Oh, I almost forgot

German election set for September

Here is some fun stuff:

Merkel, a former physicist who grew up in communist East Germany, has vowed to cut non-wage labor costs and make it easier for companies to hire and fire.

BERLIN, Germany (Reuters) -- German President Horst Koehler agreed on Thursday to dissolve parliament and allow early elections, putting Germany on track for a September vote that polls suggest will usher in a new reform-minded conservative government.

His decision removes the key hurdle to Chancellor Gerhard Schroeder's early election plan, which he sprung on a stunned nation on May 22 after a humiliating loss for his Social Democrats (SPD) in a regional vote.

The federal election could still be thwarted if Germany's top court finds that Schroeder's unconventional plan, which involved the deliberate loss of a parliamentary vote of confidence earlier this month, is unconstitutional.

But few legal experts believe the court will go against Koehler, a former head of the International Monetary Fund, who as president had primary responsibility for determining whether Schroeder's plan conformed with German law.

"I am convinced the constitutional conditions for dissolving parliament exist," Koehler told a national audience in a televised address.

Schroeder has said he is seeking elections a year ahead of schedule in order to win a new mandate for his unpopular reforms, which have failed to bolster Germany's sluggish economy or reduce unemployment from post-war highs.

But polls suggest the opposition conservatives led by Angela Merkel will win the election and push through more far-reaching measures than Schroeder is advocating.

After seven years of Schroeder, voters appear keen to give Merkel's Christian Democrats (CDU) a chance to revitalize the economy even if it means more pain in the short term.

Merkel, a former physicist who grew up in communist East Germany, has vowed to cut non-wage labor costs and make it easier for companies to hire and fire.

Koehler, a member of the CDU before he was named president one year ago, had been under intense pressure to allow elections despite complaints from some critics that Schroeder's plan is at odds with the constitution.

All the major parties support early polls and a survey this week showed 73 percent of Germans want them.

German financial markets, which are keen to see new reforms to labor laws and the tax system, have also been counting on an election. Since Schroeder called for the vote, the German stock index has risen over nine percent.

Germany's constitutional court is now the last remaining hurdle to a Sept. 18 election.

Werner Schulz, a member of the Greens party in parliament, plans to file a legal suit in the coming days to prevent an early vote, meaning the court will have to decide on the plan.

It would most likely rule within three weeks, so definitive confirmation of the early vote could be delayed until mid-August, just one month before the presumed election.