Berlin, Germany – In a stunning and historic setback, Friedrich Merz, leader of Germany’s conservative CDU/CSU bloc, has failed in his bid to become chancellor after falling short in a critical parliamentary vote. The result has thrown Germany into deep political uncertainty and triggered ripple effects across Europe’s financial markets.
In a secret ballot held in the Bundestag, Merz received only 310 votes—six shy of the 316 needed for an absolute majority. This, despite an apparent coalition agreement between his bloc and the center-left Social Democrats (SPD), which together hold 328 seats. The shortfall suggests internal defections and has ignited serious questions about the unity and viability of the proposed government.
The defeat marks the first time in post-World War II Germany that a chancellor candidate has not secured approval in the first round of parliamentary voting. For Merz, a longtime political figure known for his hardline conservative stance, the loss is a dramatic blow that could imperil his leadership and legacy.
According to German law, the Bundestag now has 14 days to produce a chancellor with an absolute majority. If this process fails, President Frank-Walter Steinmeier must decide whether to appoint a minority chancellor or dissolve the parliament, leading to fresh elections.
The fallout was immediate. Germany’s DAX index dropped 1.6% in early trading, as investors reacted nervously to the leadership vacuum in Europe’s largest economy.
Compounding the crisis, the far-right Alternative for Germany (AfD)—which surged to become the second-largest party in February’s election—has demanded new elections. Still, all mainstream parties have reiterated their refusal to form any coalition with the AfD, citing its extreme nationalist rhetoric and controversial policies.
Merz’s standing with the public has also been shaken. A recent poll revealed that only 38% of Germans view him as fit for the chancellorship, while 56% believe he is unsuitable to lead.
A second round of voting is expected later this week. Should Merz fail again, Germany could be forced into a prolonged period of instability, with the possibility of another federal election looming.
FactSphere will continue providing real-time updates and in-depth analysis as this story develops.