Greens' Influence Mounts in Coalition Talks

Germany's Social Democrats and the Greens resumed negotiations on Thursday to craft a new government agenda before the end of the month.

Re-elected with a wafer-thin majority last month, talks have concentrated largely on the boosting of Germany's trailing economy, tackling unemployment and plugging of the country's gaping budget holes.

On Monday, Schöder presented Wolfgang Clement -- premier of Germany's most populous state, North Rhine-Westphalia -- as the newly merged labour and economics ministries' new "super minister," appointing him with the job of tackling unemployment and stoking the limp growth in the country with Europe's largest single economy.

The decision came after the two coalition partners agreed early last week to maintain a strict savings course in face of a 10 billion euro ($9.87 billion) budget deficit and to eliminate state subsidies rather than introduce tax increases.

The suggestion to rise taxes caused an uproar, and was quickly dampened by Schröder, who described the discussions as "very annoying", saying coalition negotiations would focus on cutting subsidies and eliminating "excess" tax priviliges and subsidies.

Energy, transport and foreign policy

While talks focused mainly on the central sticking-point, the economy, this week's round covered issues including energy, transport and foreign policy.

On Wednesday, Greens chairman Fritz Kuhn anounced the government would "cut carbon dioxide levels and greenhouse gas emissions by 40 per cent (compared to current levels) by 2020". He said the red-green coalition would urge the EU to set new targets for cutting greenhouse gas emissions to levels beyond those agreed to under the 1997 Kyoto Protocol.

In addition, efforts to widen the river Elbe for greater shipping traffic, which have been severely criticised in the wake of devastating floods earlier this year, have been dropped under protest of the Greens, whose unexpectedly strong election showing enabled Schröder and his Social Democrats to remain in the Chancellery for a second term.

Indeed, the Greens' influence appears to be significantly larger in this year's round of coalition talks. On Wednesday, the party refused to support the SPD's proposed 90 billion euro transportation spending package because there is not enough money available.

A change in security policy

The Social Democrats also appear to have changed tack on the issue of mandatory military service in the Bundeswehr, Germany's army. Wednesday's coalition talks revealed the future government would review a possible end to conscription for the German military at the Greens' behest.

"One must see what the review will produce in light of new missions", Schröder told a joint news conference, accompanied by Foreign Minister Joschka Fischer after talks on foreign policy and security issues earlier this week.

Previously, Schröder had argued that conscription keeps down costs and ensures the military stays anchored in a democratic society. Yet pressure to end the draft has mounted both in Germany, within the red-green government and at the EU level. Several European nations have already decided to scrap compulsory military service in the coming years.

The rumour mill

What will come next on the agenda for Germany's next four-year term is hard to say. Berlin is still awash with rumours of moves, after two ministers -- including justice and family affairs -- and the chancellor's advisor on cultural issues have resigned and two ministers (labour and economics) have been shown the door by Schröder. Several posts are still up for grabs, and the Greens are said to be calling for a further minister in Schröder's cabinet.

With at least three days of talks still to follow, both sides are expected to clash over the last hot-button topics, including jobs in eastern Gemany, disputed tax breaks for married couples and last-minute budget details. The new government programme is due to be completed by the first sitting of parliament following September's elections on October 17.