Germany yesterday reiterated its position that World Bank president Paul Wolfowitz should step down over a promotion deal he approved for his girlfriend.

Karin Kortmann, a state secretary in Germany's development ministry, said development minister Heidemarie Wieczorek-Zeul had told Mr Wolfowitz at the bank's spring meeting she was "deeply concerned" about the credibility and effectiveness of the bank.

"She made it clear to [ Mr Wolfowitz] that his voluntary resignation was the best solution for the bank and its goals," Ms Kortmann told lawmakers in the lower house of parliament.

Ms Wieczorek-Zeul, responsible for World Bank issues in Chancellor Angela Merkel's ruling coalition, laid out Germany's position on the Wolfowitz issue in a newspaper interview at the end of last month.

Ms Kortman's comments came before the White House yesterday expressed its continued full support for Mr Wolfowitz.

She said Europe was not looking for a confrontation with the United States on the issue and pushing through any solution against US wishes would be difficult.

"The US interest in naming the World Bank president is not being called into question by the German government," she said.

"The United States should rather be given room to react to the current leadership crisis in the bank," she added.

Germany heads the World Bank's 24-nation board, which will ultimately decide if Mr Wolfowitz stays or goes.

The board is scheduled to meet tomorrow.

Germany also holds the rotating presidency of the European Union until the end of June.

A French foreign ministry spokesman said in an electronic briefing that it was essential the procedure was carried out in an orderly manner.

"We hope that the board meets quickly to say, on the basis of this report and observations, what Mr Wolfowitz could do," spokesman Jean-Baptiste Mattei said.

On Tuesday, the White House said US president George Bush is "not getting directly, personally involved" in the battle over Mr Wolfowitz's presidency at the World Bank.

The comments raised hopes that it may yet be possible to reach a negotiated solution that would involve Mr Wolfowitz standing down of his own accord.

The statement came as Mr Wolfowitz prepared his final response to a panel report that concludes he broke the bank's conflict of interest rules in his handling of a secondment package for Shaha Riza, a bank official with whom he was romantically involved.

The spokesman stressed that "we still support" Mr Wolfowitz. But he added "this is a World Bank matter" and said it was "proper to let the process work itself out rather than trying to insinuate ourselves into it".

People close to the European shareholder governments say now would be the best moment to strike a deal that would see Mr Wolfowitz step down before the board is forced to decide whether to censure him or demand his resignation - a decision that could come as early as this week. - (Reuters, Financial Times service)