In an unprecedented turn of events, Friedrich Merz, leader of Germany's conservative bloc, has been elected Chancellor after a tumultuous parliamentary process that exposed deep fissures within his coalition and signaled potential challenges ahead for his administration.
Merz's initial bid for chancellorship was thwarted when he failed to secure the required absolute majority in the Bundestag, garnering only 310 votes—six short of the necessary 316. This marked the first time in postwar German history that a chancellor candidate did not achieve a majority in the first round of voting.
The setback was attributed to dissent within the coalition formed between Merz's Christian Democratic Union (CDU) and the center-left Social Democrats (SPD), which collectively held 328 seats. Eighteen members of this alliance either abstained or voted against him, reflecting underlying tensions and disagreements.
Despite the initial defeat, Merz secured the chancellorship in a second round of voting later the same day, obtaining 325 votes—just above the threshold. However, the narrow victory has raised concerns about the stability and unity of his government.
The political uncertainty has had immediate repercussions beyond the Bundestag. Germany's DAX index fell by 1.6%, and the broader STOXX 600 index declined by 0.7%, reflecting investor apprehension about the new government's cohesion and policy direction.
Analysts warn that the fragile start to Merz's tenure could embolden the far-right Alternative for Germany (AfD) party, which has been gaining traction, particularly in eastern regions. The AfD, recently labeled an extremist threat to democracy, is capitalizing on the perceived instability of mainstream parties.
As Merz assumes office, he faces the daunting task of uniting his coalition and addressing pressing issues, including economic challenges, energy policy, and Germany's role on the international stage. The coming weeks will be critical in determining whether his administration can overcome its shaky beginnings and deliver on its promises.