North Rhine-Westphalia’s premier, Wolfgang Clement, became the first official tapped by Chancellor Gerhard Schröder for his new cabinet on Monday. Clement will oversee the fusion of the two ministries for economics and labor and take charge of reversing Germany’s two most vexing problems: rampant unemployment and a stagnant economy.

Support from industry and unions

Union and industrial leaders alike quickly lauded Clement’s designation as minister for both portfolios.

The German Trade Union Federation (DGB) said Clement’s nomination was “undoubtably the right choice.” DGB chief Michael Sommer said Clement had shown as premier of North Rhine-Westphalia that economic reform could be planned in a socially fair manner, adding that he expected Clement would pursue the same aims in Berlin.

The Federation of German Industries (BDI) also reacted positively to the ministry fusion and to Clement’s designation as minister. “The organizational strength of the Economics Ministry is the prerequisite for the [government’s] economic policies to regain a more consistent and … clear direction,” it said in a statement.

BDI Managing Director Ludolf-Georg von Wartenberg, who hasn't always seen eye-to-eye with Clement, added generously: "Although he doesn’t agree with us in all areas, he is known for his constructive, result-oriented discussions."

Mixed reviews for planned merger

Green Party co-chair Fritz Kuhn said the ministries' fusion could lead to “gains in efficiency” in the fight against unemployment. A similar reaction came from the leader of the lassaiz faire Free Democratic Party, Guido Westerwelle, who spoke of greater power for the new ministry.

However, the leader of the conservative opposition Christian Democratic Party, Angela Merkel, criticized the move, insisting that naming Clement to the post would be perceived as a bad sign for the economy, possibly even fatal. Merkel characterized Clement as a failure as premier and said the state he leads, North Rhine-Westphalia, is in a state of economic decline.

Tackling unemployment

Clement has his work cut out for him. One of his first tasks will be to implement the Hartz Commission's plans, a series of recommendations for tackling unemployment developed by an independent commission under the leadership of Volkswagen board member Peter Hartz.

The Hartz Commission calls for restructuring the labor market in an effort to halve unemployment by 2005. Among its central elements are plans to shift the emphasis of Germany's 181 local labor offices from managing the unemployed to finding jobs for them, subsidize low-wage jobs to make them more attractive to employers and workers and to cut benefits after three years if unemployed Germans refuse to take the work they are offered.

Clement will have countless barriers to overcome in order to institute the Hartz Commission. Financing remains unclear at a time when the German government is perilously close to exceeding the three-percent budget deficit cap aimed at securing the stability of the euro. And hundreds of new laws will have to be formulated and passed by parliament and the upper legislative chamber, the Bundesrat, which is controlled by the less-than-supportive opposition. On top of that, trade unions and employers have also expressed skepticism over some Hartz Commission proposals.

A controversial politician

Wolfgang Clement, a former journalist, has been North Rhine-Westphalia’s premier since 1998, when he succeeded his longtime party colleague Johannes Rau, who then became Germany’s president.

Though the 62 year old has garnered respect from all different sectors of Germany’s political and economic landscape, he is loved by few, even among Social Democrats. That’s because Clement frequently pursues his own plans, often disregarding those of his party. In summer 2001, during a visit to Israel, for example, Clement announced that he supported the import of embryonic stem cells during the same day an emotional debate on the subject was undertaken by Bundestag, Germany's parliament.

Nonetheless, Clement has gained admirers through his obstinance and single-mindedness. In July, he was roundly lauded for facilitating day-long negotiations between the engineering giant Babcock Borsig and bankers to keep the company from declaring bankruptcy. His efforts failed, but his determination was praised.

But neither can critics like CDU-leader Merkel be easily dismissed. At the beginning of the current legislation period in 2000, Clement pledged he would cut unemployment to 500,000 in North Rhine-Westphalia. Two and a half years later, there are still 816,000 people out of work in Germany's most populous state.