Digging In for the Election

After a bitter debate in the lower house of parliament, the ruling Social Democrats and their Greens partners passed legislation to allow in a controlled stream of migrant labour to counteract the decline in Germany's population.

But the bill’s major test will come on March 22, when it goes before the Bundesrat, the legislative body representing the state’s interests on the federal level. Most opposition Christian Democrats (CDU) voted against the reform in the Bundestag and said they would try to block it in the Bundesrat, arguing that Germany should cut rather than increase immigration because unemployment was rising.

"Such a law opens the labour market to even higher immigration when we have 4.3 million unemployed, and it allows more immigration into the social security system -- and that is why we reject it," said CDU parliamentary leader Friedrich Merz.

The government had tried to keep the issue off the election agenda, but the bill now looks set to feature heavily as the election campaign intensifies.

With unemployment stuck at more than 10 percent, popular support for further immigration remains low, even though industry groups say firms are crying out for skilled migrants.

Germany's low birth rate means its population is predicted to contract by a quarter from its current 82 million by 2050.

That could cause labour shortages from 2010 onward.

Dire projections at a time when industry groups say firms are already crying out for more skilled migrants.

Failing to win cross-party support on the immigration bill has opened the way for a heated issue to feature in the election campaign.