Agenda 2010: Redefining German Social Democracy

Abstract

In March 2003, Social Democratic Chancellor Gerhard Schröderannounced a series of reforms that his government plans to undertakein order to deal with Germany’s pressing economic problems.These reform proposals, known as Agenda 2010, include cuttingunemployment benefits, making it easier to hire and fire workers,reducing health insurance coverage, and raising the retirement age.The reforms mark a change in the direction of the German SocialDemocratic Party’s (SPD) economic policy. Rather than promotingtraditional social democratic values such as collective responsibility,workers’ rights, and the expansion of state benefits, Schröder declaredthat “We will have to curtail the work of the state, encourage moreindividual responsibility, and require greater individual performancefrom each person. Every group in the society will have to contributeits share.”1 Despite opposition to these reforms by labor unions andleftist members of the party, Agenda 2010 was approved by nearly 90percent of SPD party delegates at a special party conference in June2003.2 Several of the reforms, including health care and job protectionreforms, were passed by the legislature at the end of 2003 andtook effect on 1 January 2004.