Liberals Becoming Neo-Liberal?
The Free Democratic Party (FDP), or the Liberals, head into the campaign with a clear strategy -- a better economy can solve many of Germany's problems. Huge budget deficits, masses unemployed and companies afraid to do their business permanently in Germany have led to a large amount of insecurity amongst Germans.
The past seven years have seen a deepening decline in Germany. The Liberals expertise is business and that's what they want to help so that the world's third-largest economy can get back on its feet.
Their platform stands on three legs: lower taxes, a more flexible labor market and a reduction in bureaucracy.
Party chair Westerwelle for lower taxes
The FDP, if they should come out victorious in the fall elections, would have to kowtow to the much bigger Christian Democrats and their chancellor candidate, Angela Merkel.
Merkel has laid out her plans for a possible victory. One of them, the raising of the VAT, has met with great resistance from the Liberals.
"A future coalition in which the FDP is a partner would lower and simplify taxes," party chair Guido Westerwelle.
Leaders from the party have been vocal in criticizing any potential tax hikes, saying Germans need exactly the opposite -- fewer taxes so they can spend more.
Party deputy chairman Rainer Brüderle (photo) said that the successful economic upswing in countries like the Netherlands, Britain or Sweden can be found in the will of its citizens.
"They have freed themselves a little more and won back their government," Brüderle said at the party's convention this month. Lower taxes, more freedom and the breaking down of old bureaucratic structures have been key in helping other European countries get out of the economic doldrums.
Labor unions the problem
Another trouble spot in the German economic structure has been the power of labor unions in the country according to the party leadership.
It is normal in Germany that wages hammered out in negotiations between employers and labor unions apply nationwide or for large regions. This has caused companies to cut jobs instead of creating them.
Westerwelle has repeatedly attacked this policy, calling for more contract negotiations between individual companies and their employees. The FDP has proposed that if three-quarters of a company's employees demand direct negotiations, then this should be heard.
Lastly, the Liberals believe that the large presence of labor representatives, 50% in fact, on company supervisory boards makes many German businesses unattractive for foreign investors. The FDP says that the number should be reduced to one-third, something that the labor unions would resist.
One of the Liberals biggest potential problems is the fact that their rhetoric has not struck a chord with most Germans. Should they be pulled into a coalition with the Union bloc, getting just some of their ideas pushed through may be the biggest victory.