Election Victory Sets Friedrich Merz on Path to Lead Germany's Economy

Merz's Victory: What It Means for Germany

Friedrich Merz has emerged victorious in Germany's 2025 election, securing his place as the next chancellor. His success marks a new chapter for Europe's largest economy, with significant policy shifts on the horizon. Leading the CDU/CSU alliance, Merz is expected to form a coalition government, although ironing out the details with potential partners might take some time.

Merz plans to invigorate Germany's economy, emphasizing tax reductions and a noteworthy increase in defense expenditures, aiming for an annual budget between €80 and €90 billion by 2028. His fiscal strategy signifies a substantial departure from prior administrations, promising a more robust economic posture.

Defense, Immigration, and Coalition Dynamics

Defense is a central pillar of Merz's platform. He has proposed the creation of a European defense coalition featuring key players like Germany, France, the UK, and Poland. This initiative aligns with his continued support for Ukraine and NATO, emphasizing a united European front.

On immigration, Merz is taking a firmer stance with proposals for expanded surveillance measures and expedient deportations of asylum seekers who commit crimes. His approach is a reaction to recent reports of terrorist activities linked to migrants.

The election also highlighted the surprising ascent of the far-right Alternative for Germany (AfD), which secured 21% support, landing them in second place. However, mainstream parties, including Merz's CDU/CSU, have categorically refused to partner with the AfD in forming a government due to their extreme views, ruling out any coalition with them.

While Merz leads with a clear vision, forming a coalition will inevitably require compromise, particularly with parties left open to negotiation. This political dance may shape the trajectory of his domestic and foreign policies, especially in balancing the more conservative agenda with his partners’ expectations.

Voter discontent with the previous SPD-led government reflects German citizens' yearning for change, with Merz’s win suggesting an appetite for stronger economic and defense measures. However, translating these electoral promises into tangible changes will test Merz's leadership, especially as he navigates the intricate coalition-building process.