German Chancellor Angela Merkel has cut a convincing figure on the international arena after one year in office but her so-called "grand coalition" government seems to have been losing steam at home despite a finally picking-up economy and lower unemployment.

A RISING STAR

As Germany's first female chancellor, Merkel grabbed global eyeballs when she took the reins of a "grand coalition" government last Nov. 22 after an inconclusive general election.

Unlike her flamboyant predecessor Gerhard Schroeder, the trained physicist sought to impress the world with a style of sobriety and precision when she poured mineral water instead of champagne to celebrate the coalition agreement.

After one year in office, Merkel, listed by Forbes as "the world's most powerful woman" in 2006, has certainly consolidated her standing outside Germany.

The chancellor was most credited by her success to patch up German ties with the United States which were gravely strained after Schroeder vigorously opposed the U.S.-led war in Iraq.

She brought a new firmness to Germany-Russia relations which were described as "too cozy" by local media.

The chancellor also broadened her support base in Europe by helping broker a deal over the bloc's budget from 2007 to 2013 at a EU summit shortly after she took office.

"Merkel has consistently followed a long tradition of German foreign policy and meanwhile has set a different tone," Eberhard Sanschneider, director of the German Council on Foreign Relations (DGAP) told Xinhua.

"And more importantly, Germany has clearly become more global in its role," he added.

The chancellor sent German troops to monitor the first elections in four decades in the Democratic Republic of Congo, and for the first time, to the Middle East, where German ships are patrolling the coast of Lebanon as part of UN peace-keeping force.

She even tried, though in vain, to persuade U.S. President George Bush to close Guantanamo Bay, a gesture that has won cheers at home.

As Germany takes the rotating presidency of the EU and the Group of Eight industrial nations in January, Merkel will have a golden opportunity to further enrich her international profile, said Sanschneider.

A CHANCE TO SHINE

Just like the World Cup in summer, Germany's upcoming EU presidency is widely regarded as another rare chance to burnish the country's international image.

In the run-up to EU presidency, the chancellor has already vowed to restart the stalled Middle East peace process, a move well received by the international community.

She also pledged efforts to revive the virtually dead EU constitution, fight climate change and make African development a priority during Germany's six-month presidency.

The chancellor went even further to stress the "common values" that are needed for a unified Europe.

"Europe will only succeed if it can keep in mind what it is based on and that is common values," Merkel said in a speech in Luxembourg in November when she was awarded "the Vision for Europe" by the Edmond Israel Foundation, in honor of her efforts to "shape the future of Europe."

Under the "common values", Merkel said she would push for social programs in Europe rather than pure economic success during the upcoming presidency.

Merkel underlined the need to "put people at the center and explain what Europe means for their jobs, their prosperity, their social security, their healthcare and their old age."

Still, the cautious physicist warned that Germany is not expected to solve every single EU issue within the six-month presidency but will try to lay a foundation for the following EU presidency states to solve these problems.

"NOT SO GRAND COALITION"

However, Merkel's image at home seemed to have been gravely tarnished as rivals in her "grand coalition" continued with endless spat over virtually every political issue and come up with compromises that often satisfied few.

A recent survey initiated by the influential German magazine "Der Spiegel" showed that Merkel's approval ratings slip from a 64 percent in May to only 35 percent in late October.

The support for the German government overall dropped even further from 32 percent in May to 16 percent in October, the survey showed.

The "grand coalition" is a "forced marriage" of Merkel's conservative Christian Union and its chief political rival, the Social Democrats, analysts say.

Both sides failed to grab a majority of votes through the general elections last year.

Der Spiegel has described the grand coalition as "forceless" and the Economist stroke an even more sarcastic tone, calling the government "not so grand coalition."

Among all, German citizens were particularly infuriated by a lengthy quarrel over a flagship reform of the country's healthcare system, one of the most expensive in the world.

The coalition also has stalled on deregulating the German labor market, one of the prominent aims of Merkel when she took office a year ago.

The question of "what Angela Merkel wants", raised by the media during her election campaign in 2005, "remain unanswered," wrote Der Spiegel.

"This coalition has not used its large majorities in the lower and upper houses of parliament to perform great deeds," the conservative daily Frankfurter Allgemeine Zeitung said.

"There is disappointment everywhere," it said.

TAKING SOME CREDIT

Still, the chancellor does have some achievements to point to. Germany, the biggest economy in Europe, has brought its budget deficit under control after years of overshooting a EU-mandated limit under the EU stability and growth pact.

The Kiel-based Institute for the World Economy (IfW) has recently raised its projection of German economic growth this year from 2.4 to 2.6 percent, which is the best performance in six years.

German unemployment dropped below 4 million in November after hitting a record high in 2005 at more than 5.2 million, the highest level since 1933 when the National Socialists seized power.

No wonder the chancellor seems to be pretty satisfied with her performance in the past year.

"We have got the budget in order, we have invested in research and innovation... we have got many reforms on the road," Merkel told ZDF television recently.

"I know that we have to make demands of people...but on balance the grand coalition has taken important steps," she said.

Of course, Merkel wanted to do more.

In January, the value-added tax will be raised from 16 percent to 19 percent to fill the country's deficit gap, a move analysts say could hurt consumption and drag down the recovering economic growth.

The government planned to raise the retirement age from 65 to 67 as part of the efforts to secure Germany's struggling state pension system.

It also intended to cut Germany's average corporate tax rate in a bid to encourage investment.

However, as Der Spiegel pointed out, if the chancellor does not start to show more "determination" and "readiness for risks", a new year could still be squandered in a "state of waiting."

Source: Xinhua