Germany, after elections

However, it seems that major problem lies within her own party, the Christian Democrats (CDU) and its relationship with the sister party, the Christian Social Union (CSU).

Merkel's problems started on the evening of September 18 as the election results rolled in. By the end of the night, the woman everyone expected to be ushered into the chancellery by the German electorate had garnered only 35.2% of the votes. With coalition negotiations well under way her party's discipline is weakening. More and more Christian Democrats are having trouble keeping their election night frustrations to themselves. There have been consistent rumblings ever since the disappointing election evening with many especially with CSU complaining about Merkel's campaign, the "Young Union" demonstratively disobeyed Merkel's wish that everyone keep their mouth shut until she's safe in the chancellery. They demanded an immediate look into the causes of the poor showing. In addition to that, Edmund Stoiber, the head of the sister party CSU, who was the Union's chancellor candidate in 2002, just barely losing out to Gerhard Schröder seems to be disloyal and thinks he would make the better chancellor.

The biggest challenge faced by the new government will be to get the economy going again. Years of sluggish growth have driven unemployment figures into double digits and Germany's budget deficit over 3% of gross domestic product. The federal debt at the moment towers at $1.74 trillion. That is why both major parties decided to cut the 2007 federal budget deficit by roughly $42 billion, or nearly 15%. A Herculean task, experts say. The $42 billion is the amount needed to finally meet the European Union's stability and growth pact. The pact requires all signatories to keep budget deficit below 3% of their gross domestic product. Germany is set to breach that standard for the fourth year in a row.