Merkel Re-elected As Chancellor

Angela Merkel

German lawmakers formally re-elected for a second four-year term as chancellor on Wednesday, this time at the head of a new centre-right coalition.

After the September 27 general election, Merkel, 55, was able to ditch her previous partners, the centre-left Social Democrats (SPD), in favour of an alliance between her conservatives Christian Democrats (CDU) with the pro-business Free Democrats (FDP).

"I accept the result and thank you for your trust," she said, as lawmakers applauded and presented her with bouquets of flowers in the main chamber of the Reichstag building.

Out of the 612 MPs present in the Bundestag, Germany's lower house of parliament, 323 voted in favour of Merkel, with 285 against and four abstentions. Her Christian Democrats, their conservative Bavarian CSU allies, and the FDP have 332 seats.

The new government has pledged to make Germany, Europe's biggest economy, emerge from the global recession in better shape than before the financial crisis sent it into its worst recession since World War II.

It has promised €24 billion ($35.6 billion) worth of tax cuts, something that will push Germany's mammoth national debt still higher and put it in breach of European Union deficit rules for several years to come.

Merkel has ruled out large reductions in government spending, however, saying this could jeopardise Germany's fragile recovery, and that the economic growth that the tax cuts will trigger will eventually help cover the cost.

Germany, one of the world's biggest exporters, has been hit harder than many advanced economies by the global downturn, with output set to contract by around five percent this year.

Merkel's new cabinet was due to hold it first meeting on Wednesday afternoon.

Source: Thelocal