History of Germany since 1990 Helmut Kohl was reelected as Chancellor for his fifth and last term. The ruling liberal-conservative coalition government, consisting of the CDU/CSU and the FDP, lost the German federal election, 1998, and Gerhard Schröder was elected as Chancellor, the head of a coalition government consisting of his own SPD party and The Greens. Joschka Fischer, a leading Green politician, became Vice Chancellor and Foreign Minister. Shortly after the formation of the government, Minister of Finance Oskar Lafontaine, a former SPD chairman and rival of Schröder, resigned from the cabinet. He was succeeded as Minister of Finance by Hans Eichel. In 1998,
Chancellor of Germany invests the chancellor (German, "Bundeskanzler") with broad powers to initiate government policy. For that reason, some observers refer to the German political system as a "chancellor democracy". Whichever major party (CDU/CSU or SPD) does not hold the chancellorship usually calls its leading candidate for the federal election "chancellor-candidate" ("Kanzlerkandidat"). The federal government ("Bundesregierung") consists of the chancellor and his or her cabinet ministers. The chancellor's authority emanates from the provisions of the Basic Law and in practice from his or her status as leader of the party (or coalition of parties) holding a majority of seats in the "Bundestag" (federal