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3w ago

Germany’s Coalition Talks Accelerate as Economic Turmoil Tests Merz’s Leadership

Incoming Chancellor Friedrich Merz faces economic shocks, internal dissent, and rising far-right support as CDU/CSU and SPD push for a coalition agreement this week.

Far-right Alternative for Germany (AfD)'s nominee for Vice President of the Bundestag Gerold Otten and AfD's co-leaders Alice Weidel and Tino Chrupalla leave after giving the press statement after an inaugural session of Germany's lower house of parliament, the Bundestag, in Berlin, Germany, March 25, 2025. REUTERS/Lisi Niesner/File Photo
Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz, gives a statement on the day Christian Democratic Union party (CDU) and Social Democratic party (SPD) have exploratory talks, in Berlin, Germany March 28, 2025. REUTERS/Christian Mang/File Photo
Friedrich Merz (L) is expected to be Germany's next chancellor
Merz's talks for a coalition deal have been given greater impetus after Donald Trump blew up global trade

Overview

  • Friedrich Merz seeks to finalize a coalition with the SPD, aiming for a government agreement by the end of the week amid mounting economic and political pressures.
  • Germany’s stock market plunged 10% following Donald Trump’s tariffs, intensifying calls for economic reforms and adding urgency to the coalition negotiations.
  • Merz faces internal criticism for abandoning fiscal conservatism after approving €1 trillion in new debt to secure coalition support, straining his credibility with conservative voters.
  • The far-right Alternative for Germany (AfD) has surged to record poll levels, matching the CDU/CSU for the first time in post-war history, highlighting political polarization.
  • Merz’s approval ratings have dropped sharply, with only 25% of Germans expressing support for his leadership as his party grapples with dissent and declining trust.