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Merz Sets Economic Benchmarks for Coalition Survival

The chancellor's pledge to speak plainly to the SPD raises the stakes for a coalition already strained by welfare, migration and internal rifts.

Overview

  • At a parliamentary group meeting, Merz presented an ifo-based graphic of state consumption, private investment and GDP and warned that if the curves do not realign during this term "this government is failed," according to reports.
  • He told his bloc he will now speak "plainly" to the SPD partner as tensions persist over the planned Bürgergeld reform and backlash to his earlier "Stadtbild" remark.
  • Foreign Minister Johann Wadephul said returns to Syria are only very limited, Merz publicly contradicted that view, and Wadephul later denied a rift and said the Foreign Office supports the chancellor's line.
  • Within the CDU, the new Compass Mitte platform has called for a course correction and clearer distance from the AfD, including backing the initiation of a ban procedure.
  • Polling cited by Forsa's chief shows 72 percent dissatisfied with Merz's leadership and argues his focus on migration overlooks economic worries that most respondents rank as the top problem.