The German chancellor faces economic woes, global tensions, and far-right gains.
On Wednesday, German Chancellor Friedrich Merz completed his first 100 days in office, grappling with multiple unresolved crises as the far-right Alternative for Germany (AfD) party continues to gain traction in opinion polls, reports 24brussels.
Since taking the helm of the Christian Democratic Union (CDU), Merz aimed to cut the AfD’s support in half by appealing to conservative voters who felt alienated by the centrist policies during Angela Merkel’s leadership. However, the AfD has doubled its electoral backing, emerging as the strongest opposition party in the latest general elections. Merz attributes this rise to the government’s shortcomings and contends that addressing irregular migration is crucial for reversing the trend.
Despite these challenges, the parliamentary dynamics have made it evident that Merz will struggle to implement a radical shift in governance. He leads a coalition that combines his conservative bloc, including Bavaria’s Christian Social Union (CSU), with the Social Democratic Party (SPD), thereby necessitating a strategy of compromise reminiscent of the Merkel era.
Merz’s first significant compromise came before his official inauguration. The CDU/CSU, renowned for its firm stance on austerity, modified its approach during coalition negotiations, agreeing with the SPD to introduce a constitutional amendment that allows for defense expenditures exceeding 1.0% of GDP without breaching the so-called “debt brake.” This also included the creation of a €500 billion investment fund funded through public debt.
The coalition’s success hinged on securing parliamentary approval, requiring support from the Greens to achieve the two-thirds majority necessary for the reform. Merz justified these adjustments by citing the need for Germany to assume greater defense responsibilities, especially following a meeting between Ukrainian President Volodymyr Zelensky and Donald Trump, and by the necessity of stimulating the economy through significant investments.
Public sentiment reflects growing dissatisfaction, with recent surveys indicating that 67% of Germans are unhappy with Merz’s performance after his initial 100 days in leadership. This sentiment is echoed by Markus Söder, CSU leader and Bavarian Premier, who asserted that the coalition’s success is essential in light of the AfD’s ascendance, referring to it as “democracy’s last bullet.”
Measures have been initiated within the Interior Ministry, headed by Alexander Dobrindt, focusing on curbing irregular migration through controversial strategies, including the expedited return of asylum seekers and high-profile deportations of convicted criminals back to Afghanistan.
However, on the economic front, Hubertus Bardt, director of the German Economic Institute (IW), criticized the government for failing to translate promises into action, indicating a sense of disillusionment among businesses that initially welcomed Merz’s appointment. Contributing factors to the deteriorating business climate include a lack of government dynamism, the negative repercussions of tariffs imposed by the Trump administration, and downward revisions of growth forecasts.
As disagreements on various issues persist, there’s a growing apprehension reminiscent of the infighting that plagued the previous coalition comprising the SPD, the Greens, and the Free Democratic Party (FDP), ultimately leading to their downfall and snap elections.
