To: smolejv@gmx.net who wrote (25718 ) 11/25/2002 5:10:41 AM From: elmatador Respond to of 74559 Eichel 'misled voters over budget deficit' By Bertrand Benoit in Frankfurt Published: November 25 2002 4:00 | Last Updated: November 25 2002 4:00 Opposition calls for a parliamentary inquiry into alleged misleading of the electorate by Germany's ruling Social Democrat-led coalition in the run-up to September's poll grew louder yesterday after reports that Hans Eichel, finance minister, had ignored early warnings of a steep rise in this year's budget deficit. According to Der Spiegel, the weekly magazine, Mr Eichel was informed by ministry memo in August that the 2002 funding shortfall could reach 3.5 per cent of gross domestic product, suggesting he knew ahead of the September 22 national poll that unpopular tax increases were inevitable. "Many documents land on Mr Eichel's desk every day and I do not get to see every one of them," a spokeswoman for the minister told the FT. She said the probable scale of the deficit had only become measurable last month with the publication of much lower than expected September tax proceeds. Christian Democrat leaders, who have accused Chancellor Gerhard Schröder of misleading the electorate about the economy ahead of his re-election, said it was almost certain a parliamentary commission of inquiry would convene before the end of the year. Friedrich Merz, deputy leader of the CDU in parliament, told Frankfurter Allgemeine Zeitung the revelations reinforced the suspicion "Eichel had consciously misled public opinion". Although a commission may be unable to pronounce any sanction against the government, embarrassing testimonies could further undermine the Social Democrats, seriously eroded popularity ahead of key regional elections in early February. With sweeping victories in the states of Hesse and Lower Saxony, the CDU would consolidate its majority in the Bundesrat, the German parliament's upper chamber, reinforcing its power to veto the government's legislative initiatives. Edmund Stoiber, the defeated conservative candidate for the chancellery, said the chancellor would have to resign if the commission concluded he had "misled and defrauded the public". An opinion poll by the NFO-Infratest institute yesterday showed 62 per cent of respondents felt they had been "deceived" by the ruling coalition.