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German Chancellor Merz goes into summer in crisis mode

July 14, 2025

Just over two months in power — and already facing a political crisis. Recently, Friedrich Merz's coalition has been thrown into turmoil. What does the chancellor intend to do about it?

Chancellor Merz's summer interview on ARD
Merz struck a bullish tone in his first ARD summer interview as chancellorImage: Michael Kappeler/dpa/picture alliance

In the final answer of his 30-minute interview with Germany's public broadcaster ARD on Sunday, German Chancellor Friedrich Merz struck a clearer note than in any other part of the discussion: "I have not liked what the Israeli government has been doing in the Gaza Strip for many weeks now." He had also expressed this view in several meetings and telephone calls with Israeli Prime Minister Benjamin Netanyahu, he insisted.

The chancellor said he hoped that the Europeans, together with the US, could bring about a solution to the conflict "that ultimately leads to a two-state solution." The Palestinians have a "right" to a place where they can live, he said. "The way things are going at the moment is unacceptable." Merz did not discuss the fate of the last remaining Israeli hostages in Hamas captivity, or the tens of thousands of Palestinians killed by Israel in Gaza, nor was he asked to.

It was day 69 of Merz's term as chancellor, and nominally day 2 of the German parliament's summer recess. The Bundestag is currently not scheduled to reconvene until September 8 — another two months.

The Bundestag debate on the new Constitutional Court judges exposed a rift in Merz's (right) coalition with Vice Chancellor Lars Klingbeil's SPDImage: Niklas Treppner/dpa/picture alliance

A spirit of renewal for the new chancellor

Merz and his government had hoped to usher in a spirit of renewal in Germany by now, which is what he had been promising since shortly after the federal elections at the end of February. In recent days, Merz's loyal supporters have been trying to paint a picture of success, insisting that the economy is showing positive signs, and pointing to the decline in the number of refugees coming to Germany.

But there can be little talk of renewal before the summer vacation, at least not in domestic politics, given the coalition crisis that nearly erupted on Friday. Merz's coalition had wanted the parliament to elect three new judges to the Constitutional Court, Germany's highest court, which requires a two-thirds majority in the Bundestag.

According to accounts by many of those involved, Jens Spahn, leader of the CDU parliamentary group, had promised the Social Democrats (SPD) the CDU's support weeks ago. Yet there was opposition, with dozens of MPs outraged by statements made by one of the candidates to the court. Shortly before the plenary session, the coalition partners withdrew the topic from the agenda, leaving the question unresolved as summer recess arrives.

This is much more than just a row over a personnel decision. The larger issue is how much power Merz and Spahn can exert over members of their conservative bloc in parliament. Consequently, nearly half of the ARD interview focused on this unprecedented incident in German history.

The chancellor referred to each member's freedom to make certain decisions according to their own conscience. Then he sidestepped all subsequent questions, citing upcoming consultations, internal deliberations, dialogue within the coalition, or unresolved issues. Interestingly, Merz did not mention a single active CDU politician by name in the entire interview. And only afterwards, in a shorter ARD roundtable discussion broadcast only online, did he complain about the "wave of outrage" in the past few days, as well as "untruths, unbelievable malice, unbelievable personal insults."

President Steinmeier warned that the Constitutional Court issue had to be resolved soonImage: Thomas Kierok/ZDF/dpa/picture alliance

President Steinmeier warns Chancellor Merz

Merz came also under fire again this Sunday — not from parliament, but from Germany's president, Frank-Walter Steinmeier. Hours before the chancellor's interview on ARD, Steinmeier made a statement in an interview on ZDF, Germany's other national public broadcaster.

Steinmeier said he believes that the coalition between the CDU and the SPD has "damaged itself" as a result of the failure to elect the judges. To limit any further damage to Germany's highest court, he added, the Bundestag should take up the "decisions in the immediate future." "If this doesn't happen, we would have cause for concern." Failure to act quickly would endanger the rule of law, said Steinmeier, pointing to the current situation in the US. Neither the interviewer nor the chancellor responded to Steinmeier's statement.

On Friday, the coalition parties set September as the next date for voting on the three judges. The Greens, on the other hand, are pushing for a new vote in a special Bundestag session this week, something Steinmeier signaled he would also prefer. Merz, however, showed no signs of moving in this direction. "The whole thing is overblown," he said. Adding, we will come back to it later. "Next time, we'll do better." But when?

Why did this dramatic Friday cause such a stir and prompt criticism of the coalition in the media? It might be because the new chancellor's first day in office also showed signs of discord in his coalition. Much to the surprise of political observers, and for the first time in the country's history, the chancellor failed to get the required majority in the first round of voting in the Bundestag, normally a formality. This crisis has overshadowed whatever the government has achieved since then.

Major welfare reforms ahead

Meanwhile, as Merz pointed out in Sunday's interview, there are huge reform projects pending for the second half of the year. His coalition plans to reform the social security systems covering health, welfare and pensions, something the CDU and the SPD do not always see eye to eye on. Merz says the coalition acknowledges "that we… have to reform," and work on this is "in full swing."

This could become even more difficult following President Donald Trump's announcement this weekend that the US would impose 30% tariffs on all imports from the EU, starting on August 1. This does not bode well for the German economy, as the US is Germany's most important trading partner. Merz told ARD that the tariffs will "cut to the bone." The EU must now show unity, Merz said, and "ensure that tariffs of this magnitude do not come into effect." Merz visited Trump in early June and warned against such trade barriers, among other things.

It seems very unlikely that any of this will happen before the beginning of the eight-week summer recess. Merz's spokesperson has already announced several meetings for Friday, including trips to Munich and London. On July 18, he will answer questions at an annual summer press conference in Berlin, for the first time as chancellor. For his predecessors Angela Merkel and Olaf Scholz this was usually the last public appearance before going on vacation.

This article was translated from German.

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