BERLIN -- German Chancellor Gerhard Schroeder might install a regional politician and close ally as a "super minister" in his cabinet with responsibility for jobs and the economy, a magazine reported on Saturday.

With Germany's newly reelected center-left coalition of Social Democrats and Greens meeting this week to settle on the government's main priorities, speculation has been rife about who will occupy what seats in the new cabinet.

The **Newsmagazine Focus** said Schroeder was considering naming Wolfgang Clement, Social Democrat premier of the big industrial state of North Rhine-Westphalia, to the new post, which would merge the economy and labor ministries into one.

Rising unemployment and sluggish economic growth are two key problems facing the government. The idea of merging the ministries was floated by the opposition conservatives during the campaign before the September 22 elections.

Clement declined to comment on the report.

"I am premier of North Rhine-Westphalia. I am not prepared to comment on speculation," a spokesman quoted Clement as saying.

A government spokesman said the coalition talks were focusing first on the issues and would deal with personnel questions later.

During the campaign, the conservatives proposed installing Lothar Spaeth, a popular industrialist and former premier of the rich state of Baden-Wuerttemberg, as economy minister. The proposal was popular in opinion polls.

The Labor Ministry is now headed by Walter Riester, a former trade unionist, while the Economy Minister is Werner Mueller, a former power industry executive.

The ruling coalition's partners have been in talks this week to forge the main points of a program for the next four years.

Talks so far have focused on Germany's economic woes.

With unemployment at four million and the dax index of German blue-chip shares hovering near six-year lows, the parties are keen to find ways to shore up the budget without raising taxes. They have promised to cut subsidies and tax breaks.

The partners aim to wrap up talks by October 17, when the new Parliament is to convene for the first time since the election.