left government - battling record opinion poll lows as Germany slowly shakes off three years of economic stagnation - clearly had hoped such tinkering with the jobless benefits law would defuse further protests. There is concern however among some observers that by giving in so swiftly to protests the government may fuel bigger demonstrations against the bill, which slashes payments for the long-term unemployed and introduce means testing for the first time in Germany. Protest organisers and trade unions meanwhile said the government climbdown was merely an initial victory in the struggle against the unpopular bill. "The protests will continue ... we want to get rid of Hartz IV," declared Andreas Erholdt, organiser of a demonstration last Monday in the eastern German city of Magdeburg. Harald Reutter, spokesman for public sector union Verdi said union members were now gunning for a clause making it hard for the unemployed to turn down jobs deemed to be lower than those they previously held. "We have to stick to our course on the really difficult issues," said Reutter. Economics Minister Wolfgang Clement, a staunch supporter of reform, has strongly criticized continuing demonstrations and insisted they would not influence the government. "Pressure from the street plays absolutely no role," he said. The government predicts the economy will grow between 1.5 per cent and 2 per cent this year and Clement said the higher figure was now far more likely.
