A possible way out of Germany’s political crisis appeared on Wednesday in the form of a growing rebellion in the second largest party over its leader’s refusal to enter coalition talks with Angela Merkel.

Martin Schulz was confronted with open revolt in his Social Democratic Party (SPD) from MPs who want him to throw a lifeline to Mrs Merkel — and drive a hard bargain for the party’s support.

Other senior voices in the SPD are calling for it to agree instead to prop up a Merkel-led minority government from the outside in the national interest.

Analysts warned that a minority government in Germany could be bad for Britain, with Mrs Merkel forced to seek approval from parliament over every stage of Brexit negotiations.

“Merkel is basically open to a compromise, but in a minority government she wouldn’t have the leeway to make a deal,” said Prof Matt Qvortrup of Coventry University.

Germany faces the prospect of new elections unless Mrs Merkel can find some way to form a government after the collapse of coalition talks with the pro-business Free Democrats (FDP) and the Green Party.