“Charting a New Course? German Social Democracy Between European Integration and Party Politics”

In this paper, I first examine the dilemma faced by Social Democratic and Socialist parties in building an electoral coalition and serving traditional constituent interests in an increasingly integrated economy. I argue that the ability of leftist parties to successfully implement a more moderate economic stabilization program depends on the institutional and partisan political context in which those parties operate. I then examine the institutional and political context of the German SPD in order to explain the difficulties it faces in responding to the new economic and political environment. It is not simply enough for leftist parties to cobble together a winning electoral coalition by advocating moderate economic and social policies. In order to govern effectively, such parties need to alter the basic institutions which structure interests within the society and within their own party. Only then will they be able to implement a more moderate program and consolidate the support of the so-called “New Middle.