![]() The discourse was fuelled when the Friedrich Ebert Foundation, a political foundation closely associated with the SPD, published a study in late 2006 indicating that four percent of people in western Germany and 20 percent in eastern Germany were living in "precarious" economic conditions and felt "left behind" by politicians and society. Cuts to unemployment benefits spurred mass protests Image: AP Schroeder's massive cuts, particularly to unemployment benefits, led to talk of deepening economic inequality and the emergence of a new underclass. He remained chancellor, however, until 2005 when he was forced to acknowledge defeat and call for early elections, paving the way for Christian Democratic Chancellor Angela Merkel. Due to inner-party pressure, Schroeder resigned as party chair in February 2004. Thousands of the SPD's center-left members abandoned the party as a result, though the far-left stayed on, shifting the party's core. He'd been elected in 2002 promising not to cut social benefits. The move met with approval from the conservative Christian Democratic and the liberal, free-market Free Democratic Party, but immediately drew resistance from Schroeder's own Social Democrats. The Agenda 2010, which has been compared to Reaganomics in the US and Thatcherism in Britain, aimed to improve economic growth and reduce unemployment by slashing not only income tax but also unemployment benefits and pensions. "We had to choose this policy, knowing that it could lead to pain and loss," he said. "Now we have to work towards bringing the Agenda's successes to all the people," said Beck, whose popularity is at an all-time low, according to several recent surveys.įoreign Minister Frank-Walter Steinmeier said there had been no alternative to the far-reaching reforms made to the social and labor systems over the past five years. SPD party leader Kurt Beck said Thursday in a speech marking the anniversary of the reforms that Schroeder's address five years ago had signalled "the start of major successes in the areas of economy and the labor market." Schroeder still stand by his Agenda 2010 Image: AP ![]() While center-left members of his Social Democratic Party praised the measures this week, the SPD's far-left wing, the Left party and the labor unions had harsh words for the Agenda 2010. ![]() ![]() Nevertheless, unemployment is now down and economic growth is up. The liberal market reforms Gerhard Schroeder announced on Maled to talk of social inequality in Germany and the emergence of a new underclass. ![]()
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