Chancellor Gerhard Schroeder's party was heartened Monday after faring better than expected in east German state elections

Chancellor Gerhard Schroeder's party was heartened Monday after faring better than expected in east German state elections, but a strong showing by fringe parties on the right and left raised concerns about the depth of anger over his drive to trim the welfare state. While Schroeder's Social Democrats lost votes Sunday in both Brandenburg and Saxony, party leaders insisted the tide had turned following six months of heavy defeats in other state and European votes. The main reason was Brandenburg's popular governor Matthias Platzeck, who passionately defended planned cuts in jobless benefits on the campaign trail and managed to keep the Social Democrats ahead in the state. "This is a good result. I think it's grounds for optimism," Schroeder said. "We have to keep working hard, and we will." A month ago, polls had the state's Social Democrats trailing both the former East German communists and the conservative Christian Democrats. While no far-right group gained a share of power, their success in capitalizing on discontent over the government's welfare cuts drew expressions of concern from mainstream parties, business figures and religious leaders. Politicians from five other parties walked out of a TV panel discussion Sunday night when the far-right National Democratic Party leader in Saxony, Holger Apfel, launched into a tirade against the political establishment.