The former German economics minister was involved in a deal just two months ago in which RAG bought chemicals company Degussa,

Muller has union backing from IG BCE, which represents the country’s coal miners. Coal mining is declining in Germany with annual subsidies to RAG to be halved to US$2.76 billion by 2005. By then coal production is to be cut to 26 million tons while the workforce is to be reduced to 36,000.

Muller was involved last year in negotiating an EU endorsed contract allowing Germany to continue subsidies until 2010.