Kohl under pressure as German unemployment level hits 11%

GERMANY's opposition Social Democrats yesterday called on the Chancellor, Dr Helmut Kohl, to address the Bundestag on the state of the nation as unemployment rose to a new post war record of 4.3 million or 11.1 per cent of the workforce. The number of Germans out of work increased by more than 100,000 last month, twice the figure predicted by most economic analysts.

Economics Minister Mr Gunter Rexrodt conceded the figures were worse than the government had expected, adding that such a high level of unemployment was "unbearable for society".

He denied Germany was on the brink of a recession while urging employers and trade unions to work together to fight the crisis.

The Social Democrat leader, Mr Oskar Lafontaine, accused Dr Kohl and his colleagues of doing nothing to combat unemployment.

"The chancellor has to show what concrete measures are to be taken to lead Germany out of the crisis", he said.

The rise in unemployment will strengthen opposition in Germany to the introduction of a single European currency, an issue which is already at the top of the agenda in the campaign for state elections in Baden Wurttenburg later this month. Opponents of the euro argue that efforts to maintain the strict economic criteria for membership are driving Germany's economy into recession.

Others fear that, if only a few EU members go ahead with monetary union, those left out of the system could attract investment away from the core group.

Meanwhile, the European

Commission yesterday predicted sluggish growth across most of Europe. However, it said that prospects for growth in the Irish economy remained favourable, "although some moderation from the very high rates of 1994 and 1995 is expected". In particular, it warns in its 1996 Annual Economic Report, the growth in consumption "should moderate, following the exceptionally strong growth in 1995".

Ireland's performance is in marked contrast with the slowdown in the rest of the Union but the Commissioner for Economic Affairs, Mr Yves Thibault de Silguy, yesterday reiterated his insistence that Europe was going through "a pause, not a recession".