Prosecutors in Germany called on parliament to lift President Christian Wulff’s immunity from prosecution over allegations he accepted a private loan to buy a house.
The 52-year-old has apologised for misleading officials about a 500,000 euro loan from the wife of a businessman friend.
As well as the cash advance, Wulff has been criticised for accepting free upgrades on flights and free holiday accommodation.
The scandal dates back to his days as governor of Lower Saxony state.
But although he refuses to step down, analysts think Wulff is fast becoming a liability for German Chancellor Angela Merkel, who backed his presidential bid.
The Social Democrats say they will vote to repeal Wulff’s immunity so that prosecutors can proceed with the case against him.