The mysterious packages addressed to Gerhard Schröder began arriving at the chancellery a month ago. They are early Christmas presents from Germans angry at proposals for tax increases and who think the chancellor wants the last shirt off their backs.

They've decided to spare him the trouble and his office is being swamped with old shirts.

"Dear Gerhard, I wish you a happy festive season and send you my last shirt to fulfil your greatest Christmas wish. That should make all further tax increases superfluous as I have nothing else left anyway," write shirt senders who have taken part in "The Last Shirt for Schröder" campaign.

The campaign is light-hearted but it gives an indication of the fury felt by many Germans who feel they were conned into re-electing the government.

Days after the election, finance minister Mr Hans Eichel announced a €30 billion hole in government finances. That was on top of news that unemployment would rise well beyond four million, or 10 per cent, in the coming months.

Germany is experiencing its worst economic slump in two decades, the economy is teetering on the brink of recession and the penny-pinching can be seen everywhere. "The Price-Conscious Cigarette" is how West is selling its tobacco products on huge billboards around Berlin these days.

West reports a leap in sales in recent months as cash-poor nicotine addicts begin to look for a cheaper fix: West cigarettes are one-third cheaper than other brands.

The German discount supermarket chain Aldi has experienced a similar surge in popularity: turnover has risen by nearly 10 per cent to an estimated €25 billion this year.

The largest group of new customers, according to a survey in Stern magazine, was in the ABC1 bracket.

"You have to forget your pride at times like this," said one well-groomed woman at an Aldi store recently. "There's no difference between Aldi products and the expensive brand names except for the amount of money left in your wallet at the end."

There is already very little money in many Berliners' wallets, judging by the low-key nature of Christmas shopping so far this year. "Trade has been steady, but nothing spectacular. We're hoping for a last-minute rush," said the spokesman for one department store yesterday.

Back at the chancellery, nearly 34,000 shirts have arrived for Mr Schröder in the past month - which have been forwarded to a local charity. The Last Shirt Campaign is proof that, even in difficult times, Germans know that Christmas is a time for giving, even if it means giving a sweaty shirt and two-fingers to the government.