Chancellor Friedrich Merz marks his first year in office amid rising unease inside his coalition and weak public approval. Merz himself has warned of “growing resentment” within the CDU and CSU over the compromises his government with the SPD has made — a sign of mounting tension as he marks the anniversary with a flurry of interviews.
His start in office was bumpy. On May 6, 2025 the Bundestag failed, for the first time in the Federal Republic’s history, to deliver him an absolute majority on the first ballot; a second vote was required. The so-called grand coalition now governs with only a slim margin in parliament.
Merz promised an “autumn of reforms” after taking office, naming pensions, health care, long-term nursing, and cutting bureaucracy as priorities. Few of those ambitious projects have yet come to fruition. The government did agree a one-off “special fund for infrastructure and climate neutrality” worth €500 billion running to 2045 to finance upgrades such as rail projects and bridge repairs, but broader structural reforms have largely stalled.
Tensions inside the cabinet have sharpened, notably between Finance Minister and Vice-Chancellor Lars Klingbeil (SPD) and Economy Minister Katherina Reiche (CDU). Reiche has pushed to roll back some policies from the 2021–2024 SPD–Greens–FDP government and has publicly raised the prospect of revisiting civilian nuclear power, moves that have increased friction within the coalition. In interviews Merz has framed the situation as one that requires compromise, while suggesting the CDU/CSU have been asked to shoulder a disproportionate share of concessions.
Just before the anniversary the coalition published a concept for health-system reform, but its contents will face months of debate in the Bundestag and are likely to change. Observers say progress will depend on whether the parties can resolve internal disagreements and present coherent legislation.
DW chief political editor Michaela Küfner, who has followed Merz closely, describes his opening year as mixed. It has not stabilised German politics, she argues, but it has refocused public attention on the country’s need for structural change — and helped erode the notion that the status quo is sustainable.
Foreign policy has been another pressure point. A united German stance is considered vital given worries about Europe’s security, NATO cohesion and transatlantic ties — concerns intensified by the unpredictable style of US President Donald Trump. Merz visited the White House three times in his first year and has sought close relations with Washington. After he publicly criticised Trump’s handling of the US–Iran confrontation, Trump responded sharply on Truth Social: he accused Merz of ignoring domestic problems, announced a pullback of 5,000 US troops from Germany and threatened higher tariffs on car and truck imports, a potentially damaging move for Germany’s automotive industry.
Merz described the episode as “difficult,” reiterated the importance he attaches to the transatlantic alliance and has since travelled within the EU to shore up support for European unity. Küfner notes a recurrent pattern: blunt or clumsy public remarks by Merz often carry a sizable political cost. The central question facing his chancellorship is whether his reputation for economic expertise can be converted into effective, deliverable policies. With global tensions rising, she warns, neither Germany nor Europe can afford another government breakdown.