BERLIN, Jan 24 (AFP) - The German government appointed Monday a new chief for its so-called "Five Wise Men" panel of economic advisers in a move to try and defuse a highly public spat that observers say is damaging the body's reputation.
One of the five experts -- Bert Ruerup -- saw his contract extended by five years until 2010. And until 2008, he will head the body that has advised the government in economic matters for the past 41 years, the panel said in a statement.
Ruerup, 61, previously headed a committee in charge of reforming Germany's healthcare and pension insurance systems and has so far not taken sides in a public mud-slinging match between two other panel members, Wolfgang Wiegard and Peter Bofinger.
Wiegard recently announced that he would step down as head of the panel, saying the atmosphere of debate had been "poisoned" since the arrival of Wuerzburg university professor Bofinger in March 2004.
Wiegard and fellow panel member Wolfgang Franz both fiercely attacked Bofinger in newspaper articles and interviews, claiming he understood nothing in matters of tax policy and was incapable of working in a team.
Unlike most of the other panel members, Bofinger is an exponent of Keynsian economics, arguing in his latest book that it was vital to kick-start demand to get the ailing German economy back on its feet.
While many of his colleagues believe that the government's huge raft of social, pension and labour-market reforms do not go far enough, Bofinger says the manifold reforms lack an overall blueprint and could actually drive the economy even deeper into crisis by stifling consumer demand.
Contrary to its name, the Five Wise Men, actually comprises four men and one woman.
Alongside Peter Bofinger, Wolfgang Wiegard, Wolfgang Franz and Bert Ruerup, Beatrice Weder di Mauro, a 39-year-old professor of economics at the university of Mainz, recently joined the illustrious body.
She was appointed to replace Axel Weber, after he left to become head of the Bundesbank.
01/24/2005 13:45 GMT - AFP