The Chancellor argues that the country's economic and political problems make difficult and likely unpopular reforms even more urgent. He promises to push ahead with "determination, perseverance and patience," in his first comments since the election.
Merz's CDU looks set to get 4.9 percent in the eastern German state of Mecklenburg-Western Pomerania, thus failing to pass the 5 percent threshold to enter the state parliament.
The far-right party AfD (Alternative for Germany) is growing by more than 21 percentage points and is becoming the largest party in the state with just over 38 percent.
In the capital, Berlin, the other side appears to be the winner. The left-wing party Die Linke is making strong gains and is expected to get around 25.5 percent - an increase of 13 percentage points. There, the ruling CDU has now lost 9 percentage points and is set to get 19 percent, according to a forecast.
