The German Chancellor, Mr Helmut Kohl, has slapped down calls from within his own coalition for a cabinet reshuffle, saying he saw no reason to change his ministerial line-up before next year's general elections. Mr Kohl, just back from his Austrian summer break, criticised his Finance Minister, Mr Theo Waigel, for leading calls for a government shake-up, but said he still expected his old ally to stay on. "This discussion has really annoyed me. I have no intention of reshuffling my cabinet. There is absolutely no reason to do so," Mr Kohl said.

Mr Waigel, Germany's longest-serving finance minister since World War Two, triggered frenzied speculation over a possible government shake-up when he said last week he wanted to quit his job after next year's general election. Mr Kohl, in an interview to be published in Bild today, criticised Mr Waigel over the ensuing debate, which he said had damaged some ministers. But he still backed Mr Waigel.

"Despite all the discussions that are running now, (Waigel) is doing a first-class job," Mr Kohl said. "I expect Theo Waigel to remain in the fray as finance minister."

The smooth functioning of the Kohl-Waigel axis is seen as vital for ensuring that Germany can lead Europe's drive towards economic and monetary union.

However, Mr Waigel has visibly tired of being Mr Kohl's fall guy after drawing fire over efforts to get German finances ready for the single currency - especially when his recent bid to revalue the Bundesbank's gold reserves backfired.