Posted on 07/10/2005 8:02:33 PM PDT by phoenix_004
BERLIN (AP) - Germany's opposition aims to oust Chancellor Gerhard Schroeder with a program to boost Europe's largest economy and "reinvigorate" relations with the United States, according to a draft obtained Sunday by The Associated Press. The program, to be formally endorsed Monday by the Christian Democratic Union and its Bavarian sister party, includes an increase in sales tax and looser rules for companies to hire and fire staff. It also rules out Turkish membership in the European Union.
The parties are also trying to win back voters by invoking Germany's strained relations with Washington. Schroeder ran for re-election in 2002 on a platform opposing the U.S.-led war in Iraq, and Bush pointedly refused to offer the traditional congratulations to him on his victory.
Germany's conservatives have been careful not to back the war - sending troops to Iraq would be deeply unpopular - but insist only a change of government can heal the rift with Washington.
"We will reinvigorate the trans-Atlantic cooperation with the United States," the draft said.
"European identity and European self-confidence don't require distance from the U.S., but rather a trusted partnership. They prove their worth in energetic engagement to solve international conflicts and fight international terrorism," it said.
The conservatives, led by Angela Merkel, have opened a wide lead in opinion polls ahead of the expected September election, raising the prospect of defeat for Schroeder's center-left government after seven years in office.
While last week's bombings in London have raised the profile of security and foreign policy, the campaign has been dominated by debate on how to enliven the economy, which hasn't shown strong growth for years.
Both the opposition and Schroeder's Social Democrats insist on the need to shake up welfare programs, cut business taxes and strengthen research and education to make Germany fit for the global economy.
Schroeder has already slashed taxes and cut unemployment benefits without making much impact on the unemployment rate, which currently stands at 11.3 percent.
But they disagree on how to pay for their plans in the face of a budget deficit expected to again exceed EU-mandated limits this year.
While Schroeder is calling for higher tax on top wage-earners and accuses his opponents of frustrating efforts to close loopholes, the conservatives want to cut income tax across the board while raising sales taxes.
That, they argue, will allow them to trim the hefty contributions which German firms make to welfare programs and encourage them to hire more staff.
The conservatives have also set up a clash with the country's powerful labor unions with a plan to allow companies and their work force to opt out of industrywide wage-bargaining, a pillar of the German economy since World War II.
So, the opposition party is taking a lesson from our CINC, by wanting to cut taxes to spur the economy...nice!!!
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