The Democratic Alliance has called on President Thabo Mbeki and Finance Minister Trevor Manuel to take a leaf out of Germany's economic reform book, ahead of a visit by that country's Chancellor Gerhard Schroeder to South Africa.

Schroeder was scheduled to arrive yesterday for a three-day state visit.

According to the Department of Foreign Affairs, Mbeki and his German counterpart are expected to hold discussions on increasing co-operation in labour and health issues, and to consolidate business, cultural and sporting relations.

Germany is South Africa's largest import partner and fourth-largest export partner.

In a statement, DA finance spokesperson Raenette Taljaard called on Mbeki and Manuel "to place the wide-ranging structural economic reforms undertaken in Germany under Agenda 2010" high on the agenda of their talks with Schroeder.

"There is no doubt that the South African economy and the unemployment crisis gripping South Africa can benefit greatly from similar serious structural surgery," she said.

South Africa and Germany shared two key features - considerable labour protection in a highly regulated labour market, and a new divide between those employed in this regulated market and those forever relegated to the sidelines.

"Germany's Agenda 2010 marks a break from this labour market madness - a break South Africa would do well to emulate".

The DA believed only additional structural reform could produce long-term sustainable job creation.

"Structural reforms of South Africa's labour market and output market is long overdue, and remained the untouched reforms of the GEAR era," Taljaard said. – Sapa.