Schroeder sacks defence minister

Scharping has been accused of misusing military jets to further his love life

BERLIN, Germany -- German Chancellor Gerhard Schroeder has sacked his beleaguered Defence Minister Rudolf Scharping -- just 10 weeks before elections.

In a brief statement, Schroeder said "there is no longer a basis for working together in government" and announced Social Democrats parliamentary group leader Peter Struck as replacement. (Struck profile)

"I will ask the federal president to dismiss Rudolf Scharping from his functions as defence minister," he added.

The move on Thursday follows revelations about suspect payments the minister is reported to have received - the latest in a string of embarrassing stories that have hampered Schroeder's battle to win a second term in office in September 22 elections.

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Under the headline: "Accounts Affair: Schroeder Angry with Scharping (Again)" the Bild daily newspaper earlier reported Scharping had received the money from public relations adviser Moritz Hunzinger for his future memoirs and for speeches at events sponsored by the public relations agency.

German ministers are barred from accepting money from private companies while in office.

But Scharping, 54, said the payments were for deals concluded before he became a minister in 1998, and insisted he properly reported them to tax authorities.

Scharping denies wrongdoing

He had earlier told Reuters news agency: "Arbitrary assertions in the media are no reason for a resignation. It would not be compatible with my idea of how to conduct one's official business."

Schroeder: Trailing in the opinion polls

German media speculation that Scharping was to be kicked out was frenzied earlier on Thursday when he broke off a tour of military bases in the west of the country to fly back to Berlin, and Chancellor Gerhard Schroeder cancelled a planned appearance in the southern city of Bayreuth.

The minister's ability to attract negative media coverage proved a continuing embarrassment for Schroeder, and with the Social Democrats trailing the conservative opposition by up to five percentage points in opinion polls, Scharping had become seen as a scandal-prone liability.

Schroeder's main rival, conservative Bavarian Governor Edmund Stoiber, was quick to seize on Scharping's ouster.

"This is an important day for Germany, which hopefully will make our citizens see how weak the government is and make them draw the appropriate conclusions," Stoiber said.

Bernhard Wessels, political scientist at Free University of Berlin, told Reuters the fallout for the government would depend on whether or not the payments to the minister were deemed to be legal.

Earlier this year, prosecutors charged local political leaders in western Germany and SPD members with corruption over undeclared, and therefore illegal, party donations.

Scharping is the eighth minister Schroeder has lost since taking office in 1998.

The last to go were the health and agriculture ministers, who resigned in January 2001 over the government's botched handling of Germany's mad cow disease outbreak.