Chancellor Gerhard Schroeder appealed to Germans yesterday to make sacrifices and accept cuts in government spending in the face of slower worldwide economic growth.
Invoking the spirit of ex-US President John F. Kennedy, Schroeder told Germans they should stop asking what the government can do for them and instead ask what they can start doing for their country.
In a major speech to parliament one month after winning re-election, Schroeder tried to defuse criticism hitting his government for a programme of spending cuts, tax increases and new debts that opponents warn is choking off economic growth.
"Let's stop asking ourselves what won't work," Schroeder said. "Let's instead start asking ourselves what each and everyone of us can do to make it work."
In his hour-long address, Schroeder said he saw little hope of an early improvement in the world economy. He urged all Germans, and especially business lobbies, to accept the belt-tightening.
"This is not the time to make new demands," said Schroeder, whose speech was quickly dubbed "blood, sweat, and tears", and was interrupted by applause 74 times by his Social Democrats and Greens but also by laughter and derision from the opposition.
Germany's economy, the largest in Europe, is expected to grow a mere 0.4 per cent this year and 1.4 per cent in 2003, the country's six leading economic think tanks said last week. Slowing growth has pushed the unemployment rate near 10 per cent.
Economists have long urged Germany to cut subsidies and remove bureaucracy to stimulate growth. But business lobbies have raised a storm of protest over the cuts they call random, poorly conceived and likely to further stifle economic growth.
"In order to reform and renew the economy, we also have to cut some of the claims, rules and spending of the German welfare state," Schroeder said. "That includes curtailing tax subsidies. There is no reasonable or responsible alternative."
The opposition immediately slammed Schroeder for what they called a dishonest package of tax increases and election fraud.
"It's indecent what you're doing," said Angela Merkel, leader of the conservative opposition Christian Democrats who were beaten by Schroeder by just 6,027 votes.
"This isn't reform and renewal," she added, noting families would pay 200 euros more tax each month. "It's a rip-off."
Pointing to opinion polls showing support for Schroeder's Social Democrats and their Greens coalition partners have plunged since the September 22 election, Merkel said Schroeder should start bracing for two state election defeats in February.
If his SPD loses the state of Lower Saxony on February 2, Schroeder's government would have an even harder time passing legislation through the upper house, or state chamber, where the CDU already holds a narrow majority. Hopes of winning back Hesse from the CDU on February 2 are also fading.
A survey by the Forsa polling institute published earlier this week found that 56 percent of the voters "felt cheated" by the SPD-Greens government since the election. Forsa said the SPD-Greens coalition would be soundly beaten in an election now.