Fresh Setback for Schröder on Migrant Law

Gerhard Schröder, Germany's embattled chancellor, on Wednesday suffered a new blow as the country's highest court struck down his landmark immigration law after procedural objections by the opposition.

The ruling by the federal constitutional court means the law, simplifying and modernising Germany's complex immigration rules to allow greater access for well qualified candidates from outside the European Union, will not come into effect on January 1 as planned.

That will be a big blow to the authority of Mr Schröder's governing coalition. It follows other recent setbacks, which have highlighted the government's limited room for action because of financial pressures and the opposition's control of the Bundesrat, the upper legislative chamber.

The court decision may also make immigration an important issue in February's two state elections in Hessen and Lower Saxony. Some leaders of the opposition Christian Democratic Union (CDU) have suggested they may be able to exploit the highly emotive subject to mobilise additional support.

The constitutional court upheld the argument of six opposition-governed states that last March's controversial Bundesrat immigration vote was invalid. The case stemmed from differences between the government and opposition regarding the treatment of the decisive vote cast by Brandenburg, a state run by a "grand coalition" of the CDU and the Social Democratic party (SPD).

The ruling came against a background of wage strikes by public-sector workers and followed the government's embarrassing need this week to offer the CDU extensive concessions to ensure support for its ambitious job placement and labour market reforms

Mr Schröder's difficulties were further underlined on Wednesday with the latest Ifo index of business confidence, showing its seventh consecutive monthly fall. Separately, a new opinion poll revealed that Mr Schröder's SPD was trailing the opposition by 21 percentage points.

Otto Schily, the interior minister and architect of the immigration law, said he respected the court's decision and would attempt to reach agreement with the CDU on revisions.

But Mr Schily, who went some way to meet CDU objections during earlier negotiations, emphasised there were limits to the coalition's ability to compromise.

"We have a good law, which can convince everyone. If there are differences here and there, we can discuss them," he said.

The government's room for manoeuvre is limited by the fact that any attempt by Mr Schröder to accommodate the CDU will inevitably prompt objections from the liberal-minded Greens, the junior coalition partner in the federal government.

The Greens had initially sought a significantly more liberal measure, underlining Germany's status as a country open to immigrants and its particular under- standing for those suffering from political or sexual oppression in their home countries.

German business was disappointed by Wednesday's ruling.

Companies have been calling for German immigration laws to be amended to meet immediate skills shortages in certain sectors and longer term demographic developments.