By Andreas Rinke and Matthias Williams
BERLIN, July 29 (Reuters) - Germany's ruling conservatives voted on Wednesday to appoint an ally of Chancellor Friedrich Merz as the new parliamentary faction chief with a majority of 91.9%, offering some respite after days of wrangling over a cabinet reboot.
Pressure intensified on Merz after his reshuffle angered his own ranks and put a spotlight on his government's competence as it battles to fend off a far-right surge at state elections in September.
After a testing first year in office, Merz's CDU/CSU bloc is trailing in national polls behind the far-right Alternative for Germany, or AfD, and in several states.
In a meeting behind closed doors, conservative lawmakers voted to appoint Thorsten Frei, a Merz confidant, as faction chief.
He will be the point person to coordinate with the centre-left Social Democrats, or SPD, the junior ally in the ruling coalition, to push reforms Merz has promised to revive growth in Europe's largest economy.
Merz's personal popularity has sunk, according to a poll by broadcasting group RTL/ntv published on Tuesday, with only 15% of respondents satisfied with his performance, and only 49% of his own party's supporters happy with him.
The AfD has also for the first time overtaken the conservatives on perceptions of competence and ability to solve Germany's problems, the poll said.
"The events of the past week have significantly damaged Merz's standing within the CDU," a member of the CDU federal executive board told Reuters.
For his part, Merz predicted the storm would pass by September, when parliament reconvenes and his choice of new ministers is due to be sworn in.
"I assume that tempers will have cooled somewhat by September," Merz said.
His situation contrasts with that of his conservative predecessor and one-time political rival, Angela Merkel, who outshone her party in opinion polls during her 16 years as chancellor.
The SPD faction chief Matthias Miersch also said he expected matters to stabilise after Frei's appointment, putting the focus back on the government's reform agenda.
"The Chancellor himself said he would have preferred things to go differently," he told the RTL/ntv broadcaster. "In that respect, however, I now assume that calm will truly be restored as of today and that we really need to get back to the important work at hand."
AFD PULLS AHEAD
The reshuffle was sparked by the abrupt resignation of party heavyweight Jens Spahn over a decision to have a child through surrogacy abroad after supporting a ban on the practice in Germany. Merz picked his chief of staff Frei to succeed Spahn, while making Health Minister Nina Warken chief of staff.
He also made other changes. Patrick Schnieder was sacked as Transport Minister, drawing ire from conservatives in his home state of Rhineland-Palatinate.
The AfD tops national polls at 27%, ahead of the conservatives at 21%, their lowest score since last year's federal elections. There are elections in the eastern states of Saxony-Anhalt and Mecklenburg-Vorpommern in September that the AfD, particularly strong in the poorer former East Germany, hopes will help pave the way for national success.
The AfD has gained popularity with a hard line on migration, an issue that came to the fore after a deadly attack on the Berlin Pride on the weekend. The suspect, who was shot dead by police, was described by authorities as a German citizen of Lebanese background who had pledged allegiance to the militant group Islamic State.
The AfD has also seized on the dissent over the reshuffle. Tino Sorge, the junior health minister, reacted angrily after also losing his job, saying Merz had announced it to the media before telling Sorge personally. Sorge is from Saxony-Anhalt.
AfD co-chief Tino Chrupalla said on X that in Sorge's case, Merz "is not only dismissing a proven policy expert; he is also removing an East German from the government," accusing Merz of "cold and unjust" treatment.
(Reporting by Andreas Rinke and Matthias WilliamsWriting by Matthias WilliamsEditing by Peter Graff and Barbara Lewis)
