The World's Most Powerful Women - Forbes.com

The World's Most Powerful Women - Forbes.com

"The World's Most Powerful Women
Elizabeth MacDonald and Chana R. Schoenberger 09.01.06, 8:00 AM ET

Angela Merkel, the first woman to become chancellor of Germany, has displaced Condoleezza Rice as No. 1 on our list of the 100 Most Powerful Women.

Merkel won a tight election last year to unseat Gerhard Schröder as chancellor. She's a former physicist from East Germany and a firm believer in free-market capitalism. Since taking office, Merkel has won respect on the world stage and popular appeal in Germany for her quiet diplomacy.

Despite her short time in office, Merkel has been dazzling world leaders, including Tony Blair and George W. Bush. But Merkel has a tough fight ahead of her. Her approval ratings have declined to 56% from 80% earlier this year, making it more difficult for Merkel to win big with key legislative initiatives, including health care reform and corporate tax restructuring. She inherited a stagnant economy that has only lately shown signs of revival. At the same time, Merkel also has allied Germany with the U.S. to oppose Iran's nuclear activities, and she was vocal on energy security at the G8 summit meeting this summer, where she was the only female leader at the table. "