Court backs Schroeder over gas job

Former German Chancellor Gerhard Schroeder won a court order today upholding a legal injunction to silence a political opponent who criticised his appointment to a top job at the Russian-led gas North European Gas Pipeline company (NEGP).

Guido Westerwelle, leader of the opposition Free Democrats (FDP), had suggested Schroeder acted improperly in accepting the post of supervisory board chairman of NEGP after he had helped to launch the enterprise while in office.

After Schroeder won a gagging order last month, Westerwelle challenged the ruling, citing his right to freedom of opinion.

A court in the northern city of Hamburg rejected Westerwelle's objection so if the FDP leader repeats his allegation, he could face a fine of up to €250,000 ($300,000).

By coincidence that is the same amount Schroeder will be paid annually in his new role at the consortium.

In passing judgement, the court said that Westerwelle had every right to criticise Schroeder but had been wrong to assert that the former Social Democrat leader had "handed a contract" to Gazprom and then joined the company.

"We interpret the phrase 'handing a contract' not as political support, but as a business transaction which the chancellor concluded," the court said.

However, it was manifestly "not the case" that Schroeder had made a deal with Gazprom, the court said.

"Westerwelle is quite permitted to offer harsh and trenchant criticism of Schroeder's behaviour, but he is not allowed to do this by making incorrect factual claims," it ruled.

While he was chancellor, Schroeder and Russian President Vladimir Putin helped to launch the consortium headed by Russian gas giant Gazprom for a Baltic Sea pipeline to supply gas to Germany, a plan that was heavily criticised by Poland.

The controversy over the pipeline deal has risked causing embarrassment to Schroeder's party the Social Democrats who now share power with Chancellor Angela Merkel's conservatives.

In December, less than a month after leaving office, Schroeder accepted the job on the supervisory board of the pipeline consortium. Critics said his move was too quick and risked blurring the line between politics and business.

The dispute is not the first time Schroeder has used law courts to muzzle his detractors. In 2002 he was granted an injunction by a Hamburg court against a news agency to stop it repeating a suggestion that he dyed his hair.

Westerwelle, who had first described Schroeder's post as "problematic", was unrepentant after the judgment.

"I'm sticking by my assessment that Gerhard Schroeder's change of sides upon leaving office was unappetising and questionable," he said.

"In strict legal terms, Gerhard Schroeder may have won today, but politically and morally the verdict on his insensitive behaviour was passed long ago."

Domestic criticism of Schroeder mounted at the weekend after it emerged that shortly before he left office, the government had approved a loan guarantee to NEGP worth €1 billion.

Officials said the loan deal may be subject to a parliamentary review, an option Westerwelle reiterated.

Schroeder told this morning's edition of German business daily Handelsblatt that he knew nothing about the approval. Gazprom has said it would not be making use of the guarantee.

The pipeline is 51% owned by Gazprom, with German companies E.ON and BASF both holding 24.5% stakes in the project through their gas units.