Germany gets 'super minister'

Schroeder is under pressure to improve the economy

German Chancellor Gerhard Schroeder has appointed a new "super minister" in a bid to revive the economy.

Wolfgang Clement, the Social Democrat premier of North Rhine-Westphalia, takes over both the labour and economics ministries.

Clement is very capable, he knows all the issues. He is in all the important circles in government to make changes

Volker Nitsch, bank economist

The 62-year-old is being charged with implementing labour reforms recommended before Mr Schroeder's Social Democrat-Green coalition government was narrowly returned to power last month.

"One of the key efforts in the work of this government is reforming the labour market. That cannot be done without effecting economic policy," Mr Schroeder told a news conference on Monday.

The new minister replaces Labour Minister Walter Riester and Economy Minister Werner Mueller.

'Capable hands'

The BBC's Berlin correspondent, Rob Broomby, says Mr Clement is a political heavyweight - a business-friendly moderniser from a traditional Social Democratic heartland.

North Rhine-Westphalia is also the country's most populous state.

Introducing Clement - super minister for labour and the economy

Our correspondent says Mr Clement has the skills necessary to win support for difficult reforms, but notes that two key labour unions have already said they oppose the merger of the two departments.

However, Ludolf von Wartenberg, head of the German Industry Foundation, said the new post would "clearly upgrade" the Economics Ministry and Mr Clement would supply the "necessary political weight" to increase its clout.

Bankgesellschaft Berlin economist Volker Nitsch said Mr Clement was "very capable" and knew "all the issues".

"He is in all the important circles in government to make changes," he said.

Hard task

Germany's economy, Europe's biggest, is sluggish, and the country has an unemployment rate of 10% - four million people out of work.

Mr Schroeder had to back away from a pledge to cut that number down to 3.5 million before the 22 September election.

The government's labour-market plans are supposed to reduce red tape and put pressure on the unemployed to take available jobs.

Even Mr Schroeder acknowledged on Monday that a "jungle of interests" was opposed to reform.

The chancellor said Mr Clement's experience in lowering unemployment in Germany's biggest state made him the best candidate for the job.

The new minister also combined "economic competence with great sensitivity in social questions", Mr Schroeder said.