By Mary Gahan BBC News Online business reporter

The head of Germany's big employers' organisation has urged his country to introduce British style employment practices.

Michael Rogowski, president of the Federation of German Industries, the BDI, said this would help to restore Germany's economy.

The worst we can see are strikes, long lasting strikes

Michael Rogowski

Many British unions believe that when international companies need to cut jobs, they prioritise posts at UK operations because employment law differences make it easier to lay-off workers there than elsewhere in Europe.

But Mr Rogowski told BBC News Online that such freedoms made international firms more likely to create jobs.

"As far as the flexibility of the labour market is concerned, I would say the UK is an example, a good example," he said.

Recovery damaged

Mr Rogowski said he hoped the British government would put pressure on Germany by showing what could be achieved.

Michael Rogowski admires UK flexibility

Germany is Europe's largest economy, but is only just beginning to pull itself out of recession.

And the recovery could be damaged if engineering workers went ahead with mass strikes over wages in May, Mr Rogowski said.

"In this situation, where the first flowers are breaking through the earth, giving us hope for a better economy to come, the worst we can see are strikes, long-lasting strikes".

Unemployment problems

He warned that employers could not afford the pay increases of more than 4% that were being demanded, but he predicted a settlement would soon be reached.

"The problem is that whatever solution we get it will be a very expensive solution and it will not be a solution which is helpful to support the growth of our economy."

The BDI president said the result would be more job losses.

Four million people, approximately 10% of the workforce, are unemployed in Germany.

Chancellor Gerhard Schroeder had promised to get unemployment below 3.5 million in time for this September's elections.

He has since acknowledged that he cannot achieve that target.

More reforms

Mr Rogowski urged politicians to grasp the employment problem.

Unemployment stands at four million

"As long as we do not really reform and deregulate our labour market as priority number one, we won't be able to remarkably reduce our employment rate."

Edmund Stoiber, the conservative leader and Bavarian prime minister, is challenging Mr Schroeder in the election.

The BDI is waiting for full details of the parties' policies before deciding which side it prefers.

But Germany's employers knew what they wanted - a deregulated labour market, a further reform of the social security system, and lower taxation, Mr Rogowski said.

Business failures

"We are still, in Germany, amongst the highly taxed countries in Europe," said Mr Rogowski.

We still have a large number of very productive and very competitive companies in our country

Michael Rogowski

But the image of German business has itself been tarnished thanks to a series of high-profile collapses.

The Kirch media group was the biggest failure.

But other companies going bust have included the construction business Holzmann, paper producer Herlitz and aircraft builder Fairchild Dornier.

Mr Rogowski insisted Germany's companies were not the problem.

He blamed the framework created by politicians.

Recovery

"We still have a large number of very productive and very competitive companies in our country.

Strikes will harm recovery

"Not only the big shots, but also the hidden champions, the medium-sized family owned businesses."

Germany's six leading economic institutes have said an economic recovery is underway.

Mr Rogowski said he hoped the US would help lead Germany out of the recession.

What he would really like, is to see the German economy overtaking the US.

Bad example

"It is unfortunately true that we were leaders for many years and since almost ten years we are running behind with a red light in our hands, and we have to try to get rid of that."

For all his ambitions for Germany, its businesses and its economy, Mr Rogowski said he recognised that recovery would be slow.

But he believes that by following the best practices in other countries, Germany will have a better chance of success.

While he admires the UK's labour laws, there are plenty of other British policies he would not want to see transported across the channel.

He said: "As far as your health system is concerned, I do not think you are a very good example."