Friedrich Merz, Germany’s soon-to-be prime minister, is stepping into office with quite a few challenges ahead. Managing the relationship with the U.S. under President Trump, along with supporting Ukraine’s military efforts, are at the top of his agenda.
As he prepares for his swearing-in on Tuesday, there are several critical tasks awaiting the new coalition.
Navigate the tricky U.S. bonds
Germany has usually been a steadfast ally of the United States. Merz, having previously worked as an executive at BlackRock, has been a strong advocate for collaboration across the Atlantic. However, he now faces a shifting landscape. With signs that the Trump administration intends to redefine longstanding security and trade relations with Europe, Merz acknowledges the uncertainty. “We have come to realize that the transatlantic relationship may not be as predictable as we once thought,” he said. Still, Merz aims to persuade the U.S. to maintain a positive relationship.
Supporting Ukraine
Since Russia’s full-scale invasion in 2022, Germany has played a crucial role in supporting Ukraine, effectively setting aside its pacifist tradition. Merz has reiterated this commitment, emphasizing the importance of standing with Ukraine. Key figures in the new government, including Foreign Minister Johann Wadehuru and Defense Minister Boris Pistorius, have also voiced strong support for Kyiv. Germany plans to provide substantial military aid, including possible long-range Taurus missiles.
Boost the military
The ongoing conflict in Ukraine and increased threats from Russia have compelled Germany to bolster its military capabilities. The coalition’s agreement outlines plans to hike defense spending to meet NATO requirements. There’s talk of substantial financial resources becoming available, thanks to proposed changes to Germany’s stringent debt rules. The government also plans to reintroduce military service on a voluntary basis, aiming to enhance military engagement among citizens.
Economy revision
Germany’s economy has encountered setbacks in the past couple of years, facing sluggish manufacturing, rising energy costs, and diminished demand, particularly from China. The new government intends to revitalize the economy through targeted investments, tax cuts, and deficit reductions, although challenges arise with Trump’s tariffs impacting exports. There’s anticipation of significant infrastructure funding, though experts warn that deeper structural reforms are necessary to tackle enduring issues, like skill shortages and competitiveness.
Suppressing irregular movements
The CDU/CSU bloc has prioritized curbing irregular immigration, agreeing on strict measures to deter undocumented immigrants, including asylum seekers, at the borders. Alexander Dobrinz, the new Home Minister, indicated that initial steps would be taken right after the government is formed, expressing the need to reduce the number of illegal immigrants.
