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To: smolejv@gmx.net who wrote (5638)	7/6/2001 12:42:33 AM
From: smolejv@gmx.net	Respond to of 74559

Lead article Sueddeutsche Zeitung 6.7.1 QUOTE Economic situation weakening. HIGH UNEMPLOYMENT SPELLS DANGER FOR SCHROEDER The union attacks massively the government because of the economy deterioration and the situation in the job market by Alexander Hagelueken (dpa) (SZ of 6 July 2001) Gerhard Schroeder will enter history as "the depression chancellor " said CDU Secretary-General Laurenz Meyer. The unemployment rate decreased in June to 8,9 per cent. However, corrected for seasonal influences, the unemployment in Germany went up. In the interview with the Sueddeutsche the DGB-chairman Dieter Schulte challenged the employers to keep their promises made in the "the alliance for work" agreement and finally start creating new jobs. "After two years occupation-oriented tariff policies the forthcoming steps of employers are overdue", said Schulte, who is the president of the German trade union federation (DGB). "There's the part-time jobs law, there's the alliance for work where we agreed to reduce overtime, we has work time accounts. These are just a few of the instruments, that could be used by employers to create new jobs." Schulte rejected appeals for moderate wage policy. The economic situation prognoses has always been used to club trade unions to discipline in tariff and labor policy. The switches set exactly the wrong way As the Federal Institution for work indicated in Nuernberg, the seasonally corrected number of the unemployed rose month to month by around 22.000 to 3.852 million. That is far more, than occupation experts had expected. After the number, corrected for seasonal influences such as weather or vacation dates, has risen the sixth month in a row, the discussion over the causes of the negative development has flamed out between the government and the opposition. The position on the job market becomes more and more of a burden a for the government Schroeder. CDU Secretary-General Meyer made Federal Chancellor personally responsible forth high unemployment. He repeated the demands to abolish theca tax and to speed up the process of tax reforms planned for the year 2002. The FDP politician Dirk Niebel accused the ruling coalition, it set the switches exactly the wrong way. It did nothing to reduce the unemployment. Riester: lowest June numbers since 1995 Employment minister Walter Riester (SPD) pointed out that unemployment reached the lowest June status since 1995. The development at present however lags behind expectations. He referred to the world-wide clouding of the economic situation and the risen prices. These difficult basic conditions hit the German job market faster and stronger than expected and will have further negative influence in the near future. DGB vice-president Heinz Putzhammer made the European central bank (EZB) partly responsible for the development, since they were too slow when responding to the deteriorating economic situation with the interest rate cuts. The EZB left the key interest rates unchanged on Thursday. According to its president Wim Duisenberg the interest rate levels are still appropriate. Jagoda: "the government provided good basic conditions" The president of the Federal Institution for work, Bernhard Jagoda, made the economic development responsible for the position on the job market. He observes with much concern that pessimism makes itself broad, although the government, with its tax revision and the household consolidation steps, provided sound basic conditions. Jagoda does not expect substantial impulses for the vacation months July and August. In September, the month of the truth, a jolt must go to through the economy, so that it comes to a strong upswing. The target annual average of 3.7 million unemployed can be attained only this way. Federal Chancellor Schroeder should stick to his target of lowering the unemployment to 3.5 Million in the election year 2002 In June the uncorrected number of unemployed fell only by around 26000 to 3.694 million, which corresponds to the unemployment rate of 8,9 (May: 9.0) percent. In June 2000 the number of the unemployed persons still decreased by 60000 to app. 9,1 per cent. Some analysts forecast a further rise of unemployment, which could lead up to 3.9 million unemployed by the year end. UNQUOTE unauthorized translation. SZ is (ignoring yellow press) the most-read German daily.