Egon Krenz is hoping for a fresh start

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East Germany's Communist-dominated government has resigned - the first time such an event has occurred in the country's 40-year history.

The decision by the Council of Ministers to give up office leaves the Communists still in power but represents a major concession to the growing protest movement.

The mass government resignation is likely to have been approved by East Germany's leader, Egon Krenz, who is expected to select a new government shortly.

The departure of Prime Minister, Willi Stoph, and all 44 members of his cabinet followed demonstrations over the past month in several major cities.

On Saturday one million people attended a pro-democracy rally in East Berlin's main square.

Mr Stoph was closely associated with the recently deposed Communist leader, Erich Honecker, and Mr Honecker's wife, Margot, who was sacked last week as education minister.

Egon Krenz will be hoping the resignation of a discredited government may help stem the flow of people fleeing the country.

About 30,000 East Germans are thought to have arrived in West Germany since Saturday by using the recently-opened border with Czechoslovakia.

Czechoslovakia is the latest of the former Soviet-bloc countries to ease travel restrictions and allow free access through its borders.

The drive for change within East Germany was reflected in a new approach by the authorities who held their first-ever press conference.

A statement read out by newly-appointed spokesman Wolfgang Meyer gave no explanation for the government's resignation but urged East Germans planning to leave the country to reconsider.

Shortly afterwards the Communist Party's Politburo began a three-day meeting.

It is expected to elect new members which will set the course for the country's political future.  

Mr Bloomberg spent more than $50m on his campaign

He will replace the hugely popular incumbent, Rudolph Giuliani, next January.

The Democratic candidate, Mark Green, conceded at the end of a closely fought battle.

Mr Bloomberg, 59, beat his rival by a margin of around 40,000 votes, polling 711,189 to Mr Green's 670,413.

"New York is alive and well and open for business," Mr Bloomberg declared in his victory speech.

A month ago Mr Bloomberg was trailing far behind in the polls in spite of having spent more than $50m of his personal fortune on his campaign.

But he received a boost when he was endorsed by out-going Republican mayor Rudolph Giuliani.

Mr Giuliani's solid performance after last September's attacks on the World Trade Center sent his popularity soaring.

But he could not seek re-election as he had already served two terms.

During the campaign Michael Bloomberg and Mark Green took similar stances on several issues.

Both said they intended to rebuild lower Manhattan and bolster New York's economy after the terrorist attacks.

They also agreed on continuing Mr Giuliani's campaign to make New York a safer city.

The contenders traded insults during the campaign but were conciliatory once the result was known.

Mr Bloomberg described the election as a "tough and close race".

He said Mr Green had been gracious in defeat and deserved the respect of the people of New York.

Mr Green called on New Yorkers to support the new mayor.

"Over the years Mr Bloomberg has given so much philanthropically to so many good causes, and now he has to bring that spirit of generosity to his greatest challenge, helping rebuild and recover our city," Mr Green said. 

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