-Caveat Lector-

Rise of Red Ghosts taunts Schröder
By Tony Allen-Mills in Berlin
10-10-99

To the long list of potentially disruptive difficulties facing Gerhard
Schröder, Germany's dangerously accident-prone chancellor, could last week
be added a curvaceous blonde cabaret singer with a voice like a chainsaw
and an unusual taste for cheerful German socialist anthems such as Fritz
the Tractor Driver and My Mother is an Office Manager.

As Schröder braced himself for yet another election upset in today's
regional polls in Berlin, audiences in the capital were flocking to
Cornelia Schirmer's spirited rendering of the ideological hits from the
long-defunct charts of formerly communist East Germany.

Ten years after the fall of the Wall, a wave of Ossi (eastern) nostalgia is
finding a new political expression that threatens to cause serious
embarrassment for Schröder's attempts to join Tony Blair in the so-called
new middle of European politics.

After an embarrassing sequence of regional election defeats and an outbreak
of brutal infighting in his Social Democratic party (SPD), Schröder is
battling this weekend to avert humiliation in a small but symbolic fight
for control of the newly restored German capital.

The chancellor's main worry is not his traditional right-wing rival, the
Christian Democratic Union - a substantial CDU victory in Berlin is
regarded as a foregone conclusion. The real threat comes from a ghost.

>From the ashes of East German communism, an old party with new ideas is
beginning to rise to heights of influence and respectability that few could
have imagined when the late Erich Honecker's regime collapsed in ignominy
in 1989.

The reconstructed communist leaders of eastern Germany's Party of
Democratic Socialism (PDS) may tonight find themselves in the extraordinary
position of being more popular in Berlin than Schröder' s SPD.

Only a few opinion-poll percentage points separate the two parties in the
battle for second place behind the CDU, and one private poll last week put the

PDS narrowly ahead with more than 20% of the vote. "I don't know if it can
happen," said Rainer Oschmann, a PDS spokesman. "But if it does, it will be
an absolute sensation."

The PDS owes its remarkable rise to a combination of factors from the SPD's
collapsing political credibility to the lingering Ossi phenomenon dubbed
Ostalgie -  a spreading nostalgia for a distinctive east German identity
that was crushed by the arrival of the all-conquering west German D-mark.

After a decade of exposure to the grimmer realities of the capitalist
condition-notably job losses, factory closures and the arrival of new
bosses from the west-many easterners have settled on the PDS as the only
party uncontaminated by supercilious western brutalism.

"We are perceived, rightly or wrongly, as the only authentic East German
party voice," said Oschmann.

Despite its roots in a disgraced regime that relied heavily on the secret
policemen of the Stasi, the PDS has been cementing a powerful base this
year on the left of the German establishment. Shunned by most western
voters, the party has none the less joined a government coalition in the
eastern state of Mecklenburg -West Pomerania. It beat the SPD into third
place in Thuringia and Saxony, and now claims the support of more than 40%
of voters in eastern Berlin.

Last week the PDS attracted its first defector from the SPD' s
parliamentary ranks, and officials are gleefully promoting the party as the
logical home for disgruntled supporters of Oskar Lafontaine, the leftist
former finance minister whose resignation from the government -  and
subsequent rubbishing of Schröder in a book to be published this week -
have divided the SPD.

In excerpts from the book 'The Heart Beats on the Left', Lafontaine argued
last week that the PDS would make a logical coalition partner for the SPD
in a future government. Delighted by this, PDS officials promptly invited
Lafontaine to join their ranks.

The arrival on the German scene of a newly confident and successful
left-wing force rooted in the east but with ambitions to spread to the west
further deepens Schröder' s dilemma as he attempts to force through a £10
billion package of spending cuts to stabilise the German economy.

Accused by SPD stalwarts of ditching traditional social values to appease
financial markets, the chancellor faces the daunting challenge of avoiding
a party split while implementing a divisive austerity programme that will
cut jobless benefits and restrict pensions.

Rising from his sick bed last week, the flu-stricken chancellor showed no
sign of retreat as he harangued a metalworkers' union congress in Hamburg.

Although his performance won some favourable media reviews, it is at the
ballot box that Schröder faces his sternest test. A poor performance in
Berlin today may convince the SPD' s party managers that their chancellor
is a liability.

There are already signs that Rudolf Scharping, the SPD defence minister, is
manoeuvring to replace his boss. At a cabinet meeting last week, he
reportedly threatened to resign, telling the chancellor he was not up to
the job. "You're the last one to talk," Schröder retorted angrily.

The Times

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