Merz backs German coalition's reform agenda despite SPD's troubles

German Chancellor Friedrich Merz on Monday said he remains committed to his government's reform agenda, after his conservatives dealt their centre-left coalition partner, the Social Democrats (SPD), a heavy blow in the Rhineland-Palatinate election.

Sunday's vote saw Merz's Christian Democratic Union (CDU) put an end to 35 years of SPD rule in the south-western state, with questions being asked of the SPD's leadership and its position in the national coalition.

Merz said he understands the SPD is struggling to come to terms with the result and must learn to deal with it.

"But I am firmly convinced that we can only succeed together, and we can only succeed if we focus on the real problems facing our country," the chancellor said after party meetings in Berlin.

The German government must "pursue policies for the working population, for employees, but also for small and medium-sized enterprises," Merz argued, warning that the costs of living, bureaucracy and employment are too high for private households and businesses.

"I propose to the SPD that, over the coming months, we focus our joint efforts on consistently reducing these burdens for private households and businesses in Germany," the chancellor added.

He also highlighted planned reforms to health insurance funding and the pension system.

"I hope that our work within the coalition will be carried out jointly, with courage and confidence, in the service of our country," Merz continued. "And I am reasonably confident that we will succeed in this."