GERMANY: Chancellor Gerhard Schröder has attacked the critics of his reform programme and the thousands of people who took to the streets across Germany yesterday for the third consecutive "Monday Demo" against the reforms, writes Derek Scally in Berlin
Mr Schröder castigated what he called the "perverse alliance" of conservative Christian Democrats (CDU) and the reformed communist PDS for predicting that the government's reform will breed poverty and create a new underclass in Germany.
"When you see this new popular front with its merciless populism, it's enough to make you sick," said Mr Schröder on German public television, evoking the memory of the 1930s alliance of communists and socialists against fascism.
He reminded the German public that the conservatives forced his government to toughen up reforms, including unpopular changes to unemployment benefit, in order to get the measures through the conservative-controlled upper house, the Bundesrat.
"They pushed through things we didn't want. The problem now is that they are acting as if they weren't there and are trying to slip away behind a tree, so to speak," said Mr Schröder, accusing the conservatives of "breaking their word".
Meanwhile, thousands of people took to the streets of Berlin and 150 other German cities and towns yesterday for a third week of anti-reform "Monday Demos".
Last week, over 40,000 people marched through 50 cities in protest. Days later, the government made some last-minute reform corrections to ease the transition to a new unemployed benefit system, changes that will cost €800 million.
"The corrections are clearly a result of the demos and show clearly that standing up for yourself is worthwhile," said Mr Pedram Sharyar of the anti-globalisation organisation Attac, one of the organisers of the marches.
The government's reforms will cut the benefit for the long-term unemployed year-on-year over three years to the level of social welfare.
Entitlement to the reformed unemployment benefit will be means-tested, forcing people to sell off investments and cash in insurance policies.
Mr Schröder has ruled out any further changes to Agenda 2010, but analysts say growing public hostility to the reforms means that nothing can be ruled out.
"If there is a big increase [in the numbers protesting], then Mr Schröder's political survival is at stake," said one political analyst to the Süddeutsche Zeitung newspaper yesterday.
Mr Schröder dismissed the marchers for "protesting against a danger that doesn't exist, namely that they will get reduced benefits [after the reform]. Most will get more." The Chancellor's new fighting spirit follows weeks of sustained attack from the opposition and the powerful Bild newspaper with claims that the reforms will drastically cut unemployed benefit and social welfare payments.
Yesterday the government ran a half-page advertisement in Bild, read by 6 million Germans, with graphics showing that many people, particularly couples with children, will be better off after the reforms.
"The problem is that the positive effects will only become apparent later, and only can do so later, because a society as complex as ours cannot be reformed overnight," said Mr Schröder.
"That's the political problem, and we are suffering both as party and as government when we see the opinion polls, but I am completely convinced that we must enact these measures now if we want to benefit in the future."
The SPD is languishing at 23 per cent in the opinion polls, making it likely the party will face a further drubbing at three regional elections next month.