German Chancellor Friedrich Merz announced on Sunday, September 20, 2026, that he intends to remain in office and continue with his government's economic reform agenda despite significant losses for his Christian Democratic Union (CDU) party in two state elections. Merz characterized the election results as a "disaster" but stated that the nation's economic challenges made his proposed reforms more urgent.
The election results follow a period of economic stagnation and rising unpopularity for Merz, who took office 16 months ago. The Christian Democratic Union's performance on Sunday follows a previous defeat on September 6 in the state of Saxony-Anhalt, where the Alternative for Germany (AfD) party achieved a strong showing.
According to exit polls by public broadcaster ARD, the CDU received 5% of the vote in Mecklenburg-Western Pomerania, which the broadcaster reported as the party's lowest state-level result since World War II. In Berlin, the CDU was projected to finish in second place with 20% of the vote, trailing the Left party, which received 24.5%. The anti-migration Alternative for Germany party saw significant gains in these contests.
For the broader German population, the Chancellor’s decision to maintain his reform agenda means that anticipated changes to the national economy—which Merz described as "potentially painful"—remain on course. The source did not detail specific changes to paychecks or tax rates, but Merz indicated the reforms are intended to address an economy that has seen little growth for years. The rise of the AfD, which the source describes as anti-migration and Russia-friendly, signals a shift in the political landscape that could influence future national policy on immigration and international relations.
The political outcome has immediate consequences for the stability of the federal government. While no top-level allies have publicly called for Merz to step down, the chancellor has canceled his planned trip to the U.N. General Assembly next week to manage the post-election period in Berlin. The AfD now faces the possibility of forming the country's first far-right regional government since World War II in Saxony-Anhalt. Merz has stated he is determined to finish his term as chancellor, though he faces ongoing pressure from within his own party regarding his leadership. No specific dates for future votes or the implementation of specific economic reforms were reported.