Friedrich Merz is facing the deepest crisis of his chancellorship after 16 months in office, with his promised programme of economic reforms still largely unrealised and growing dissatisfaction among German voters. The conservative CDU leader came to power in May last year promising rapid changes to address Germany’s structural economic problems, but the reform programme has since encountered opposition both inside and outside his governing coalition.
Merz inherited a country weakened by years of internal disputes under the previous Social Democratic government of Olaf Scholz. His CDU presented him as the “chancellor of reforms”, arguing that changes were necessary to restore prosperity. But the government’s difficulties have intensified as Germany’s automotive industry struggles and demographic change threatens both the labour market and the pension system. A reform package agreed by the coalition of conservatives and Social Democrats in July has also faced criticism from those who fear cuts affecting social services, healthcare and pensions.
Merz’s political difficulties have been compounded by his public image. The 70-year-old former businessman, who is a multimillionaire and owns a private aircraft, has long been viewed by some Germans as distant from ordinary life. He also previously worked as a senior executive for BlackRock in Germany. Political scientist Julia Reuschenbach said many Germans regarded him as a wealthy figure detached from everyday concerns, while others saw his managerial experience and leadership qualities as potentially useful for a country that had experienced years without economic growth.
His leadership style has also attracted criticism. Reuschenbach said Merz’s occasional controversial statements were characteristic of a politician who had not fundamentally changed since his earlier career. She argued that he pursued “sincere goals and has a moral compass”, but sometimes employed what she described as the wrong means. One example was his decision in January 2025 to vote together with the Alternative for Germany, or AfD, on a motion seeking to restrict migration.
Merz’s political career has itself been marked by a long and difficult return to power. Born in Brilon in western Germany, he left frontline parliamentary politics in 2009 to pursue a business career after his conflict with former Chancellor Angela Merkel. He returned to politics in 2021 and became CDU leader three years later. His position within the party is now under pressure following poor regional election results, including in Saxony-Anhalt and Mecklenburg-Western Pomerania, where the CDU was excluded from a regional parliament for the first time in its history.
The defeats have intensified debate over Merz’s political direction. Hajo Funke, a professor at the Free University of Berlin, said Merz had attempted to pursue a policy further to the right than Merkel’s CDU. He described the reform programme as centred on economic austerity and said voters were now punishing it. Merz has also focused heavily on foreign policy, Europe, NATO and international conflicts, earning the critical nickname “Aussenkanzler”, or foreign-affairs chancellor. His government has simultaneously approved a 2027 budget involving record borrowing linked to Germany’s rearmament plans.
Merz’s popularity has fallen sharply. A recent Forsa poll cited in the source found that only 11% of Germans were satisfied with his performance, while 55% supported his resignation. Nevertheless, the CDU leadership continues to back him and Merz has pledged to maintain his reform course. The absence of an obvious successor has also helped preserve his position.
Carsten Koschmieder, a political scientist, said Merz’s language had changed somewhat since the electoral setbacks, with greater emphasis on fairness in health insurance and on empathy and listening. But he argued that Merz had not substantially changed his governing style and tended to surround himself with loyalists rather than building broader political relationships.
Reuschenbach said Merz could remain chancellor until 2029 even if he remained unpopular, provided he succeeded in implementing several major reforms. She pointed specifically to pensions, care for dependent people and other key measures as potentially defining his eventual political record.
