US embassy cable - 04FRANKFURT5692

UNCLAS FRANKFURT 005692 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, ECON, PINR, PREL, GM 
SUBJECT: Saarland SPD Leaders Air Dirty Laundry, Embrace 
Centrist Platform for Upcoming Elections 
 
REF: a) 2003 Frankfurt 03946, b) 2003 Frankfurt 04964, 
 
c) 2003 Frankfurt 005178 
 
SUMMARY 
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1.  SUMMARY:  In a nationally-publicized showdown, former 
finance minister/Social Democratic (SPD) chairman Oskar 
Lafontaine used the Saarland SPD's June 20 convention to 
issue a blistering critique of Chancellor Schroeder's 
national government and its Agenda 2010 reform program. 
With national SPD chairman Franz Muentefering in attendance, 
Lafontaine called for the SPD to return to its roots as a 
working-class party and to abandon what he termed the 
Schroeder government's "public relations campaign" of 
reforms.  Saar party chairman and lead candidate Heiko Maas 
echoed Lafontaine's left-wing tenor but succeeded in passing 
a moderate center-left platform for state elections this 
September, when the party faces an uphill battle to unseat 
Christian Democratic Minister-President Peter Mueller.  END 
SUMMARY. 
 
2.  On June 20, a Consulate representative attended the 
SPD's final convention in Saarland before state elections in 
September.  The event featured state party chairman and 
election standard-bearer Heiko Maas as well as former 
Saarland Minister-President Oskar Lafontaine, a noted left- 
wing activist within the party.  National SPD chairman Franz 
Muentefering attended the event in an effort to boost 
visibility in the Saar SPD's state election campaign. 
 
3.  In his speech, Lafontaine railed against the SPD's 
economic reform program.  The former SPD chairman labeled 
Agenda 2010 as a "public relations campaign," saying the 
reality was wage cuts, longer work hours, and sharply 
reduced social benefits.  The usually moderate Heiko Maas 
surprised political observers by underscoring Lafontaine's 
remarks and warning that the national SPD's current policies 
will cost the party the election in 2006.  Maas called for 
greater attention to economically vulnerable groups and a 
rejection of reforms that widen the gap between rich and 
poor. 
 
4.  Muentefering used his time at the podium to defend 
Agenda 2010 and criticize Lafontaine for political dogmatism 
and an inability to compromise.  He stressed that the Social 
Democrats should focus on achievable goals and not 
unrealistic promises.  In sharp contrast to the enthusiastic 
responses given to Lafontaine and Maas, Muentefering's 
remarks met with tepid applause, and the chairman left 
clearly disappointed by the day's events. 
 
5.  In spite of Lafontaine's populist rhetoric, convention 
delegates produced a centrist platform for the September 
elections similar in some ways to the CDU platform issued 
the same weekend.  The SPD manifesto largely embraces the 
incrementalist reforms of Agenda 2010 while criticizing the 
Mueller government's performance in Saarland (particularly 
on education).  The manifesto criticizes the state's narrow 
focus on the automotive sector, advocating more investment 
in energy and life sciences. 
 
6.  COMMENT: An unapologetic left-wing true believer, 
Lafontaine strikes an emotional chord with many SPD members 
disappointed by painful reforms and the sluggish economy. 
Saarland Social Democrats also worry that voter 
dissatisfaction with the Schroeder government may overshadow 
Saarland state issues like record debt and lagging education 
reforms.  Maas is trying to use Lafontaine's rhetoric to 
distance himself from the unpopular national government 
while fielding a centrist platform to appeal to moderate 
swing voters.  Saar Social Democrats' greatest obstacle, 
however, is popular CDU Minister-President Peter Mueller, 
who remains the clear favorite in September (reftels).  END 
COMMENT. 
 
BODDE