Social welfare spending, migration, and anticipated public funding to support significant expenditures to strengthen the defense sector are likely to be the main areas of contention between the CDU and SPD.
Following his victory in Sunday’s federal election, which will necessitate the formation of a coalition, Friedrich Merz, the conservative opposition leader in Germany, declared that he will act swiftly to establish a new government.
As per the Federal Returning Officer’s provisional vote count, Merz’s CDU/CSU group received 28.6% of the votes, while the far-right Alternative for Germany received 20.8%. The Social Democrats, led by Chancellor Olaf Scholz, had their worst showing since World War II, coming in third with 16.4%.
As the largest economy in Europe struggles with slowing growth, Russia’s war in Ukraine, and US President Donald Trump’s threats of a worldwide trade war that may cripple Germany’s faltering industrial sector, the election comes at a precarious time. Next week, leaders of the European Union will meet to talk about the bloc’s fragile defense situation.
During a debate on Sunday night, Merz stated that he hoped to establish a coalition within the next two months and that there is no acceptable alternative to forming a government in Germany in a reasonable and timely manner. “Europe is waiting for Germany to regain a stronger leadership role; the world isn’t waiting for us.”
For Merz’s center-right CDU/CSU alliance to gain a majority in the lower house of parliament, it will require at least one coalition partner. The SPD is his most likely coalition choice, most likely without Scholz holding a government position. Following smaller parties’ failure to meet the threshold for seats in the Bundestag, the two would have enough for a majority.
Social welfare spending, migration, and anticipated public funding to support significant expenditures to strengthen the defense sector are likely to be the main areas of contention between the CDU and SPD.
The CDU-led coalition and the SPD would have sufficient support to hold a majority in the lower house if only five parties are allowed to enter parliament and the provisional outcome is confirmed.
Since none of the major parties are willing to negotiate a coalition with the AfD, the anti-immigrant party is essentially kept out of power.
Scholz indicated that he will focus on his responsibilities as chancellor until a new government is elected to power and has no intention of assisting in the negotiations of a coalition deal with the CDU.
Scholz declared, “We’ve lost this election.” “There is no avoiding it.”
By suggesting that the party might opt against forming an alliance and that the CDU leader would be responsible for the challenging task of coalition building, SPD co-leader Lars Klingbeil demonstrated the party’s clout with Merz.
“I want to stress that accountability can be taken in both the opposition and the government,” Klingbeil stated. “Friedrich Merz is now in charge of governance.”
As the national broadcaster stated that the far-right party is expected to be the primary opposition party in the upcoming parliament, cheers erupted inside the AfD’s election night headquarters.
As part of a crackdown on undocumented immigration, the AfD intends to remove hundreds of thousands of people and calls for Germany to exit the EU and its single currency. Germany’s domestic intelligence agency is keeping an eye on three of its state chapters in the former communist east that are categorized as radical.
“We will hunt them,” she said.
Merz is under pressure to form a government as soon as possible due to a number of impending issues for Europe. The bloc’s defence situation as it considers the possibility of the US withdrawing its substantial military and financial backing for Ukraine will be discussed by EU leaders at an emergency conference next week.
Without the help of Europe or Kyiv, Washington has also begun peace talks, a move that might have a long-term impact on the continent’s security structure.
In a social media post, Trump hailed Merz, calling it “a great day for Germany.” However, that comes after Vice President JD Vance urged the AfD to remove “firewalls” that are keeping the anti-immigrant Alternative for Germany in power during his speech at the Munich Security Conference.
During a debate on Sunday, Merz stated that strengthening Europe to the point where we gradually become independent from the US is the top goal. “It’s evident that some Americans don’t care much about what happens in Europe.”
Deep reforms are desperately needed in Germany to make important manufacturing sectors competitive again. Investor confidence increased more than it had in the previous two years due to the possibility of a new government that is more pro-business and interest rate reductions. The expectation that Merz will join forces with the SPD party to pursue a more market-friendly agenda has also helped to boost the benchmark DAX index.
But Germany is still especially vulnerable to China’s economic problems, and Trump is upset about its trade surplus with the US. The recent US administration’s decision to negotiate a peace agreement for Ukraine directly with Russia without consulting NATO countries has shaken transatlantic relations.
Merz remarked, “I am aware of the enormous responsibility and the scope of the work we now face.”
