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Germany's stay under Merz's leadership appears to be stretching unusually prolonged over the past three months

Chancellor Friedrich Merz's coalition, mere months into their tenure, has initiated extensive reforms across Germany. Brian Melican, in his analysis at the 100-day milestone, evaluates where the government has met expectations and where it has fallen short.

Experience in Merz's Germany Prolonged to a Year Equivalent Feel
Experience in Merz's Germany Prolonged to a Year Equivalent Feel

Germany's stay under Merz's leadership appears to be stretching unusually prolonged over the past three months

In his first 100 days as Chancellor, Friedrich Merz's government has faced a series of challenges across immigration, economic, foreign policy, and parliamentary procedure areas. These struggles have led to disappointing public approval and political challenges.

Immigration policy:

Despite promising "fewer migrants," Merz's government has not implemented significant measures to reduce immigration. This failure has contributed to the rise of the far-right AfD party, which has overtaken CDU/CSU in poll ratings, capitalising on dissatisfaction with the government's immigration stance and perceived weakness on controlling migration.

Economic policy:

Merz called for economic growth without new debt and reforms to a sustainable welfare state. However, the government's performance has been criticised for lack of reform and reliance on subsidies, contributing to stagnation rather than growth. Germany’s economy has continued to contract slightly, with industrial production declining and GDP shrinking by 0.3% in Q2 2025. Merz recently warned the welfare state is financially unsustainable and advocated for a fundamental reassessment of benefits, but concrete reforms remain elusive.

Foreign policy:

Merz has projected a renewed resolve on the international stage amid shifting global trade and security dynamics. However, substantive progress appears limited, with continued uncertainty around Germany’s energy transition and climate policies undermining international confidence. The coalition’s initial steps to secure economic recovery and energy stability have been marred by internal gaffes and slow decision-making.

Parliamentary procedure:

After a prolonged and unprecedented process, Merz was confirmed Chancellor only in a second round of Bundestag votes, indicating a fragile parliamentary majority. The governing coalition includes CDU/CSU and SPD, but is characterised as cautious and reluctant to reform. The government’s cautious, status-quo approach and failure to implement promised reforms suggest procedural inertia in parliament, compounded by rising support for opposition parties, notably the far-right AfD.

Merz's government has faced instability according to opinion polls. Despite this, Merz has managed to build a stable rapport with Donald Trump without appearing as a lackey. The government is also promising dozens of new gas-fired power stations.

The CDU/CSU, under Merz, are considered the parties of 'Big Business', the well-off, and the elderly. However, they share strong interests in rising state investment and rising pensions with other groups. Merz's authority has disintegrated primarily due to disciplinary issues within his own CDU/CSU formation.

The SPD is willing to be part of the government, regardless of its policies. Merz's government has agreed to lift the debt break, leading to increased spending. The CDU/CSU first agreed to nominate Brosius-Gersdorf for the Constitutional Court and then failed to vote for her, leading to a breakdown in party discipline.

There is tacit agreement from Brussels and neighbouring countries for Germany’s border policies, with Merz's government turning back people at its borders on a discretionary basis. Merz's government is lobbying Ursula von der Leyen to loosen up green policy at EU level.

Merz's state retirement age is rising faster than ever under his government. The state is considering cutting Ukrainian refugee benefits from jobseeker to asylum-seeker allowance level. Merz is known for his disciplinarian style and profiling himself as a corporate-CEO-style man of action.

Despite these challenges, Merz's government and foreign minister Wadepfuhl have shown a steady hand at foreign affairs. There is a tacit agreement from Brussels and neighbouring countries for Germany’s border policies.

[1] News Source: The Guardian [2] News Source: Deutsche Welle [3] News Source: Financial Times [4] News Source: Der Spiegel [5] News Source: The Economist

  1. Merz's government has yet to deliver on its promise of reducing immigration, causing a surge in support for the far-right AfD party.
  2. The Chancellor's Economic Ministry aims for growth without new debt, but critical voices question the government's lack of reform and reliance on subsidies.
  3. Germany's economy, under Merz's watch, continues to contract, with industrial production declining and GDP shrinking.
  4. As Germany's economy struggles, Merz recently warned that the welfare state is financially unsustainable and called for a reassessment of benefits.
  5. On the international stage, Merz has demonstrated a renewed resolve, but skepticism persists due to uncertainty around Germany’s energy transition and climate policies.
  6. The coalition government’s steps to secure economic recovery and energy stability have been slow and marred by internal missteps.
  7. Merz was confirmed Chancellor in a second round of votes, revealing a fragile parliamentary majority within the CDU/CSU and SPD coalition.
  8. The CDU/CSU, under Merz's leadership, are known for their ties to Big Business, the well-off, and the elderly, despite their shared interests with other groups.
  9. Merz's authority has been compromised due to disciplinary issues within his own party, contributing to instability in his government.
  10. The SPD is willing to be part of the government, regardless of its policies, but the lifting of the debt break has led to increased spending.
  11. In a controversial move, Merz's government agreed to nominate Brosius-Gersdorf for the Constitutional Court, but later failed to support her.
  12. Despite backlash, Merz's government is moving forward with plans to build dozens of new gas-fired power stations.
  13. Brussels and neighboring countries have tacitly agreed to Germany’s border policies, with migrants being turned back at the border on a discretionary basis.
  14. Merz's government is pushing for looser green policies at the EU level, seeking to ease restrictions on industries.
  15. The state retirement age is increasing faster than ever under Merz's leadership, causing concerns among retirees.
  16. Controversy arises as the state considers cutting Ukrainian refugee benefits, with the potential impact on asylum seekers raising public outcry.
  17. Known for his disciplinarian style, Merz positions himself as a corporate CEO-style leader, seeking to address challenges with decisive action.
  18. Despite ongoing challenges, Merz and his foreign minister have demonstrated steady leadership in foreign affairs.
  19. From border policies to climate action, Merz's government is facing scrutiny from news sources such as The Guardian, Deutsche Welle, Financial Times, Der Spiegel, and The Economist.
  20. As the environment continues to be a hot-button issue, questions remain about Merz's approach to climate change and the future of Germany's environmental-science policies.
  21. Amidst political chaos, Finance Minister Hau replaces Scholz, signaling Merz’s commitment to reform within his government.
  22. As cybersecurity threats grow, Merz's government is investing in tech solutions, hoping to prevent data breaches in fields like finance and technology. Lifestyle, fashion-and-beauty, and sports industries are also experiencing transformation due to advancements in data and cloud computing.

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