Schroeder tries to woo party faithful

Mr Schroeder insists his reforms were 'bitterly necessary'

German Chancellor Gerhard Schroeder has acknowledged the struggle his Social Democratic Party is facing over its social and economic reforms, in a speech to the party's convention.

The SPD is currently suffering historically low levels of support amid concern within the party over the policies of Mr Schroeder.

Mr Schroeder was met outside the conference hall in the western town of Bochum with a demonstration by thousands of striking police officers, firefighters and soldiers.

His reforms have led to charges he is betraying Social Democratic principles.

But in his speech, Mr Schroeder insisted his reforms were "bitterly necessary".

The election defeats of recent times have been very painful for us and our current poll ratings weigh on you as well as me Gerhard Schroeder

"We are standing before a new era," he said. "In order to restore Germany permanently to the summit, we must give up the old and go new ways.

"We must lead Germany to a better and surer future."

He urged his party to unite behind his Agenda 2010 package of labour, market and social reforms, warning members against infighting.

"For that, we need all our energy. We should not waste it fighting amongst ourselves but use it to overcome our political opponents," he said.

Mr Schroeder admitted the party was losing support and members.

"The election defeats of recent times have been very painful for us and our current poll ratings weigh on you as well as me," he said.

"Today, this party is in a difficult situation. We must lead Germany into a secure future, and to do that we need to have the courage to tell the truth and the will to change."

Protesters

The reforms are aimed at reviving Germany's economy and include tax cuts, measures to curb long-term unemployment and change health and pension provision.

Anyone who still trusts this government must believe in Father Christmas Protester's banner

Critics are angry at tough measures including penalties for people who turn down job offers, cuts in health benefits, a pension freeze and making it easier to dismiss workers.

The BBC's Ray Furlong in Bochum says the speech went down well with the delegates, but concern is still high within the party, and there may yet be some stormy conference debates.

The protesters outside the convention booed and whistled when Defence Minister Peter Struck went to talk to them.

One protester's banner read: "Anyone who still trusts this government must believe in Father Christmas."

Opinion polls suggest the Social Democrats are still lagging well behind their conservative rivals, with only 29% support.