Unless the forthcoming German government of conservative leader Angela Merkel bites the bullet and carries out painful reforms in a determined way, there will be no real domestic demand-led growth in the country, and its leadership in Europe will be limited, a German expert told a recent symposium in Tokyo.
Weeks after the Sept. 18 elections denied either of the major parties a parliamentary majority, the Merkel's Christian Democrats (CDU) and outgoing Chancellor Gerhard Schroeder's Social Democrats (SPD) finally agreed to create a so-called grand coalition with Merkel at its helm.
Both the CDU and the SPD have announced their lineup for the coalition Cabinet, which is to be launched after weeks of more talks and parliament's final endorsement.