**Germany's New Coalition Government Takes Office Amid Political Challenges**

Tue Jul 01 2025 19:56:09 GMT+0300 (Eastern European Summer Time)
**Germany's New Coalition Government Takes Office Amid Political Challenges**

Friedrich Merz is set to revitalize Germany as Chancellor, tackling economic woes and rising far-right sentiments.


As the new coalition government is sworn in, Merz faces significant tasks, including addressing discontent and international relations before an uncertain future.

In a monumental shift for German politics, Friedrich Merz is poised to be sworn in as the new Chancellor, signaling the end of a prolonged period of political stagnation following the collapse of the previous government. At 69 years old, Merz represents the Christian Democratic Union (CDU) and is embracing the challenge of revitalizing Germany’s economy and reinforcing its influence on the global stage.

"I see it as our historical duty to make this government successful," Merz declared upon signing the coalition agreement with the Social Democrats (SPD) on Monday. Observers note that the coalition, despite its narrow majority of 328 seats in the Bundestag, faces a challenging political landscape defined by voter discontent. Mark Helfrich, a member of the Bundestag from the CDU, emphasized the need for responsible governance: "We must solve the problems, not in a radical way, but clearly and effectively."

As Merz prepares to tighten immigration regulations, invest in infrastructure, and reestablish relationships with key European allies, the political atmosphere is already fraught with tension. The previous federal elections saw minimal gains for the CDU/CSU while the SPD struggled with their poorest performance to date.

Merz has also been proactive in steering legislation, successfully pushing for exemptions to Germany’s debt rules regarding defense and security spending, a decision praised by experts who suggest it might bolster Germany’s military capabilities. Claudia Major from the German Marshall Fund noted that Merz must now persuade the public of the necessity of increased defense expenditures.

A major challenge for Merz will be the rising far-right party, Alternative für Deutschland (AfD), which currently serves as the main opposition in the Bundestag. The AfD has proposed controversial policies such as strict border controls and cessation of military support to Ukraine. Following a recent classification of the party as extremist by domestic intelligence, political discussions around the potential banning of the AfD have intensified, with the party pushing back through legal means.

Navigating relations with the US will be another test for Merz, as he emphasizes the importance of transatlantic ties while also hinting at the need for Europe to assert its independence from American influence. His early foreign trips are expected to be to Paris and Warsaw, highlighting a desire to mend relationships that have reportedly strained under prior administrations.

As voices like Agnieszka Pomaska from Poland call for stronger collaboration in defense, the Merz government will need to tackle the dual challenge of internal political dynamics and external diplomatic efforts. With the stakes high, many are watching closely to see how the newly formed government will address these pressing issues.

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