Schroeder steps down as party chairman

German Chancellor Mr Gerhard Schroeder is likely to resign as chairman of his Social Democrats today, German television reported…

German Chancellor Mr Gerhard Schroeder is likely to resign as chairman of his Social Democrats today, German television reported.

Mr Schroeder handed the chairmanship of his Social Democrats to a key ally this afternoon following growing unrest in the centre-left party over his economic-reform programme and slumping popularity.

Mr Schroeder said he would propose to the SPD leadership that Mr Franz Muentefering, the party's parliamentary floor leader, take over as chairman. He said he remained committed to his reform agenda and wanted to focus on implementing it as chancellor.

Mr Muentefering is more popular than Schroeder with the rank and file of the Social Democrats and could help act as a lightning rod for their criticism of Mr Schroeder's policies.

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"I don't fear there will be any loss of authority," Mr Schroeder said. But analysts said the move could weaken him.

Calls had been mounting from senior SPD officials for tough action to address an opinion poll slump - through a cabinet reshuffle, change of party chairman or a policy shift.