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Party leaders back Schroeder plan

Schroeder
Sources said Schroeder made the threat during a party executive committee meeting.

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BERLIN, Germany -- German Chancellor Gerhard Schroeder won approval Monday for his plans to trim Germany's generous social and economic benefits after he threatened to resign if his party blocked the reforms.

Schroeder made the threat over his "Agenda 2010" program during a meeting of the Social Democratic Party's executive committee, sources told CNN.

Five of 40 party executive members voted against the package after the chancellor renewed warnings to the party's rank-and-file that his government's future depends on their support.

Schroeder has said the reforms are needed to revitalize Germany's economy, but powerful trade unions and leftist members of the chancellor's Social Democrat party oppose his plans.

The program would enact a number of reforms that would cut health and pension levies on German firms. The reforms also would lift many requirements on smaller firms, allowing them to more easily hire and fire workers.

The victory sets him on course to seek approval from a special convention of the Social Democrats on June 1.

"This is the basis for the work of this government," The Associated Press quoted Schroeder as saying. "Anyone who wants to remove it -- above all in parliament but also at the party conference -- must live with the consequences. That is clear and everyone understands it."

Schroeder shrugged off the dissenting votes, arguing that the opposition was "not so powerful that we need to be afraid." He has said repeatedly he is prepared to discuss details of the reforms, but not their overall direction.

"It was important for me that this doesn't become a position that waters down the plan or obstructs its implementation," Schroeder said Monday.


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