Black-red signals versus traffic lights: Uncovering the differences
Germany's Black-Red Coalition Faces Challenges After 100 Days
After 100 days in power, Germany's Black-Red coalition, led by Chancellor Friedrich Merz, is facing several challenges that have impacted its governance and lowered public approval. The coalition's performance, according to polls, stands at a mere 29% satisfaction.
The lingering uncertainty over energy policy, internal disputes mainly about judicial appointments, and the controversy over the electricity tax decision are some of the issues that have tested the coalition's effectiveness.
The electricity tax controversy has strained the coalition’s promise to reduce energy costs comprehensively. The government faced criticism for excluding households and small businesses from a reduction in the electricity tax, a move that surprised many expecting broad energy price relief. This decision revealed ongoing financial constraints despite relaxed borrowing limits and sizable new debt allowances. The government still faces a budget gap exceeding 170 billion euros through 2029, limiting fiscal flexibility.
The broader energy transition remains uncertain, with disagreements on how to balance cost efficiency and renewable energy expansion. The exclusion of biomass from renewable status under electricity tax law proposals further complicates the energy policy landscape, drawing criticism from bioenergy groups who argue this undermines renewable incentives.
There have been loud quarrels among coalition partners over selecting new judges for Germany’s constitutional court. This dispute contributed to a perception of dysfunction and has hurt voter confidence, with the CDU/CSU losing approval and the far-right AfD gaining ground in polls.
The coalition has passed several laws such as "Growth boosters", budget, pension package, "construction turbo", and migration policy. However, these achievements have been overshadowed by the internal disputes and the electricity tax controversy.
The Chancellor has admitted that not everything went smoothly and promised to adjust. Vice Chancellor Lars Klingbeil acknowledges that governing is not much fun at the moment. The Union and the SPD face problems of a much greater scale than the election of constitutional judges, with a gap of around 172 billion euros in the financial planning for 2027 to 2029.
The Union and the SPD face internal tensions, with trust in Union faction leader Jens Spahn being shaken. The SPD Chairman, Bärbel Bas, sees a need for further talks regarding the coalition's behavior and the wounds that remain in the SPD. The Economics Minister Katherina Reiche (CDU) has proposed an idea that is beyond the coalition agreement and has provoked the partner.
The coalition's ability to deliver on its platform of economic recovery, lower energy prices, and efficient governance is being tested under these pressures. The future of the Black-Red coalition remains uncertain, with the upcoming elections in September adding to the coalition's woes. Whether the coalition will resolve the judges' dispute before the elections is uncertain.
Despite the challenges, the coalition has had some successes in foreign policy, including meetings with US President Donald Trump, NATO summit, and Europe. However, these achievements may not be enough to win back public support and restore the coalition's effectiveness.
