Scandal-hit German president steps down over corruption

Berlin: Hit by a series of corruption scandals, Germany's youngest president Christian Wulff resigned on Friday, dealing a major blow to Chancellor Angela Merkel in a crisis being described as unprecedented in post-war Germany.

Wulff, 52, announced his resignation today, admitting he had lost trust, after the state prosecutor announced plans to open a criminal investigation against him and asked the parliament to lift his immunity.

The criminal investigation deals with charges of corruption over a home loan he accepted during his tenure as prime minister of Lower Saxony state between 2003 and 2010.

Merkel had worked hard to get Wulff, an ally, in her centre-right Christian Democrat party (CDU), appointed as president in 2010.

Already battling hard to pull Europe out of its debt crisis, Merkel was hit by the resignation at a time when the last thing she needed was a domestic crisis.

Wulff announced his resignation with his wife by his side, and said Germany needed a president who "enjoys the trust of not only a majority but a broad majority of citizens".

"I am today stepping down from the office of federal president to free up the way quickly for a successor. The developments of the past few days and weeks have shown that trust and thus my effectiveness have been seriously damaged," he said.

"For this reason it is no longer possible for me to exercise the office of president at home and abroad as required. I have made mistakes, but I was always honest," he said.