Merz Faces Political Struggles as Coalition Talks Stall and AfD Gains Ground

Germany's chancellor-elect Friedrich Merz confronts internal party backlash, coalition disagreements, and surging far-right support after a historic fiscal policy shift.

Friedrich Merz's CDU/CSU bloc faces internal dissent following his borrowing plan, which breaks with the party's traditional fiscal conservatism.
Coalition negotiations with the SPD are bogged down by disputes over migration policies and welfare reforms, with no resolution expected before Easter.
The far-right Alternative for Germany (AfD) is gaining political momentum, narrowing the polling gap with the CDU/CSU to just four points.
Merz's borrowing plan, approved by the outgoing parliament, aims to fund military, infrastructure, and green energy projects, citing European security concerns.
The SPD has warned that CDU proposals on migration and welfare could jeopardize coalition talks, leveraging Merz's limited options for forming a government.