Germany's Election Ushers in Divided Parliament and Economic Challenges

The Christian Democrats and Social Democrats prepare for a coalition as far-right gains and economic woes reshape the political landscape.

The Christian Democratic Union/Christian Social Union (CDU/CSU) emerged as the largest party with 28.6% of the vote, likely forming a coalition with the Social Democrats (SPD), who received 16.4%.
The far-right Alternative for Germany (AfD) doubled its support to 20.8%, becoming the second-largest party and raising concerns about its growing normalization in German politics.
Economic struggles, including high energy costs, deindustrialization, and burdensome bureaucracy, have eroded Germany’s once-thriving economy, fueling voter dissatisfaction.
Germany’s outgoing 'traffic light coalition' of the SPD, Greens, and Free Democrats collapsed after internal conflicts and poor electoral performance, with the FDP failing to meet the 5% threshold for parliamentary representation.
The new government faces mounting pressure to address domestic economic issues, revive entrepreneurial spirit, and navigate a fractured political landscape while maintaining Germany's leadership role in Europe.