Overview
- Friedrich Merz was elected Germany's 10th chancellor in a second Bundestag vote after falling short by six votes in the first round, a first in the country's post-war history.
- The CDU/CSU-SPD coalition holds a 328-seat majority, but dissent from 18 coalition members in the initial vote exposed internal divisions.
- Merz's government prioritizes rearmament, economic recovery, and stricter migration policies, with plans for significant investments in infrastructure and defense.
- Lars Klingbeil of the SPD will serve as vice-chancellor and finance minister, reflecting the coalition's power-sharing agreement.
- Financial markets reacted strongly to the initial vote failure, with the DAX index dropping over 2%, highlighting concerns about the coalition's stability.