Merz Clinches Chancellorship in Second Vote

By Elke Porter | Canadian German Business News | May 7, 2025

After a dramatic false start, conservative leader Friedrich Merz was finally elected Germany’s new chancellor in a nail-biting second round of voting, ending a tense political standoff that had drawn international attention and roiled markets.

Merz, head of the CDU/CSU bloc, secured just enough votes in Tuesday's second Bundestag ballot to assume leadership, following an unprecedented failure to win on the first attempt. The chamber erupted into applause, relief washing over a visibly shaken parliament.

“No other postwar chancellor candidate has ever failed in the first vote. It was unprecedented,” noted observers, highlighting the depth of the political turbulence. The initial loss sent shockwaves through Europe and rattled financial markets. The DAX, Germany’s main stock index, dipped by 1.8% before recovering slightly after the successful second vote.

Merz's coalition with the center-left SPD has one of the slimmest majorities since World War II — a mere 52% of Bundestag seats — making his leadership vulnerable to dissent within his own ranks.

The first round, held by secret ballot, not only embarrassed Merz but exposed fractures within the fragile governing alliance. The close outcome may undermine his ability to push forward a bold legislative agenda aimed at reviving Germany’s sluggish economy and countering the rise of the far-right Alternative for Germany (AfD).

Bitkom President Dr. Ralf Wintergerst earlier commented on the crisis:
“Germany and Europe face historic challenges – economic, social, and geopolitical… The vacuum now created severely harms our country and destroys trust in the functionality of our representative democracy. I appeal to Bundestag members to meet their responsibility to the nation.”

Though Merz now holds the chancellorship, the close call casts a long shadow over his mandate — and the work ahead will be anything but easy. Under Chancellor Friedrich Merz, Germany faces a sluggish economy marked by low growth, high energy costs, and industrial uncertainty. His coalition has pledged to revive economic momentum through tax reforms, digitalization, and support for small and medium enterprises.

“Germany must return to being the engine of Europe’s economy. We will unleash innovation, reduce bureaucratic hurdles, and create real incentives for growth,” said Chancellor Friedrich Merz during his post-election address to the Bundestag. We all know how important this is because a healthy Germany means a healthy Europe.

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