Right-winger to face Schroeder

MAGDEBURG, Germany -- Edmund Stoiber is to lead the conservative challenge to oust German Chancellor Gerhard Schroeder.

Stoiber became the coalition's champion after Angela Merkel, leader of the Christian Democratic Union, announced on Friday her decision not to enter the race for the chancellorship.

Merkel, who was once hailed as Germany's equivalent of the former British Prime Minister "Iron Lady" Margaret Thatcher, said Stoiber offered the best chance of returning a conservative coalition to government.

The announcement was made after talks between Merkel, leader of Germany's largest opposition party, and Stoiber, leader of the Bavarian-based Christian Social Union, and other senior party officials on Friday.

Stoiber signalled his intention to use Germany's faltering economy as one of the main planks of his campaign.

In his first interview after Merkel stepped aside, broadcast on Sat-1 TV, he said: "Schroeder's policies are leading the country the wrong way. Because of bad policies, Germany is in an economic decline.

"(We have) the lowest growth in Europe and four million unemployed. Germany's place as a leading industrial power is endangered."

Merkel pledged to throw the full weight of her CDU party behind Stoiber "so that the chances for victory we have at the start of this year also become a reality."

"Together with Edmund Stoiber, I will make my contribution," she told a news conference in the eastern city of Magdeburg.

Media reports have speculated that Merkel could get a high-ranking job in Stoiber's government, if he wins.

Opinion polls have shown that Stoiber appears to be the stronger candidate to oust Schroeder in the September election.

Stoiber's track record in managing staunchly conservative Bavaria, one of Germany's wealthiest states, makes him the right person to fight Schroeder, conservatives say.

Stoiber, who has accused the government of being soft on immigration, also calls for a tougher stance on security issues in the wake of the September 11 attacks on New York and the Pentagon.

Merkel has failed to convince the conservatives that she has the charisma to out-manoeuvre media-savvy Schroeder.

Pressure on Merkel to stand aside grew after several of the party's governors and politicians came out for Stoiber.

Merkel, 47, would have been the first woman and the first politician from former East Germany to run for chancellor

Opinion polls show Stoiber, 60, would fare better than 47-year-old Merkel in a straight fight with Schroeder.

One poll by ZDF television broadcast on Friday showed 61 percent of conservative voters favoured Stoiber over Merkel, up from 57 percent in December. Merkel's support slipped to 24 percent from 25 percent.

A poll by the Infratest-dimap institute published this week indicated that 53 percent of Germans would vote for Schroeder and 39 percent for Stoiber. Merkel scored 32 percent.

Schroeder's own popularity has slipped during the past month on the back of an economic downturn and rising unemployment have seen ratings for his Social Democrats slip from 41 percent to 39 percent, a poll by the Electoral Research Group for ZDF televitelevision

The Christian Democrats climbed two percentage points to 39 percent -- levels not seen in more than two years.

But the survey of 1,038 voters conducted between January 8-10 also found that in a head-to-head race Schroeder still had a four-point lead over Stoiber.

In Germany, chancellors are not directly elected by voters -- the electorate cast ballots for the parties, which in turn make non-binding choices for their leading candidates for office.