German Chancellor Friedrich Merz suffered a bruising electoral setback in two state elections on Sunday, including a historic defeat for his party, but vowed to press ahead with potentially painful reforms to Europe’s biggest economy.Exit polls by public broadcaster ARD on Sunday night indicated that Merz’s centre-right Christian Democratic Union, or CDU, came in with just 5 per cent in Mecklenburg-Western Pomerania – the lowest result ever since World War II for the party in any state. The...