Schroeder comes closer to backing war

Mr Schroeder made reference to World War II

In his New Year message to the German people, Chancellor Gerhard Schroeder has softened his opposition to military action in Iraq, saying that sometimes force is necessary.

"We Germans know from our own experience that dictators sometimes can only be stopped with force," said Mr Schroeder, in a reference to his country's Nazi past.

We also know what bombing, destruction and loss of homeland can mean for people

Chancellor Gerhard Schroeder

The televised address, broadcast on Tuesday, came a day before Germany joins the United Nations Security Council as a non-permanent member, thereby gaining a say - but not a veto - on the council's actions in Iraq.

Mr Schroeder has up to now been a resoluted opponent of the idea of military action against Iraq, souring relations with the United States.

Stressing alternatives The chancellor's speech also tackled issues closer to home - warning Germans they were in for a tough time in 2003, as the government strives to revive the country's ailing economy.

Germany will soon have a vote on the UN's activities in Iraq

Mr Schroeder's administration is battling record unemployment levels and a gaping budget deficit.

While he refused to rule out German support for a UN-authorised war the chancellor also said Germany would do all in its power to avoid military action, by urging Iraq to disarm.

"Germany owes it to its history to stress the alternatives to war," he said.

"We also know what bombing, destruction and loss of homeland can mean for people."

Last summer, Mr Schroeder's strident opposition to military action against Iraqi leader Saddam Hussein proved popular with German voters, and helped him narrowly win re-election.

Tough times ahead

Turning to domestic issues, Mr Schroeder warned Germans of a bumpy ride ahead.

Few Germans will be surprised, as there is already a strong whiff of pessimism in the air, says the BBC correspondent in Berlin, Katya Adler.

In a recent public opinion poll, two-thirds of those asked said they were worried about the future - and only one in four said they trusted Mr Schroeder to improve the situation.

The chancellor promised that new government measures would help revive the economy.

But these measures will be painful, in the short term at least, including tax rises and public spending cuts, our correspondent says.