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Boost or bust the AfD? Inside Friedrich Merz’ gamble to reform Germany

36:34

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July 8, 2026

DW’s Michaela Küfner and Matthew Moore examine with economist Marcel Fratzscher whether Germany's reform gamble can reverse the far-right populist surge.

Can German Chancellor Friedrich Merz stop the rise of the far-right Alternative for Germany? Germany's coalition government has launched sweeping reforms on the economy, pensions and welfare. Merz is betting that tangible change can restore faith in mainstream German politics.
After its first year in office, Germany's coalition government plans to push through changes with the goal of reviving a sluggish economy. Measures include €10 billion ($11.4 billion) in income tax relief, the end of phone-based sick notes, and pension eligibility adjustments by the end of 2026.

Chapters:

00:00 Intro
01:16 Reform package unveiled
03:31 Merz's modernization pitch
04:11 Breaking with Merkel
05:39 Who takes responsibility?
07:00 Costs for citizens
08:03 Work harder narrative
11:18 AfD's rising appeal
12:35 Economy over migration
16:08 Taxing work and wealth
20:19 The pension debate
22:20 Can AfD pay?
27:21 Promises and reality
31:24 Road to September

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