Fragile coalition takes shape as conservative leader overcomes historic first-round failure
Author: Joe D. | May 6, 2025 | 6:30 PM CET
A Rocky Start for Germany’s New Chancellor
In a rare political twist for modern Germany, Friedrich Merz has been confirmed as the country’s next chancellor — but only after a dramatic second-round vote in the Bundestag. The conservative leader fell short of the required support during the initial vote earlier Tuesday, triggering political tension in Berlin and raising questions about the stability of Germany’s next government.
Merz ultimately secured 325 votes in the second ballot, narrowly surpassing the 316-vote threshold needed to assume office. While the result breaks a postwar tradition of smooth chancellor confirmations, it hands leadership of Europe’s largest economy to the 69-year-old Christian Democrat under a cloud of fragility.
A Coalition Built on Thin Ice
Merz will now lead a precarious coalition between his center-right Christian Democratic Union (CDU) and the center-left Social Democratic Party (SPD), which finished third in the country’s February elections. The governing bloc holds just 52% of seats in the Bundestag — one of the slimmest majorities in Germany’s postwar history.
This slim margin leaves little room for dissent. Analysts suggest Merz may struggle to pass major legislation without constant negotiation and compromise. The SPD’s partnership with the CDU has already sparked internal divisions, and the coalition’s survival may hinge on Merz’s ability to balance differing priorities.
Parliamentarians reconvened just hours after the failed first vote, thanks to rare procedural waivers agreed upon by the Greens and Left parties. The speed of the second ballot underscored both the urgency and the vulnerability of Merz’s mandate.
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Investor Jitters and Public Reaction
Markets reacted cautiously to the uncertainty. Germany’s DAX index dropped slightly following the first vote but stabilized after Merz’s eventual win, closing 0.4% lower. While investors were reassured by the outcome, concerns linger over how effectively this coalition will govern.
A fictional tweet by political reporter Sabine Arendt captured the mood:
“Merz wins the vote — barely. The real challenge starts now: governing with a razor-thin majority and a country watching closely.”
The leadership shuffle comes at a time when Germany faces mounting challenges: inflation pressures, energy policy shifts, immigration concerns, and a need to reaffirm its position within a fracturing European Union.
What the Coalition Plans to Tackle
The newly ratified coalition agreement outlines several key priorities:
- Tax reform aimed at easing the burden on middle-class families and small businesses
- Migration policy changes to streamline asylum processes and legal immigration
- Labor reform, including a planned increase to the national minimum wage
- Energy transition goals centered around sustainable infrastructure and carbon neutrality
Yet the ability to turn those goals into law remains uncertain. Merz, who built much of his political brand on fiscal conservatism and pro-business policies, will need to find common ground with a Social Democratic base that demands greater social protections.
Historic Win, But at What Cost?
Merz’s narrow victory marks a major personal achievement after decades in public life — but it also marks the first time a German chancellor has required a second parliamentary vote to be elected after coalition negotiations.
While the CDU emerged as the largest party in the February elections, Merz’s struggle to consolidate parliamentary support has left his authority dented. Political insiders are already speculating about the coalition’s durability.
For now, the spotlight remains on Merz — a veteran politician handed a historic opportunity, yet facing daunting odds from day one.
Final Word
Friedrich Merz enters office not with a wave of momentum, but with a whisper of warning. With Germany’s eyes on him — and the coalition walking a political tightrope — the new chancellor’s ability to lead will be tested immediately.