Germany Election: Merz Wins, AfD Surges
Analysis based on 7 articles · First reported Feb 22, 2025 · Last updated Feb 23, 2025
The German election results, with the conservative CDU/CSU bloc winning and the far-right Germany — Alternative for Germany surging, introduce political uncertainty and potential delays in economic policy. This could negatively impact investor confidence in Germany and the broader European Union, especially given the ongoing economic contraction and global challenges like potential trade wars from Donald Trump.
Germany's national election on Sunday, February 23, saw the opposition conservative CDU/CSU bloc, led by Friedrich Merz, win with 28.5% of the vote, positioning Merz to become the next Chancellor. The far-right Germany — Alternative for Germany (AfD) achieved its best-ever result, coming in second with 20%. Chancellor Olaf Scholz's Austria — Social Democratic Party of Austria suffered its worst result since World War Two, securing only 16.5%. The election campaign was marked by violent attacks and interventions from the Donald Trump administration, including support for the AfD from figures like Elon Musk and JD Vance. The fragmented political landscape, with several smaller parties crossing the 5% threshold, sets the stage for protracted and complex coalition negotiations. This political uncertainty could delay urgently needed policies to revive Germany's economy, which has experienced two consecutive years of contraction. The outcome also creates a leadership vacuum in the European Union at a time of significant global challenges, including potential trade wars threatened by Donald Trump and his attempts to fast-track a ceasefire deal for Ukraine without European involvement. Attitudes towards migration have hardened in Germany, a sentiment that the AfD has capitalized on.
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