This paper is dealing with economic policies of government coalition between Union Parties and FDP in Germany after taking over on October 2009.Basically,the starting point of economic policy of Merkel's coalition government is regulatory policy(Ordnungspolitik),which emphasizes the reform and strengthening of framework conditions of market functioning.Facing the consequences of the bail-out measures during the financial crisis in 2009/10,Merkel's Government put forward the reconstruction of the international financial order and reform of European Monetary Union,invested more in education and innovation,carried out policies of unburding the enterprises from bureaucracy and redundant regulations,and reformed the labor market regulations and social security system.It has implemented a exit strategy from the expansive fiscal policy resolutely,as soon as the economic recovery has gained momentum.It holds tight to the necessity of fiscal balance for sustainable economic development in the medium- and long-run.The paper reviews the background,the conceptions and the sequences of implementation of these policies systematically and gives some comments from the view of macroeconomics. <<