CHANCELLOR MERKEL

Now that Gerhard Schröder has agreed to step down (he blasted Bush and Blair in the process) and conservative Angela Merkel of the Christian Democrats takes over as chancellor, we can only hope that Germany will get its act together. The hope, of course, is that Merkel would be a reformer, and tackle labor interests and take on Germany's top heavy welfare program.

The unfortunate reality of it is she felt cornered into reaching an agreement with the Social Democrats, the party of departing Chancellor Gerhard Schröder, because of her narrow victory, and the poor showing in general, of her Christian Democratic party.

The result of this is, she will be constrained as the Christian Democratic leader of a Social Democratic government because of this agreement with the opposition. We can still hope. At any rate, I do believe our diplomatic relationship with Germany will improve.