The chairman of Gerhard Schröder's Social Democratic party said at the weekend he would back a grand coalition with the opposition CDU should the German chancellor lose next month's general election.

The intervention by Franz Müntefering, Mr Schröder's most loyal ally, suggests that the SPD is becoming increasingly worried about losing the election scheduled for September 18. The SPD is apparently distancing itself from the chancellor four weeks before a vote that opinion polls indicate Mr Schröder can no longer win.