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Friedrich Merz’s Landmark Victory: A Turning Point for Germany

  • Moving Markets
  • Feb 24
  • 4 min read

Friederich Merz
Friederich Merz

In a dramatic political change, Germany's conservative forces have won the federal election, with CDU leader Friedrich Merz set to become the next chancellor. This outcome signifies not only a victory for Merz and the CDU/CSU alliance but also a significant shift in German politics, with far-right forces rising and traditional parties facing new challenges.


Election Night: A Snapshot of Results

The election results have had a significant impact both within Germany and internationally:

  • CDU/CSU Alliance: Garnered about 28.6% of the vote, securing 208 seats in the 630-member Bundestag. While Merz’s victory is notable, it also represents the party’s second-lowest performance since postwar times.


  • Alternative for Germany (AfD): Experienced a historic rise with approximately 20.8% of the vote, nearly doubling its previous share and becoming the second-largest party. The far-right party's success is particularly evident in former East German states, where it surpassed the 40% mark in several areas.


  • Social Democrats (SPD): Faced a major setback, with their vote share dropping to around 16.4%—their worst result in modern history. Chancellor Olaf Scholz has already acknowledged responsibility for the “bitter” outcome.


  • The Greens & The Left: The Greens obtained about 11.6% of the vote, while The Left received around 8.8%. Meanwhile, the liberal FDP failed to meet the electoral threshold, resulting in a significant exit from the Bundestag.


Adding to the drama was an impressive voter turnout—around 84%, the highest since reunification—indicating a deeply engaged electorate eager for change.

Merz’s Vision: Urgency and European Independence

On election night, Friedrich Merz expressed a strong commitment to quickly forming a government, aiming to establish a coalition by Easter. His message was clear: the world is not waiting.

“The world out there isn’t waiting for us,” Merz stated, stressing the need to address Germany’s domestic challenges and enhance Europe’s global standing.

A key aspect of Merz’s agenda is his call for Europe to achieve greater strategic independence from the United States. He criticized the U.S. for what he described as indifference to Europe’s fate—a stance that resonates amid ongoing debates about transatlantic relations and European security. This shift towards an assertive, independent European policy is set to redefine Germany’s role in international affairs.


The Coalition Conundrum: Challenges Ahead

While the CDU/CSU victory positions Merz as the leading candidate for chancellorship, forming a stable government remains a significant challenge:

  • Coalition Negotiations: Despite Merz’s preference for a “grand coalition” with the SPD, key figures from the Social Democrats have refused to join a CDU-led government. This raises important questions about the possibility of a sustainable alliance in a polarized political environment.


  • The AfD Factor: The far-right AfD’s historic performance, though celebrated by its supporters, complicates the post-election landscape. Mainstream parties have collectively vowed not to cooperate with the AfD, adhering to a long-standing “firewall” against right-wing extremism—a principle facing renewed pressure in a divided Germany.


  • Internal Party Dynamics: Merz’s own CDU must manage internal debates over policy direction, especially as it shifts rightward on issues like immigration—a stance that, while energizing some voters, risks alienating others accustomed to the party’s centrist legacy.


International Reactions: A Global Spotlight

The effects of Germany’s election have extended beyond its borders:

  • United States: President Donald Trump praised the result on social media, calling it “a great day for Germany” and applauding the country for rejecting the “no common sense agenda.”


  • Europe: French President Emmanuel Macron, British Prime Minister Keir Starmer, and Ukrainian President Volodymyr Zelenskyy have all offered their congratulations, highlighting the importance of close cooperation with the new German government. Their messages underscore the high stakes of Europe’s geopolitical balance amid growing transatlantic uncertainty.


  • Regional Voices: Leaders from across Europe, including those from Greece and the Czech Republic, have echoed similar sentiments—calling for stronger unity and enhanced cooperation to address shared challenges ranging from security threats to economic stagnation.


A Nation Divided: East vs. West

The election results also highlight a stark regional divide. While the CDU remains dominant in the western states, the AfD’s overwhelming support in the eastern states of former East Germany reveals deep-seated socio-political cleavages. In cities like Leipzig and Dresden, the far-right’s message resonated strongly among young and working-class voters, indicating potential long-term shifts in the country’s political geography.


This polarization poses a significant challenge for Merz’s incoming government, as it must reconcile these divergent regional interests while crafting policies that unify rather than divide.


Looking Forward: What Merz’s Win Means for Germany and Europe

Friedrich Merz’s electoral victory signifies more than just a change in leadership—it indicates a profound transformation within Germany’s political landscape. As the country stands at a crossroads, the following key themes will likely shape the future:

  • Economic Revival: With growing public dissatisfaction over a stagnant economy, Merz faces the crucial task of revitalizing growth and restoring confidence in Germany’s financial leadership.

  • Immigration and Social Policy: The CDU’s tougher stance on immigration, influenced by right-wing elements, will be a central issue. Balancing national security with Germany’s humanitarian commitments will be one of the government’s most challenging tasks.

  • Europe’s Strategic Autonomy: Merz’s call for a more independent Europe signals potential shifts in transatlantic relations and European defense policies—a move that could redefine the continent’s global role.


Ultimately, while Merz’s path to consolidating power is filled with challenges—from coalition negotiations to bridging regional divides—his victory represents a pivotal moment for Germany. The coming months will reveal whether his bold vision can translate into a stable government capable of steering not only Germany but also Europe toward a new era of autonomy and strength.


Stay tuned for more updates as Germany navigates this critical juncture in its history. The unfolding story of Friedrich Merz’s chancellorship promises to reshape the nation’s future and, indeed, that of Europe as a whole.

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