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German Chancellor Friedrich Merz, after swearing, on May 6, 2025 receives the seat of the Chancellor after swearing in Berlin, Germany.
Krisztian Bloomberg | Getty pictures
After some dramatic and 10 weeks of German elections, Europe’s largest economy has finally leader: Friedrich Merz.
His rise not easy. Tuesday, Merz unsuccessful In the first round, which is an unprecedented event in the modern history of the country, the first can be selected in the voting. Despite ensuring the necessary parliament support in A second attempt On the day, the Merz appears to be a little rotten to the new role.
According to the CNBC, “this is the weakest start,” “CNBC told CNBC.
Hamburg Trading Bank seems less disturbed by other observers such as economist Cyrus de la Rubia.
“I think nobody will talk about this day or later today. Instead, people will make the government decided and what decides and to do so,” he said.
In both cases, the hard worker really starts on the new Chancellor and the coalition government, which consists of the Christian Democratic Union with the Christian Public Union and the Social Democratic Party.
Some difficulties include division within the region within the region as part of the region as they connect migration, defense costs and trade, stagnant economy and government coalition in the country.
Economic wow and pressure
The German economy will be a substitute for Merz Promises reforms and new investments and hard critic Previous government policy during the election campaign.
For two years now, the country has seen alternative economic expansion and contraction in each quarter. The growth of the annual general domestic product was both negative in both 2023 and 2024. And Latest predictions No multiple respite shows ahead.
Nevertheless Basic financial package During CDU / CSU and SPD’s coalition talks, more defense spending and pushed the rules for a long time for 500 billion euros ($ 567 billion) infrastructure and the climate investment fund.
This cash appears to be at least safe, but the questions about other financial and economic policies appeared.
“I think that 500 billion euros infrastructure packages will not be touched and there is an agreement,” he said. “All other measures were more ambiguous than the previous one, such as investing or reducing the corporate tax in 2028,” he said that the risk of potential clashes on the country’s budget now.
In the capital economy, a large European economist produces Franziska Palmas, as well as financial package planned.
“We think it will give an important impetus to GDP growth, and in six years later, Germany will be removed from stagnation,” he said.
Another affected by Turmoilin, this issue is confident in the coalition – and this can prove that the government is very important for economic policy plans, OTTO FRICKE, a former member of the Bundestag is important for a former Democratic Party for a former member of the Bundestag.
“Really here, on the end of the problem, about the most important issue in politics, from the CNBC,” he said.European Early Edition“Wednesday. If the German economy needs change, it is Fricke, even if this goal is to grow.
“Therefore, within the parliament, within the parliament, you need your trust to make the legislation fast.”
Political consensus in spite of the tensions?
Capital economy ‘Palmas pointed out that the government will be more stable than the previous one and the differences in economic and financial issues.
After the start of Tricky’s term, “the risk of a more effective and conflict government compared to the previous traffic coalition,” he said.
However, despite the clear tension and increased instability, Hamburg Trading Bank De La Rubia, as stressed under a joint coalition agreement, was noted that CSU / CSU and SPD were not politically.
For example, anyone should agree on the need to invest in railways, roads, bridges and other infrastructure through the Fund and the consensus on defense costs should also be found in “bitter conflicts”.
Thus, Merz’s first round deficiency on Tuesday, although the parliamentary members had a tried to teach him, but the new government does not mean that the new government has not said, De La Rubia said.
“It does not mean, it does not mean that when the infrastructure is to modernize, improve the digitalization processes for approval processes for construction work, wind farms and electricity networks, they should avoid doing necessary reforms,” he said.
“I doubt that the new government can make great policy goals”
