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Issue: German Newspapers In English
(an original sample newsletter, dating....:)

Berlin, October 6th, 1999

TV live coverage today:
Phoenix TV 2.45pm: IG Metall conference with welcoming speech by Schröder; Phoenix 3.35pm: Bundestag in session - question time.

MAIN HEADLINES and lead stories: Unemployment figures (3 papers); Lafontaine (Welt); Pressure on Schröder (BZ); CDU/CSU tax reform proposal (SZ); Compensation for WWII slave labourers (TAZ); Is Daimler going to USA? (Bild refers to Stern report of move to USA due to tax advantages; Daimler denies report says Welt); MCI Worldcom offers DM129bn for Sprint (HB).

GERMANY:

Unemployment figures: Headlines stress: Unemployment as high as when gov came to power (Welt); Unemployment below 4 million (SZ); Autumn boost allows unemployment to fall below 4 million again (FAZ). 3,943,236 people are without work in FRG - 80,500 fewer than in August 1999 and 22,100 fewer than in September 1998; unemployment rate is 17.2% in East, 8.3% in West, 10.1% overall (SZ,Welt). HB comments that Schröder and Riester cannot be satisfied; admittedly Kohl extended job creation programmes to bring unemployment below 4m in September 1998, but even if you ignore this election campaign measure, Red-Green has not progressed one step on labour market.

Pressure mounting on Schröder within SPD: at confidential meeting in Sardinia on Sunday, Scharping is supposed to have questioned whether Schröder is up to job of Chancellor; leading social democrats are asking themselves whether Scharping is trying to further undermine Schr's authority; in Chancellor's office, distrust of Scharping has been growing over recent weeks due to his provocative budget demands for Bundeswehr; Schroeder expressed his displeasure with Scharp's behaviour at last Wednesday's Cabinet meeting; leading SPD politicians do not believe Scharp is counting on quick change of Chancellor in his favour (he would lack necessary support), but is making clear to Schroeder that he cannot rule without considering needs of Party (BZ).

CDU/CSU strategy meeting: Several papers devote coverage to CDU/CSU plans to present counter proposal for tax reform by end of year with resulting relief of over DM30bn by 2003 (e.g. SZ main story): headlines stress call for lower taxes (e.g. FAZ,SZ); differences of opinion between CDU and CSU in details, unclear how plans are to be financed (SZ). Tax reform draft to be discussed in commission led by Merz (CDU) and Faltlhauser (CSU) to produce plan by end of year (FAZ,SZ). Stoiber and Schäuble announce tough opposition to Fed gov health reform plans (e.g. SZ).

Editorials & Comments:

Tabloid's, Bild, editorial of the day calls: Stop this eternal quarrelling! Finally take care of our country! Create, at long last, a Grand tax reform Coalition! People's heads are throbbing, they want to see results…Eichel's savings plan is correct, CDU/CSU plans are just as correct: taxes must be cut…In Germany we only discuss what cannot be done…Stop it! Sit down at a table, close the door and don't open it until you have agreed.

SZ editorial: Wait-and-see is not enough: CDU/CSU are living in paradise. Even though they are doing nothing, they are reaping rich rewards. But, in the long run, the Opposition cannot rely on voters' indignation with mistaken gov policy alone. Despite continuing dispute in Red-Green Coalition, it will not come to a Grand Coalition in FRG. The probability that SPD and Greens will govern for full legislative period is therefore high. The only way the Union can then fail to win power is if they lose elections for themselves. Two possible factors could make this happen. Firstly, if young, confident CDU Land PMs hold their own interests more dearly than those of their Party. The second factor is Stoiber. His impatience and ambition are incalculable. When Schäuble and Stoiber nowadays talk of unity, they sound no less suspicious than Schröder and Lafontaine once did. In the Union orchestra Stoiber plays first violin under Schäuble's baton.
For the moment at least.Welt and FAZ mention indignation in CDU at Stoiber's recommendation that gov coalition be formed in Austria with Haider's FPÖ.

Industry against climate protection: Henkel intervenes in letter to Schröder against reduction of CO2 emissions;

FR has letter from H to S in which H wishes to relax target of 25% reduction in CO2 emissions by 2005 agreed by Kohl gov; climate conference is planned in Bonn at end of October with representatives from more than 100 states; H calls on S to revise target, due to "immense importance to economy", and (in what FR interprets as dig at environment ministry) calls for issue of climate protection not to be left to just one ministry; H wants dialogue between gov and industry in order to come to consensus (FR). Industry and German Rail representatives are meeting today to discuss future of Transrapid (FAZ, Welt); Welt has details of new industry plan for single track Transrapid which is apparently to be presented to German Rail at this meeting.

BRITISH AFFAIRS:

Wide coverage of train crash near Paddington station
(Bild,FAZ,SZ,TAZ,Welt,TS,FR) with at least 26 dead (Welt); accident is also catastrophe for Blair gov which has to listen to accusations of not having improved wretched condition of British rail system (Welt).

Some papers report on Conservative Party conference
(HB,TS,Welt,FAZ); Welt notes issue of euro is thorny in GB, presenting problems in keeping Parties behind one coherent line (this also goes for the deceptively Europe-friendly Blair government); different fronts in Europe debate collide again in Blackpool (Kielinger). British Conservatives open 3rd Party conference in opposition with their old row over Europe (FAZ under "peanuts against Heseltine", refering to projectiles thrown at pro-European H). FAZ comments that quarreling, due to which Conservatives lost ability to govern, is continuing unabated in Party and is not limited to Europe…Hope to use euro as election campaign weapon is deceptive: it cannot be ruled out that pro-European Conservatives use this as excuse to break rank and even split Party…Gifted tactician such as Blair will not let himself be out-manouevred by this…Nothing is clear in Conservatives, not even leadership issue (G. Nonnenmacher).

EUROPE: Schröder and Fischer are threatening European integration - Lafontaine: S and F are responsible for worsening Franco-German relations, says L; their fixation with UK and USA threatens European integration; publication of Schröder-Blair paper before European elections was serious mistake with regard to France where it caused great disappointment; L: "European integration can only be taken forward in co-operation with France. Britain will continue to play a 'special role' for the foreseeable future" (Welt which has further extracts of L's book). Solana gives interview in Welt, believes Americans will telephone him if they require representative of Europe's foreign policy; stresses that there is no competition between Patten and himself.

British beef: Health minister Andrea Fischer is convinced British beef is safe, speculation that embargo should be lifted by Bundesrat by end of month; Fischer has meeting with EU health commissioner Byrne this Friday, after which she should give go ahead for end of embargo (TAZ); B has called on France to lift its ban by 13 October otherwise he will inform EU which sanctions it can take against France (BZ); French gov yesterday stood by its decision, called on European Commission to question science committee on its finding re safety of British beef (FAZ). European Parliament demands greater food safety; Prodi announces action plan (FAZ).

DEFENCE: Due to budget cuts, Scharping is using DM 2bn provided in coming budget for costs of Balkans mission to procure matériel worth DM 100s of millions which is not closely linked with missions in Balkans (SZ under "S uses separate budget as source of money for Bundeswehr" refers to list of "expenditure for international missions for budget year 2000").

VISITS: Schröder in Athens: S and Greek PM Simitis support Turkish wish for EU membership, but name improvements in human rights situation as condition (SZ); S assumes that Greece can join EMU by beginning 2001 (HB).

MISCELLANEOUS: Bundestag to vote on Bundeswehr mission in East Timor this Thursday (SZ), Cabinet is to make decision today (TS). TS feature states that Bundestag will approve mission, because no one wants to compromise Fischer (whose idea it is); TS comment is headed "Not politics, just prestige": UN did not request German contribution; this humanitarian intervention with clear UN mandate is project of Fischer to compensate for controversial Kosovo mission. SZ comments: Political reality is far removed from Fischer's logic; Bundeswehr and Scharping are unsure about their role in the world. F's policy prejudices debate about Bundeswehr structure. F has moved away from political consensus; in gov and Coalition there is no agreement whether military is suitable as foreign political means and whether the growing mistrust of neighbours with move to Berlin will be appeased with the deployment of soldiers (Kornelius).
FAZ has interview with Latvia's foreign minister Berzins. HB interviews Malta's PM Fenech Adami.
£1=DM 3.0251; $1=DM 1.8287; £1=1.5462 euro; $1=0.9355 euro (Welt).

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