Such an elephants' wedding may result in paralysis when it comes to brokering the type of structural changes Germany needs. At the most, you can expect half- hearted compromises.

She probably has enough steam to get into the harbor . . . but whether she will have the power to overhaul the German system is, I think, quite unlikely. Germans want some economic reforms, sure. But not Reaganomics that take away traditional strong social protections.

Unemployment is obviously the biggest problem at the moment. But I'm not sure if the new government can really affect change in that department. Germany is too dependent on the global development.

Merkel has absolutely no choice but to rein in spending. She'll have zero room for maneuver if she doesn't tackle the deficit.

They aren't able to criticize her, that would help Schroeder. But if Merkel becomes chancellor, then she will be the candidate again in 2007, pushing back their political ambitions for several years.

I think that there has been criticism directed at Schroeder from inside the party. Schroeder is doing some downgrading of the price of a grand coalition, but that doesn't mean he is completely out of the race for chancellor.