CDU leader and future German Chancellor Friedrich Merz. Photo: Mike Schmidt
The victory of Conservative leader Friedrich Merz in the German elections signals a change in the political course of Europe’s largest economy. Although the final format of the coalition is still unknown, it is clear that Germany will move away from the policies of Olaf Scholz and possibly even Angela Merkel. This was reported by Politico.
Defence: Europe prepares for independence
One of the key issues for Merz will be defence policy. On the eve of the election, he called for preparations for a possible weakening of US commitments to NATO and for initiating talks with France and the UK on nuclear security for Europe. It is expected that Merz will unblock the delivery of long-range Taurus cruise missiles to Ukraine, which will be an important step in military support for Kyiv.
Energy: a return to nuclear power?
The Conservatives plan to maintain the course of renewable energy development, but at the same time may soften their position on nuclear power. This could change the balance in Brussels in favour of countries that favour the inclusion of nuclear energy in the EU’s green package.
Economy: pragmatism instead of climate policy?
Merz puts economic growth ahead of climate goals. His government is expected to simplify environmental regulations and revise corporate sustainability reporting policies. This could give a boost to Germany’s industrial sector, which has been in recession lately.
Trade: deterioration of relations with China and new agreements with France
Merz’s government may take a tougher stance on China, urging businesses to reduce their dependence on Chinese markets. At the same time, it intends to restore the Franco-German alliance to boost European trade with Latin America and Asia.
Changes in the digital and financial sectors
Merz supports the simplification of digital regulations, the creation of a separate Ministry of Digital Technology, and the development of quantum computing and artificial intelligence. In finance, he is likely to block any attempts to reform Germany’s strict budget rules, which could affect the EU’s economic policy as a whole.
What should Ukraine expect?
Merz’s victory could bring additional military assistance to Kyiv, including unblocking the supply of weapons. However, Berlin’s tighter budgetary policy could make it harder to fund initiatives to support Ukraine within the EU.
