German conservative leader Friedrich Merz has been elected chancellor in a second parliamentary vote, after his new alliance with the centre-left Social Democrats suffered a surprise defeat in the first round.
Merz’s initial failure to secure parliamentary approval marked an unprecedented moment in post-war Germany and proved embarrassing for a leader who has pledged to revive economic growth amid global uncertainty, Reuters reports.
Merz, 69, takes office at a pivotal moment, as Germany faces its longest economic slump since World War II, strained relations with key security ally the United States, and a surging far-right movement.
Some members of Merz’s cabinet come from the private sector. Katherina Reiche, for instance – who will be the first woman to lead the Economy Ministry – previously led a major regional electricity provider.
Boris Pistorius, the widely popular Social Democratic defence minister, will remain in his role. Meanwhile, Lars Klingbeil, leader of the Social Democrats, is expected to serve as vice chancellor and finance minister.
Germany’s export-driven economy – long a beneficiary of globalisation – has stagnated over the past three years, weighed down by high energy costs and intense competition from China.
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