Summary
Friedrich Merz, leader of Germany’s Christian Democratic Union (CDU), assumed the chancellorship in 2025 amid significant political and economic challenges, marking a critical turning point for the country’s center-right politics. His rise followed a career marked by early prominence in the 1990s, a period of marginalization during Angela Merkel’s tenure, and a decisive comeback reflecting shifting currents within the CDU and the broader German political landscape. Merz’s leadership is notable for its emphasis on economic liberalism, cultural conservatism, and a firm stance on migration, positioning him as a controversial but pivotal figure in contemporary German governance.
Merz’s tenure has been defined by efforts to revitalize Germany’s economy and strengthen its defense capabilities in response to geopolitical uncertainties, including tensions with Russia and China. He advocates increasing defense spending beyond NATO targets and reforming fiscal rules to accommodate these priorities. On migration, Merz has adopted a stringent approach, criticizing Angela Merkel’s 2015 open-border policy and pushing for tougher border controls and asylum regulations, measures that have sparked constitutional debates and public protests. His nuanced, sometimes pragmatic interactions with the far-right Alternative for Germany (AfD) party—ranging from condemning formal cooperation to permitting limited local-level collaborations—have further fueled political controversy and polarized public opinion.
The 2025 federal election, in which the CDU secured the largest parliamentary share despite a historically poor performance, set the stage for coalition talks with the Social Democratic Party (SPD), underscoring the fractured nature of Germany’s current political environment and the complexity of Merz’s governing mandate. His leadership style and policy agenda have provoked intense debate within the CDU and across Germany’s political spectrum, highlighting tensions between ideological coherence and pragmatic governance amid rising populism and economic uncertainty.
International observers are closely watching Merz’s chancellorship to gauge Germany’s future role in European and global affairs, particularly how his government balances national interests with European integration amid growing geopolitical challenges. The success of his administration will depend largely on managing internal party dynamics, coalition stability, and responding effectively to the multifaceted social, economic, and security issues facing Germany today.
Background
Friedrich Merz, the leader of the centre-right Christian Democratic Union (CDU), has had a long and eventful political career that reflects the evolving landscape of German politics. He began his political journey with a successful run in the 1989 European Parliament election, serving one term until 1994, during which he was a member of the Committee on Economic and Monetary Affairs and part of the delegation for relations with Malta. Subsequently, Merz served as a member of the Bundestag representing the Hochsauerland constituency from 1994 onward. His early political career was marked by a strong alignment with the pro-European, pro-Western politics of Helmut Kohl’s CDU in the 1990s, culminating in his role as co-leader of the CDU/CSU Bundestag group in 2000.
Merz’s trajectory experienced a significant setback after a power struggle within the party led to his ousting following the CDU/CSU’s second electoral defeat in 2002. This defeat, coupled with his ideological differences and personal resentment toward Angela Merkel, who succeeded him as party leader, shaped his political outlook and approach upon his eventual return to frontline politics. Known for his cultural conservatism and strong support for free-market policies, Merz has also been vocal on energy and climate issues; for example, he criticized Germany’s nuclear phase-out as a “grave strategic mistake” and suggested that climate change is somewhat overrated in political discourse, despite acknowledging its seriousness within the CDU.
Merz’s return to prominence was solidified in 2024 when he led the CDU into the federal election. Although the CDU secured the most seats, it was their second-worst result historically, yet it was sufficient to position Merz as the frontrunner for Chancellor. His leadership has already been marked by controversy, particularly when he relied on the far-right Alternative for Germany (AfD) party to pass a non-binding parliamentary motion aimed at tightening border controls and accelerating deportations. This cooperation broke a longstanding taboo in German politics, as centrist parties had traditionally avoided collaboration with the far right due to the country’s postwar “never again” stance.
Following the 2025 election, the CDU entered coalition talks with the Social Democratic Party (SPD) to form a government, signaling the beginning of a complex phase for Merz as he navigates internal party dynamics and the broader challenges of leading Germany in a shifting political and social landscape.
Election as Leader
Friedrich Merz was elected leader of the Christian Democratic Union (CDU) in a digital pre-vote, receiving overwhelming support from delegates with 915 out of 983 votes, accounting for 94.6% of the valid votes. This victory made him the third leader of the CDU within three years, following Annegret Kramp-Karrenbauer and Armin Laschet. Despite lacking prior executive government experience, Merz assumed leadership during what has been described as the most challenging period for Germany since its reunification 35 years earlier.
Merz’s leadership bid came after losing a previous leadership election, after which he proposed joining the current government as Minister for Economy—a proposal that was declined since the ministry was already led by his party colleague Peter Altmaier at the time. Subsequently, he was incorporated into Laschet’s campaign team to unify the party.
As leader, Merz positioned himself as a socially conservative and economically liberal figure, representing the traditional establishment conservative and pro-business wings of the CDU. His policy focus encompasses economic, foreign, security, and family issues. His economic views are encapsulated in his book *Mehr Kapitalismus wagen* (“Venturing More Capitalism”), advocating for increased economic liberalism.
Merz has prioritized migration policy, identifying the limitation of irregular migration as the most critical task following the 2025 federal election. He has been critical of Angela Merkel’s 2015 open-border policy during the European migrant crisis, calling it “fatal”. In 2024, he proposed rejecting asylum seekers comprehensively at the border and endorsed stricter border and asylum regulations, some of which have raised constitutional concerns.
His leadership and policies have sparked significant public response, including protests against his immigration stance and the far-right Alternative for Germany (AfD) party, with critics calling for his resignation and new elections. Demonstrations have included provocative displays such as AI-generated images linking Merz with AfD co-leader Alice Weidel, reflecting the contentious political climate surrounding his leadership.
Leadership and Governance
Friedrich Merz assumed leadership of Germany during a period marked by significant economic and geopolitical challenges. His government faces the complex task of sustaining and potentially increasing defense spending amid economic stagnation and the need to reduce Germany’s dependence on Russia, alongside managing the repercussions of a second China shock. To address this, Merz’s administration may need to explore several fiscal strategies, as current expenditure levels, particularly the NATO target of 2 percent of GDP for defense, are viewed as insufficient to ensure European security without American support.
Merz’s leadership style is characterized by a firm stance on economic liberalism and migration policy. His advocacy for economic reform includes a controversial plan that economists warn could fuel inflation and escalate Germany’s government debt, potentially resulting in annual interest payments of approximately €71 billion by 2035. To facilitate increased defense spending, Merz and outgoing Chancellor Olaf Scholz agreed to amend the constitutional debt brake, specifically exempting defense expenditures exceeding 1 percent of GDP from the fiscal limits set by the Basic Law.
Migration remains a core focus of Merz’s governance agenda. He has called for stringent measures against irregular migration, viewing the 2015 open-border policy under Angela Merkel as a critical misstep. Following a violent incident in Aschaffenburg involving an asylum seeker, Merz swiftly proposed a series of stricter border and asylum regulations, some of which have raised concerns regarding their constitutionality. The CDU under his leadership introduced motions advocating for permanent border policing, refusal of entry to migrants without valid documentation, and detention of rejected asylum applicants, signaling a significant policy shift.
Politically, Merz navigates a complex landscape marked by the rise of the Alternative for Germany (AfD) party. While initially promising to halve the AfD’s influence, Merz retracted this pledge in 2023, citing challenges posed by government policies that may inadvertently bolster the AfD’s support. His approach permits limited cooperation with AfD representatives in local governance, though he restricts such collaborations in legislative bodies at the EU, federal, and state levels.
Merz’s role in fostering European cooperation remains crucial. Observers suggest that the success of his administration will depend significantly on whether it views Europe as a partner or an obstacle in implementing its agenda. The ability to form and maintain effective coalitions will determine the scope and impact of his governance, especially as political dynamics shift following the 2025 elections.
Policy Positions
Friedrich Merz’s policy agenda is broadly characterized by a focus on economic liberalism, social conservatism, and a hawkish approach to foreign and security matters. Economically, Merz advocates for a revitalization of capitalism in Germany, as outlined in his book *Mehr Kapitalismus wagen* (“Venturing More Capitalism”), emphasizing pro-business policies and fiscal responsibility. He supports reforms aimed at sustaining and potentially increasing defense spending, recognizing the need for Germany to play a stronger leadership role in European security amid global challenges, including reduced reliance on the United States and heightened tensions with Russia and China. This includes an agreement with outgoing Chancellor Olaf Scholz to amend constitutional debt regulations to allow for defense expenditures exceeding 1% of GDP.
On foreign policy, Merz calls for a pragmatic and strategic reorientation of Germany’s transatlantic relations, advocating for a more balanced burden-sharing between Europe and the United States. He emphasizes closer cooperation with key European partners, particularly France, and advocates engaging China through multilateral negotiations to address what he describes as a global “paradigm shift” in security. Merz’s stance on authoritarian regimes is notably hawkish, with a clear focus on strengthening Germany’s position in an increasingly complex international environment.
In domestic policy, Merz takes a tough stance on migration, identifying the limitation of irregular migration as one of his top priorities post-2025 federal election. He criticizes the open-border approach of Angela Merkel during the 2015 migrant crisis, describing it as detrimental to Germany. Merz has also supported stricter internal security measures, although his party notably opposed some government proposals to ease deportations and tighten weapons legislation in late 2024, reflecting tensions within the CDU on these issues.
Merz’s relationship with the far-right Alternative for Germany (AfD) is marked by ambiguity and inconsistency. While he has mused about the possibility of cooperating with the AfD at local levels, acknowledging the democratic legitimacy of elections, he has also faced significant criticism from center-left lawmakers who warn that such cooperation risks damaging Germany’s democratic fabric. Merz defends his pragmatic approach by arguing that mainstream parties must respond effectively to issues like migration, regardless of who supports the legislation.
Finally, Merz’s coalition government, formed with his CDU/CSU bloc alongside the center-left Social Democrats, holds a modest parliamentary majority and aims to spur economic growth, modernize infrastructure, strengthen defense, and adopt a firmer stance on migration policies. Balancing the diverse priorities within this fragile coalition will be critical for implementing Merz’s policy vision amid ongoing economic and geopolitical pressures.
Internal Party Dynamics
Following the 2025 federal election, the Christian Democratic Union (CDU) under Friedrich Merz secured the most seats in the German parliament, despite achieving its second-worst result historically. This outcome compelled the CDU to engage in coalition talks with the Social Democratic Party (SPD) to form a stable government, reflecting the party’s recognition of its limited electoral mandate and the necessity of compromise.
Within the CDU, Merz’s leadership has been marked by a firm stance against cooperation with the far-right Alternative for Germany (AfD). Despite significant external pressures and debates, including endorsements of the AfD from controversial international figures and calls from some quarters to reconsider the so-called “firewall” policy, Merz has repeatedly ruled out any coalition or cooperation with the AfD. He has framed such collaboration as a betrayal of the CDU’s core values, emphasizing that the party would “sell its soul” if it engaged with the AfD, a commitment he has tied directly to his tenure as party chairman.
Nonetheless, there has been internal debate about how to effectively counter the AfD’s influence. Merz retracted his earlier 2018 promise to halve the AfD’s presence in German politics, arguing that opposition efforts were undermined when the government’s own policies inadvertently strengthened the far-right’s appeal. This position underscores ongoing strategic tensions within the CDU about how best to respond to shifting political landscapes and voter concerns.
The CDU also faces challenges in balancing ideological coherence with pragmatic governance. Minister-President of Saxony, Michael Kretschmer, highlighted the unsustainability of outright refusal of cross-party cooperation at the local level, pointing to the necessity for functional democratic processes that transcend partisan divides. Moreover, the CDU’s coalition government with the SPD and the Christian Social Union (CSU) holds a relatively narrow majority in the Bundestag, necessitating careful negotiation and collaboration to advance its policy goals, including economic growth, enhanced defense spending, and tougher migration policies.
In response to security concerns and public incidents, such as a stabbing in Aschaffenburg attributed to an asylum-seeker, Merz shifted towards proposing stricter border and asylum regulations, some of which have raised constitutional questions. This pivot indicates the CDU’s ongoing efforts to address voter anxieties while maintaining legal and political balances within the party and coalition.
Public and Political Reactions
Friedrich Merz’s rise to leadership has been met with a mixture of cautious optimism and critical scrutiny across Germany’s political spectrum. Following the collapse of Chancellor Olaf Scholz’s coalition government in late 2024, Merz’s center-right CDU/CSU emerged as the largest party, albeit with only 28.5 percent of the vote, marking one of its worst historical performances. This outcome underscored the fractured nature of the current political landscape and the challenges Merz faces in building stable governance.
Merz has expressed strong opinions on key policy issues, notably criticizing Germany’s phase-out of nuclear power as a “grave strategic mistake” and arguing that climate change, while taken seriously within the CDU, is somewhat overstated in political debates compared to public concern. His stance reflects a more pragmatic and skeptical approach to some prevailing narratives, which has sparked debate within and outside his party. For instance, Michael Kretschmer, Minister-President of Saxony and fellow CDU member, has stressed the necessity of cross-party cooperation to maintain democratic functionality at the local level.
Efforts to curb the influence of the far-right Alternative for Germany (AfD) have also shaped reactions to Merz’s leadership. Despite earlier promises to halve the AfD’s electoral impact, Merz acknowledged in mid-2023 that opposition efforts alone might be insufficient, particularly if government policies inadvertently bolster the party’s support. The AfD’s joint leaders, Alice Weidel and Tino Chrupalla, reacted sharply to Merz’s political setbacks, demanding his resignation after he failed a crucial parliamentary vote in May 2025.
Discussions about potential coalitions remain fluid, with the Social Democratic Party (SPD), under Lars Klingbeil’s leadership, entering talks that could lead to a CDU/CSU–SPD coalition, historically known as a Große Koalition, though the SPD’s relative position after the 2025 election complicates this characterization. Merz’s proposal for a significant increase in defense spending in March 2025 indicates a willingness to address both domestic and international security concerns, a move that may influence coalition dynamics and public opinion alike.
Internationally, Merz’s leadership is being closely watched for how it will impact Germany’s role within the European project. Analysts note that the degree to which Merz’s government views Europe as a facilitator or hindrance to its agenda will be decisive in
Challenges and Controversies
Friedrich Merz’s leadership has been marked by several significant challenges and controversies, reflecting both the domestic political climate and broader geopolitical pressures. One of the most contentious issues has been his stance on migration and asylum policies. Following a stabbing incident in Aschaffenburg, allegedly involving an asylum-seeker from Afghanistan, Merz swiftly advocated for stricter border controls and asylum regulations, some of which have been criticized as potentially unconstitutional. The CDU under his influence pushed a nonbinding motion calling for permanent border policing, refusal of entry to migrants lacking valid documentation, and detention of rejected asylum seekers. This hardline approach signifies a marked shift in the party’s migration policy and sparked intense debate within German politics.
Merz’s relationship with the far-right Alternative for Germany (AfD) has also drawn considerable attention. While he has repeatedly denied any formal cooperation with the AfD, insisting that the CDU bases its proposals on principle rather than alliance, controversy arose when a Bundestag vote on migration legislation was defeated partly due to abstentions by CDU members amid AfD-related tensions. This episode highlighted the fragile dynamics within the party and the broader right-wing spectrum. Some CDU figures, such as Saxony’s Minister-President Michael Kretschmer, have argued that cross-party cooperation is necessary for effective democracy at local levels. Moreover, in 2023 Merz retracted his earlier promise to halve the AfD’s support, acknowledging that the opposition’s efforts are complicated by government policies that, in his view, inadvertently bolster the far-right party.
Economically, Merz faces the daunting task of steering Germany through stagnation while responding to mounting international pressures. The previous government under Olaf Scholz struggled with budgetary constraints, especially in balancing defense expenditures amid geopolitical tensions involving Russia and China. Analysts suggest that Merz’s administration will need to explore complex fiscal strategies to sustain and possibly increase defense spending beyond the NATO benchmark of 2 percent of GDP, positioning Germany as a key defender of European security in an uncertain global environment. At the same time, Merz confronts skepticism over whether his commitment to free trade and economic liberalism remains viable given the rising protectionism in major trading partners such as the United States and France.
The success of any Merz-led coalition will hinge on its political flexibility and vision for Europe’s role in addressing both domestic and international challenges. Policymakers remain divided on whether the European Union should be viewed primarily as an obstacle or an enabler for necessary reforms. This debate underscores the broader uncertainties about Germany’s direction under Merz and the capacity of his leadership to navigate a complex and rapidly evolving political landscape.
Future Prospects
Friedrich Merz’s ascent to the chancellorship marks a pivotal moment for Germany, presenting both significant opportunities and considerable challenges. As a pro-business conservative with a background in corporate law and experience on multiple corporate boards, including BlackRock Germany, Merz is expected to prioritize economic revitalization. Initially, his campaign centered on addressing economic stagnation, reflecting his reputed expertise and focus on fiscal policies. However, recent events, such as the stabbing incident involving an asylum-seeker, have shifted his agenda toward stricter border and asylum controls, signaling a more hardline stance on immigration and security issues that could provoke constitutional debates.
Merz’s leadership also raises questions about the future direction of Germany’s domestic and foreign policy, particularly regarding the rising influence of the far-right Alternative for Germany (AfD). Despite the AfD’s growing electoral success, Merz has refrained from decisively distancing the CDU from local-level collaborations with the party, permitting cooperation except at the EU, federal, and state legislative levels. This nuanced position underscores the delicate balancing act Merz must perform to maintain party unity while navigating Germany’s increasingly polarized political landscape.
On the international stage, Merz’s tenure is poised to shape Germany’s role within Europe and beyond. Analysts suggest that the extent to which his government embraces Europe as a partner or views it as an impediment will significantly influence Germany’s capacity to provide leadership in regional and global affairs. The internal dynamics of any coalition Merz leads, alongside geopolitical pressures, will be critical in determining how actively Germany can engage with broader European initiatives.
Merz’s mandate was solidified after the 2025 federal election, which saw the CDU secure the most parliamentary seats despite one of its weakest results historically. Following a closely watched parliamentary vote in May 2025, Merz formally assumed the chancellorship amid immediate calls for resignation from AfD leaders Alice Weidel and Tino Chrupalla, highlighting the contentious environment he faces from political adversaries. Moving forward, Merz’s ability to govern effectively will depend on his navigation of these domestic tensions and his strategic positioning within Germany’s multifaceted political arena.
