The leader of Germany's opposition Christian Democrats (CDU), Dr Wolfgang Schauble, was last night under pressure to resign as the scandal surrounding illegal donations deepened.
Mr Karl-Heinz Schreiber, a fugitive arms dealer who gave Dr Schauble DM100,000 (£40,000) in cash in 1994, yesterday disputed the politician's account of their meeting. He insisted that, contrary to Dr Schauble's account, the money was clearly linked to government support for the building of an arms factory in Canada by a subsidiary of the German firm Thyssen.
Dr Schauble said he thought Mr Schreiber had decided to donate money to the CDU simply because he liked the party.
Hundreds of Christian Democrats have left the party since the news broke that the former chancellor, Dr Helmut Kohl, accepted illegal donations and lodged them in a network of secret accounts. The scandal has already damaged Dr Kohl's reputation and it now appears set to end the political career of his successor as party leader, Dr Schauble.
Most of Germany's conservative newspapers yesterday called on Dr Schauble to resign as leader, and many commentators predicted that he would not stand for the leadership when the CDU meets in Essen for its annual conference in April.
"The CDU will only find a way out of its desolate situation when it finds the courage to make a new start. Helmut Kohl would do the CDU a great favour by re signing his seat in parliament. Schauble should do the same," the business daily, Handelsblatt, wrote.
Dr Schauble's resignation would precipitate a bitter battle for the succession, with Dr Kohl's formidable army of loyalists determined to drive out of office the leadership team they believe has betrayed their former patriarch.
As a woman from the east of the country, the party's general secretary, Dr Angela Merkel, could be the ideal candidate to attract voters who have turned away from the CDU. But Dr Kohl's supporters, who loathe her even more than they dislike Dr Schauble, are almost certainly strong enough to prevent her victory.
The former defence minister, Mr Volker Ruhe, has long been viewed as a future leader of his party. But he is not popular among activists and his base in the north of the country is relatively weak.
Dr Kohl's favoured candidate is believed to be Mr Jurgen Ruttgers, a former technology minister who is the CDU's candidate in a state election in North-Rhine Westphalia in May. The present leadership, which is convinced that Mr Ruttgers has been plotting a coup for some weeks, would do everything possible to stop him becoming leader.
