Adenauer was replaced by his Minister of Economics, Erhard in 1963.CDU gained 246 seats in coalition with the FDP's49 sets. SPD was at 202 seats.
1965 saw an economic recession meaning Erhard had to cut his public spending plans. He proposed that everyone work an extra hour per week, however this was quickly shut down.
The new right wing NDP was emerging under Erhard, claimed his government was weak. Although they did not gain a seat in the 1965 elections, they won 8 seats in Hesse and 15 in Bavaria.
Erhard's government faced disputes over how to deal with the recession. CDU wanted to raise taxes, the FDP favoured spend cuts.
Erhard failed to persuade Americans to accept cuts in FRG's contribution to the stationing of US troops in West Germany, causing the FDP to withdraw from the coalition.
Kiesinger became chancellor in 1966 with his grand coalition between the CDU and SPD. Due to the overwhelming majority, some feared the FRG was headed for a one party state.
In 1968 an elected committee was created which could take emergency measures in time of war or crisis. 22 members of Bundestag with one rep from each state could make decision with a two thirds vote. Many compared this to article 48.
NDP gained 48 seats in six states under Kiesinger. Their presence was causing political agitation. As well, they allowed the communistDKP to form.
The SPD minister of economics and CDU minister of finance devised a range of policies under the grand coalition. Including greater central government control over spending and taxation policies.
There was a lot of inner tension within the grand coalition. The SPD said the CDU were holding back welfare reforms and that they were too reluctant to ease strain with east.
The grand coalition broke away from the CDU in 1969 when the SPD and FDP gained a slender majority of 48.1%.
Willy Brandt became chancellor in 1969 and promised to 'dare more democracy' and be the chancellor of domestic reform.
Brandt reformed criminal law and lowered the voting age to 18.
Brandt extended welfare, pensions, educational provision, job creation schemes and promoted railways to help the environment. Pensions were raised by 5% and sickness benefit by 10%.
Brandt's reforms exacerbated Germany's inflation causing right/left arguments and even caused his finance minister to resign.
Brandt's chancellorship was full of terrorism.
Brandt adopted Ostpolitik, causing some to defect to CDU.
In 1972, Brandt survived a vote of no confidence by 2 votes.
In 1972, SPD won 45.8% of the vote and CDU had fell to 44.9%.
During Brandt's second term, he struggled to control inflation which was made even worse by the oil crisis.
Brandt resigned in 1974 in favour for Schmidt, who was a conservative social democrat and had little sympathy for the left wing.
Schmidt pursued Ostpolitik and showed his ability to deal with a number of crises. He had to deal with economic issues, pressure groups like the greens and opposition to his agreement to have US nuclear missiles stationed in Germany.
In 1982, SPD was declining, so the FDP pulled out in favour for a coalition with the CDU, making Kohl the chancellor.
Kohl took many measures to combat unemployment and revive the economy.
Kohl struggled to control the infighting between an FDP partner, Genscher and the head of Bavaria, Strauss. In 1983, 2 right wig members of the CSU broke away to form the REP.
It was discovered under Kohl that industry was making illegal donations to coalition partners. The FDP finance minister exempt the Flick Corporation from tax payments for contributions to FDP. Although Kohl wasn't involved, he was heavily criticised.
Kohl was criticised for being distasteful at the 40th anniversary for end of war as SS troops were buried there.
In 1897, the CDU had reached lowest point since 1949, they were able to stay in power as FDP increased their vote and the SPD failed to unseat Kohl. His coalition was now highly unstable.