Eastern Germany, with its 18.5% unemployment rate, is especially incensed about Chancellor Gerhard Schröder's plan to replace income-indexed benefits with flat-rate payments for the long-term unemployed. Schröder's Social Democratic Party (SPD) is bracing for a major setback when state elections are held next month in Brandenburg, Saxony and Saarland.
The SPD is faring so badly in Brandenburg, where it currently rules in a coalition government, that the Party of Democratic Socialism the successor to the former East German communists has overtaken it in opinion polls.
