Merz to press ahead with reforms after German state election defeat

German Chancellor Friedrich Merz has vowed to continue his economic reform agenda despite a historic electoral defeat for his CDU party in state elections. The party saw record-low results while the right-wing AfD party made significant gains.
Why it matters
The political instability in Germany, Europe's largest economy, has major implications for EU policy and the future of the current government.
German Chancellor Friedrich Merz suffered a bruising electoral setback in two state elections on Sunday, including a historic defeat for his party, but vowed to press ahead with potentially painful reforms to Europe's biggest economy.
Projections by public broadcaster ARD on Sunday night indicated that Merz's center-right Christian Democratic Union, or CDU, came in with just 4.9% in Mecklenburg-Western Pomerania — the party's lowest result in any state since World War II. The anti-migration, Russia-friendly Alternative for Germany, or AfD, party made significant gains Sunday. ARD television based its projections on exit polls and partial counting.
If the CDU stays below 5% in the final vote count, it would mean the party would fail for the first time to win seats in a state legislature anywhere in Germany.
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