GERMANY: The heirs to East Germany's Communist Party took power yesterday in Berlin, the city they divided for almost 30 years with the Wall.
The Party of Democratic Socialism (PDS), an eclectic group of old-style communists and young reformers, hold three of nine portfolios in a coalition government with the Social Democrats (SPD).
It represents a further step in from the cold for the reformed communists, though state politics in Berlin have little impact on federal politics down the road in the Reichstag.
"The Berlin fiasco cannot be allowed to be a model for Germany," said Mr Michael Glos, party leader of Bavaria's Christian Social Union (CSU).
The SPD has already ruled out a coalition with the PDS after next September's general election.
"We want to change our reputation and achieve something positive," said Mr Gregor Gysi, the former PDS leader. He was appointed economics minister yesterday and now faces the challenge of reducing the Berlin's astronomical €34 billion debt.
The engaging east German lawyer could see his popularity plummet when he begins slashing budgets. He also faces a new inquiry into allegations he was an informer with the secret police, the Stasi, a charge Mr Gysi denies. Business leaders in Berlin have expressed doubts that a former socialist will succeed in attracting much-needed investment.
The PDS took one fifth of the popular vote in Berlin state elections last October, and 46 per cent in eastern districts, but was initially shut out of coalition negotiations. The Social Democrats first attempted to form a coalition with the Greens and the liberal Free Democratic Union (FDP), but talks foundered on how to slash the budget.
The city's new full-time mayor, Mr Klaus Wowereit, shot to national fame with his pre-election remark: "I'm gay and that's a good thing". In the weeks since the election he has scarcely been out of the newspapers, partying until 4 a.m. and comforting a female television host whose husband ran off with her best friend.
The grand coalition between the SPD and the Christian Democrats (CDU) collapsed last June and the CDU mayor was removed amid allegations of cronyism and financial mismanagement.
Twelve SPD members handed back their membership cards in protest at the new coalition yesterday. "This PDS party has yet to arrive in the reality of German democracy," said Mr Helmut Fechner, a former SPD politician.
