Friedrich Merz elected German Chancellor after shock first-round defeat

Conservative leader Friedrich Merz succeeded in becoming Germany’s next Federal Chancellor on Tuesday, after overturning a stressful first round of voting that saw his government fail to obtain the requisite number of votes in the initial ballot.

Being the first postwar German candidate to lose the initial ballot stage of the elections with only 310 votes, the shock defeat led to a huge impact on the stock market, with the DAX, the index of major German companies, falling by 1.8% at one point, according to an Associated Press report.

Merz's centre-right Christian Democratic Union, having signed a coalition with the centre-left Social Democrats (SPD) back in February, the veteran conservative leader won the second round secret ballot with 325 votes—nine more than the requirement for an absolute majority. 

“I accept my election as Chancellor of the Federal Republic of Germany with gratitude and respect for the task. I approach my work with courage and confidence. Because we are a strong country – and our country can do more!” he said after the difficult victory, in an X post.

Merz takes office at a time when Europe sorely needs stability, as it rushes to offer Ukraine security guarantees in a possible ceasefire agreement with Russia, and to negotiate a pro-European trade accord with the United States following the global impact of the Trump tariffs.

Those tariffs threaten a third year of downturn for Germany, Europe's largest economy, which has already had to grapple with the end of cheap Russian gas since Russia's full-scale invasion of Ukraine in 2022 and growing rivalry from China.

The German coalition deal has mapped out plans to revive growth such as reducing a corporate tax and lowering energy prices, a Reuters report explained. 

It also vows strong support for Ukraine and higher military spending.

Ukrainian President Volodymyr Zelenskyy referenced this fact in his congratulatory X post for Chancellor Merz, thanking Germany's “helping hand” that had saved “thousands and thousands of Ukrainian lives”.

“We sincerely hope that Germany will grow even stronger and that we’ll see more German leadership in European and transatlantic affairs. This is especially important with the future of Europe at stake — and it will depend on our unity,” he urged.

On Wednesday, Merz will make his first appointments to strategic European allies France and Poland.

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