In his inaugural speech as German Chancellor, Friedrich Merz delivered a strong policy message to the Bundestag, pledging to revitalize Germany’s economy, modernize its military, and reinforce transatlantic unity on the Ukraine crisis.
Merz, leader of the Christian Democratic Union (CDU), officially took office last week after winning the February federal election. His rise to power ended a prolonged political deadlock that had left Germany without a majority government for six months.
Economic Revival at the Core of Merz’s Agenda
Positioning economic growth as the cornerstone of Germany’s stability and global influence, Merz vowed to streamline regulations, accelerate digital transformation, and provide tax breaks to stimulate business activity. He also emphasized the importance of trade expansion within the European Union.
“Our economy must become a global growth engine again. We are committed to reforms and strategic investments that make Germany competitive,” Merz declared.
To fund this economic reboot, his coalition has introduced a large-scale infrastructure investment plan and loosened strict debt limits, setting the stage for long-term financial stimulus.
Germany to Build Europe’s Strongest Conventional Army
On defense, Merz affirmed Germany’s full commitment to NATO, stating that Berlin would honor its obligations by continuing to invest in national security. He backed previous moves to reach the 2% GDP defense spending target through a €100 billion modernization fund—though he avoided addressing U.S. calls to increase this to 5%.
“Germany’s promises to NATO will be fulfilled. It is in our own strategic interest,” Merz said.
He framed military revitalization not just as a domestic imperative, but as a crucial part of defending European values and deterring external threats.
Unified Stance on Ukraine with U.S. and Europe
In a firm statement on foreign policy, Merz committed Germany to a united Western approach on the war in Ukraine. He highlighted growing concerns over Russian destabilization and rejected any notion of a peace settlement dictated by Moscow.
“There will be no dictated peace. Ukraine must remain free and sovereign,” he stated.
Merz credited President Donald Trump for endorsing a 30-day ceasefire in recent conversations, and stressed that Germany would continue working toward alignment between European and American partners.
“The unity of the political West is non-negotiable,” Merz asserted. “Germany will be a bridge between Europe and the United States.”
A New Coalition, A Renewed Vision
Merz now leads a coalition government comprising his CDU bloc and the center-left Social Democratic Party (SPD), previously led by former Chancellor Olaf Scholz. The new alliance aims to address domestic stagnation and reclaim Germany’s leadership role within Europe.
In his speech, Merz directly criticized past indecisiveness on European affairs, saying:
“The era of Germany standing on the sidelines of critical European policy decisions is over.”