<Mr Schroeder has also signalled his intention to boost borrowing and to impose heavier taxes on individuals and businesses, after admitting after the election that there is a 10 billion euro hole in his budget.

Mr Schroeder also has work to do in patching up relations with the US. His election campaign relied heavily on pledging not to join a war on Iraq, labelling it an American military "adventure".

Washington was furious, and failed to offer him the customary congratulations after his victory.

Opinion polls carried out since the election suggest that Mr Schroeder's support is already waning, with the conservatives back in the lead.



From The BBC

No big surprise here. Schroeder is a liar and the sleaziest of opportunists. If Germany implodes, under his lack of leadership - it takes the whole EU with it, since Germany is its economic spine.

It would be fun to watch from over here if it I didn't have to worry about anyone over there.

But I do, and therefore it is not so amusing.

SDAI-Tech1