Vol. 22 · No. 1 · Issue 70 · Spring 2004

Pamela Camerra-Rowe, Political Science, Kenyon College

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Abstract

In the case of the Schröder government, the SPD's ability to undertake further reforms will be limited by the institutional and political features of the German system. The chancellor has a relatively small window of opportunity in which to undertake reforms. As the election of 2006 approaches, he is likely to try to shore up his labor union and blue-collar support to ensure their support. Even this year, Schröder faces numerous state and regional elections, which are likely to be seen as referenda on the reforms that have already taken effect. Moreover, Schröder has said he does not wish to undermine collective bargaining or the social welfare system; hence structural reforms are likely to stay within certain parameters. Finally, the opposition, which currently holds a majority in the Bundesrat, is likely to oppose further structural reforms that affect its constituents. Schröder recognizes these limits: "When you examine what we are trying to achieve, then it is a path, that under the political and power conditions in this society, I hold for optimal."86 While it may not be the optimal solution for solving Germany's economic problems, Agenda 2010 marks a fundamental change for the SPD and possibly the most that Schröder can hope to achieve politically.