'Racist' German banker to step down

Germany's political establishment voiced relief yesterday over the resignation of central banker Thilo Sarrazin, who has inflamed the country with outspoken comments on race and religion.

• Thilo Sarrazin Picture: Getty Images

Mr Sarrazin said he would quit the Bundesbank's board from the end of September after his comments on Muslim immigrants and Jewish genes drew censure from Chancellor Angela Merkel and many others and prompted the central bank to seek his dismissal.

His resignation means President Christian Wulff will no longer have to decide whether to approve the bank's request, an awkward choice that threatened to expose Ms Merkel to a backlash from conservative voters.

Mr Wulff, nominated to the post by Ms Merkel's Christian Democrats (CDU), said he welcomed Mr Sarrazin's decision and the "mutual solution that had been found with the Bundesbank".

The sentiment was echoed by Ms Merkel's spokesman, Steffen Seibert.

Mr Sarrazin, 65, has dominated headlines over the past fortnight for his trenchant criticism of Turkish and Arab immigrants, some of which he set out in a new bestselling book Deutschland schafft sich ab (Germany Does Away With Itself).

The Financial Times Deutschland newspaper wrote "Sarrazin does away with himself" in its reporting of his resignation - a play on the title of his book.

"Sarrazin thus saves himself and Germany a demoralising legal battle over his sacking. Wulff will be spared a very tricky decision - whether or not to sign off on it," it wrote.

A phone-in for n-tv television showed 89 per cent of calls took the view that Mr Sarrazin was wrong to quit.

However, reactions were more mixed on the streets of Frankfurt, home to the Bundesbank.

"I think it's good that he resigned," said Juergen Rumbuchner in central Frankfurt.

"I think he'd have been thrown out anyway, because he's in a position where he represents Germany abroad, and I think his theories are even less well understood there - and they're pretty controversial here anyway," he added.

Another resident, Peter Mitzner, added: "I think it's over the top. As far as I'm concerned what he's been saying is the truth."

Mr Sarrazin's centre-left Social Democrats (SPD) have begun proceedings to expel him from the party, despite the economist saying that he aims to "go to his grave" as a member of the party.

Polls show that the SPD has been hurt by the debate over whether to eject him.

Sebastian Edathy, an SPD member of parliament's legal affairs committee, said it had been high time for Mr Sarrazin to resign.

"If he made the decision because he saw the light, then the obvious next thing to do would be to leave the SPD," he said.

Mr Sarrazin, a former finance minister of the city of Berlin has long been outspoken, but recent claims that Jews shared a particular gene and that Muslim immigrants were lowering the intelligence quotient of German society as a whole proved a tipping point.

Mass market German newspaper Bild asked: "Was it a courageous and responsible step by Sarrazin?

"Yes. But at the same time this is a sad reflection on the culture of holding open debate in Germany."

Right-wing online forums have hailed Mr Sarrazin as a champion of free speech who participants say is speaking painful truths.

Advocates of improving immigrant integration say Mr Sarrazin has made it harder to hold an objective debate on the matter by polarising opinion and obscuring the facts with disputed claims.