Battling Plummeting Popularity, Merkel Vows Reform Drive

The popularity of Germany's grand coalition government has plunged to post-election lows as a result of government infighting and political decisions that have been widely criticized as half-hearted compromises. Now nine months after taking office, Merkel aims to go on the offensive.

Following a meeting of her cabinet of conservatives and Social Democrats in Berlin on Tuesday, Merkel admitted that Germans were increasingly skeptical of their government.

The chancellor said that "tough" decisions, such as raising the retirement age to 67, a planned hike in value-added tax and the abolishment of tax benefits, were responsible for lowered confidence among citizens.

Speaking at a press conference together with Deputy Chancellor Franz Müntefering, Merkel defended her government's decisions, saying it had cleaned up its finances and boosted economic prospects. Those political achievements were not yet being fully reflected in people's opinions, she added.

Improving economy boosts reform drive

Merkel also said her government was determined to push ahead with reforms, given that Germany's economy had brightened over the past few months.

"The good economic figures shouldn't make us all complacent now, because much remains to be done in Germany," Merkel said. "But I do believe that a growing economy will help resolve our problems in a less painful manner than would be the case without an expanding economy."

Bolstered by a buoyant economy that is expected to grow by two percent this year, Merkel's government wants to tackle a series of thorny issues. Among them is a corporate tax reform aimed at strengthening medium and small-sized businesses.

Merkel said the government would push controversial plans for a reform of public healthcare funding through parliament in spite of howls of criticism from lobby groups. A government working group is due to present proposals for the introduction of minimum wage levels in Germany, and public investment in high-technology sectors of the economy is to be substantially increased.

Eager to put behind differences

Merkel and Müntefering also indicated they would try to settle their differences over a welfare reform that has led to steeply rising payments for the jobless rather than lower ones originally intended.

The two leaders also agreed on the speedy introduction of a nationwide database containing information about suspected terrorists and vowed to foster the integration of foreigners in German society.

In foreign policy, Merkel reaffirmed her government's determination to play a substantial role in peacekeeping efforts in Lebanon and said that humanitarian aid would be increased.

Müntefering said that contrary to public perception the coalition government was working smoothly.

"The government has a leadership role in this country, which is a huge responsibility. All government members, regardless of their party affiliation, are aware of that, and although there may be some quarrels erupting at times everyone is aiming for the best possible results."

Nevertheless, Angela Merkel appears to be eager to prevent a further erosion of the government's poll ratings which have dropped markedly by more than 10 points since she took office last November. The tightly packed government program for the rest of the year is clearly intended to show the public that the reins of power are still firmly in Merkel's hands.