We're still not sure whether all this is a planned strategy of the SPD leadership or if they are taking it step by step. It put the CDU under initial pressure, but it somewhat backfired, as Merkel's position has received firm and repeated backing from her state prime ministers.
She probably has enough steam to get into the harbor . . . but whether she will have the power to overhaul the German system is, I think, quite unlikely. Germans want some economic reforms, sure. But not Reaganomics that take away traditional strong social protections.