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German leader Merz says his government has a ''stable foundation'' despite a dispute - WTOP News

German Chancellor Merz Affirms Government's Stability Amid Coalition Tensions

BERLIN (WTOP) — In a defiant address to the Bundestag on Wednesday, German Chancellor Friedrich Merz asserted that his coalition government remains on solid footing, brushing aside recent internal disputes that have fueled speculation about its longevity. Speaking amid growing economic pressures and political headwinds, Merz emphasized unity and resilience, declaring, "Our foundation is stable, our goals are clear, and we will not be derailed by temporary disagreements." The statement comes at a critical juncture for Germany's ruling alliance, which has faced mounting challenges since its formation following the 2025 federal elections.

Merz, the leader of the center-right Christian Democratic Union (CDU), ascended to the chancellorship after a hard-fought campaign that saw his party secure a plurality in the Bundestag. Partnering with the liberal Free Democratic Party (FDP) and the Greens in a so-called "Jamaica coalition" — named for the parties' colors resembling the Jamaican flag — Merz's administration promised a blend of fiscal conservatism, environmental innovation, and robust foreign policy. However, just months into the term, fissures have emerged, particularly over budgetary allocations and responses to ongoing economic stagnation.

The immediate catalyst for Merz's remarks was a heated public spat between Finance Minister Christian Lindner of the FDP and Environment Minister Annalena Baerbock of the Greens. The dispute centers on the government's proposed 2026 budget, which includes significant cuts to social spending to address a ballooning deficit exacerbated by high energy costs and sluggish growth. Lindner, a fiscal hawk, has pushed for austerity measures, including reductions in subsidies for renewable energy projects, arguing that Germany must prioritize debt reduction to maintain its AAA credit rating. Baerbock, conversely, has accused the FDP of undermining the country's climate commitments, warning that such cuts could jeopardize the EU's Green Deal targets and Germany's goal of carbon neutrality by 2045.

"This is not just about numbers; it's about our future," Baerbock stated in a recent interview with Der Spiegel, highlighting the Greens' frustration. The disagreement escalated last week when leaked documents revealed internal memos from the Finance Ministry proposing a 15% reduction in funding for electric vehicle incentives, a cornerstone of the Greens' agenda. This prompted Baerbock to threaten a walkout from coalition talks, raising alarms about a potential government collapse similar to the one that toppled Olaf Scholz's traffic-light coalition in 2024.

Merz, known for his pragmatic and sometimes brusque style, sought to downplay the rift during his Bundestag speech. Drawing on his background as a former corporate lawyer and BlackRock executive, he framed the tensions as "healthy debates" essential to democratic governance. "Disputes are the lifeblood of coalitions," Merz said. "They ensure we arrive at the best policies for Germany. Our government is built on a stable foundation of shared values: economic responsibility, environmental stewardship, and social solidarity." He pointed to recent successes, such as the passage of a defense spending bill that increases military funding to meet NATO's 2% GDP target, as evidence of the coalition's functionality.

Analysts, however, are divided on the prognosis. Dr. Elena Hoffmann, a political scientist at the University of Heidelberg, told WTOP that while Merz's optimism is strategically sound, underlying issues could prove corrosive. "The Jamaica coalition was always a marriage of convenience," Hoffmann explained. "The FDP's libertarian leanings clash with the Greens' progressive ideals, and Merz's CDU is caught in the middle. If economic conditions worsen — with inflation hovering at 3.2% and GDP growth projected at a meager 1.1% for 2025 — these disputes could escalate into a full-blown crisis."

The broader context of German politics adds layers to the situation. Merz's rise followed a period of instability under Scholz, whose Social Democratic Party (SPD)-led government crumbled amid scandals and policy paralysis. The 2025 elections reflected voter fatigue with progressive policies, propelling the CDU to victory on a platform of "Wirtschaftswunder 2.0" — a modern economic miracle emphasizing deregulation, innovation, and energy independence. Yet, external factors like the ongoing war in Ukraine, supply chain disruptions, and migration pressures have tested the new administration.

Migration, in particular, has become a flashpoint. The coalition has struggled to reconcile the Greens' advocacy for humane asylum policies with the CDU and FDP's calls for stricter border controls. Recent data from the Federal Office for Migration and Refugees shows a 20% uptick in asylum applications, straining resources in states like Bavaria and Saxony. Merz has navigated this by proposing a "points-based" immigration system inspired by Canadian models, but intra-coalition negotiations have stalled, contributing to the current discord.

Opposition leaders have seized on the turmoil to criticize Merz. SPD chairwoman Saskia Esken accused the chancellor of "papering over cracks" in a statement to Bild newspaper. "This government is a house of cards, built on incompatible ideologies," Esken said. "Germans deserve better than endless bickering while families struggle with rising costs." The far-right Alternative for Germany (AfD), which gained seats in the 2025 elections, has amplified the narrative, portraying the coalition as out of touch and ineffective.

Despite these challenges, Merz remains confident. In a follow-up press conference, he outlined steps to resolve the budget impasse, including a special cabinet retreat scheduled for next week in the Bavarian Alps. "We will find common ground," he assured reporters. "Our priorities — boosting competitiveness, advancing the energy transition, and strengthening Europe's defenses — unite us more than divide us." He also hinted at potential compromises, such as ring-fencing certain green initiatives while implementing targeted tax relief for small businesses, a nod to FDP demands.

Public opinion polls reflect a mixed picture. A recent Forsa survey shows Merz's approval rating at 48%, down from 55% at his inauguration, but still higher than his predecessors at similar points. Support for the coalition stands at 42%, with voters expressing concern over economic issues but appreciating the government's handling of international affairs, including Merz's firm stance against Russian aggression and efforts to deepen transatlantic ties.

Looking ahead, the stability of Merz's government could hinge on upcoming regional elections in Hesse and Thuringia later this year. A poor showing for coalition parties might embolden dissenters, potentially forcing early federal elections. Moreover, external shocks — such as fluctuations in global oil prices or escalations in the Middle East — could exacerbate domestic tensions.

Merz's address also touched on foreign policy, reaffirming Germany's commitment to Ukraine with an additional €2 billion in aid. He criticized unnamed European partners for wavering support, positioning Germany as a pillar of stability in a turbulent continent. "In times of global uncertainty, a united Germany is essential," he said, linking domestic cohesion to international credibility.

Critics argue that Merz's corporate background influences his approach, favoring business interests over social welfare. Environmental groups like Greenpeace have protested outside the Chancellery, demanding that budget cuts not come at the expense of climate action. "Merz talks stability, but his policies risk environmental catastrophe," said Martin Kaiser, Greenpeace Germany's executive director.

Supporters, including business leaders from the Federation of German Industries (BDI), praise Merz's steady hand. "The chancellor understands that economic growth is the bedrock of all progress," BDI president Siegfried Russwurm noted in a statement.

As Germany navigates these choppy waters, Merz's ability to mediate and deliver results will be key. The coming months will test whether his assertion of a "stable foundation" holds true or if the disputes signal deeper fractures. For now, the chancellor projects confidence, but the specter of coalition discord looms large over Berlin's political landscape.

In the end, Merz's government embodies the complexities of modern German democracy: a delicate balance of ideologies striving for consensus in an era of profound challenges. Whether this stability endures will shape not only Germany's future but also Europe's role on the world stage. As one senior CDU official anonymously confided, "Merz is a fighter, but even fighters need allies who don't turn on each other." The nation watches closely as the coalition seeks to prove its mettle.

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