Kohl CDU-CSU-FDP early coalition: die Wende and consolidated ordoliberalism

Doctrine — stated goals and content

Moderate ordoliberal-Christian-democratic "die geistig-moralische Wende" consolidation rather than radical supply-side revolution. Economic school: ordoliberal CDU post-war consensus with FDP supply- side emphasis — the Lambsdorff-Papier provided the programmatic template but implementation was incremental compared to Thatcher or Reagan. Left-right axis: centre-right; clearly a move rightward from Schmidt on fiscal and subsidy policy, but preserving the soziale Marktwirtschaft institutional architecture — Mitbestimmung retained, union rights protected, Länderfinanzausgleich unchanged. Key content: (i) 1983 Bundestag election called after constructive vote of no-confidence; CDU/CSU 48.8% and stable coalition; (ii) Haushaltsbe- gleitgesetz 1983 — consolidation package cutting unemployment benefits modestly, raising pension contributions; (iii) Beschäftigungsförderungs- gesetz 1985 — fixed-term contracts extended to 18 months without justification (moderate EPL loosening); (iv) Steuerreform 1986 and 1988 — bracket reductions, top personal rate from 56% to 53% (full effect 1990), corporate rate unchanged at 56% initially; (v) Börsenzulassungsgesetz 1987 and first reforms of capital-market regulation; (vi) partial privatisations begun cautiously — VEBA stake reduction 1987, Volkswagen remaining federal stake reductions 1987-88 (IPO 1961 had created initial public shares); (vii) Pershing II deployment carried forward from Schmidt government, NATO double-track executed despite peace-movement mobilisation; (viii) reunification preparation not yet on horizon — outside this window; (ix) environmental turn post- Tschernobyl April 1986 → Bundesumweltministerium founded 6 June 1986. Popularity: 1983 election 48.8% CDU/CSU (highest since 1957); 1987 election CDU/CSU 44.3% FDP 9.1% retaining coalition though CDU slipped 4.5pp; economic recovery + low inflation sustained support; Greens entered Bundestag 1983 (5.6%). Coherence: Kohl's genius (acknowledged retrospectively) was to layer moderate supply-side on intact social- market — retaining the Schmidt-era soziale Marktwirtschaft labels while slowly shifting the content toward Lambsdorff programme; this coherence enabled long tenure and made the Wende look less ideological than Thatcher-Reagan while sharing substantial content.