GERMANY’S Left party (DL) has scored a stunning victory in Berlin, winning a state election for the first time on a campaign to nationalise housing owned by corporate landlords and cap rents.

The party won around 26 per cent of the vote on Sunday, with Chancellor Friedrich Merz’s incumbent Christian Democratic Union (CDU) trailing in second place, just ahead of the far-right Alternative for Germany (AfD) which took 16 per cent.

“From today, we’re changing Berlin ​together,” said DL lead candidate Elif Eralp, the daughter of Turkish ​leftwingers who fled a coup in their home country in 1980.

Sunday’s other state election took place in Mecklenburg-Western Pomerania, where AfD emerged as the strongest party. However, the Social Democrats (SPD), the junior party in Mr Merz’s national coalition government, were fairly close behind after a campaign focused squarely on state governor Manuela Schwesig as a bulwark against the far-right party.

The AfD was projected to take 38 per cent of the vote share, followed in second place by the SPD with 35 per cent.

That polarisation helped squeeze other mainstream parties, including the CDU.

A three-party left-leaning coalition under Ms Schwesig would have a majority in the new regional legislature.

The results left Mr Merz clinging to power.

His CDU were ejected from the state legislature in Mecklenburg-Western Pomerania after failing to reach the 5 per cent threshold to secure representation, leading him to describe the result as a “disaster.”

The chancellor told reporters at the CDU headquarters in Berlin that he would forge ahead with his government’s plans to push through a package of economic, tax and welfare reforms.

“The reforms have to come,” he insisted. “I am taking on this responsibility, because I want to move our country forward.

“What needs to be done now requires backbone, steadfastness and patience,” Merz said. “I will demonstrate this as CDU party chairman and, above all, as chancellor of our country.”

But amid mounting speculation that he could be ousted, Mr Merz was set to face his party’s leadership for a series of meetings last night.

Much will depend on the influential regional leaders of the CDU. Last week, the party’s eight state governors backed the chancellor, though questions remained about how wholehearted their support was.

Matthias Miersch, head of the Social Democrats’ group in the federal parliament, said it was clear that “we need reforms.” But he told ARD television that “we must also take people’s concerns seriously.”