FROM RED-GREEN TO BLACK AND BLUE:

Schroeder takes a right turn to revive economy: Political swerve keeps party on board but economists say it may not go far enough (John
Hooper, March 15, 2003, The Guardian)

Chancellor Gerhard Schroeder wrenched his government to the right yesterday by unveiling of his long-awaited plan to revive the sluggish Germany economy.

His televised speech to parliament had been keenly awaited, and was built up as a turning point in the history of post-war Germany.

Last night he seemed to have succeeded in making his political lurch without provoking a revolt in his Social Democratic party or an open declaration of war by the trade unions.

But it was less clear whether the plan will succeed in its main economic aim.

Economists reacted cautiously, some saying the measures he announced were insufficiently bold. [...]

The main points

The package set out by the chancellor will include:
* A system of subsidised loans for local authorities and homeowners worth EUR15bn · A relaxation of the rules protecting workers from being laid off

* A shortening of the 32-month period during which the jobless are entitled to full unemployment benefits - down to a maximum of 18 months for the over-55s, and 12 months for others

* A cut in the unemployment support that replaces unemployment benefit and currently amounts to 57% of a worker's previous salary

* Measures to encourage competition in the health service by allowing health insurers to make contracts with doctors directly

18 Months!?!? This is barely even a start, though it might, hopefully, clear the way for the next government to drag the country towards actual capitalism. Posted by Orrin Judd at March 15, 2003 7:03 AM