German president Christian Wulff resigns over corruption scandal

German President Christian Wulff has resigned in the wake of allegations of corruption involving a dubious loan and undisclosed favours to business people during his term as prime minister of the state of Lower Saxony, and increasing pressure on Chancellor Angela Merkel to act.

The allegations about his financial affairs, involving a private home loan and a string of freebies to business persons during his term as prime minister of the state of Lower Saxony from 2003 to 2010, were first published by the Bild newspaper on 13 December, which was followed by reports in the Der Spiegel magazine.

Amidst growing scrutiny of his financial affairs, including vacations at the homes of business people and calls from the opposition to quit, prosecutors in Lower Saxony have now sought parliament's nod to prosecute him.

With prima facie evidence of his possible involvement in the scandal, prosecutors now want to open an official probe into the allegations, the prosecutor's office in the state capital of Hanover said in a statement.

Wulff is the second German president to quit in less than two years, after the previous incumbent, Horst Koehler's surprise resignation in May 2010. Wulff was elected by a special national assembly on 30 June 2010.

Addressing reporters at the presidential palace in Berlin, Wulff said the people of the country have obviously lost confidence in him and it was not proper for him to continue in office.
 
"Developments in the past days and weeks have shown that this confidence and my ability to act are lastingly damaged," Wulff said, adding, "I have made mistakes but I have always been sincere."