CDU leader Friedrich Merz failed to secure the required majority in the Bundestag on Tuesday to become Germany’s next chancellor. He fell six votes short with 310 out of 621 cast.
Despite leading a new coalition with the CSU and SPD, internal dissent appears to have undermined the vote. It is the first time in post-war German history that a designated chancellor has not been confirmed after successful coalition talks.
The result caused immediate political uncertainty and rattled financial markets. The DAX index dropped over 2 per cent. Defence stocks such as Rheinmetall and Hensoldt were among the hardest hit. Merz’s proposed spending plans on defence and infrastructure had been viewed as key drivers of recent market optimism.
Two further rounds of voting remain possible. If no absolute majority is achieved in the second, a third round will allow a chancellor to be elected by relative majority. Should all rounds fail, president Frank-Walter Steinmeier could call new elections.
Until a successor is confirmed, outgoing Chancellor Olaf Scholz will continue to serve in a caretaker capacity. The far-right AfD has already called for fresh elections, urging Merz to withdraw.
