Bundesbank calls for dismissal of Sarrazin
By Gerrit Wiesmann in Berlin

Published: September 2 2010 20:09 | Last updated: September 2 2010 20:09

Germany’s Bundesbank says it will ask Christian Wulff, the country’s president, to dismiss Thilo Sarrazin, a board member who caused outrage by saying Jews shared “a certain gene” and Muslims were unwilling to fit into German society.

The unprecedented step by the German central bank was meant to demonstrate the resolve of its head, Axel Weber, whose authority is under scrutiny as he and the German government pursue a behind-the-scenes campaign to make him the next president of the European Central Bank.


Berlin debates nuclear power extension - Aug-29.Berlin sees debt threat to stability pact - Aug-17.Germany closes mosque linked to 9/11 attacks - Aug-09.German health insurance plan attacked - Jul-07.Merkel celebrates health victory - Jul-02.Germany plans mass medical study - Jul-04..Pressure on the fiercely independent Bundesbank to take action has risen since Sunday when Angela Merkel, the chancellor, urged the Frankfurt-based institution to discuss Mr Sarrazin’s statements, made during a public relations drive before the launch of a book on immigration.

In a terse statement after three days of deliberation, Mr Sarrazin’s five colleagues on the Bundesbank board said their unanimous decision to seek his dismissal was “fully supported” by the bank’s corporate governance expert.

The central bank distanced itself from Mr Sarrazin on Monday and suggested that he had broken its code of ethics and public trust by “damaging the image of the Bundesbank”.

The German president’s office said Mr Wulff – who had publicly reminded the Bundesbank that Germany’s reputation was at stake – would review the central bank’s request and not comment on the matter until he reached a decision.

Ms Merkel, the first person to suggest grounds for dismissal by arguing that Mr Sarrazin’s comments damaged the central bank’s reputation, said through a spokesman that she had “taken note of the Bundesbank’s independent decision with great respect”.

But government officials also conceded that Mr Weber’s decision was not without its risks. Although a case could be made for Mr Sarrazin damaging the Bundesbank’s reputation, some legal experts held that his failings were insufficient to justify sacking him, one said.

Mr Sarrazin made no comment on Thursday but on Monday he said he was “pretty relaxed” about the prospect of disciplinary action, arguing that a Bundesbank board member had the same right to express his views freely as any other member of the public.

He first stirred controversy as a Bundesbank board member last autumn when he made disparaging remarks about Muslims in a magazine interview. In reaction, Mr Weber waged an unsuccessful public campaign to get him to resign – a failure that undermined his authority.

This time around, Mr Sarrazin’s controversial nature became such an irritation for Mr Weber, who would like to be nominated successor to Jean-Claude Trichet, president of the European Central Bank, next year, that he went for an option that could mire the Bundesbank in a legal dispute.

Mr Trichet said, at Thursday’s ECB monthly press conference, he had been “appalled” by Mr Sarrazin’s remarks but added he had “full confidence in the board of the Bundesbank” – and therewith in Mr Weber – to deal with the problem.

The scandal has led to questions about the nomination of Bundesbank board members. Though no stranger to controversy while finance minister of the city of Berlin, Mr Sarrazin’s nomination was waved through by German states. Ms Merkel, however, has not signalled any interest in addressing the issue.
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