Schroeder pledges to work closely with president-elect Koehler

German Chancellor Gerhard Schroeder pledged Monday to work closely with president-elect Horst Koehler and continue the economic reform in the country.

"There will be good, loyal and successful cooperation," Schroeder told reporters in Berlin, a day after opposition partiescandidate Koehler defeated the ruling coalition candidate Gesine Schwan in the presidential election.

Schroeder said he valued the international expertise of Koehlerwho headed the International Monetary Fund during 2000 and 2004.

Koehler demanded further economic reform in a victory speech onSunday. "I view fundamental reform of our nation as necessary and overdue," He said. "As an economist I'm concerned over the state of the German economy."

As to Koehler's remarks, Schroeder said: "The reform process must be continued in Germany with all energy."

Schroeder said there would be no way to back off, adding that Koehler himself knew how difficult it was to push ahead with majoreconomic reform in Europe.

Germany's economy is predicted to step out of the three years stagnation with an estimated GDP growth rate of about 1.7 percent this year.

Source: Agencies