Germans face more job losses

Hostility is a way of life for Gerhard Cromme, boss of Krupp Hoesch, the German steelmaker. Five years ago, as head of Krupp, he forced Hoesch into a nominally friendly but unwanted merger. Now he has launched an overtly hostile bid for Thyssen, with tactics -- and advisers -- straight from the Anglo-Saxon textbooks.

Thyssen is outraged; steel workers are on the streets. The Krupp Hoesch merger was followed by the loss of 25,000 jobs and the closure of an integrated steelworks at Rheinhausen.

This time, Hoesch's plant in Dortmund is at risk.

The prospect of more job losses at a time of record unemployment will test the tolerance of German public opinion for continued restructuring. With a weaker deutschemark and a recovering economy, many people believe the need for cuts should now be coming to an end.

Other observers believe that big German companies have only begun the task of restoring competitiveness.

-- Financial Times, Hong Kong