New Germany of Angela Merkel

B ERLIN ï Christian Union democratic of German Chancellor Angela Merkel may have won the majority in the September federal elections, but that does not mean that the country's future is clear. What comes out of Merkel's attempt to form the new coalition with the Greens and Free Democrats will not only shape the economic trajectory in the coming months; it will also determine the fate of transforming the country into a seriously open society.

In less than a generation, Germany, once ill in Europe, has become a global economic superpower. But the truth is that Germany's current economic success is less the result of good policies than favourable external conditions, especially in Europe, which had enormous demand for German exports.

To be sure, significant internal economic reforms have allowed Germany to take advantage of these external requirements. But they were undertaken long before Merkel came to power, and few significant economic reforms have been implemented over the period of 12 years. For example, domestic private investment remains weak, in part as a result of overregulated services and heavy bucractic loads.

Furthermore, while the German government has demanded authenticity from its neighbours, it has significantly increased social spending on pension and transfers, thus making public investments turn to negative. The necessary revision of the tax system once supported by the CDU has failed to materialise. And although employment has increased during Merkel's period, job creation has not succeeded in reducing the segment that receives small salaries in the labour market.

The parties that are most likely to form the next government -- the CDU [and the bavarese sister, CSU], the Green and Free Democrats -- are already struggling for how to use the country's largest fiscal surplus better to serve their respective voters. Whatever decision they make, Germany's economic performance is likely to remain strong, at least in terms of market and budget.

The true test of the so-called Jamaican coalition [named on the basis of party colors] is in fact in every respect. What Merkel missed in her economic-political achievements has been compensated for in a very important matter. Under her leadership, Germany has become more open society. But also, it's getting more and more divided.

To the next hour, between 20% of German residents [82 million in total] have immigrant backgrounds, and nearly five million of them are Muslims. This multiculturalism is reflected in changing prospects for all Germans. Four out of five Germans already consider Islam and homosexuality to be part of German society; three out of four say the same for immigrants and refugees. And Germany has one of the most pro-European populations on the continent.

The last three governments, led by Angela Merkel, have contributed strongly to this transformation. Critics call Merkel the first social-democrat Chancellor by a conservative party, because she has embraced many progressive policies, while disposing traditional stability and values. Arguably, among the most important decisions that she devoted to the post of Chancellor, but which probably shaped her legacy was the 2015 decision, despite the aggressive opposition even in her party, to accept nearly 1.5 million asylum seekers and integrate into German society.

Merkel-led governments have also supported education in early childhood and children's rights, while achieving substantial progress in gender equality. A broader and more flexible approach, increased facilities for women with babies, and other financial incentives have made women's participation more than 70%, one of the highest in the industrialized world. The current German government has also implemented a 30% quota for women on supervisory boards of large companies, implemented the Law on Transparency in wages aimed at reducing the gender gap in wages, which is still at 21%.

Although these reforms were not initiated by Merkel because she had to avoid those who in her party would oppose her, she offered silent support. Similarly, although Merkel voted against earlier this year for legalising gay marriage, which many in her party do not support, she accepted the decision, declaring she hoped not only that the vote would promote “respect between different opinions,” but would also bring “cohesion and peace. ”

Finally, it is Merkel's talent to overcome the political and social divisions that have transferred Germany to a more open society. And this, not economic policies, has been its greatest achievement in power. In some ways, Germany has already moved beyond its turning point on the road to opening, forcing Merkel's refugee policy in 2015.

But there are still many challenges. Beyond the technical and social challenges associated with a successful integration of refugees, there is a need for greater tolerance of Islam and general disparity among all Germans. Further changes in family and gender policies and a review of the education system are still needed.

While Germany debates what it means to be German, what results from coalition talks will determine whether Merkel's future government will confront these challenges effectively. If you do, Merkel will be remembered as the architect of the new German society. Project Syndicate Periscope