GERMANY: Chancellor Gerhard Schröder is bracing himself for a humiliating double defeat in state elections this weekend as German voters look poised to take their revenge on the unpopular German leader.
The critical economic situation and unpopular tax hikes make it almost certain that the opposition Christian Democrats (CDU) will retain the state of Hesse and sweep to victory in Lower Saxony, Mr Schröder's home state.
Two CDU wins would have more than symbolic value: they would strengthen the conservative majority in the Senate, the upper house where the federal states are represented, enabling them to comfortably veto some, if not all, new laws.
That will complicate the government's plans to kick-start the economy and reform the employment market, and could lead to what one business leader has called a "de facto Grand Coalition" that will force the SPD and CDU to work together.
Even Mr Schröder's populist, anti-war line on Iraq has failed to boost the SPD's popularity as it did, crucially, at the last minute last September to help the party to victory in the general election.
Now as then, the SPD is trying to appeal to voters' pacifist hearts and the CDU is appealing to voters' empty wallets.
On the surface, the SPD's strategy appears sound: opposition to a war in Iraq continues to rise and is currently at 59 per cent, according to a recent television poll.
"We will not let up in our efforts to resolve this conflict without a war," Mr Schröder shouted in Hanover this week, hours after President Bush's State of the Union address.
