GERMANY: German Chancellor Gerhard Schröder received crucial backing for his reform package after 80 per cent of Social Democratic Party (SPD) rank-and-file yesterday voted to re-elect him as party chairman.
Mr Schröder gave a stern speech at the annual party conference yesterday that had less to do with the reforms, already working its way through parliament, and more about giving the SPD back its direction by sugar-coating the bitter pill of reform he has forced his party to swallow.
"We need the courage for the truth and the courage to change," said Mr Schröder. "We are standing before a new era. To get Germany back on top we have to give up the old and take a new path."
Mr Schröder said the reforms, known as Agenda 2010, hadn't altered the party's core social democratic values. "We will not allow that personal security becomes a product that only the wealthy can afford," he said.
But he also spelled out the consequences of not adopting the reforms: rising employment costs would lead to greater unemployment, while globalisation forces would sideline Germany in industry as well as in world affairs.
"We will retain our strong voice in the world only if we can get Germany back on track," he said, calling the decision to stay out of Iraq "the expression of a mature democracy that earned us respect in the international community".
The party faithful gave a loyal but somewhat unenthusiastic four-minute standing ovation.
"It was a successful speech, I think the applause speaks for itself. Mr Schröder's 'let's go' mood is exactly what we need next year," said Mr Wolfgang Bonhage.
Others were less enthused. "It wasn't a bad speech but you could see he was doing it more out of duty, there was no enthusiasm there and he expressed nothing other than his intention to continue the reform process," said Mr Josef Levier.
Outside the conference hall in the western city of Bochum, hundreds of policemen and fireman held a noisy strike against cutbacks. It was proof that, after convincing party faithful, Mr Schröder still has to win over a sceptical public and build up party support from its current historic low of 25 per cent.
Mr Franz Münterfering, SPD parliamentary leader, said he was optimistic that everything would look better in Germany after Christmas.
"When the sun comes out and the days get longer, we'll all be in better form and things will start to get moving," he said.
