Chancellor Angela Merkel took another political hit today when the Hesse state premier Roland Koch, a powerful leader in her Christian Democrats (CDU) part, quit politics today.
Mr Koch, long seen as a rising star in the CDU with ambitions for higher office, told a news conference in the Hessian capital Wiesbaden that he would return to work as a lawyer or in the private sector, though he would remain politically active.
Mr Koch, one of three deputy leaders in the CDU, has been the state premier of Hesse since 1999.
A fiscal conservative and law-and-order hardliner, he has clashed at times with Ms Merkel. He avoided criticising her but had an indirect parting shot at Ms Merkel's cautious leadership style that has also been blamed for exacerbating the euro zone crisis.
"As far as national politics is concerned, I'll allow myself the freedom to (speak out against our) refusal to make or delay decisions only because we're afraid of the echo," said Mr Koch (52).
He has a strong following on the conservative wing of the CDU. He is also widely regarded as one of the CDU's top authorities on economic and financial issues - and an important counter-weight to Ms Merkel's drift to the left.
"Naturally I'm going to stay a political creature even if it's from a different perspective," Mr Koch said. "I remain convinced that the CDU can, with courage and determination, lead our country into a future of freedom and prosperity."
Mr Koch noted with a smile that he would be the first Hesse state premier to leave on his own volition.
Mr Koch has nevertheless been a thorn in Ms Merkel's side at times during his 11 years in power. His departure might offer short-term relief for Ms Merkel but hurt the CDU in the long run.
Another financial policy expert, Friedrich Merz, left the political spotlight in spectacular fashion after losing a long-running battle with Ms Merkel over economic policies.
Ms Merz (54), was the popular leader of the CDU's parliamentary group until Merkel took that job herself in 2002. He remained her deputy until he quit in 2004. She did not support his ideas on simplifying tax codes and cracking down on welfare cheats.
Mr Koch recently clashed with the chancellor over budget cuts when she dismissed his suggestion that education should be examined as one area to reduce spending.
But Mr Koch was at pains to gloss over any differences and said he told his party leader of his plans to step down at some point about a year ago.
"It's not an easy decision for me, by any means," Mr Koch said. "I've really enjoyed this job. I'm in the fortunate situation of being still young enough - after working as an attorney, opposition leader and state premier - to start a new career."
Mr Koch became a national figure in 1999 when he unexpectedly defeated the Social Democrat state premier Hans Eichel. He had long been viewed in some party circles as a candidate for higher office - even chancellor.
He had been reported to be interested in running the Finance Ministry in Berlin as a possible replacement for ailing incumbent Wolfgang Schaeuble.