Neither Merkel nor Scholz: Who is Friedrich Merz and what happens next?

CGTN Europe

The CDU's pick for Germany's next leader has had a political career of two halves. CGTN's Natalie Carney reports from Munich.   Read this piece in full 👇 https://tinyurl.com/2ye5dp62

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00:00Former corporate lawyer Friedrich Merz began his political career in 1989,

00:05but it wasn't until 2022 that he was elected the leader of Germany's center-right Christian Democratic Union Party,

00:12promising a decisive break with former Chancellor Angela Merkel's centrist line.

00:17With the rise of far-right movements across Europe,

00:20Merz's more conservative politics resonated with a larger electorate.

00:25One of the biggest challenges now is to stimulate fiscal growth in Europe's largest economy.

00:30He wants to strengthen industry, cut bureaucracy and continue supporting a free market.

00:35Some say this is welcome news for German companies that have lost trust in the country's business environment and sent some overseas.

00:43Expectations in industry have shot up significantly.

00:46Looking back, the greatest wish of companies was always more clarity in economic policy.

00:51The industry or the economy overall will be satisfied with the outcome of the election, at least in view of the clear majority.

00:57There is probably a clear coalition option, and if they come to an agreement now, I think companies will be happy.

01:03At the same time, Merz wants to reform Germany's welfare state,

01:07favoring incentives to get people working over government benefits,

01:11while also looking to lower taxes, including for the wealthy.

01:15This proved controversial during the election campaign.

01:18Mr. Merz wants to give people who earn as much as he and I do, or much more, a $21 billion tax cut.

01:24$89,000 for a DAX board member, but just $10.50 per month for a saleswoman? That's not right.

01:32Merz is a strong proponent of the country's debt break,

01:35a constitutional rule that limits government borrowing except in emergencies.

01:40That allowed outgoing Chancellor Olaf Scholz to borrow more to finance defense projects and energy subsidies.

01:47Merz's financial conservatism has put him at odds with the center-left parties and potential coalition partners,

01:54who argue for more financial flexibility to fund key public investments.

01:59One of the most common criticisms of Frederick Merz is that he is often seen as an elite figure,

02:04out of touch with the everyday concerns of regular Germans.

02:08Merz has also been accused of being too conservative on social issues,

02:12a position that some view as out of step with modern Germany.

02:16The election win for Merz's conservatives and a likely return to a grand coalition with the Social Democrats

02:22has eased concern of political deadlock.

02:25But this raises questions about how far and fast Merz will be able to push his financial reform agenda

02:31to revive Germany's economic growth.

02:34Natalie Carney, CGTN, Munich.

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