German Chancellor Gerhard Schroeder ceded the leadership of the ruling Social Democratic Party (SPD) to his aide Franz Muentefering in a bid to heal party division and change the slide of SPD in public support.  

About 95 percent of delegates at a special party conference in Berlin voted to ratify Muentefering, 64, the SPD parliamentary leader, as chairman of the party. Schroeder named Muentefering as his successor six weeks ago.

"This change in leadership doesn't at all alter the fact that our policy is necessary and correct," Schroeder said. "We will maintain our course. What has been decided will not be changed."

Schroeder launched his reform drive last March as German economy entered into the third year of stagnation. His plans, including higher health care costs and cutting of retirement and welfare benefits, met strong resistance among leftists and his party's traditional labor union allies.

Last month Schroeder announced he would turn over the party leadership due to the party division and SPD's sliding supporting rates.

A survey published Friday showed SPD only enjoyed 29 percent support, compared with 48 percent for the main opposition Christian Democratic Union and its ally the Christian Social Union.

(Xinhua News Agency March 22, 2004)