Germany Faces Its Worst Nightmare

germany - Friedrich Merz expected to be the Chancellor of Germany as the country enters a costly rearmament race and potential trade war with the US.

Germany Faces Its Worst Nightmare

The German government is expected to be led by Friedrich Merz amidst a period where Europe is entering a costly rearmament race and facing a potential trade war with the US. The temporary official results announced by the German Electoral Committee revealed the victory of the Christian Democratic Union (CDU/CSU) parties in the German elections.

Challenges Ahead for Germany

The new government will have to tackle a struggling economy while facing pressure to increase military and defense budgets. The German economy, once envied by all of Europe, is now facing challenges such as a shrinking workforce, high inflation rates, decreased production and exports, and the possibility of US tariffs under Donald Trump's administration.

With an aging population, the country is on the brink of a retirement crisis, emphasizing the need for economic reforms, digitalization of public administration, increased defense spending, energy transition, digital transformation, and addressing high rental prices.

France's Troubles Amplify European Concerns

France, Germany's strongest rival in Europe, is also struggling with high public debt and violations of European budget rules. The rise of the far-right National Rally Party in France and the Alternative for Germany (AfD) party in Germany pose challenges for the stability of the European Union.

The Road Ahead for Germany

Friedrich Merz, the expected Chancellor, is seeking a coalition with the Social Democratic Party to form a new government and address the pressing issues Germany is currently facing.