Tensions mount within German government

Tensions in Germany's ruling Social Democrats erupted into a row between Chancellor Gerhard Schroeder and his right-hand man.

Tensions in Germany's ruling Social Democrats erupted into a row between Chancellor Gerhard Schroeder and his right-hand man.

Mr Schroeder complained at an SPD meeting yesterday about a lack of unity within the party over the government's tax and social policies, despite his repeated appeals to find a common line.

His words were aimed directly at Mr Franz Muentefering, the SPD's chief whip, who had been rebuked last week after appearing to call for a wealth tax, according to newspaper reports.

"Higher taxes don't win elections," Mr Schroeder snapped, the papers reported, citing sources at the meeting. "Anyone who thinks they can do it better, they can try".

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His comment was seen by Bildas an indirect threat to resign. Mr Schroeder also told the meeting it was he, rather than the party, who had won the September 22nd election.Mr Muentefering, who repeated his call for a wealth tax, retorted by saying the party ought to know what could and could not be discussed. The atmosphere, according to the sources, was "very depressing".

The SPD had been trailing badly in the opinion polls for months before the vote, but Mr Schroeder's personal charm, his astute handling of the floods crisis and his refusal to join a strike on Iraq saw the party scrape to victory with its coalition allies the Greens.

Since then, however, unemployment has edged up past the four-million barrier again, and the government has been forced to admit that its budget deficit is higher than previously estimated, earning a reprimand from Brussels.

The government has also been attacked for raising taxes and reducing social welfare benefits, while attempts to reform pensions and health insurance have become bogged down.

AFP