Schmidt SPD-FDP coalition (FRG): Modell Deutschland and oil-shock pragmatism

Doctrine — stated goals and content

Pragmatic Social-Democratic-ordoliberal Keynesianism — "Modell Deutschland" as Schmidt's 1976 electoral slogan. Economic school: social-market economy (soziale Marktwirtschaft) with Keynesian demand-management overlays and strict monetary conservatism delegated to an operationally- independent Bundesbank. Left-right axis: centre-left relative to Kohl's successor coalition but well to the right of Mitterrand 1981 — Schmidt-Apel-Matthöfer team prioritised price stability, external balance, and sectoral Mitbestimmung over expansionary redistribution. Key content: (i) 1975 counter-cyclical investment programme in response to oil shock (Zukunftsinvestitionsprogramm); (ii) Mitbestimmungsgesetz 1976 — parity co-determination on supervisory boards of firms >2000 employees; (iii) Betriebsrentengesetz 1974 on occupational pensions; (iv) locomotive strategy 1978 Bonn G7 Summit — Schmidt committed to fiscal stimulus as part of coordinated reflation; (v) EMS founding 13 March 1979 jointly with Giscard — Germany as monetary anchor; (vi) second oil-shock response 1979-1981 — tax increases rather than expansion; (vii) NATO double-track decision December 1979 and Pershing II/cruise missile stationing divided SPD internally 1980-1982; (viii) Operation Wende — FDP under Genscher/ Lambsdorff published the Lambsdorff-Papier (9 September 1982) calling for supply-side turn, breaking with SPD; (ix) constructive vote of no-confidence 1 October 1982 replaced Schmidt with Kohl. Popularity: 1976 Bundestag election: SPD 42.6%, CDU/CSU 48.6%, FDP 7.9% — SPD-FDP retained majority; 1980 election SPD 42.9% (highest ever), CDU/CSU 44.5%, FDP 10.6%; personal Schmidt ratings consistently highest of any Chancellor in the period; internal SPD split on missile deployment + public-debt concerns eroded coalition. Coherence: the movement's strength was Schmidt's willingness to run Bundesbank- aligned monetary policy despite SPD base pressures, combined with retention of social-market institutions; it fractured on NATO deployment and FDP realignment, not on economic performance.