Some former world leaders leave office and gently fall off the political radar, some reappear to visit regions hit by earthquakes or tsunamis, or to oversee elections in the world's hotspots. Others pass the time writing their memoirs. But former German chancellor Gerhard Schröder has done things a bit differently. Ever since his departure from office in November, he has hardly been out of the spotlight in Germany -- mostly because of his controversial relationship with his old friend, Russian President Vladimir Putin. In particular, his decision to take up a position at a joint venture led by Russian state gas company Gazprom has raised hackles. While still in office, Schröder not only refrained from criticizing the increasingly authoritarian Kremlin, but he also pushed for the construction of the pipeline that will bypass Poland, Ukraine and Lithuania, going directly to Germany from Russia via the Baltic Sea. This could be seen as sensible strategic policy for Germany. After all, Russia has vast gas reserves, and Germany needs a guaranteed energy supply. However, it raises questions about whether Germany is becoming too dependent on Russian gas and making Russia even more powerful as Europe's premier energy supplier.

For many critics, Schröder's jump from the public to the private sector was far too rapid. Others have suggested a possible conflict of interests. Still, the former chancellor won a court victory on Monday, when a Hamburg court confirmed an injunction he had slapped on Guido Westerwelle, the leader of the opposition Free Democrats (FDP), for claiming that Schröder had awarded Gazprom a contract while in office. Westerwelle now faces a fine of up to €250,000 if he repeats that statement.

However, that ruling might not be enough to calm some other concerns about Schröder's new job. There is a further twist to the tale as it emerged on Saturday that an inter-ministerial committee had agreed on October 24, 2005 to extend a loan guarantee of almost €1 billion to the joint venture. Effectively this would have meant that if the gas company were unable to repay a proposed loan from Deutsche Bank and the German state bank group KfW, the federal government would jump in to cover the €900 million debt. Gazprom has since announced that it turned down the German banks' offer and Schröder denies ever knowing about the decision. Nevertheless, opposition politicians are now calling for an inquiry into Schröder's actions, with the Left Party even considering taking legal action against him. Government officials told Reuters that the federal budget committee is due to discuss the issue at a meeting on Wednesday. The question in Berlin now seems to be who was politically responsible for the signing of the loan guarantee, which was agreed by the ministerial committee one month before Chancellor Angela Merkel took over from Schröder on November 22.

The German press looks at whether Schröder should turn down his new €250,000-a-year job, or whether this is all just a storm in a teacup.

The center-right Frankfurter Allgemeine Zeitung writes that the question now is whether the loan guarantee led to Schröder being offered the job. "A number of issues need to be separated here. Germany is now extremely dependent on Russian energy supplies. That is the reality." According to the paper, it therefore makes sense that German companies Eon and BASF are involved in the gas pipeline project. That is also true of the fact that Deutsche Bank and the state KfW bank group offered credit to the joint venture. "Such state guarantees for these kinds of projects are not unusual," writes the paper. Much more relevant is the relationship between Schröder's policy of close ties with Russia, his friendship with Putin, and his support for the pipeline. The paper writes that "loss of influence and esteem hit a former politician harder than loss of money. That in no way justifies personal gain made from a political mandate." The FAZ concludes: "The former chancellor has committed a serious breach of the rules."

Conservative Die Welt writes that while it is all right for a private individual not to care what the rest of the world thinks of him, "a former chancellor does not have that freedom." To pursue a strategic Realpolitik as German head of government with a Russian president is one thing. "As a former chancellor, to promptly jump into bed with an opaque Kremlin company is quite another." According to the paper, Schröder refuses to accept this and is reacting with characteristic stubbornness to questions about the generous terms of the otherwise sensible credit guarantee, and about the urgency of the agreement that would have been better left to the new government and not to one on its way out. "Politically, the whole thing leaves a bad taste."

Financial daily Handelsblatt comments that the current uproar was predictable, due to the former head of government's "surprising new professional orientation," which prompted speculation about a conflict of interest. However, the paper writes that the current debate about Schröder's role in the loan guarantee oversteps the limits of rationality. According to the paper, "it is not unusual or even objectionable that a government would offer a guarantee for such a project which is so strategically important, in fact that is normal everyday business." The paper argues that the current uproar is so fierce because the allegations and the reporting have twisted the facts, which are that the inter-ministerial committee approved a guarantee for a loan by German financial institutions, so that a supply pipeline could be financed for the Baltic Sea pipeline. According to the Handelsblatt, "strangely it seems Schröder had no knowledge of the guarantee. That is possible, but even if he did that would not be scurrilous."

The left-wing Tageszeitung writes that while it is still unclear how the different facts fit together, it is obvious that Schröder's appointment as the head of the pipeline has permanently damaged his reputation. "Even if there are no concrete suspicious facts," writes the paper, the assumption will remain that he combined his chancellorship and his personal career. According to the TAZ, this mistrust doesn’t just affect Schröder but the reputation of all politicians. The paper suggests that the parties agree to a proposal that all high-ranking politicians take a two-year break before they can go into the private sector. The paper adds that the commotion about Schröder isn’t just about his career plans. "It speaks of a deep unease about the dependency on Russian gas."

The left-leaning Berliner Zeitung goes right for the jugular: "Gerhard Schröder has no choice: He has to give up his post as the chairman of the Baltic pipeline company." According to the paper, the loan guarantee was not only steep but also "highly unusual". Even if Schröder had no knowledge of the decision -- which the paper doubts -- he still has to take responsibility for the entire actions of his government, which means that he is responsible for any  preferential treatment for a particular company. The paper writes that this fact should fundamentally rule out the switch to a paid position at the same company. "As long as he insists on the Gazprom position the question remains if he used his position as chancellor for his own advantage." According to the paper, with his current attitude, Schröder risks losing the kudos he gained for the "intensification of the German-Russian relations, in particular the development of an energy partnership of the two states. These were and remain important." The paper adds that the case throws up other questions beyond those relating to Schröder himself, such as why it took almost six months for parliament to be told of such an important decision. "Chancellor Merkel should also make clear when she was first aware of the guarantee and why she took so long to make it public."

The center-left Süddeutsche Zeitung writes that "Schröder claims that he had nothing to do with guarantee … As long as there is no paper that proves the opposite, Schröder is home free, at least in purely legal terms." But there is political damage. The paper asks why the former Chancellor wasn’t kept in the picture by the ministers involved. "Was this a lack of political instinct or an anticipatory obedience?" The paper argues that Schröder always wanted the pipeline because it serves to make German energy supplies more secure and it adds that "In times of global dislocation and scarce energy reserves, this is more important than ever." According to the paper, he fought as chancellor for the gas pipe and he was right. As ex-chancellor he has made the mistake of taking on a well-paid job at the company. "If he had not done so, then hardly anybody would be making a fuss about the guarantee for Gazprom."