Germany's Martin Schulz said today he would step down as head of the European Parliament and return to national politics, where analysts say he could emerge as a rival to Angela Merkel.
The outspoken former bookseller from Aachen will quit 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.
"I will not run as president of the European parliament for a third term next year, I will run for the German Bundestag as the head of the list of my party, the SPD, in North Rhine-Westphalia," 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."
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.
Until his announcement, Schulz had been working behind the scenes to stay in the EU parliament job, angering the centre-right European People's Party which said it was promised the role as it is the largest group in the assembly.
Last week Schulz even won the support of his friend Jean-Claude Juncker, the head of European Commission, who went against his own EPP party to back Schulz.
Juncker - who reportedly said he could resign if the German stepped down - told reporters today "I regret it " when asked about Schulz's departure.
With Schulz's exit, the EPP group will now announce their own candidate to head the parliament. Its choice will become a near-certainty for the job.
"We need to concentrate on a consensus candidate," said EPP group leader Manfred Weber of Germany, a close ally of Merkel.
He declined to say whether he would stand himself, with Irish deputy parliament chief Mairead McGuinness having also said she will stand.
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