Schroeder avoids big new losses

Schroeder's SPD is gearing up for state elections in May

Local election results in Germany's most populous state indicate another setback for Chancellor Gerhard Schroeder - but the decline has slowed.

TV projections showed Mr Schroeder's Social Democrats (SPD) scoring 31.7% in North Rhine-Westphalia, which includes the industrial Ruhr region.

The opposition Christian Democrats won the state again, but its support fell by seven percentage points.

The SPD has slumped at the polls amid widespread anger over welfare cuts.

But support for them declined by only about 2.2 percentage points in North Rhine-Westphalia compared with the 1999 result, and correspondents say that will be a welcome relief for Chancellor Schroeder.

SPD leader Franz Muentefering said: "It's not a result that makes us whoop for joy but it's a good basis for the future".

The CDU suffered big losses in two eastern elections - Brandenburg and Saxony - on 19 September and an opinion poll shows a majority of Germans now accept Mr Schroeder's economic reforms for the first time.

The government's unpopular health, pension, labour market and tax reforms - a shock after years of generous state benefits - are seen as vital if Germany is to revive its sluggish economy.

The Greens appeared to be the big winners in Sunday's election, polling 10.3% - up from 7.3%.