BERLIN, June 15 - German Chancellor Gerhard Schroeder said in remarks published on Friday that it was not certain German economic growth in the second half of the year would make up for the slower pace of growth in the first half. But Schroeder said he was sticking to his goal of cutting jobless numbers to 3.5 million in 2002, despite a slower-than- expected fall off in unemployment over the past few months.
"Whether in the second half of the year it (growth) goes so well as to make up for the growth losses in the first half of the year remains an open question," Schroeder was quoted as saying in an interview with the FT Deutschland.
Growth in the second half of 2001 would benefit from tax cuts introduced at the start of the year, he said.
The government reduced its growth forecast to 2.0 percent from 2.75 percent this year, and Finance Minister Hans Eichel said they would re-examine the forecast again in the autumn when tax estimates are released. Schroeder was reassuring over doubts about the jobless goal after German unemployment rose for the fifth month in a row in May to stand at 3.82 million, adding to rising fears for the health of Europe's largest economy.
"Even if the decline in unemployment is smaller than hoped and less than what was forecast last year, I still see 3.5 million unemployed as a figure that is achievable and so does the Federal Labour Office," Schroeder said.
Schroeder said the 3.5 million figure was a goal "that one must fight for" but he said the government had no plans to introduce additional measures to increase employment or help out the beleaguered construction industry, where around 30,000 jobs are expected to go this year.