MR Oskar Lafontaine, leader of Germany's opposition Social Democrats (SPD), has attacked Bonn's record on unemployment and said its action plan for jobs would not solve the country's economic problems.

"We are lacking five million jobs in Germany. This shows that the 13 years of Helmut Kohl government have proved a failure of economic and financial policy," Mr Lafontaine said in his first speech to parliament as SPD leader.

"The government says taxes are too high, the state is too big and bureaucracy hinders private initiative. But who is responsible for that? They are, this government."

Finance Minister Mr Theo Waigel retorted that the government's programme would make a significant contribution to the Alliance for Jobs. "It contains everything that is doable and economically reasonable."