Market Social Democracy - The Transformation of the SPD up to 2007

The article analyses the changes within German social democracy up to the passing of the SPD's new party programme in 2007. It argues that social democracy has transformed itself from Keynesian into market social democracy'. The comparison takes place by means of a policy analysis in the fields of labour and social, as well as financial, policies. Furthermore, the policy comparison facilitates an analysis of the rationality of the political economy on which these policies are based. It demonstrates that market social democracy represents a reconfiguration of the relationship between the market, the state and the individual, one that renews the social realm with elements of economic liberalism. This process is also reflected in the new party programme, which now includes basic assumptions of German ordoliberalism.