Merkel's CDU faces election losses

German Chancellor Angela Merkel's party suffered losses in regional elections today, exit polls showed, a disappointment for …

German Chancellor Angela Merkel's party suffered losses in regional elections today, exit polls showed, a disappointment for her conservatives one month before she seeks re-election in a federal vote.

In the state of Saarland, on the French border, and in Thuringia, in the ex-communist east, Christian Democrat (CDU) leaders who have ruled for a decade saw their support slump by over 10 points compared to 2004 to 34.5 per cent and 32.5 per cent, respectively.

They could both be unseated by leftist coalitions. In a third regional vote in the eastern state of Saxony, Ms Merkel's party looked poised to retain power, most likely in a coalition with the business-friendly Free Democrats (FDP).

The three state elections were seen as key tests of sentiment in the run-up to the September 27th federal vote.

Ms Merkel's conservatives hold a comfortable 12-15 point lead in national polls over their main rivals, the centre-left Social Democrats (SPD), and a weekend opinion survey showed 87 percent of Germans expect her to win a second term.

But her party is nervous after seeing its support fall sharply in the final weeks of the 2002 and 2005 campaigns.

And the regional election results could hurt morale in the conservative camp, while giving the SPD a psychological boost heading into the final four weeks.

Any erosion in Ms Merkel's support could endanger her hopes of sealing a centre-right government with the FDP next month and possibly force her into another "grand coalition" with the SPD.

That would prevent her from pushing through key aspects of her policy agenda, including cutting taxes and extending the lifespan of Germany's nuclear power plants.

In Saarland, a tiny state of one million tucked into Germany's western corner, exit polls gave the SPD 25 per cent of the vote. They look well-positioned to take power atop a three-way coalition with the far-left "Linke" or Left party and the environmentalist Greens.

This would be the first regional partnership of the SPD and Left in the west of the country.

In Thuringia, the same three-way partnership could be in a position to oust Dieter Althaus, one of Ms Merkel's top party allies in eastern Germany, although the SPD could be reluctant to become junior partner to the Left, which received more votes.

Reuters