Chancellor Friedrich Merz traveled south this week to kick off a critical run of state election campaigning, aiming for a strong early showing in Baden-Württemberg — the first of five state votes due in 2026. He stopped in Munich to hold talks with leaders of four major business associations before heading to Ravensburg to campaign alongside the CDU’s candidate for minister-president, Manuel Hagel.
The Munich meeting brought together the Confederation of German Employers’ Associations, the Federation of German Industries, the Association of German Chambers of Industry and Commerce and the German Confederation of Skilled Crafts. It was intended to focus on measures to revive Germany’s sluggish economy — currently forecast by the federal government to grow just 1% this year after a revised, lower outlook from the economy ministry. The agenda reflected broader concern about growth prospects and the impact of the Middle East conflict on oil prices and trade.
Baden-Württemberg contest tightens
A new poll by Forschungsgruppe Wahlen for ZDF showed the Greens and the CDU level at about 28% apiece in Baden-Württemberg, narrowing what had been a clearer CDU lead. The Greens have been buoyed by their candidate Cem Özdemir, a well-known figure with roots in the state; 47% of respondents said they preferred Özdemir as minister-president compared with 24% for Hagel. The Greens and CDU are widely expected to remain coalition partners in the state, though it is uncertain which party would lead a future government.
The vote carries added significance: longtime Green premier Winfried Kretschmann is retiring after 15 years, 16- and 17-year-olds can vote for the first time, and a reformed electoral system will give voters two ballots (one for a constituency candidate and one for a party list). Economic worries dominate the campaign in an industrial state home to firms such as Mercedes-Benz and Porsche, with the auto sector undergoing major restructuring.
National implications
Losses for the CDU in Baden-Württemberg would be politically uncomfortable for Merz and his governing coalition, potentially signaling wider challenges across the state contests upcoming this year. Smaller parties face mixed prospects: the far-right AfD polled at about 18% in the state, the SPD around 8%, while the FDP and the Left were near the threshold at roughly 5–6% each.
Protest, policing and youth mobilization
A nationwide “School Strike Against Conscription” action saw thousands of young Germans protest potential moves toward compulsory military service. In Berlin, authorities opened an investigation into an 18-year-old student accused of defaming Chancellor Merz by displaying a vulgar poster at one protest; police confiscated the sign and said they were probing possible slander of a political figure. The protests reflected youth concern over conscription and coincide with the introduction of new younger voters into elections.
Energy and economy snapshots
Official data for 2025 showed gas and solar achieving record shares of Germany’s electricity mix. Gas-fired plants produced 70.6 billion kWh — 16.1% of generation and the highest share on record — while photovoltaics rose to 16% of output with 70.1 billion kWh. Wind remained the largest source at about 30%, followed by coal at 22.1%. The numbers underscore an ongoing energy transition challenge: while renewables surged in parts, planners and the government are also moving to add gas capacity to stabilize the grid when wind and solar fall short. Germany intends to phase out coal by 2038.
Corporate and media developments
German media group Axel Springer agreed to buy the Telegraph Media Group from investor RedBird IMI in a deal valued at 575 million pounds. Springer said it plans to invest in the Telegraph brand and expand its reach in English-speaking markets, including the US.
Aviation group Lufthansa warned of increased uncertainty for revenue forecasts amid the Middle East conflict, which forced airspace closures across a key transit region and disrupted global travel. The carrier said the crisis highlights the sector’s vulnerability to geopolitical shocks even as demand has shifted — with a noted rise in long-haul bookings as travelers opt for alternative, safer routes.
Looking ahead
Merz’s southern tour and his business meetings aim to project policy seriousness on growth and jobs ahead of the state votes. Voters in Baden-Württemberg go to the polls with the outcome likely to shape not only state leadership but also national political momentum as Germany enters a busy election year.
