Seeing the writing on the wall, Mr Muntefering had tried to blame foreign private equity investors for Germany's economic ills, labelling them "locusts" who were asset stripping companies, sparking large job losses in the process.

BBC: NEWS | Business | Reshaping Germany's companies

In May, chairman of the governing SPD social democratic party Franz Muntefering was given a beating in a local election by workers angry at the way jobs were being moved to cheaper countries and worried about the erosion of workers' rights.

BBC: NEWS | Business | Reshaping Germany's companies