In 2007, Merkel was also President of the European Council and chair of the G8. She played a central role in the negotiation of the Treaty of Lisbon and the Berlin Declaration. In domestic policy, health care reform and problems concerning future energy development have thus far been the major issues of her tenure.
Merkel is the first female Chancellor of Germany. She is considered by Forbes Magazine to be the "most powerful woman in the world at the present time". In 2007 she became the second woman to chair the G8 after Margaret Thatcher.
In 2008 Merkel received the Charlemagne Prize "for her work to reform the European Union": the prize was presented by Nicolas Sarkozy.
Merkel's father studied Theology in Heidelberg and, afterwards, in Hamburg. In 1954 her father received a pastorship at the church in Quitzow near Perleberg in Brandenburg, and the family moved to Templin. Thus Merkel grew up in the countryside 80 km (50 miles) north of Berlin, in the socialist German Democratic Republic (GDR). Gerd Langguth, a former senior member of Merkel's Christian Democratic Union states in a bookLangguth, Gerd Angela Merkel. Munich: dtv. that the family's ability to travel freely from East to West Germany, as well as their possession of two automobiles, leads to the conclusion that Merkel's father had a 'sympathetic' relationship with the communist regime, since such freedom and perquisites for a Christian pastor and his family would have been otherwise impossible in East Germany.
Like most pupils, Merkel was a member of the official, socialist-led youth movement Free German Youth (FDJ). Later she became a member of the district board and secretary for "Agitprop" (agitation and propaganda) at the Academy of Sciences in that organisation. However, she did not take part in the secular coming of age ceremony Jugendweihe, which was common in East Germany, and was confirmed instead.
Merkel was educated in Templin and at the University of Leipzig, where she studied physics from 1973 to 1978. Merkel worked and studied at the Central Institute for Physical Chemistry of the Academy of Sciences in Berlin-Adlershof from 1978 to 1990. Angela Merkel speaks Russian fluently, and even earned a statewide prize for her proficiency. After being awarded a doctorate (Dr. rer. nat.) based on a doctoral thesis on quantum chemistry she worked in research.
In 1989, Merkel got involved in the growing democracy movement after the fall of the Berlin Wall, joining the new party Democratic Awakening. Following the first (and only) democratic election of the East German state, she became the deputy spokesperson of the new pre-unification caretaker government under Lothar de Maizière.Langguth, Gerd Angela Merkel. Munich: dtv.
Following Merkel's election as CDU leader, she enjoyed considerable popularity among the German population and was favoured by many Germans to become Chancellor Gerhard Schröder's challenger in the 2002 election. However, she did not receive enough support in her own party and particularly its sister party (the Bavarian Christian Social Union, or CSU), and was subsequently out-manoeuvred politically by CSU leader Edmund Stoiber, who had had the privilege of challenging Schröder but squandered a large lead in the opinion polls to lose the election by a razor-thin margin. After Stoiber's defeat in 2002, in addition to her role as CDU chairwoman, Merkel became leader of the conservative opposition in the lower house of the German parliament, the Bundestag. Her rival, Friedrich Merz, who had held the post of parliamentary leader prior to the 2002 election, was eased out to make way for Merkel.
Merkel supported a substantial reform agenda concerning Germany's economic and social system and was considered to be more pro-market (and pro-deregulation) than her own party (the CDU); she advocated changes to German labour law, specifically, removing barriers to laying off employees and increasing the allowed number of work hours in a week, arguing that existing laws made the country less competitive because companies cannot easily control labour costs at times when business is slow.
Merkel argued for Germany's nuclear power to be phased out less quickly than the Schröder administration had planned.
Merkel advocated a strong transatlantic partnership and German-American friendship. In the spring of 2003, defying strong public opposition, Merkel came out in favour of the U.S. invasion of Iraq, describing it as "unavoidable" and accusing Chancellor Gerhard Schröder of anti-Americanism. This led some critics to characterize her as an American lackey. She criticised the government's support for the accession of Turkey to the European Union and favoured a "privileged partnership" instead. In doing so, she was seen as being in unison with many Germans in rejecting Turkish membership of the European Union.
In addition to being the first female German chancellor and the youngest German chancellor after the War, Merkel is also the first from East Germany (although born in Hamburg), the first born after World War II, and the first with a background in natural sciences. She studied physics; her predecessors law, business and history.
Merkel topped Forbes magazine's list of "The World's 100 Most Powerful Women" in 2006, 2007 and 2008.
On 30 May 2005, Merkel won the CDU/CSU nomination as challenger to Chancellor Gerhard Schröder of the SPD in the 2005 national elections. Her party began the campaign with a 21% lead over the SPD in national opinion polls, although her personal popularity lagged behind that of the incumbent. However, the CDU/CSU campaign suffered when Merkel, having made economic competence central to the CDU's platform, confused gross and net income twice during a televised debate. She regained some momentum after she announced that she would appoint Paul Kirchhof, a former judge at the German Constitutional Court and leading fiscal policy expert, as Minister of Finance.
Merkel and the CDU lost ground after Kirchhof proposed the introduction of a flat tax in Germany, again undermining the party's credibility on economic affairs and convincing many voters that the CDU's platform of deregulation was designed to benefit only the rich. This was compounded by Merkel proposing to increase VAT to reduce Germany's deficit and fill the gap in revenue from a flat tax. The SPD were able to increase their support simply by pledging not to introduce flat taxes or increase VAT. Although Merkel's standing recovered after she distanced herself from Kirchhof's proposals, she remained considerably less popular than Schröder, and the CDU's lead was down to 9% on the eve of the election. Merkel was also criticized for plagiarizing a passage from a speech used by President Ronald Reagan in a 1980 US presidential debate for her own television election duel with Gerhard Schröder, the Social Democratic chancellor.
On 18 September Merkel's CDU/CSU and Schröder's SPD went head-to-head in the national elections, with the CDU/CSU winning 35.3% (CDU 27.8%/CSU 7.5%) of the second votes to the SPD's 34.2%. Neither the SPD-Green coalition nor the CDU/CSU and its preferred coalition partners, the Free Democratic Party, held enough seats to form a majority in the Bundestag, and both Schröder and Merkel claimed victory. A Grand Coalition between the CDU/CSU and SPD faced the challenge that both parties demanded the chancellorship. However, after three weeks of negotiations, the two parties reached a deal whereby Merkel would become Chancellor and the SPD would hold 8 of the 16 seats in the cabinet. The coalition deal was approved by both parties at party conferences on 14 November. Merkel was elected Chancellor by the majority of delegates (397 to 217) in the newly assembled Bundestag on 22 November but 51 members of the governing coalition voted against her.
Reports had indicated that the Grand Coalition would pursue a mix of policies, some of which differ from Merkel's political platform as leader of the opposition and candidate for Chancellor. The coalition's intent was to cut public spending whilst increasing VAT (from 16 to 19%), social insurance contributions and the top rate of income tax. Employment protection will no longer cover employees during their first two years in a job, pensions will be frozen and subsidies for first-time home buyers will be scrapped. On foreign policy, Germany would maintain its strong ties with France and eastern European states, particularly Russia, and support Turkey for one day joining the European Union.
Merkel had stated that the main aim of her government would be to reduce unemployment, and that it is this issue on which her government will be judged.
Merkel's first foreign trip took place on the day she was sworn in as Chancellor, and went to Paris for a meeting with the then French president, Jacques Chirac. In his speech, Chirac emphasized the importance of the Franco-German Companionship for Europe. After the meeting with Chirac, she travelled to Brussels for talks with EU leaders and the Secretary-General of NATO, Jaap de Hoop Scheffer. She then traveled to London where she met with the then British Prime Minister, Tony Blair. On 28 November she received her first state guest: President Pohamba of Namibia, a former colony of Germany. In her first government address on 30 November 2005 she announced her objective of improving the German Economy and reducing unemployment.
Merkel made her first visit to the Middle East as President-in-office of the European Council on 1 April 2007. She offered Europe's help to get Israel and the Palestinians back to the negotiating table, and tried to restart international efforts for renewed peace talks.
On 25 September 2007, Chancellor Angela Merkel met the Dalai Lama for "private and informal talks" in Berlin in the Chancellery amid protest from China. China afterwards cancelled separate talks with German officials, including talks with Justice Minister Brigitte Zypries.
Following major falls in worldwide stockmarkets in September 2008, the German government stepped in to assist the Mortgage company Hypo Real Estate with a bailout which was agreed on October 6, with German banks to contribute €30 billion and the Bundesbank €20 billion to a credit line.
On Saturday October 4, following the Irish Government's decision to guarantee all deposits in private savings accounts, a move she was strongly critical of, Merkel said there were no plans for the German Government to do the same. However the following day, October 5, Merkel then stated that the government would guarantee the deposits in private savings accounts. However on Monday, October 6 it emerged that the pledge was of a political nature and that no legislation would be enabled. This confusion led to major falls in worldwide stockmarkets with the FTSE 100 and DAX stock exchanges falling 6% at one point. The German response led to other European governments either raising the limits or promising to guarantee savings in full.
The cabinet of Angela Merkel was sworn in at 16:00 CET, 22 November 2005.
On 31 October, after the defeat of his favoured candidate for the position of Secretary General of the SPD, Franz Müntefering indicated that he would resign as Chairman of the party in November, which he did. Ostensibly responding to this, Edmund Stoiber (CSU), who was originally nominated for the Economics and Technology post, announced his withdrawal on 1 November. While this was initially seen as a blow to Merkel's attempt at forming a viable coalition and cabinet, the manner in which Stoiber withdrew earned him much ridicule and severely undermined his position as a Merkel rival. Separate conferences of the CDU, CSU and SPD approved the proposed Cabinet on 14 November.
Merkel is also prominent at German national football team's matches, and is an honorary club member of Energie Cottbus.