GERMANY: Germany's ruling Social Democrats (SPD) have unveiled a left-wing re-election manifesto calling for a "rich" tax as Chancellor Schröder set the wheels in motion to prematurely end his second and perhaps last term on Friday.
The SPD manifesto proposal would impose a 3 per cent additional tax on annual incomes over €250,000 or married couples who earn more than €500,000.
"The additional money which we'd gain from the tax hike for the wealthy would be channelled into education, research and innovative technologies," said SPD leader Franz Müntefering. The proposal is favoured by two-thirds of Germans in opinion polls but was dismissed as an election stunt by opposition politicians and economists.
"It's purely symbolic politics without economic sense and a very modest fiscal effect," said Bert Rurüup, one of Germany's leading economists.
The measure, which would raise around €1.7 billion annually, is just one of 20 left-of-centre proposals in the 25-page manifesto, including free kindergarten places and a reformed child allowance.
With just 27 per cent of support in opinion polls, the SPD proposals have been formulated to warm the hearts of disappointed left-wing voters and SPD members. It is also the party's first response to the threat from the new left-wing party in the works from former SPD leader Oskar Lafontaine.
Mr Müntefering announced further proposals to increase dole payments to even out east-west discrepancies and plans to make a demand for a minimum wage for certain employment sectors. "We need a minimum wage solution which will ensure that people will be able to actually live on what they take home," said Mr Müntefering.
"We want workers to know that they'll not be exposed to free falling, concerning their earnings in future."
Meanwhile Bundestag president Wolfgang Thierse received a letter from Chancellor Schröder yesterday announcing the beginning of the end of Mr Schröder's second term, with the intention of calling a confidence vote on Friday morning.
The chancellor is planning to deliberately lose the motion, clearing the way for the president to dissolve parliament within three weeks and call early elections in September. Exactly how Mr Schröder plans to deliberately lose the vote, and stay within the constitution, will remain a secret until then.
The SPD-Green coalition government has 304 seats in the 603-seat parliament and at least four government MPs would have to vote No or abstain to lead to the failure of the confidence motion.
Meanwhile foreign minister Joschka Fischer has said he would be happy to take to the opposition benches if his Green Party failed to return to power with the SPD.
"The stupidest thing to do if [ we lose] would be to lean back and say, 'So, now 16 years opposition'. I don't want to play the grandpa from the Muppet Show, who makes sneering comments from the public gallery," he said in an interview.
Mr Fischer said the party's campaign goals were to secure a strong Green opposition or a third term with the SPD, despite Chancellor Schröder and Mr Müntefering distancing themselves from the junior coalition partner in recent weeks.
"In the last while we have heard things from the SPD that weren't very sensible and weren't very nice," said Mr Fischer. "Red-Green was . . . and is the right coalition. The only real left-wing government the federal republic ever had."
A Christian Democrat election victory would result in a "rude awakening" for voters, he said.