Merkel's CSU allies suffer historic losses in Bavaria state elections

German Chancellor Angela Merkel's arch-conservative CSU allies suffered historic losses in Bavaria state elections Sunday, dealing a blow to her fragile three-party coalition government.

The Christian Social Union (CSU) secured 35.5 per cent, according to first public TV projections, losing their absolute majority in the wealthy Alpine state they have ruled almost single-handedly since the 1960s.