CDU/CSU Wins German Election, Political Scales Shift (02.24.2025)

Germany’s general election resulted in a victory for the opposition conservative CDU/CSU alliance, with its leader, Friedrich Merz, expected to become the next chancellor.

However, the election also marked a major political shift, as the far-right AfD secured a historic 20.5% of the vote, finishing in second place. Despite its success, AfD faces isolation, with other parties refusing to cooperate, leading to complex coalition negotiations.

The CDU/CSU emerged as the leading party with 28.5%, while the ruling coalition’s primary party, the Social Democratic Party (SPD), suffered its worst-ever result at 16.5%. The Greens secured 11.8%, while the far-left Die Linke won 8.7%. Following the election, Merz emphasized the need for Europe to achieve "true independence" from the United States and criticized Washington’s comments on the electoral process.

Trump Favors the Results

U.S. President Donald Trump welcomed the outcome, stating that it reflected German dissatisfaction with energy and immigration policies. While prolonged coalition negotiations are expected to create political uncertainty in Germany and Europe, financial markets reacted positively.

The euro (EUR) rebounded to 1.0528 in early trading, and Germany’s DAX futures rose over 1%. As the new government takes shape, its policies and strategic decisions will be key in shaping Germany’s role in Europe and the global economy.

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