The German government denied on Friday a report in weekly magazine Der Spiegel that Chancellor Gerhard Schroeder planned to replace Finance Minister Hans Eichel by next summer. "This appears to be an unfortunate new year's joke," said a government spokesman. "There is no foundation to the report."

The magazine said Schroeder had already decided to sacrifice Eichel, probably after North Rhine-Westphalia state elections in May, in order to demonstrate he was serious about getting German finances in order and pushing down unemployment levels.

According to Der Spiegel, three replacements for Eichel are being considered: North Rhine-Westphalia state minister Peer Steinbrueck, former Hamburg mayor Henning Voscherau and Schleswig-Holstein state finance minister Ralf Stegner.

Copyright Reuters, 2005