Chancellor Angela Merkel-led new German government has been jolted by its first political crisis after a minister resigned over claims he leaked confidential information about an international child pornography probe involving an Indian-origin ex-member of parliament.

An Indian-origin German lawmaker's residence and offices have been raided on suspicion of possessing or attempting to acquire child pornography, a media report said on Wednesday.

The United States will continue to spy on foreign governments, President Barack Obama has said even as he assured German Chancellor Angela Merkel that he would not allow the surveillance mechanism to harm their bilateral relations.