It is out with old and in with the new for Germany as the country has chosen a new leader.

After 16 years in power, Christian Democrat Helmut Kohl has been swept out of office. The new leader will be the Social Democrat Gerhard Schröder.

Mr Schröder will need to work alongside a junior coalition partner, to form a majority in parliament. The controversial Greens look most likely to fill that role.

So will this change of direction be good for Germany and Europe? Or will Chancellor's Kohl's departure mark a step back?

World leaders have congratulated Mr Schröder. UK Prime Minister Tony Blair called his victory "a new era for Europe".

Mr Schröder himself said: "Germany will remain a reliable partner abroad."

But once the celebrations are over, the road could be rocky for the new chancellor.

The switch to European Monetary Union, the expansion of Nato and the European Union are just three of the challenges ahead.

But Helmut Kohl was the driving force behind EMU. Without him, there are concerns that the euro train will come a halt.

Some fear Mr Schröder's reliance on other parties. They say his policies will be watered down.

Others highlight the the worrying influence of the Greens.

And overall, critics suggest Germany and Europe is heading for weak government - when firm direction, they say, is needed the most.

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Will Schröder be good for Europe?

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