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Far right's victory clouds Merz's reform agenda as ally seeks changes

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German Chancellor Friedrich Merz attends the 2027 budget debate at the German lower house of parliament, Bundestag, in Berlin on Tuesday. | REUTERS

BERLIN - The far right's historic victory in a German state election has reopened divisions in Chancellor Friedrich Merz's government, with calls by his Social Democrat coalition partners for planned economic and social reforms to be softened.

The Alternative for Germany (AfD) surged into first place in Saxony-Anhalt on Sunday, reflecting frustration with the federal government over bureaucracy, the rising cost of living, uncertainty over pensions and economic insecurity.

Merz — whose personal approval ratings are at a historic low — insisted that a package of planned reforms including a raising of the pension age and a clampdown on sick pay must go ahead, while admitting he needed to better explain them to voters.

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