Schroeder loses two key state elections

CHANCELLOR Gerhard Schroeder’s party suffered a crushing defeat in two German state elections yesterday, reflecting a loss of confidence in his government’s economic course despite broad support for his anti-war stand on Iraq.

The conservative Christian Democrats won 48% of the vote in Schroeder's home state of Lower Saxony, gaining 12 points over the last election five years ago to wrest the statehouse from the Social Democrats.

According to exit poll The Social Democrats were at 33%, down from nearly 48% last time.