German President Resigns Over Loan Claims

German President Christian Wulff has resigned over claims he abused his position before becoming head of state.

The country's opposition party had called on Mr Wulff to step down from the largely ceremonial role after state prosecutors asked parliament to end his legal immunity over accusations he accepted undue privilege.

Installed in the post in 2010, he has been criticised over the past two months in a scandal over money, power and political favours.

It has been alleged he accepted favours when he was premier of the state of Lower Saxony.

He told a media conference in Berlin: "Germany needs a president who is supported by the confidence not just of a majority of citizens, but a wide majority.

"The developments of recent days and months have shown that this confidence, and therefore my ability to act, have been lastingly impaired."

Chancellor Angela Merkel cancelled a planned trip to Rome to meet Italian premier Mario Monti on the euro crisis to make her own statement, saying she would seek agreement with opposition on new president.

It comes just a day after the prosecutor in the northern city of Hanover announced an "initial suspicion" against Mr Wulff's film producer friend David Groenewold.

Mr Groenewold reportedly picked up the bills for Mr Wulff's hotel and paid for an upgrade during two short breaks.

Mr Wulff's lawyers have said he repaid the money in cash for one of the stays.

Michael Meister, deputy head of the Christian Democratic Union's (CDU) parliamentary group, told Deutschlandfunk radio: "I assume that the parliamentary commission for immunity and the Bundestag (lower house of parliament) ... will vote in favour of the request by the Hanover prosecutor."

The conservative CDU is the party of both Mr Wulff and Chancellor Merkel . The German president's role is mainly ceremonial but carries important moral weight.

The Hanover prosecutor's announcement marks the first time Germany's parliament has been asked to consider lifting the president's immunity.