by Xinhua writer Wu Liming

    BERLIN, Dec. 10 (Xinhua) -- The general election in September was the biggest political event in Germany this year, during which Angela Merkel was re-elected as German chancellor to lead a coalition government for another four-year term.

    Merkel led her Christian Democratic Union (CDU) party to kick the Social Democrats (SPD) out of the government and forged an alliance with her favored partner -- the Free Democrats (FDP).

    In her second term, Merkel's coalition government has adopted new measures to help the biggest economy in Europe to walk out of the recession while maintaining consistent foreign policies.     

    GERMANY'S NEW POLITICAL LANDSCAPE

    Merkel's conservative party, the Christian Democrats (CDU/CSU),and the FDP jointly won 48.3 percent of the votes in the election, enabling them to secure a clear majority to form a new coalition government.

    The victory put an end to the unpopular "grand coalition" between the CDU/CSU and the SPD which was forged four years ago, and the German politics turned a new face overnight.

    However, the election results indicated the change of strength among five major German parties. On the one hand, there was a considerable decline in the influence of the CDU/CSU and the SPD, two traditional controlling parties in German politics; on the other, there was the rise of three smaller parties.

    The CDU/CSU got the smallest number of votes since 1949 although it will stay in power; The SPD saw the worst votes since the Second World War, an avalanche disaster for the century-old party in the country.

    However, the FDP harvested a record high number of votes of nearly 15 percent.

    The Left Party, which emerged just two years ago, earned 12 percent of votes, achieving a double-digit percentage of shares for the first time,

    The environmentalist Greens, founded in the 1980s, got 10.5 percent of votes, remaining as a balancing strength in German politics.

    "A new party system emerged," said Jan Techau, head of the European Studies Center at the Berlin-based German Council on Foreign Relations.     

    NEW MOVES IN ECONOMIC POLICY

    After a month-long marathon negotiation, Merkel's CDU/CSU and the FDP on Oct. 24 struck a deal on the policies of their coalition government. The 124-page agreement promises tax cuts, more spending on education and a reform of health care system.

    It is a "new beginning," said Guido Westerwelle, FDP president and foreign minister in Merkel's cabinet.

    As a matter of fact, during Merkel's first term, the CDU and the SPD implemented a series of measures to tackle the global financial crisis and economic downturn.

    However, Germany has yet to get over the hangover of the downturn, which is why it is the major work for Merkel's new government to inject more vigor and impetus into the economy.

    Tax-cut has thus become the first and foremost move of Merkel's new coalition government to boost economy.

    On Dec. 4, the lower house of the German parliament approved a bill tabled by Merkel's government, which promises to reduce income and corporate taxes by 8.5 billion euros (about 12.8 billion U.S. dollars) next year.

    The bill contains 2.4 billion euros in tax relief for businesses, including provisions for increased loss write-offs and expanded deductions for interest payments. The annual tax credits of every child will rise to 7,008 euros (10,328 dollars) from 6,024 euros (8,878 dollars), accounting for another 4.6 billion euros.

    Merkel would continue her current measures in terms of domestic policies, Techau said.     

    CONSISTENT FOREIGN POLICY

    Merkel has still regarded maintaining good transatlantic ties and playing a leading role within the European Union (EU) as the cornerstone of the country's foreign policy.

    During her visit to the United States in November, Merkel delivered a speech at the U.S. congress, the second German leader to do so after Konrad Adenauer in 1957.

    During her speech, Merkel stressed the priority of the close transatlantic relations and the special partnership between Germany and the United States.

    Merkel also said her government would play its due role in major international issues including the Iranian nuclear issue, Afghanistan, climate change and international financial crisis.

    In November, German Defense Minister Franz Josef Jung and military chief of staff Wolfgang Schneiderhan resigned over widespread accusation of covering up information on an air strike in Afghanistan in September that killed as many as 142 people.

    However, in response to U.S. President Barrack Obama's call for increasing troops in Afghanistan, Merkel's government decided in November to send another 120 combat troops to the Kunduz region in northern Afghanistan.

    The German parliament is expected to vote later this month to approve the boosting of troops in the far-away war-torn country.

    Merkel also attached importance to developing stable relations with emerging economies including China, Russia and India. She has called on several international occasions this year for the replacement of the Group of Eight (G8) by the Group of 20 (G20) that includes major emerging economies.

    "For a long time, major German parties, except the Left Party, share consensus on major international issues, and this is an outstanding point for German foreign policy," said Eberhard Sandschneider, head of the Research Institute at the German Council on Foreign Relations, in a written interview with Xinhua.

    "I believe the new German government would not make any major change in its foreign policy or make any substantial change in its diplomatic orientation," he added.