Neo-Nazis in election blow to Merkel

Neo-Nazis dealt an embarrassing political blow to Chancellor Angela Merkel yesterday, winning parliamentary seats in her eastern home state for the first time since the country's reunification in 1990.

The overtly racist National Democratic Party, won 6.4 per cent of votes in the Baltic coastal state of Mecklenburg-Vorpommern, where Mrs Merkel has her parliamentary constituency and a holiday home.

Mrs Merkel's conservative Christian Democrats were narrowly beaten by the ruling Social Democrats in the state, renowned for having the highest unemployment in Germany.

The Social Democrats suffered losses equal to more than 10 per cent of the vote and it was unclear whether the party would continue its ruling coalition with reform Communists or attempt a grand coalition with the conservatives.

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