Friedrich Merz sworn in as German Chancellor

Friedrich Merz was sworn in as Germany’s 10th postwar chancellor on 7 May 2025, following a tumultuous parliamentary process that underscored the fragility of his coalition government. After failing to secure a majority in the initial Bundestag vote—a first in modern German history—Merz clinched the chancellorship in a second round with 325 votes, narrowly surpassing the required 316.

Merz leads a coalition comprising his conservative Christian Democratic Union (CDU), its Bavarian sister party, the Christian Social Union (CSU), and the center-left Social Democratic Party (SPD). The alliance was formed after early elections in February, which were triggered by the collapse of former Chancellor Olaf Scholz’s government.

The initial voting setback revealed internal dissent within the coalition, with at least 18 members abstaining or voting against Merz. This discord has raised concerns about the government’s stability and its ability to address pressing issues such as economic revitalization, immigration policy, and Germany’s role in European affairs.

In his inaugural address, Merz emphasized the need for “renewed economic competitiveness” and a “stronger European leadership role.” He also acknowledged the challenges ahead, stating, “We must confront the divisions within our society and work together to overcome them.”

The new cabinet reflects a blend of continuity and change. Notably, Defense Minister Boris Pistorius retains his position, while Katherina Reiche assumes the role of Minister for Economic Affairs and Energy. Lars Klingbeil of the SPD has been appointed Vice Chancellor and Finance Minister, highlighting the SPD’s significant influence within the coalition.

NATO Secretary-General Mark Rutte

International reactions have been cautiously optimistic. French President Emmanuel Macron and NATO Secretary-General Mark Rutte extended congratulations, expressing hope for continued collaboration on European security and economic matters.

However, the far-right Alternative for Germany (AfD) has capitalised on the coalition’s early struggles, calling for new elections and positioning itself as a viable alternative. With the AfD now the second-largest party in the Bundestag, Merz faces the dual challenge of maintaining coalition unity and countering the rise of populism.

As Merz embarks on his tenure, his ability to navigate internal divisions and external pressures will be critical in shaping Germany’s political and economic trajectory.