Edited by Editor-in-Chief, The Indus Pulse 20 Sept 2026, 11:01 PM 3 min readworldDeveloping

German Chancellor Friedrich Merz Vows to Stay Despite State Election Disasters

German Chancellor Friedrich Merz has vowed to remain in office and press ahead with a contentious economic reform agenda following severe defeats for his centre-right party in two regional elections. Exit polls released on Sunday indicated catastrophic losses for the Christian Democratic Union across Mecklenburg-Western Pomerania and Berlin, exacerbating political instability within Europe's largest economy as national growth stagnates. In Mecklenburg-Western Pomerania, ARD exit polls showed the CDU capturing just 5% of the vote, marking the party's lowest state-level result since World War II in a region that formerly served as the national political base for Chancellor Angela Merkel, who held the parliamentary constituency of Stralsund–Nordvorpommern–Rügen continuously from 1990 to 2021. Meanwhile, the anti-migration and Russia-friendly Alternative for Germany party surged, projecting a leading 38% vote share according to public broadcaster ZDF. In Berlin, the CDU trailed behind in second place with 20% of the vote, finishing behind The Left party, which secured approximately 24.5% to 26% depending on public broadcaster metrics.

Defiant Stand Amid Economic Reform Push

Speaking at CDU headquarters in Berlin shortly after polls closed at 18:00 local time, Merz acknowledged the outcome in Mecklenburg-Western Pomerania as a disaster. However, the 70-year-old chancellor rejected calls for his resignation or a change in political direction, arguing that persistent stagnation in Germany makes difficult and unpopular structural overhauls increasingly imperative rather than optional. Germany became the only G7 economy to contract in 2023 and recorded the slowest growth among G7 nations in 2024 as GDP entered a second consecutive year of recession, with GDP per capita contracting between 2019 and 2023.
What needs to be done now requires backbone, steadfastness, and patience, Merz stated in his post-election address. I will demonstrate these qualities as chairman of the CDU and, above all, as Chancellor of our country. The administration's supply-side platform has explicitly prioritized dismantling bureaucratic burdens, cutting corporate tax rates to 25%, establishing 30% special investment depreciation allowances, and overhauling the Bürgergeld welfare system to enforce work requirements while negotiating adjustments to the constitutional debt brake.

Mounting Pressure and National Fallout

The bruising local ballots arrive exactly a fortnight after the CDU suffered a major defeat to the AfD in Saxony-Anhalt, a result that stunned the political establishment and elevated prospects for Germany's first far-right regional government since the post-war era. Both eastern German states experienced prolonged post-reunification economic restructuring and demographic contraction, ultimately evolving into focal points where the AfD achieved historic breakthrough results, building upon prior regional highs in September 2024 where the party won 32.8% in Thuringia, 30.6% in Saxony, and 29.2% in Brandenburg.
The accumulating electoral setbacks have intensified internal party speculation regarding a potential mid-term leadership swap, though eight state party leaders expressed backing for Merz earlier in the week. Exit polling indicates that younger voters under 30 have emerged as one of the AfD's strongest voter segments in eastern German state elections, driven by economic insecurity and targeted digital outreach. Critics contend that Merz has failed to lift a sullen national mood since assuming the chancellorship 16 months ago on promises of reviving stagnant growth. In anticipation of intense political fallout, Merz abandoned plans to travel to New York for the upcoming United Nations General Assembly session, opting to remain in Berlin to manage the widening political crisis.
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