German's post-war Wirtschaftwunder (economic miracle) has turned into a nightmare for chancellor Gerhard Schröder. Europe's largest economy is in desperate need of reform, but German's consensus-style politics make it almost impossible to force through badly needed changes to the over-generous system. Schröder rammed the first package in a proposed string of reforms through the Bundestag in December. Economists say it will do little to improve the country's health. But it was a start – revolutions in German politics come in incremental steps.
Once the powerhouse of Europe, Germany's economy has been mired in recession for several years. The ruling Social Democratic Party launched a reform drive – Agenda 2010 – amid great fanfare last April and attempted to pass the first package of 15 bills designed to ease labour restrictions and cut taxes by the end of the year.
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