Chancellor Friedrich Merz's party has made a disappointing start to a year packed with German state elections, suffering a narrow defeat in an important industrial region after a prominent candidate powered the environmentalist Greens to a come-from-behind victory.

Mr. Merz said Monday (March 9, 2026) that his federal government, which has struggled to get Germanyโ€™s stagnant economy moving, will have to โ€œmanage more, and more substantially, in terms of the necessary reforms so that we in Germany can get out of this difficult economic situation.โ€ The country has Europe's biggest economy.

Mr.

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