Friedrich Merz was automatically elected chancellor of Germany after winning a second-round parliamentary vote held Friday. The head of the Christian Democratic Union (CDU) party won 325 votes. This success beat the 316 votes needed by the 630-member parliament to assume this responsibility. This election is a make-or-break moment for Merz. He’s been long overdue to take charge of Europe’s largest economy since the February federal elections.
In the run-up to the vote, Merz suffered something of an own-goal. He wasn’t able to get the deep enough support on the first ballot. Following a brief period of deliberation, he successfully rallied support among parliament members to achieve the required majority in the subsequent vote. His election now brings a successful conclusion to weeks of negotiations. His party and its sister party, the Christian Social Union, had dominated the federal elections, winning the most votes every time since narrowly lost to Angela Merkel’s CDU in 2002.
Just after the election, the CDU and its governing partners formally signed their coalition agreement. This sorely underappreciated move allowed the stage to be set for Merz’s nomination as chancellor. Much will be asked of leadership to guide Germany through a recession, overhaul the legislative process and get the economy back on track.
Perhaps the most interesting aspect of Merz’s election is the response. Indeed, following the results being declared the German Dax stock market index reversed an initial downward trajectory. Against this backdrop, investor sentiment quickly turned to a more positive tone on the future of Germany’s economy now that new leadership was in place. Analysts have predicted that this newfound stability may help to instill confidence back into the financial markets as Merz begins his chancellorship.
Merz’s leadership comes at a critical juncture for Germany, as it navigates the complexities of post-pandemic recovery and geopolitical uncertainties. His party’s commitment to center-right policies is expected to shape domestic R&D and international agendas for years to come.