Germany's Social Democrats rebuff leftist call to slow reform

Germany's Social Democrats, licking their wounds after unprecedented election routs, insisted yesterday they would not ditch their unpopular economic reform programme.

Franz Muentefering, chairman of the SPD, said the party leadership wanted to focus on popular left-wing themes to win back voters that have abandoned it in droves over German Chancellor Gerhard Schroeder's unpopular "Agenda 2010" reforms.

"There will be no about-face on the 'Agenda 2010'," Mr Muentefering told a news conference, rejecting calls from the SPD's left-wing that wants Mr Schroeder's programme of pro-business measures watered down.

"There will be a continuation of the policies, to make it clear to everyone that the 'Agenda 2010' is good for everyone, today, tomorrow and the day after tomorrow," he added. "Our aim is to ensure prosperity tomorrow and not only today."

The special meeting of the party's leadership was called to discuss policy in the wake of the defeat in the June 13 European election, in which the SPD slumped 9.2 points to 21.5 per cent, its worst nationwide election result in half a century.

Although Mr Schroeder has firmly ruled out any watering down of his package of pro-business reforms, a growing number of second-tier party leaders have demanded the painful measures be altered to win back voters.