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All Rights ReservedNo part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work.Printed in the Netherlands.Sold and distributed in North, Central and South America ISBN 1-4020-3063-0 (HB) ISBN 1-4020-3064-9 (e-book) Published by Springer, by Springer, by Springer, more business-friendly economic policy. Despite growing dissatisfaction among the traditional Social Democratic base about the dismantling of the German welfare state, Schröder's government has stayed this course. In chapter ten, Stefan Beck and Christoph Scherrer illustrate the shifts in red-green economic policy and examine the socioeconomic and institutional consequences for the German Model and -even more interesting -the political and strategic reasons behind these shifts.Compiling the findings of the varied contributions, in the concluding chapter we will again take up the question of the German Model's prospects for surviving globalization, with special regard to three features: democratic participation, social and material inclusion, and Germany's orientation toward the world market. Despite clear lines of continuity, there are also considerable institutional alterations, functional shifts, and an increased withdrawal of actors from existing regulations and standards. However, current reform endeavors, a declining reliance on previous modes of coordination, and the implementation of market-style regulations cannot be equated with an exhaustion or inevitable decline of the German Model. Its enduring export success and its capacity to cope with the huge and problematic task of reunification are indicative of the lasting strengths of the model. Nevertheless, the German Model seems to be at a crossroads now, and its future is interwoven with the future course of European integration.