BERLIN, July 1: The German parliament passed a bill on Thursday overhauling the country's immigration policy to attract skilled foreigners and drive out extremists.

The legislation, approved by the Bundestag lower house, is the product of four years of bitter haggling between Chancellor Gerhard Schroeder's centre-left government and the conservative opposition.

It opens the door to more foreigners from outside the European Union with sought-after skills, promotes the integration of newcomers, reforms asylum policy and beefs up security checks for foreigners on German soil.

"This is a victory for our country," Interior Minister Otto Schily told the chamber, calling the bill's passage a "historic turning point" that would make Germany safer and more competitive internationally.

Germany, which is home to around 7.3 million foreigners, or about nine percent of its total population, has been facing a skills shortage and a demographic crunch that have undermined its already shaky economic prospects.

The draft law, which still requires the approval of the Bundesrat upper house, foresees a number of measures to cut red tape for highly-qualified workers hoping to move to Germany.

Professionals, notably in industries such as information technology, science and research, will find it easier to apply for long-term residence permits, and foreign students will be able to seek work here after their studies.

For foreign terror suspects, deportation procedures will be expedited and the right of appeal limited. So-called "preachers of hate" who advocate crimes in Germany will also be easier to expel.

Those who cannot be sent home under German law because of the threat of torture in their own country will be required to report regularly to authorities.

In response to the frequent "ghettoization" of foreigners, the bill earmarks more than 243 million dollars annually for German language and integration courses. About 20 per cent of the funds will go to aliens already living here and in some cases, those failing to take part in the courses can face cuts in their welfare benefits or refusal to have their residence permit extended.

The measures also strengthen the rights of refugees, including those facing persecution from forces other than their government. One example cited was that of an Algerian journalist threatened by Islamic radicals.

Volker Beck, legal affairs expert of the Greens, junior partner in the ruling coalition, said that the law marked a historic change in Germany's self image. "Germany is a land of immigration," he said. -AFP