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[Via... http://www.egroups.com/group/Communist-Internet ]
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----- Original Message ----- 
From: Downwithcapitalism <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, June 07, 2001 7:29 PM
Subject: [downwithcapitalism] Political sea-change in Berlin?



Reuters. 7 June 2001. Berlin City Government Collapses Amid Finance
Woes.


BERLIN -- Berlin's city hall coalition fell apart Thursday amid
recriminations over mismanagement and sleaze, raising the prospect of
former communists taking power in the German capital for the first time
since the Wall came down.

Social Democrats walked out on the conservative mayor, ending a
left-right alliance formed when the city was reunited after the Cold War
and which kept the heirs to the East German elite out of power despite
their grip on Berlin's eastern third.

The Social Democrats, known by the acronym SPD, led nationally by
Chancellor Gerhard Schroeder, called for new municipal elections and
said they would consider a new alliance with the ex-communist PDS.

The SPD hold the mayor's Christian Democrats responsible for huge losses
and a sleaze scandal at a city-owned bank that have ravaged Berlin's
already stretched budget and made a mockery of ambitions to rebuild its
reputation as a world-class metropolis.

Critics say both parties have prolonged the shady machine politics that
dominated West Berlin when it was a heavily subsidized frontline bastion
in the Cold War and have failed to adapt to the loss of federal support
over the past decade.

"We want new elections. This coalition has no more legitimacy. We want
to give the citizens a chance to have another government," Peter
Strieder, the Social Democrat leader in the city of 3.5 million, said at
a news conference.

Senior SPD officials have said the party would consider linking up with
the Party of Democratic Socialism (PDS), though the ex-communists are
still pariahs for many west Berliners.

Schroeder, speaking at a separate event, said the national SPD
leadership would respect the decision of the local party, although he
ruled out including the PDS in national government any time soon. His
current partners are the Greens.

Mayor Eberhard Diepgen says the entry of the PDS to the municipal
government would be a cruel irony ahead of August's 40th anniversary of
the building of the Wall.

But the issue has been forced by a $1.7-billion hole in the books of
Bankgesellschaft Berlin, a bank 57 percent-owned by the city, which has
run into problems with bad debts as property prices have slumped
following a reunification real estate boom.

Diepgen's close friend and political right-hand man, Klaus Landowsky,
had to resign senior posts in the bank and the city assembly after
admitting taking a political donation from a real estate firm to which
the bank had extended a big loan in 1995.

Diepgen said he would ask his party to back new elections after the
summer. One SPD official said the earliest date for an election would be
September 23, three years ahead of schedule.

The CDU won nearly 41 percent of votes in the 1999 state ballot to 22.4
percent for the SPD and nearly 18 percent for the PDS. Recent opinion
polls put the CDU on around 31 percent in the city, the SPD on 29
percent and the PDS on 14 percent.

"A ruling alliance without the PDS is not possible," local PDS leader
Petra Pau told Hesse Radio. "Berlin is bankrupt."


















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