Berlin - The Social Democrats of the German Chancellor, Mr Gerhard Schr÷der, agreed yesterday to a controversial power-sharing deal in the city state of Berlin with the ex-communist successors of the party that built the Berlin Wall. Two months after the city went to the polls, the Social Democrat Mayor, Mr Klaus Wowereit, said his party would form a coalition with the post-communist Party of Democratic Socialism (PDS).
Analysts said the deal could embarrass the chancellor, seeking re-election next year, and worry voters in western Germany, while business leaders argued it would harm the investment climate in the country's debt-ridden capital.
