# German election rout threatens growth reforms

> Far-right and left-wing parties surge in state elections, leaving Chancellor Merz's pro-growth agenda in peril.
- Title: German election rout threatens growth reforms · CNBC
- Summary: Far-right and left-wing parties surge in state elections, leaving Chancellor Merz's pro-growth agenda in peril. Germany's ruling CDU suffered heavy losses to…
- Keywords: germany, cdu, friedrich merz, afd, die linke, state elections, economic growth, political deadlock, business, finance, German, election
- Source: CNBC — https://cnbc.com/2026/09/21/german-election-result.html
- Author: Jenni Reid
- Published: 2026-09-21T12:46:37+00:00
- Read time: 1 min
- Topics: germany, cdu, friedrich merz, afd, die linke, state elections, economic growth, political deadlock, business, finance
## Far-right and left surge in German elections
The AfD won in Mecklenburg-Vorpommern while Die Linke topped results in Berlin. Chancellor Friedrich Merz's CDU suffered heavy losses.
## Merz calls result a disaster
The Chancellor accepted a disaster for his party but vowed to stay in power and push ahead with his pro-growth agenda.

> disaster
## Merz's growth plan faces parliament
The CDU leader wants tax, healthcare and pension reforms, plus defense and infrastructure spending and deregulation for small businesses.
## Economic stagnation fuels extremes
Years of wage stagnation, energy instability and manufacturing collapse have strengthened far-right and left-wing parties across the political spectrum.
## Germany faces structural problems
High energy prices, over-regulation, exposure to China competition and demographic decline mean growth of around one percent is temporary, economists say.
## No majority backs reform
Economists warn the elections show there is no popular support for Merz's growth-oriented reforms, pointing to further political deadlock ahead.

> no majority in favor of reforms
## Another German election likely in twenty twenty-seven
With the CDU in existential crisis, ING's Carsten Brzeski said he would not be surprised if Germany holds another election during the super election year of twenty twenty-seven.

> This really looks like a deadlock.
## Key takeaway

Germany's ruling CDU suffered heavy losses to far-right and left-wing parties in state elections, threatening Chancellor Merz's growth reforms and raising the risk of political deadlock.