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Federal Chancellor Friedrich Merz's red-black coalition has been in power for 100 days, according to the capital correspondent Torben Lehning, with a performance assessed as uneven.

Merz's Third Query
Merz's Third Query

On August 13, 2025, Torben Lehning, our capital correspondent, provided an assessment of Friedrich Merz's Federal Government, which has been in office for 100 days as the current federal government of Germany. The assessment was made at 15:45 hours on the website FERNSEHEN.

After a promising start, Merz's government shows a mixed record. The red-black coalition has successfully implemented about half of Merz's promises, including a substantial tax package beneficial to businesses. This package includes €46 billion in incentives over five years, faster depreciation for machinery, preferential treatment of electric company cars, and slight corporate tax reductions.

However, the economy saw a slight contraction of 0.1% in the second quarter, falling short of the 2% annual growth target Merz promised. On migration, the government acted modestly by turning back 474 asylum seekers since May, a small number compared to 23,000 applications during the same period.

One of the key achievements of the Merz government is the overhaul of Germany’s constitutional debt brake, allowing the government to unleash a €500 billion investment initiative. This marks a departure from Germany’s historically strict spending limits and aims at boosting public investment significantly. The government has also approved record public investment plans for 2026 and launched the "Made for Germany" initiative involving 61 firms, committing €631 billion in projects by 2028, focusing on industrial competitiveness and modernization.

On the international front, Merz’s government has halted military exports to Israel intended for use in Gaza amid the ongoing conflict, reflecting a cautious response to humanitarian concerns and mounting public pressure.

Merz has also emphasized cybersecurity and digital innovation as strategic priorities. His recent visit to CISPA, a leading research center for cybersecurity and trustworthy AI, highlighted targeted government investments to strengthen Germany’s digital infrastructure and capabilities.

Despite these achievements, the overall economic outlook remains uncertain, with many economists skeptical about the lack of structural reforms necessary to restore long-term competitiveness, despite the fiscal stimulus. The government’s complex coalition dynamics and partial policy successes have attracted criticism and empowered opposition narratives, including from the AfD.

[1] Source: FERNSEHEN [2] Source: Bundesbank [3] Source: German Federal Government [4] Source: CISPA [5] Source: Israeli Ministry of Defense

Politics continues to shape Germany's future as the general-news outlet FERNSEHEN reports on the mixed record of Friedrich Merz's Federal Government, 100 days into office. While the government has successfully initiated half of Merz's promises, such as a substantial tax package for businesses, the economy has seen a slight contraction, falling short of the 2% annual growth target.

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