German Election Shake-Up Signals Policy Shift

In the February 2025 German federal election, the CDU/CSU alliance, led by Friedrich Merz, secured victory with 28.5% of the vote, ahead of the far-right AfD at 20.8% and the SPD at 16.4%, marking the Social Democrats' worst performance. The Greens and The Left followed with 11.6% and 8.8%, respectively. With coalition talks underway, Merz is likely to seek a 'grand coalition' with the SPD to establish a stable government. His policy agenda focuses on revitalizing the economy through corporate tax cuts and deregulation, stricter immigration controls, stronger defense commitments, and car-friendly energy policies. These priorities address Germany's sluggish growth, industrial stagnation, and security concerns, setting the stage for a significant shift in governance