Chancellor Friedrich Merz faces political crisis after CDU election defeats

Chancellor Friedrich Merz is clinging onto power after his Christian Democratic Union (CDU) party tumbled to its worst regional election defeat in post-war Germany, with members of his coalition clashing over his unpopular reform agenda.

Mr Merz himself described Sunday's loss in the north-eastern state of Mecklenburg-Western Pomerania as a "disaster" as his party missed the 5 per cent threshold for entering a state parliament for the first time in a part of the country that was the former stronghold of is predecessor and party rival, Angela Merkel.

The far-right Alternative for Germany (AfD) took first place. While the AfD fell well short of a majority, it was the second time the party had topped a state election within a month, which it sees as building momentum towards national power.

Mr Merz's party also bled votes in a second election in the state of Berlin, which could see the far-left Die Linke party, the descendants of the Communist party that once ran East Germany, take power in a coalition after winning most seats.

Sunday's results may not prove a knock-out blow for Mr Merz, but his low approval ratings and the AfD's surge have left his future in the balance.

On Monday, he announced that the centre-left Social Democrats wanted to remain in a coalition with his conservatives.

"That applies to us too, and it applies to me as well. Together, we are determined to rise to the historic challenges facing our country."

'Merz should be more humble'

Earlier, several conservative state premiers met to take stock after publicly backing Mr Merz in an open letter last week.

It said "the chancellor needs to deliver more following the CDU's difficult results in the state elections".

Mr Merz, who has vowed to press on with his reform agenda, says tough measures are vital to revive sluggish growth in Europe's largest economy and keep it globally competitive.

But members of his centre-left coalition partner, the Social Democrats, pushed back.

That includes Manuela Schwesig, the popular incumbent state premier of Mecklenburg-Western Pomerania, who has sharply criticised the federal government's pension reforms.

Ms Schwesig said she was "very irritated" by Mr Merz's remarks.

"I think more humility is actually called for on the part of the Chancellor," she said.

The economy has been struggling since the pandemic to regain momentum, with competition from China as well as higher energy prices challenging its export-driven economic model.

The AfD party leads in national opinion polls but has been kept from power by the other main parties' refusal to work with it, in a policy known as the "firewall" that has been increasingly scrutinised as the AfD gained strength.

Its hardline stance on immigration has left some in Germany of migrant background questioning their future.

In Berlin, Die Linke topped the polls in a state election for the first time on a campaign to nationalise housing from corporate landlords and put a cap on rents, echoing the rise of New York Mayor Zohran Mamdani.

Mr Merz, who was elected last year on a promise to return Germany to growth, has struggled to win over voters.

A stream of communication missteps have served to compound resentment over unpopular pension, tax and healthcare reforms.