Soul-searching in Berlin as Merz's CDU dealt another electoral blow

All eyes are on German Chancellor Friedrich Merz on Monday as the leadership of his Christian Democrats (CDU) convenes for a crisis meeting following a historic blow dealt to them in state elections, where they failed to enter a regional parliament for the first time.

The far-right Alternative for Germany (AfD) triumphed in Sunday's elections in the north-eastern state of Mecklenburg-Vorpommern, posting its second win in a regional vote in just two weeks, following its landslide victory in Saxony-Anhalt.

In Berlin, which is another of Germany's 16 federal states, the CDU lost the mayor's office to a far-left party and will likely be relegated to the opposition.

The votes have compounded widespread discontent with Merz's leadership, as the chancellor has struggled to push through unpopular economic, health and welfare reforms seen as crucial to revive the sluggish economy.

Stepping out in front of cameras just after exit polls were released on Sunday evening, Merz conceded that the CDU's result in Mecklenburg-Vorpommern - the party's worst ever in any state election - was "a disaster," but vowed to stay on and continue his unpopular reform agenda.

Merz 'knows he needs to change'

The chancellor's statement received mixed responses on Monday even from within his own conservative ranks.

CDU deputy chairman Karl-Josef Laumann stressed that "the party leadership stands behind the chancellor," as he arrived at the party headquarters in Berlin for the post-election consultations, which were scheduled last week in anticipation of a potentially painful reckoning.

Laumann praised Merz's appearance, saying it was absolutely key to "make it clear in the current situation that we have a government that will remain in office."

But Family Minister Karin Prien said the results had shown that her party "lacks empathy" to understand people's problems.

"Things have to change now. We must take the legitimate fears of many people more seriously - clearly also when working on the reforms," Prien, who also serves as CDU deputy chairwoman, told the Deutschlandfunk broadcaster.

"The chancellor himself knows that he will have to change."

The Social Democrats (SPD), the junior partner in Merz's coalition, also stressed that the government would have to chart a new course.

"We stand by this coalition, but given how things have gone over the last few months, we cannot carry on like this," Lars Kingbeil, vice chancellor and finance minister, said.

The government must not ignore the message that voters have sent them in three state elections, he said. "We need reforms, but these reforms must be fair."

Heavy defeat in two states

Sunday's results further cement a long-running decline in support for Germany's two "Volksparteien" (people's parties), Merz's CDU and the SPD, as voters increasingly turn to the political fringes.

In Mecklenburg-Vorpommern, the anti-immigrant, pro-Russia AfD came out on top with 38.2% of the vote, more than doubling its result from five years ago, even though the party is classified as a "suspected extremist" organization by domestic intelligence.

In a nightmare outcome for the CDU, the conservatives won just 4.9% of the vote, falling below the 5% threshold needed to take seats in a state parliament for the first time and posting their worst-ever result since taking only 9% in Bremen in 1951.

Despite the AfD's win in Mecklenburg-Vorpommern, which like Saxony-Anhalt was part of the former communist East Germany where the far-right party is particularly strong, it is unlikely to be able to govern the state, as all other main parties refuse to work with it.

Incumbent state premier Manuela Schwesig of the SPD, whose strategy of positioning herself as the only alternative to the far right ultimately didn't pan out, announced on Monday that she would seek to hold talks on forming a government with the Greens and The Left, even though her party came second with 35.5%.

Under Germany's electoral laws, the share of parties that do not clear the 5% hurdle - in this case the CDU and the populist BSW - is distributed among those represented in parliament, increasing their share of seats.

This means that Schwesig would have enough seats to govern in alliance with the Greens and The Left.

In Berlin, the result has also opened the way for a three-party coalition between The Left, the Greens and the SPD to replace the current conservative-led government.

The Left's lead candidate Elif Eralp, a 45-year-old lawyer of Turkish heritage, is seeking to become Berlin's first mayor from the party.

The Greens have signalled their willingness to discuss such an alliance, while it initially remained unclear whether the SPD would follow suit.

Turnout rose sharply in both states, reaching 78.1% in Mecklenburg-Vorpommern and 74.2% in Berlin.