German coalition government marks turbulent first year

Germany's black-red coalition government under Chancellor Friedrich Merz has completed a turbulent first year, marked by internal disputes over migration, welfare reform, and a contentious rent package that nearly failed due to rebel votes within the Union.

Merz was elected chancellor on May 6, 2025, receiving only 310 of the required 316 votes in the first ballot — the first time a German chancellor was not elected in the first round. At least 18 coalition votes were missing in the first ballot; the identity of the defectors remains unknown. He was elected in the second ballot.

On July 11, 2025, the election of Frauke Brosius-Gersdorf as a constitutional judge was pulled from the agenda after the Union could not guarantee support; she later withdrew her candidacy. The move followed criticism within the Union of her positions on issues including abortion, and a last-minute plagiarism allegation.

In September 2025, SPD chairwoman Bärbel Bas called Merz's statement that Germany can no longer afford its current welfare state "Bullshit." Merz responded by saying he would not put such words on the gold scales.

In March 2026, the Bundestag approved replacing the Bürgergeld with a new Grundsicherung, with stricter sanctions for missed appointments or refusal of reasonable work. The law is to take effect in summer 2026. The Union presents the change as an abolition of Bürgergeld; the SPD prefers to speak of fairness.

On May 7, 2025, Interior Minister Alexander Dobrindt (CSU) initiated the "Migrationswende" on his first day in office, intensifying border checks and ordering the possibility of rejecting asylum seekers at internal borders. In June 2025, the Berlin Administrative Court ruled the rejection of three Somali asylum seekers at the German-Polish border illegal in an interim decision. Dobrindt maintained the new course.

The rent package, stabilizing the pension level at 48% until 2031 and including an "Aktivrente" and expanded Mütterrente, passed in December 2025 with only two votes more than needed; seven Union MPs voted against. The 18 members of the Union's Young Group had threatened to withhold support. The dispute centered on what happens after the 48% level expires in 2031; rebels opposed a further automatic increase. A rent commission was established to address concerns.

In March 2025, before government formation, Union and SPD agreed on a financial package that loosened the debt brake for defense spending above 1% of GDP and created a €500 billion special fund for infrastructure. The Greens, whose votes were needed, secured that €100 billion of the special fund goes to the climate and transformation fund, and €100 billion to the states, which also received their own borrowing room.

On August 8, 2025, the government temporarily restricted arms exports that could be used in the Gaza Strip; the restriction was lifted in November 2025 after a ceasefire. The coalition had committed to Israel's security as part of German "Staatsräson" but faced internal tensions over how far that commitment extends.

In October 2025, Merz said there was still "this problem" in the "cityscape" regarding migration, sparking protests and a debate on language about migration. Deputy SPD parliamentary group leader Wiebke Esdar participated in a demonstration. Union parliamentary group leader Jens Spahn said opposition within the government had never worked.

In April 2026, a dispute between Economy Minister Katherina Reiche (CDU) and Finance Minister Lars Klingbeil (SPD) over relief proposals led to a coalition summit at Villa Borsig. A tax cut on diesel and petrol of 17 cents per liter for two months from May was agreed. Klingbeil later said it was not bad to be yelled at during such negotiations. Merz later clarified: "I don't yell at anyone."

In December 2025, the Bundestag approved a new military service model with mandatory screening for all young men but based on questionnaires and voluntariness. A "random procedure" can be triggered if targets are missed. Defense Minister Boris Pistorius (SPD) had opposed a lottery system, preferring nationwide screening.