Germany’s 2025 Political Shift: Friedrich Merz’s Coalition and 3 Economic Scenarios for the EU 📉 “The heart of Europe is politically shifting—and so is its economy.” Following Germany’s 2025 federal election, Friedrich Merz of the CDU (Christian Democratic Union) has successfully formed a coalition government, ushering in the country’s most conservative leadership since the Merkel era. Merz’s administration is expected to pursue fiscal austerity, pro-business reforms, and stronger NATO alignment , which could significantly reshape the European Union’s economic integration, climate policy, and energy strategy. In this article, we analyze Merz’s core economic agenda , explore how it could affect Germany and the broader EU , and identify key sectoral shifts and investment implications . 📌 1. Friedrich Merz’s Coalition – Germany’s 2025 Political Landscape Party 2025 Election Share Coalition Role CDU (Christian Democrats) 31.2% Lead party FDP (Free Democrats) 9.4% Coalition partn...