It is not the first time the 65-year-old member of the Bundesbank has caused controversy since he joined last year.
In October he described Muslim children as 'underclass' citizens.
'I don't have to accept someone who lives off a state they reject, doesn't properly take care of the education
of his children-and keeps producing more little girls in headscarves,' Mr Sarrazin said.
'That goes for 70 percent of the Turkish and 90 percent of the Arabic population of Berlin.' He added that they were not fit for much other than 'fruit and vegetable selling'.
Because immigrants tend to have more children than Germans - who have the lowest birth rate in Europe - this caused 'a different propagation of population groups with different intelligence because parents pass their intelligence on to their children'.
Mr Sarrazin, who was previously Germany's finance minister, has not yet apologised. It is thought his position at the Bundesbank may now be untenable.
A spokesman for a Muslim group in Berlin said: 'He is a tired old white Christian male full of prejudice and
few ideas.'
But among conservatives in Germany his comments have struck a chord.
They have voiced concern that the country's three million Turks tend to live in their own communities,
socialise among each other and have little in common with their German neighbours.
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