Chancellor Merkel

The Wharton School looks at the leadership obstacles of Germany's new chancellor, Angela Merkel.

An excerpt:

It is a challenge that has been staring German leaders in the face for a long time, for a number of reasons: lackluster GDP growth over the last five years; a vast, overburdened welfare state; an anemic service sector; stubborn protectionist sentiment, and an aging population that will place greater strain on the nation's budget in years to come. In whatever policies she proposes, Merkel will have to tread softly so as not to alarm citizens and trade unions wary of change, yet firmly enough to achieve substantive results, say scholars at Wharton and business schools in Europe.

Nonetheless, surveys show that citizens and businesses alike are in the kind of upbeat mood that Germany has not enjoyed in years, an optimism that Merkel, who completed her first 100 days in office on March 1, and her coalition government may be able to capitalize on. German business confidence, as measured by the Ifo index, rose from 101.8 in January to 103.3 in February.

Read the entire article here.