Schmidt urges his party to back austerity budget

Chancellor Helmut Schmidt met the entire leadership of his Social Democratic Party in an attempt to swing it behind plans for a tough austerity budget in 1982. Mr. Schmidt attended an all-day joint session of the Spd's national executive, parliamentary leadership, and budget committee to complete proposals to slash $8.2 billion from public spending.

Schmidt maintains the austerity measures are essential to reduce West Germany's record public borrowing, free money for industrial investment, and enable the Bundesbank (central bank) to lower its high interest rates.