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BERLIN: Germany's embattled Chancellor Gerhard Schroeder has suffered another blow when the former chairman of his Social Democrat party (SPD) said he was defecting to a new leftwing alliance. Oskar Lafontaine, who led the party until 1999, said in the September general election he would stand as a candidate for a rival leftwing group made up of communists and disaffected SPD members. Mr. Lafontaine, a former Finance Minister, has been a bitter critic of Mr. Schroeder since the two men fell out six years ago. In the 1990s Mr. Lafontaine was seen as a leading SPD candidate for Chancellor. © Guardian Newspapers Limited 2004
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