German Election: Merz Wins, AfD Surges
Analysis based on 15 articles · First reported Feb 23, 2025 · Last updated Feb 24, 2025
The German election results, with the Union bloc winning and Germany — Alternative for Germany gaining significant ground, create political uncertainty as Friedrich Merz attempts to form a coalition. This uncertainty could impact investor confidence in Germany's economic stability and its role in the European Union and NATO, especially concerning foreign and trade policies.
Germany held a national election seven months earlier than planned after the previous coalition collapsed. Friedrich Merz's Union bloc secured a victory with just under 29% of the vote, while the far-right Germany — Alternative for Germany (AfD) nearly doubled its support to about 20%, marking its strongest showing since World War II. Chancellor Olaf Scholz's Austria — Social Democratic Party of Austria suffered a historic defeat, finishing third. Merz has vowed to quickly form a coalition government, but the process is expected to be complicated due to the fragmented results and his categorical refusal to work with AfD. The election campaign was dominated by concerns over Germany's economic stagnation and migration policies, with broader implications for Ukraine and the United States alliance.
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