E. Germans Argue Over Unity Date : Europe: Rival parties, all committed to reuniting with the West, cannot agree on a timetable. One faction chief quits.

The leader of the second-largest party in the East German Parliament said today that he is resigning, and a plan to merge the German states on Oct. 14 appeared in danger.

Earlier today, Prime Minister Lothar de Maiziere said the leaders of all the major political parties had agreed that East Germany would unite with West Germany on Oct. 14.

Richard Schroeder, leader of the left-leaning Social Democrat faction in Parliament, was among those who had agreed to the proposal. But members of his party later balked and said German unity should take place on or before Sept. 15 because of the country’s chaotic economic situation.

The Social Democrats, who withdrew from De Maiziere’s broad governing coalition on Sunday in a dispute over unification, met to discuss what action to take.

Before the meeting, Schroeder said he was resigning as chief of his faction in Parliament.

“The opposition needs an opposition leader,” he said, indicating he was closer to agreement with De Maiziere than with his fellow Social Democrats.

The change was yet another example of the chaos in the young, inexperienced democratic government as it tries to deal with mounting joblessness and falling industrial production.

Six ministers have resigned or been ousted from the Cabinet in the past week, and the head of the agency set up to sell the nation’s ailing enterprises resigned amid criticism of his failure to unload the businesses.

After the Oct. 14 compromise was announced by De Maiziere at a press conference, Social Democrat spokesman Juergen Itzfeldt said the date for unity is too far away.

Itzfeldt said it was possible the Social Democrats would try to set an earlier date during the Parliament meeting on Wednesday. However, they are not believed to have enough votes to challenge De Maiziere’s Christian Democrats.

Parliament must approve unification by a two-thirds majority, but only a simple majority is needed to set a date. All the major parties are committed to unification, but the debate has been reduced to a political brawl over when it should take place.

For weeks, the Social Democrats and the conservative Christian Democrats have argued over the date for formal unification.

The dispute has outraged many East Germans, who are more concerned about whether they will lose their jobs and homes, and be able to pay steadily rising food prices caused by the switch to a free market economy.