In 1963, Erhard replaced Adenauer as chancellor of the CDU and formed another coalition with the FDP
Erhard's programme, which encouraged the growth of co-operation within a social market economy, was unsuccessful due to an economic recession in 1965 caused by excessive public spending
As inflation rose, the FDP wanted to cut public spending whilst Erhard supported raising taxes. The FDP withdrew from the coalition and Erhard resigned in 1966
