the libertarian, pro-business Free Democrats (FDP). Left in the cold will be the SPD, the Greens, and the ex-Communists who remain strong in the former East Germany under the name "Left party". Merkel is now expected to move forward on tax cuts, reform of the tax code, reduction of bureaucracy and a possible extension of the time that nuclear power plants can continue to operate.<ref>Craig Whitlock, "Germany's Merkel Reelected Easily, Will Form New Coalition," [http://www.washingtonpost.com/wp-dyn/content/article/2009/09/27/AR2009092700631.html?nav=emailpage ''Washington Post'' Sept. 28, 2009]</ref> | | The September 2009 elections were a major win for the conservative forces led by Chancellor [[Angela Merkel]], breaking a stalemate and opening the way for more conservative economic policies. Previously since an indecisive election in 2005 the Christian Democrats (CDU) (on the center-right) formed a "grand coalition" with the Social Democrats (SPD) (on the center-left). Now Merkel and her CDU will form a coalition with the libertarian, pro-business Free Democrats (FDP). Left in the cold will be the SPD, the Greens, and the ex-Communists who remain strong in the former East Germany under the name "Left party". Merkel is now expected to move forward on tax cuts, reform of the tax code, reduction of bureaucracy and a possible extension of the time that nuclear power plants can continue to operate.<ref>Craig Whitlock, "Germany's Merkel Reelected Easily, Will Form New Coalition," [http://www.washingtonpost.com/wp-dyn/content/article/2009/09/27/AR2009092700631.html?nav=emailpage ''Washington Post'' Sept. 28, 2009]</ref> |
| − | Merkel's progarm announced as she took office Oct. 28 includes $36 billion in income tax cuts, lower business taxes, and higher family benefits. The budget will be in deficit for the next four years, as the government believes the economy is too fragile for spending cuts and that moere stimulus is needed to end the recession. By law the budget must be balanced by the year 2016. Nuclear power plants will be given an extension, and Merkel wants to move more of the welfare costs from corporations to households. | + | Merkel's program announced as she took office Oct. 28 includes $36 billion in income tax cuts, lower business taxes, and higher family benefits. The budget will be in deficit for the next four years, as the government believes the economy is too fragile for spending cuts and that more stimulus is needed to end the recession. By law the budget must be balanced by the year 2016. Nuclear power plants will be given an extension, and Merkel wants to move more of the welfare costs from corporations to households. |