Schroeder resigns from party

German Chancellor Gerhard Schroeder has resigned as chairman of his Social Democrats today, under pressure from the party over his economic reform programme and slumping popularity.

The news broke at a news conference with Schroeder and Franz Muentefering, the leader of the SPD's parliamentary group and a close ally.

Public television station ZDF said Schroeder would hand the chairmanship to Muentefering.

The move would have no impact on his position as chancellor, which Schroeder won in 1998. He was re-elected in 2002.

Calls have been mounting from senior SPD officials for tough action to address an opinion poll slump, through a cabinet reshuffle, change of party chairman or a policy shift.

Schroeder became SPD chairman in 1999 after the resignation of Oskar Lafontaine as chairman and finance minister.

Schroeder's "Agenda 2010" of welfare cuts and labour market reforms, a bid to revive the economy and adapt the welfare system to an ageing population, has caused an exodus of party members who feel the SPD is betraying its socialist principles.

The SPD fell to all-time lows of about 25 percent support in opinion polls in 2003 and failed to recover in January. Voter anger at cuts in the health service has alarmed SPD officials ahead of a marathon of more than 10 state and local elections this year.

Schroeder has never been especially popular in the party, but his position as chancellor is seen as secure because there is no credible alternative to him.

He threatened repeatedly to resign as chancellor last year to quell left-wing revolts against his reform programme.

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