An alternate for Germany (AfD) for the first time in past peaked at the highest in national polls, gaining 25% of support and ahead of the Christian-Democratic Union/Christian-Social Union (CDU/CSU) which gained 24%. This event coincided with the finalization of the coalition agreement between the CDU/CSU and the Social Democratic organization of Germany (SPD) aimed at establishing a fresh government led by Friedrich Merz.
25% of support represents an increase of 3 percent points compared to the erstwhile month. This increase is attributed to increasing social dissatisfaction with migration policy and concerns about safety and national identity.
New government coalition
In consequence to changing social sentiments, the CDU/CSU led by Friedrich Merza concluded a coalition agreement with the SPD. The aim of this coalition is political and economical stableness of the country and to counter the increase in AfD's influence. The agreement, entitled “Responsibility for Germany”, includes a number of reforms.
The main assumptions of the coalition agreement
- Migration policy: It is planned to tighten border controls and reduce the anticipation of fast naturalisation. The coalition besides intends to extend the list of alleged “safe countries of origin”, which will facilitate the deportation of people who have been denied asylum cityturn0news25.
- Economy: Introduction of taxation reductions for tiny and medium-sized enterprises and simplification of corporate income tax. besides planned are investments in digital infrastructure and renewable energy cityturn0news22.
- Defence: crucial increase in defence spending, including modernization of the Bundeswehr, in consequence to rising geopolitical tensions cityturn0news48.
- Social policy: Increase the minimum wage to EUR 15 per hr and introduce taxation incentives for older people who decide to stay on the labour marketplace cityturn0news25.
Despite ambitious plans, the fresh coalition faces a number of challenges. According to NTV/RTL studies, only 32% of respondents believe Friedrich Merz will be a good chancellor, while 60% have doubts about his leadership capacity. Additionally, 2 thirds of the Germans do not anticipate a crucial change of policy under his rule.
Coalition decisions met with mixed reactions. Social organisations expressed concerns about planned reforms in the social welfare strategy and migration policy. On the another hand, business representatives have positively assessed the proposals for taxation reductions and infrastructure investments.
The success of the fresh government will depend on the effectiveness of implementing the reforms announced and the ability to reconstruct public confidence. In the face of expanding support for the AfD, the CDU/CSU and SPD coalition must show decisive action to meet citizens' expectations and to counter further polarisation of the political scene.
In the coming months, monitoring the implementation of electoral promises and assessing their impact on the economical and social situation of Germany will be the most important. Political stableness and the effectiveness of governance will be crucial not only for Germany but besides for Europe as a whole, especially in the context of current geopolitical and economical challenges.
