German Chancellor Friedrich Merz appointed Health Minister Nina Warken as his new chief of staff on Friday in a cabinet adjustment aimed at boosting his struggling administration ahead of key state votes in September.

Merz indicated additional personnel shifts lie ahead. Two insiders noted he plans to change the transport minister, though the process has slowed because his initial choice withdrew after agreeing.

Warken becomes the first woman in this influential post that links the chancellery, various ministries and parliamentarians while Merz advances economic reforms for Europe's biggest economy.

The move follows the sudden exit of senior conservative Jens Spahn from his post as parliamentary faction leader amid controversy over his use of a surrogate despite party resistance to the practice.

Merz faces mounting pressure after a difficult opening year. He lags in surveys behind the far-right Alternative for Germany and confronts the risk of that party securing its first state-level win in September.

Growth remains sluggish as Germany's export model contends with higher domestic expenses and foreign rivals. Worldwide tariff disputes and energy fallout from the Iran conflict further hinder expansion.

"We are a reform-oriented government, and we intend to continue demonstrating that," Merz stated to reporters in Berlin, vowing to advance swiftly once parliament returns from recess.

Merz had chosen Warken, 47, to lead health changes aimed at curbing rising medical expenses, a task now assigned to party figure Carsten Linnemann.

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

Merz popularity sinks, AFD takes lead

Merz intends to replace Transport Minister Patrick Schnieder due to dissatisfaction with rail performance and aging infrastructure, two sources said, as delays have become a widespread public concern.

Analyst Oliver Lembcke observed that Merz, 70, seeks to convey strength by refreshing his team with younger and more female faces.

"However, he must be careful not to bungle the process," Lembcke added, warning that prolonged uncertainty could erode authority that Merz can ill afford to lose.

The train drivers' union urged against pinning rail issues on one person, noting policymakers had long neglected clear targets and steady oversight.

"Germany does not need further political reshuffles, but rather determination, expertise, and reliability," the union stated.

Merz's departing chief of staff, Thorsten Frei, will take Spahn's place leading the CDU/CSU parliamentary group.

Merz confirmed more cabinet adjustments without specifics, noting they require additional time.

His approval rating hit a record low in a recent RTL/ntv poll, with just 14 percent satisfied and 85 percent dissatisfied.

The AfD leads national surveys at 26 percent, ahead of the conservatives at 22 percent, before eastern state elections in Saxony-Anhalt and Mecklenburg-Vorpommern that could boost the party's national prospects.