Germany: Chancellor Gerhard Schröder has vowed to continue his reform course despite his Social Democratic Party's (SPD's) disastrous showing in Sunday's state election in Bavaria, writes Derek Scally in Berlin
Mr Edmund Stoiber, the Bavarian state governor who led his Christian Social Union (CSU) to victory with 61 per cent of the vote, said he would work with the government but only if it was prepared to "bend" the reforms in a more conservative, business-friendly direction.
"We don't plan to change our course," said Mr Schröder in Berlin yesterday. "Rather, we must gather all the party's strength to push through this difficult but correct and important reform process." He said the disastrous showing for the SPD, a 10 per cent drop in support and the party's third consecutive state election defeat, was a result of "people's fear of change" surrounding plans to prune the social welfare system and reform the employment market in the hope of creating jobs and reviving the stagnant economy.
Mr Schröder argued that there can only be an economic dynamic through reform and change.
The government is obliged to achieve consensus with the conservatives, who can block legislation in the upper house, the Bundesrat, where they have the majority.
Mr Stoiber was jubilant in Munich yesterday morning, exactly a year after he lost the general election, and the chancellorship to Mr Schröder. He said the result was a "warning to Berlin" and said he was anxious to meet his erstwhile sparring partner to discuss the future reforms.
"The result is a vote of no confidence against the conceptionless confusion of the federal government," said Mr Stoiber, adding that the opposition conservatives had received "clear instructions" from voters to be a "responsible opposition".
Ms Angela Merkel, leader of the Christian Democrats (CDU), said the opposition conservatives would not practise "blockade politics" but "will do what we feel is necessary negotiate even tougher".
Unofficial results yesterday showed the CSU with 60.7 per cent of votes, up 7.8 per cent. The SPD has 19.6 per cent, a loss of 9 per cent. The Green Party made gains with 7.7 per cent while the liberal Free Democrats has just 2.6 per cent. The result increases the likelihood that Mr Stoiber will have a second run as the conservative challenger in the 2006 general election.