A Tough Acid Test in Germany

This does not look like a sound environment for reform to me ...

'Angela Merkel, the German chancellor, sought to reclaim control of her conflict-ridden coalition on Friday, taking healthcare reform, the government’s most ambitious project, back to the drawing-board.

In what appeared to be a calculated concession to her party’s unruly regional grandees, she said the most contentious aspect of a reform blueprint agreed between the two ruling parties in July would be renegotiated.

“Thoroughness comes before speed,” she said after a meeting with Kurt Beck, chairman of the Social Democratic Party, suggesting the timetable for introducing the reform may not be met.

Overhauling the 123-year old health scheme is the coalition’s most ambitious undertaking since Ms Merkel rose to power 10 months ago. Its collapse would be a devastating blow and raise doubts about her ability to head her national-unity government throughout its four-year term.'

(...)

Angela Merkel, the German chancellor, sought to reclaim control of her conflict-ridden coalition on Friday, taking healthcare reform, the government’s most ambitious project, back to the drawing-board.

In what appeared to be a calculated concession to her party’s unruly regional grandees, she said the most contentious aspect of a reform blueprint agreed between the two ruling parties in July would be renegotiated.

“Thoroughness comes before speed,” she said after a meeting with Kurt Beck, chairman of the Social Democratic Party, suggesting the timetable for introducing the reform may not be met.

Overhauling the 123-year old health scheme is the coalition’s most ambitious undertaking since Ms Merkel rose to power 10 months ago. Its collapse would be a devastating blow and raise doubts about her ability to head her national-unity government throughout its four-year term.'

Germany needs reform in many key areas and it would certainly be good if the coalition could stay together on this one in  order to secure the legitimacy to carry on the much needed reforms on the labour market. However the current cracks might be to wide to bridge I fear.