Berlin  - Germany's President Horst Koehler signed a controversial bill into law Tuesday enabling the state to seize control of troubled mortgage lender Hypo Real Estate (HRE).

The measure, described as a last resort to stabilize the German financial market, marks the first time in modern-day Germany that bank shareholders face possible expropriation.

The approval followed adoption by both chambers of the German federal parliament and comes after the government took an 8.7-per- cent stake in the shaky lender as a first step to gaining full control.

Berlin - German President Horst Koehler called Tuesday for the government to show unity, in the face of the global economic crisis which Germany is in the grip of.

"The crisis is no backdrop for show fights, but rather a test for democracy as a whole," Koehler said during an address given annually by the head of state.

Berlin  - German President Horst Koehler officially appointed Karl-Theodor zu Guttenberg as the country's new economics minister Tuesday.

The retiring minister, Michael Glos, was openly critical of Chancellor Angela Merkel.

During Tuesday's ceremony at the presidential Bellevue palace in Berlin, the outgoing minister was formally relieved of his duties.

Berlin - German President Horst Koehler marked Holocaust memorial day Tuesday with the promise that Germany would keep alive the memory of Nazi crimes and its victims.

"The grief for the victims, the shame over the terrible deeds and the will for reconciliation with the Jewish people and the former enemies of war - they lead us to the roots of our republic," Koehler said in an address to the national parliament.

Berlin - Germany's president, Horst Koehler, congratulated new US President Barack Obama by telegram Tuesday on his inauguration and invited him to visit Germany soon.

Obama has in effect two counterparts in Germany: Koehler as head of state and Chancellor Angela Merkel as head of government. Merkel had earlier Tuesday welcomed Obama in remarks on German television.