Claims that Angela Merkel hosted a lavish private birthday party at taxpayer expense for Deutsche Bank's Josef Ackermann have emerged as the first serious challenge for the German chancellor as she seeks a second term in next month's general election.
The allegation, dubbed the “dinner-for-Jo” affair by Ms Merkel's rivals, has been vigorously denied by the chancellery.
However, Mr Ackermann, Germany's most powerful and contentious banker, said in a television documentary aired this month that Ms Merkel had offered to host a dinner for him in her offices in April last year.
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