And in a bid to maintain momentum towards reforms, Schroeder has called a special weekend summit to consider further big changes to the nation's creaking pension scheme.
Despite the uncertainty in the electorate unleashed by the reforms, the changes, which include measures to place pressure on the unemployed to find work, also help to address what political party opinion polls show is one of the voters' major concerns: abuse of the social state.
Furthermore, the government faces possibly even tougher tests in the coming weeks as it seeks to negotiate the reforms through the opposition-dominated upper house, the Bundesrat, which will involve hammering a new set of deals with the opposition.
But with Germany having slumped into recession during the first half of the year and the ongoing reform debate, support for Schroeder's Social Democrats has plunged to about 26 percent, its lowest level since the government took office five years ago.
Coming as new signs of life emerge in the German economy, the government is now hoping that the reforms will kick in just as economic growth takes hold in the nation and consequently lead to a turnaround in Schroeder's current political fortunes.
The next national election is not due until 2006, but considering the unpopularity of the reforms even Social Democrat members are concerned about whether the party will stand a chance at the polls in three years time.
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