CRF Blog

Germany’s Merkel Avoids Painful Economic Reforms

by Bill Hayes

Bloomberg Businessweek reports that Germany’s Merkel Is Avoiding Painful Economic Reforms.

[Angela] Merkel has been chancellor for eight years. Germans see her as having ably guided the country through the euro crisis. In June the Deutsche Bundesbank, looking at domestic demand and a rise in construction, raised its estimate of gross domestic product growth in 2014 to 1.9 percent, well above the euro zone average. Merkel enjoys an approval rating of 71 percent. If an election were held today, her Christian Democrats would likely get more votes than any other party. On July 13, as Manuel Neuer collected his Golden Glove trophy as the World Cup’s best goalie, he gave his chancellor a spontaneous hug. She doesn’t look like a politician who’s doing anything wrong.

And yet she is dogged by a peculiar accusation: She’s not doing enough to make herself unpopular. [more]