BERLIN--Hard-line East German leader Ericn Honecker, who oversaw the building of the Berlin Wall, stepped down yesterday and was replaced by a younger Communist Party loyalist amid growing unrest and calls for democratic reform.

Two other ruling Politburo members also lost their jobs in a shake-up during a meeting of the Communist Party Central Committee, but changes in East German policy from Honecker's course were unlikely.

Communist Party leaders have made clear they will resist pro-democracy movements like those under way in Warsaw Pact allies Poland and Hungary, which yesterday approved constitutional amendments creating a democratic political system.

Tens of thousands of East Germans have fled the country in recent months, turning their backs on the rigid authoritarian system, and thousands of citizens have staged massive demonstrations in recent weeks.

Honecker's replacement, 52-year-old Egon Krenz, has a reputation as a hard-liner opposed to the growing pro-democracy movement. The state-run news agency ADN said Krenz will take over as Communist Party chief, head of state and head of the military, replacing his mentor in all three roles.

The 77-year-old Honecker, who was reported ill following a gall bladder operation in August, said he was resigning for health reasons. "My health no longer allows me to bring the energy to bear that the fate of our party and people requires today and in the future." he said in a statement carried by ADN.

Krenz, the youngest member of the Politburo, is known as a tough backer of the country's orthodox communist structure. He had been in charge of internal security issues and government-run youth organizations while being groomed as Honecker's successor.

"I told the Central Committee that I realize this is a difficult task that I have taken over," Krenz told East German television after his appointment. "In this very complicated time there is much work before us."

During a recent visit to China, Krenz led an East German delegation that expressed support for the way Chinese leaders handled pro-democracy protests in June. The protests were crushed when Chinese soldiers moved in with tanks and guns, and hundreds of people were killed.

However, Communist Party sources have said it was Krenz's decision to ask East German police to stop attacking pro-democracy demonstrators earlier this month in East Berlin and Dresden.