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4w ago

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.

A view shows the Reichstag building, the seat of the German parliament, the Bundestag, in Berlin, Germany, March 19, 2025. REUTERS/Fabrizio Bensch/File Photo
Member of far-right Alternative for Germany (AfD) party Maximilian Krah arrives for a fraction meeting following the German general elections in Berlin, Germany, February 25, 2025. REUTERS/Lisi Niesner/File Photo
German Chancellor-in-waiting Friedrich Merz speaks during an extraordinary session of the outgoing lower house of parliament, the Bundestag, for a vote to adopt the draft law brought by the SPD and CDU/CSU parliamentary groups to reform constitutional debt rules and set up a 500 billion euro infrastructure fund, in Berlin, Germany March 18, 2025. REUTERS/Annegret Hilse/File Photo
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Overview

  • 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.