Germany's Merz picks first woman chief of staff in shake-up before state elections

BERLIN, July 24 - German Chancellor Friedrich Merz named Health Minister Nina Warken as his new chief of staff on Friday, as part of a reshuffle intended to inject momentum into his unpopular government before difficult state elections in September.

Merz also said more changes were to come. Two sources familiar with the matter said he was set to replace his transport minister, but that will take longer as Merz's pick pulled out after initially agreeing to take the role.

Warken will be the first woman to hold her new post, an important position that serves as a node between the chancellery, ministries and lawmakers at a time when Merz is pushing reforms to revive Europe's largest economy.

The reset follows the abrupt resignation of conservative party heavyweight Jens Spahn as parliamentary faction chief, in a row over his decision to have a surrogate baby despite his party's staunch opposition to surrogacy.

Merz is under pressure to deliver after a testing first year in office. He trails in opinion polls to the far-right Alternative for Germany and faces the prospect of the AfD gaining power for the first time at state level in September.

Economic growth has struggled to revive, with Germany's vaunted export-driven economy under threat from rising costs at home and competition abroad. Global tariff ructions and the energy shock from the Iran war are also hobbling growth.

"We are a reform-oriented government, and we intend to continue demonstrating that," Merz told reporters in Berlin, promising to "hit the ground running" when parliament reconvenes after a summer recess.

Merz had picked Warken, 47, to oversee health reforms to rein in soaring healthcare costs, a job that will now fall to another party heavyweight, Carsten Linnemann.

Warken is "assertive and well-versed in security policy" and "a tough negotiator", Merz said.

MERZ POPULARITY SINKS, AFD AHEAD

Merz is set to replace Transport Minister Patrick Schnieder amid frustration over the state of Germany's rail network and crumbling infrastructure, two sources said, with train delays now a national topic of conversation.

Political analyst Oliver Lembcke said Merz, 70, was looking to project strength while making his government and party look younger and more female.

"However, he must be careful not to bungle the process," he added, saying Merz had to avoid drawing out the reshuffle for too long. "Anyone who wavers here quickly squanders their authority, and the chancellor cannot afford any further loss of authority," he said.

The train drivers' union cautioned against blaming the rail network's problems on an individual, saying policy makers had for years failed to provide clear goals, binding mandates or consistent management.

"Germany does not need further political reshuffles, but rather determination, expertise, and reliability," it said.

Merz's outgoing chief of staff, Thorsten Frei, will succeed Spahn as head of the CDU/CSU faction in parliament.

Merz said he would make further changes to his cabinet but declined to give further details, adding that these would take more time.

Merz's popularity is at an all-time low, according to a RTL/ntv Trendbarometer poll this week, with only 14% of respondents satisfied with his performance compared to 85% dissatisfied.

The AfD tops national polls at 26%, ahead of the conservatives at 22%, before elections in the eastern states of Saxony-Anhalt and Mecklenburg-Vorpommern in September that the AfD hopes will help pave the way for national success. REUTERS