The German CDU/CSU alliance won the general election; Friedrich Merz will become the new Chancellor. What are his policy positions? What changes will occur in German politics?

A seasoned political figure Friedrich Merz, aged 69, studied law and previously worked as a lawyer and judge. In German politics, Merz is considered an experienced 'veteran'. He joined the youth organization of the CDU/CSU alliance in 1972, was elected to the European Parliament in 1989, and soon thereafter entered the German Bundestag. For much of his political career, he competed closely with Germany’s 'Iron Lady', Angela Merkel. After losing that contest, Merz briefly left politics for the business world, serving on the boards of several multinational corporations. In 2018, Merz returned to politics. By late 2021, he was elected chairman of the CDU and ultimately became leader of the CDU/CSU alliance. Following his electoral victory, Merz pledged to restore stability and efficiency to German governance. On economic policy, he advocates tax cuts, reductions in government subsidies and welfare spending, while adhering strictly to Germany’s statutory debt ceiling. On foreign policy, he pledges increased aid to Ukraine and opposes easing sanctions against Russia. On defense and migration, he proposes closing Germany’s borders to illegal immigrants and boosting defense spending. On energy, he commits to further promoting renewable energy while adopting a more open stance toward restarting nuclear power. Regarding climate policy, he prioritizes economic growth and has called on the EU to repeal numerous environmental regulations. The new government faces multiple challenges 'While Merz becoming the new Chancellor is virtually certain, the biggest question remains: which party will the CDU/CSU alliance partner with to form a new coalition government,' said Ding Chun, Director of the Centre for European Studies at Fudan University, in an interview with China News Service’s Guoshi Zhidongche. German law stipulates that a party securing over 50% of parliamentary seats may govern alone; otherwise, it must form a coalition. According to exit polls, the CDU/CSU alliance garnered 28.6% of the vote—insufficient to govern independently—and thus must seek coalition partners. As the EU’s most populous nation and largest economy, Germany’s next government will critically shape not only Germany’s future but also Europe’s trajectory. Ding Chun pointed out that the new German government will confront numerous pressing difficulties. Germany’s economy has contracted continuously over the past two years. According to the latest data from the German Federal Statistical Office, Germany’s real GDP—adjusted for price changes—declined by 0.2% year-on-year in 2024, marking the first time since 2003 that the country has recorded two consecutive years of negative growth.

Merz’s new government achieves a major breakthrough: the 'Black-Red' parties reach a preliminary agreement!

Another key point of contention is citizen’s allowance. Currently, unemployed citizens and refugees receive hundreds of euros per month in unconditional citizen’s allowance, along with free housing benefits and other welfare support. 'We will redesign the current citizen’s allowance system to provide basic security for jobseekers,' Merz stated after the talks. 'For those capable of working who repeatedly refuse reasonable job offers, their welfare benefits will be fully revoked.' SPD leader Klöckner remarked that anyone who categorically refuses work cannot expect the same level of support—a principle he deemed fair and just. Additionally, according to Bild newspaper, the new German government may also cut the parental allowance—a benefit long cherished by German parents. In the future, families with more children will receive reduced benefits. At present, many Middle Eastern immigrant families have larger numbers of children, whereas native German parents tend to have fewer—or even none at all. Reducing the electricity tax To ease the burden on businesses and private households, the CDU/CSU alliance and the SPD aim to lower the electricity tax—specifically, to the minimum level permitted under EU law. This would reduce electricity prices by at least €0.05 per kilowatt-hour. The two parties also intend to halve grid transmission fees—the component of electricity pricing that forms part of the final tariff. Business associations have long complained that Germany’s energy costs remain excessively high compared to other countries—hindering investment in Germany. According to calculations by comparison portal Verivox, lowering the electricity tax to the EU-permitted minimum would reduce overall electricity bills by nearly 7%. A household consuming 4,000 kWh annually would save €93; a two-person household using 2,800 kWh annually would save €65. Nevertheless, even after this reduction, Germany’s electricity prices would still rank among the highest in both the EU and globally—currently standing at approximately €0.40 per kilowatt-hour. 'A crucial first step' 'We have reached consensus on a series of substantive issues,' Merz stated following decisive negotiations in Berlin. He described the atmosphere as 'positive and very friendly.' Klöckner likewise characterized the talks as 'constructive.' The CDU/CSU alliance and the SPD have demonstrated their willingness to assume responsibility. 'With this exploratory paper, we have taken a crucial first step,' said Horst Seehofer, leader of the CSU. He added that the negotiations produced no winners or losers—only new partners. When asked whether he was satisfied, he replied: 'Very much so.' Currently, leaders of both parties hope to recommend launching formal coalition negotiations to their respective executive committees during meetings scheduled for Sunday and Monday. This step is largely procedural; only then can concrete coalition agreements begin to be drafted—detailing legislative priorities the parties jointly intend to pursue, as well as ministerial appointments across government departments. Ministerial appointments for the future government are also drawing attention. According to German media reports, besides Merz assuming the chancellorship, Klöckner is expected to serve as Deputy Chancellor and Finance Minister; the pivotal Foreign Minister post is likely to go to current Defense Minister Boris Pistorius; and leading candidates for Economics Minister include former Health Minister Jens Spahn, among others… Merz has set a target to complete formation of the new government before Easter. The 'Black-Red Coalition' Has No Alternative According to a survey by ARD (German Television One), 60% of respondents viewed a 'Black-Red' coalition government as 'not good,' while only 22% considered it 'good.'

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