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Germany


International Outlook: GLOBAL WRAPUP

GERMANY

Only weeks after his Dec. 2 election victory, German Chancellor Helmut Iohl is facing political heat within his coalition government. Kohl's coalition partner, the Free Democratic Party, boosted its share of the German vote from 9% to 11%. Now, Foreign Minister Hans-Dietrich Genscher wants five cabinet ministries, up from four at present, for the FDP. He is also demanding a more active role in shaping the revival of the economy in eastern Germany. As Germany's most popular politician, well ahead of Kohl in opinion polls, Genscher wields potent influence in the coalition.

Genscher is pushing Kohl to grant a 20% tax break for investors in eastern Germany, where the FDP is particularly strong. Kohl had initially resisted the Genscher plan, which would add to the already huge costs of reunification. But Kohl may be forced to give in. December jobless data show that employment in eastern Germany is in free-fall. More than 2 million east Germans--almost a quarter of the labor force--are unemployed.EDITED BY JOHN PEARSON


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