-Caveat Lector-
``We're the leading country in Europe,' said former German Chancellor
Helmut Kohl, 'yet we're at the rear' in terms of unemployment and economic
growth.
"Chancellor Shroeder's austerity plan for next year calls for deep cuts
in employee benefits, pensions and unemployment insurance.
"In recent days, thousands of working people --everyone from farmers to
firefighters-- have taken to the streets in protest ..."
Meanwhile, "Tens of thousands of demonstrators marched through Paris to
protest capitalism, under a banner that read ``Together against unemployment
and layoffs, for real employment,'' calling for employees' rights over
employers' rights."
Schroeder Govt. Criticized Harshly
By PAUL GEITNER
.c The Associated Press
BERLIN (AP) - German Chancellor Gerhard Schroeder marked his government's
first anniversary Wednesday not with celebratory words but rather a new bid
to rescue his unpopular austerity budget from mounting opposition.
The usually media-friendly Schroeder stayed largely out of the public eye
following a morning Cabinet meeting, at which the subject of the anniversary
didn't even come up, according to government spokeswoman Charima Reinhardt.
Opposition conservatives were not so shy, accusing the government of failing
to set out a clear direction for a country facing more than 10 percent
unemployment and increased global competition.
``That was a lost year for Germany,'' former Chancellor Helmut Kohl, whom
Schroeder ousted last year, told ProSieben television. ``We're the leading
country in Europe, and it doesn't make me happy that we're at the rear'' in
such areas as unemployment and economic growth.
Conservatives accused Schroeder of shifting course again Wednesday with a
Cabinet decision to restructure an unpopular austerity budget for next year
to keep the opposition from blocking the package in parliament's upper house.
The plan calls for $17 billion in cuts targeting some of the welfare state's
most sacred cows, including pensions and unemployment benefits. Everyone from
farmers to firefighters has taken to the streets of Germany's just-restored
capital of Berlin in recent days to protest.
While the ruling coalition of Social Democrats and Greens has a comfortable
majority in the lower house, recent state-election losses - blamed on the
proposed budget cuts - have strengthened the opposition's hand in the upper
house, where the states are represented.
So Finance Minister Hans Eichel, after insisting no changes would be made,
announced the plan would be restructured to allow $15 billion of the proposed
cuts to be passed without the upper house, where Germany's 16 states are
represented.
Included in that would be the controversial two-year slowdown on pension
increases, prompting opposition leaders to cry foul.
Eichel, arguing that the cuts were needed to ensure Germany's economic
future, said the government wanted to prevent the conservatives from seeking
to score political points with retirees by blocking the budget.
``We'll get everything through that we can without the Bundesrat,'' he said.
``We don't want the tug of war to drag on into next year.''
He said the remaining cuts - mostly in rent subsidies - were not being
dropped, but would be negotiated separately.
Eichel said the restructuring, approved Wednesday in the Cabinet, was
designed to demonstrate to financial markets Germany's commitment to
controlling spending and reducing its huge budget deficit.
The government argues the package will lubricate the German economy and help
bring down unemployment.
But old guard Social Democrats view Schroeder's combination of cuts in the
welfare state with $4.4 billion in corporate tax relief as a betrayal of the
party's working-class roots.
Disillusionment with Schroeder's attempts to steer the traditionally
left-leaning party toward the political center have sent the government's
popularity plummeting in opinion polls.
In brief statements on nightly news programs, Schroeder conceded his
coalition had faced difficulties with internal disagreements, but said he was
still ready to fight.
``The situation is much better than the opinion people have of us, so we have
to bring the opinion in line,'' Schroeder said.
Thousands Decry French Unemployment
By JEAN-MARIE GODARD
.c The Associated Press
PARIS (AP) - Tens of thousands of leftist demonstrators marched through Paris
on Saturday to protest unemployment and capitalism in a rally called by
France's Communist Party.
Robert Hue, the leader of the French Communist Party, said in Saturday's
edition of the France Soir daily that the protest was aimed at fighting
layoffs and ``the thoughtless, damaging pursuit of capitalism.''
About 32,000 protesters showed up for the march, police said. Hue had hoped
to attract about 50,000.
The Communists hoped to mobilize their supporters with the rally. But the
demonstration reflected divisions within the Socialist-led government, in
which the Communists are a junior partner. The Socialist Party, led by Prime
Minister Lionel Jospin, had declined to participate.
The Socialists have been pursuing the partial privatization of some state-run
companies, a policy the Communists oppose.
Unemployment has been a sensitive issue in France in recent months, as
lawmakers debate more legislation on a decision to reduce the workweek from
39 hours to 35. The government hopes the move will force employers to hire
more people, thereby reducing the 11 percent jobless rate.
Some on the left worry that the 35-hour workweek plan will give companies too
much leeway in their treatment of employees.
Protesters, marching under a banner that read ``Together against unemployment
and layoffs, for real employment,'' were calling for employees' rights over
employers' rights.
Alain Krivine, spokesman for the Revolutionary Communist League, said he was
there to counter the interests of employers.
``It's above all a protest against the offensive insolence of the bosses,''
Krivine said.
Thousands of French bosses had gathered Oct. 4 in Paris to protest the
35-hour workweek law.
Protesters also urged an end to layoffs at healthy companies. Tire giant
Michelin's September announcement that it would cut 7,500 workers despite
posting profits angered many on the left. Many Michelin employees attended
the march, shouting, ``It's not for the stock exchange that we make tires.''
Some more radical groups held up signs criticizing Jospin's coalition. One
sign read, ``Jospin, stop giving presents to the bosses.''
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