Merkel takes campaign to Motor Show

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(Agencies)
Updated: 2009-09-17 21:52

FRANKFURT - German Chancellor Angela Merkel took her re-election campaign to the Frankfurt Motor Show on Thursday, promising her country's powerful car industry more state backing for promising technologies.

German Chancellor Angela Merkel looks out of the concept car "BB1" of French car manufacturer Peugeot during her visit at the international car show "IAA" in Frankfurt, September 17, 2009. The world's biggest auto show will run until September 27. [Agencies]

Merkel, hoping to form a centre-right government after the Sept. 27 election, said she wants the state to play a more pro-active role in helping the domestic car industry emerge on a stronger footing from the recession that hit it so hard.

"It might seem like quasi-protectionism," Merkel said at the opening of one the world's largest car shows. "But I think we'd be well-advised to see how Germany can pool its potential as a 21st century car nation as best as possible.

"After the election, we should all sit down together and see how the government can help advance what's in our national interest," said Merkel, pointing to the rapid developments with battery technology, solar-powered cars and low-emission engines.

"That's my offer to you," she added.

Merkel's conservative Christian Democrats (CDU) and their Bavarian sister party Christian Social Union (CSU) hold a 11-14 point lead over the rival Social Democrats (SPD) and their chancellor candidate, Foreign Minister Frank-Walter Steinmeier.

But the CDU/CSU will need a strong showing from their preferred coalition partners, the Free Democrats (FDP), to break the shackles of the grand coalition with Steinmeier's SPD that they were forced into after the 2005 election.

Merkel's centre-right alliance holds a razor thin majority in polls over a trio of left-leaning parties. The centre-right hopes to push economic reform and cut taxes to boost growth.

OPEL DEAL

The centre-right squandered comfortable leads in both the 2002 and 2005 elections and some in Merkel's conservative party fear another late meltdown, especially after the chancellor's uneven performance in a TV debate on Sunday against Steinmeier.

Steinmeier hopes to unseat Merkel with a three-way coalition including the Greens and the FDP, even though the FDP spurns his offer. Steinmeier's primary goal is to prevent a centre-right government. That could lead to another grand coalition.

"I'm campaigning hard so that the SPD will not end up in the opposition," Steinmeier said in interview on Thursday with the Frankfurter Rundschau newspaper, adding he believed the FDP would change its tune if the centre-right falls short again.

"I want to be chancellor and we're feeling a tailwind since the TV debate," added Steinmeier, who could lose the election but still end up as chancellor with a three-way coalition.

For Merkel, opening the 63rd Frankfurt Motor Show -- the world's largest -- was a welcome opportunity to remind voters of how she helped domestic carmakers battle the global recession.

The car sector is at the heart of Germany's export-dominated economy with more than 750,000 people working for well-known manufacturers such as Volkswagen, Mercedes, BMW and Porsche.

"We want our car industry to remain at the front of the pack," she said. "We've made good political decisions to help."

Her government launched a 5-billion euro "cash-for-clunkers" programme in January as part of its 80-billion euro stimulus package. The 2,500-euro rebates put 2 million new cars on the road. It also twisted arms to keep GM's Opel unit alive.

"We helped keep consumption stable at home and that's been hugely important for the overall sentiment," Merkel said.