Germany says Wolfowitz was right to resign

POTSDAM, Germany, May 18 (Reuters) Paul Wolfowitz did the right thing by resigning as president of the World Bank, German Finance Minister Peer Steinbrueck said today.

''I think that Mr Wolfowitz took the right step,'' Steinbrueck told a news conference at the start of a G8 finance ministers' meeting in Potsdam, Germany.

''I do not at all question his merits and his reputation.

However, I think with regard to the future role of the World Bank he chose the right step, he took the right decision,'' Steinbrueck said.

Paul Wolfowitz resigned as World Bank president late evening yesterday, ending turmoil over his leadership which was triggered by his involvement in a high-paying promotion for his companion -- a move which a bank panel found broke several rules.

Steinbrueck said he did not think the procedure by which the United States chooses the World Bank president should be changed.

''At the moment, I think perhaps that such a decision could be made easier by sticking to the current procedure, and giving the United States the first go at filling this position. And I wouldn't change that now.'' REUTERS SYU BD1949