Schulz quits EU role eyeing German politics

Germany's Martin Schulz yesterday said he would step down as head of the European Parliament and return to national politics, where speculation grew he could emerge as a challenge to Angela Merkel.

The outspoken former bookseller will quit in January after four years in office, during which he became one of the European Union's most high-profile politicians and gave its assembly sorely-needed visibility.

The bearded 60-year-old did not say if he would run for chancellor against Merkel, although he is widely expected to slot into a prime position for the Social Democratic Party (SPD), which is currently in coalition with her.

A key figure of the Brussels establishment, his return to Germany may require a painful reshuffle of the EU's top posts amid deep nervousness over Brexit and the rise of populism in Europe.

"I will not run as president of the European Parliament for a third term next year, I will run for the German Bundestag (parliament)," an emotional Schulz told reporters in Brussels.

"It was not an easy decision, as it is an honour to be the president of the European parliament, said Schulz, who is fluent in German, French, English and Dutch.

Schulz is tipped in Berlin as a possible replacement to Vice Chancellor Sigmar Gabriel, who now leads the party but is behind Schulz in latest polling.

He is also floated as a possible replacement for Foreign Minister Frank-Walter Steinmeier, another top socialist who is to become Germany's next president.