News

Friedrich Merz becomes Germany’s new chancellor – the hard way.

The new Federal Chancellor Friedrich Merz (CDU) speaks during the handover of office in the Chancellery, May 6, 2025.
Reuters

Tuesday was some kind of rollercoaster for Friedrich Merz, leader of Germany’s conservative CDU/CSU party alliance.

After unexpectedly failing to secure enough Bundestag votes to become chancellor on the first try – a first in Germany’s postwar history – he squeaked through by a margin of nine votes in the second round.

Merz now takes power atop a grand establishment coalition between his center-right CDU/CSU and its historical center-left rivals, the Social Democrats.

Viel Glück, Friedrich.The new boss of the EU’s most populous and powerful country has a doozy of a to-do list:

  • Revive a moribund, outdated economy (amid a deepening trade war with the US)
  • Boost defense spending amid doubts about Washington’s commitment to NATO
  • Hold together a unified EU position on Ukraine
  • Head off the surging popularity of the far right, anti-establishment AfD, which placed second in the February election.

The first round hiccup makes all of this harder: How solid is Merz’s coalition? It officially controls 328 of the Bundestag’s 630 seats, but in the first round of the secret ballot, Merz got only 310 votes. There are, it seems, possible defectors in the ranks…

More For You

Mastercard Economic Institute's Outlook 2026 explores the forces redefining global business. Tariffs, technology, and transformation define an adaptive economy for the year ahead. Expect moderate growth amid easing inflation, evolving fiscal policies, and rapid AI adoption, driving productivity. Digital transformation for SMEs and shifts in trade and consumer behavior will shape strategies worldwide. Stay ahead with insights to help navigate complexity and seize emerging opportunities. Learn more here.

Miami Mayor-elect Eileen Higgins points as she thanks her staff and supporters on the night of the general election, on Tuesday, Nov. 4, 2025.
Carl Juste/Miami Herald/TNS/ABACAPRESS.COM

A Democrat won Miami’s mayoral race for the first time in nearly 30 years. The Republican defeat will ring some alarms for the party – and their support among Latino voters.

Women work in the plastic container assembly area inside the El Oso shoe polish factory, located in Mexico City, Mexico, in its new facilities, after officers from the Secretariat of Citizen Security and staff from the Benito Juarez mayor's office arbitrarily and violently remove their supplies, raw materials, machinery, and work tools on January 17 of this year following a coordinated operation stemming from a private dispute. On August 27, 2025.
Photo by Gerardo Vieyra/NurPhoto

50: Mexico’s President Claudia Sheinbaum is taking a page out of US President Donald Trump’s book, implementing up to a 50% tariff on more than 1,400 products in a bid to boost domestic production.