Courting the Voters? Policy Implications of Party Competition for the Reform Output of the Second Merkel Government

Abstract

Understanding party competition as a ‘political market’, we explore its characteristics during the second Merkel government, 2009–13. On the demand side, analysing opinion polls and the Länder election results, we find that the outcome of the next Bundestag election was uncertain. Thus, electoral competition was likely to be intense. On the supply side, opposition parties presented credible alternatives to government policies with regard to social as well as environmental policy. Regarding the Euro crisis, however, a consensus across the established parties existed. Studying three of the most salient policy issues, we identify party competition as a crucial determinant of decision-making. While the debate on minimum wages was substantially shaped by party competition, resulting in ‘anticipatory obedience’, nuclear energy only became affected by electoral considerations after the ‘Fukushima shock’ which resulted in a major policy shift. Regarding the response to the Euro crisis, however, party competition was essentially suspended.