POLITICS

Urgent reforms

The 2005 German word of the year was "chancelloress." Angela Merkel's grand coalition government forged between the CDU/CSU and SPD parties got off to a good start. After years of stagnation, the country's economy appears to be coming back to life. Yet growth rates are still modest (2005: 0.9 percent). Despite social services and labor market reforms - introduced as part of a plan called Agenda 2010 - over 6 percent of the 80 million Germans remain unemployed. The nation's education system and overall federalist structure desperately need an overhaul. The country that demonstratively refused to join the invasion of Iraq was shaken earlier this year when several of its citizens were kidnapped there. Germany's government hopes that the World Cup will be a boon to both the country's economy and image. And even if its footballers fail to lift the trophy, the country may still defend its title of world's leading exporter.

THE SPORT

False hope

Franz Beckenbauer, coach of the German team that won the last of the country's three World Cups in 1990, believed back then that a reunified Germany able to call on western and eastern German internationals would be invincible for the foreseeable future. But the Germans continued to employ a sweeper rather than a back four, and neglected to teach the upcoming generation the skills and tactical nous needed to compete in the international arena. Their selection was fortunate to win the 1996 European Championship but ultimately this triumph proved a disservice to its aspirations. Vital reforms were delayed and, to few people's surprise, German football declined - culminating in a quarterfinal defeat at the 1998 World Cup in France and elimination in the group stages of Euro 2000 in the Netherlands. In retrospect, even the achievement of reaching the 2002 World Cup Final, which Brazil won 2-0, only served to mask the German game's shortcomings. During the past six years its national team has been winless against its major rivals.

TEAM AND TACTICS

Defensive worries

After the humiliating first-round exit at Euro 2004 - with the Czech Republic's second string providing the coup de grace - Jürgen Klinsmann replaced Rudi Völler as coach. The Swabian immediately set about the task of rebuilding the team. Upcoming stars like Cologne striker Lukas Podolski, Bayern Munich's Bastian Schweinsteiger and Hanover's central defender Per Mertesacker have now taken their places alongside the experienced Michael Ballack, Miroslav Klose and Bernd Schneider in the lineup. In a departure from past tactics, Klinsmann is trying to instill a more modern, all-action style of play that keeps spectators entertained. Based on intelligent movement and quick passing, the German team's play has grown in skill. The defense, however, remains the main concern. As the tournament's hosts, Germany were exempted from qualification - and have not had to play a major competitive game since the European Championship. As a result, nobody knows with confidence where the team's limits lie.

STAR PLAYER

Michael Ballack

Accused of arrogance in the past, this eastern German has evolved into a leader of real stature, not just for Bayern Munich. With 29 goals in 61 matches, he has become the inspiration of the national team as well. It was due mainly to his efforts that Germany clinched a place in the 2002 World Cup Final. But before scoring the only goal of the semifinal against South Korea, he picked up a yellow card, forcing him to sit out football's greatest showpiece. That same year Ballack and his club Bayer Leverkusen finished as runners up in three competitions: the domestic league and cup, and the Champions League. Since signing for Bayern he has led Germany's top club side to two league and cup doubles.