There is more bad news for German Chancellor Angela Merkel.
Her conservatives are set for a heavy defeat in a significant election in Berlin.
Polls suggest Merkel’s Christian Democrats will come away with 23 percent of the vote.
That’s compared to 29.5 percent for the centre-left Social Democrats who are likely to stay in power with either the Greens or the Left.
The Mayor of Berlin, Klaus Wowereit looks set to be elected for a third term, after a tight race against the Greens.
A darling of the Left, experts predict it may encourage him to challenge Merkel in the election in 2013.
Merkel has come under fire for her response to the crisis in the eurozone. Her party has already lost five states this year – Berlin would be the sixth.
All this comes just ahead of a vote in the German parliament to give the European Stabiility Fund more powers.