German lawmakers are scheduled to elect Friedrich Merz as chancellor in early May, following his conservative bloc’s coalition agreement with the centre-left Social Democrats (SPD).
The Bundestag has announced the election will take place on May 6, pending formal approval of the coalition deal and Merz’s nomination.
While these steps are expected to be formalities, early signs of tension have emerged between the CDU/CSU and the SPD.
SPD members have criticised Merz for questioning the timeline of a planned minimum wage increase, a key part of the coalition agreement.
Merz also caused controversy by suggesting a proposed income tax cut could be altered based on budget constraints.
Merz’s path to the chancellorship opened after the collapse of Olaf Scholz’s coalition government in November, leading to February elections where the CDU/CSU emerged victorious, albeit with a smaller-than-expected margin. To form a majority, they partnered with the SPD.
The new government faces significant challenges, including a struggling economy and strained relations with the US under President Trump.
Trump’s trade policies and his approach to Russia have created uncertainty for Germany’s export-driven economy and its reliance on US security.
Merz has already taken steps to address these issues, pushing through changes to Germany’s debt brake to increase spending on defence and infrastructure, even before the official coalition agreement was finalised.
