In May 2025, Friedrich Merz officially took office as Chancellor of Germany, leading a historic coalition between the Christian Democratic Union, the Christian Social Union, and the Social Democratic Party of Germany.
This “black-red” coalition, called the “Arbeitskoalition“, known as the ‘workers’ coalition’, aims to stabilise the internal political scene.
Socio-Economic Reforms
One of the priorities of the new government is the country’s economic recovery after a period of uncertainty.
The coalition agreement provides for increased investment in infrastructure and green energy, as well as an increase in the minimum wage and improved working conditions.
Lars Klingeil from the SPD has been appointed Finance Minister and Vice Chancellor, who will oversee these reforms.
However, not all decisions of the new government are met with unanimous support.
Some critics note that changes on migration policy, such as the possible introduction of border controls, could lead to internal discord and strengthen right-wing populist sentiments.
German Foreign Policy
On the international stage, Merz aims to strengthen Germany’s position as a leader in the European Union and a reliable partner in NATO.
One key step includes a increase on defense spending, including the creation of a €100 billion fund to modernise the Bundeswehr: German Army.
France and other European allies support German rearmament, yet it raises concerns about rising public debt and possible inflation.
Merz’s foreign policy strategy also includes an active role in supporting Ukraine and opposing authoritarian regimes such as Russia and China.
This reflects Germany’s desire to play a more active role in global politics, despite its traditional penchant for caution and pragmatism.
Expectations of the International Community
The international community expects Chancellor Merz to pursue a pragmatic policy aimed at strengthening stability in Europe and beyond.
Particular attention is paid to his ability to effectively manage domestic reforms while maintaining Germany’s active participation in international affairs.
The success of his government will be assessed by its ability to balance national interests with the demands of global security and economic sustainability.
German Migration Policy
Germany’s migration policy under Friedrich Merz could become a major stumbling block for domestic stability.
Planned changes, such as increased border controls and possible restrictions on the admission of migrants, will spark debates between political parties and social groups.
Some will support a tightening of policy, considering it necessary to ensure security and jobs, while others will advocate for a more open society, focusing on the problems of migrant integration, social justice, and the protection of human rights.
EU-27 Leadership and Pragmatism
Friedrich Merz’s leadership marks a turning point for Germany, balancing domestic reforms with international commitments.
While his government faces challenges, particularly on migration policy and economic stability, his pragmatic approach could reassert Germany’s position in the EU-27 and wider international community.
Success will depend on Merz’s ability to reinstate a Franco-German partnership at the EU level, on Ukraine defence support, migration, and green energy, whilst finding a pragmatic middle-ground on China in light of U.S.-China tensions.
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