11 February 2004

EZA 582 - Briefing Note

Germany - Politics - Schröder resignation confirms stall in reform process
Chancellor Schröder’s resignation as SPD leader – further confirmation that the German reform process has stalled, with early resumption unlikely Investment conclusions: stalled reform process not helpful for employment or labour market. Key electoral test for Chancellor Schroder on February 29th in Hamburg state elections – poor result would likely mean cabinet re-shuffle with Finance Minister Eichel a probable casualty Shift away from reform programme also evident in CDU/CSU posturing

SummaryOverall, the reform process appears to have stalled for now - it is not clear for how long.

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© Graham Bishop