Schroder plays down government divisions

The German Chancellor, Mr Gerhard Schroder, yesterday played down divisions within his centre-left government, following reports…

The German Chancellor, Mr Gerhard Schroder, yesterday played down divisions within his centre-left government, following reports that he is planning to sack the parliamentary leader of the Social Democrats, Mr Peter Struck.

German newspapers reported that the Chancellor rounded angrily on Mr Struck this week, accusing him of damaging the government's image by suggesting changes to planned reforms of tax and pensions. "What you have created is a catastrophe," the mass-circulation Bild quoted Mr Schroder as telling the parliamentary leader during a 10-minute diatribe in front of cabinet colleagues.

But the Chancellor yesterday insisted that they worked well together.

Mr Struck upset party colleagues during the summer break by proposing sweeping changes to Germany's income tax systemoder hopes to push through parliament next month. He further angered the Chancellor by hinting to trade unionists that proposals to link pensions to inflation rather than wage rises were open to negotiation.

Since his return to work on Monday following a three-week holiday, Mr Schroder has moved to stamp his authority on the fractious Social Democrats, announcing a review of the party's basic programme to bring it into line with his own centrist thinking.

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Denis Staunton

Denis Staunton

Denis Staunton is China Correspondent of The Irish Times