Nation's New Administration - Optimism Across the Nation?
The German federal government, led by Chancellor Friedrich Merz, is yet to show significant improvement in public opinion, according to recent surveys. A majority of Germans express dissatisfaction with the government's performance, indicating widespread discontent[2].
Economic concerns and living costs appear to be the primary factors behind this dissatisfaction. The government faces challenges in maintaining a unified stance on economic matters, with many people considering the economy as the top issue[1]. According to Forsa researcher Matuschek, for the government to improve sentiment, it needs to cooperate and focus on addressing the matter at hand[1]. The German Chamber of Industry and Commerce shares a similar view, praising the pace at which the new federal government has put forward initial proposals, but emphasising that the hoped-for recovery is still pending[1].
The Federation of German Industries, on the other hand, sees more optimism among companies, with its president Tanja Gönner stating that the mood is better than the current situation, but still expecting a slight recession this year[1]. However, the business climate index, while showing improvement, is weaker than it was shortly after the formation of the traffic light government in February 2022[1]. The Ifo Institute for Economic Research reports an upward trend with its business climate index, stating that the mood among companies in Germany has improved[1].
The Federation of German Consumer Organizations criticises the coalition for not lowering the electricity tax for everyone as promised, stating that many consumers are still struggling with persistently high living costs[1]. The consumer climate, as measured by the GfK consumer climate, remains subdued, predicting a slight decline for July 2025 compared to the previous month[1].
Political divisions also play a role in the government's struggle to improve public opinion. The recent controversy over the appointment of constitutional judges last week made the black-red coalition appear very divided[1]. Merz has stated that improving the country's mood is a priority, but only 2% fully agree with his statement that this is one of the best federal governments in recent decades, with 15% somewhat agreeing[2]. In contrast, 71% of respondents somewhat or completely disagree with Merz's statement[2].
Pollster Matthias Jung of the Forschungsgruppe Wahlen suggests that credible announcements of measures could potentially improve public sentiment[2]. However, pollster Peter Matuschek thinks that the quick changes announced by Merz were not realistic in any case, and the people also know that[2].
Despite these challenges, Merz believes his government is on track, having completed his program until the summer break[1]. However, with pessimistic expectations about the economy still prevailing, with 51% of Germans believing the economic situation will deteriorate, and only 22% believing it will improve[1], the road to regaining public trust remains a steep one for the Merz-led government.
The German federal government's efforts to improve public opinion are hindered by concerns about economic matters and high living costs, which are considered the top issues by many people [1]. Politically, the recent controversy over the appointment of constitutional judges has exacerbated divisions within the black-red coalition, contributing to widespread dissatisfaction [1]. In light of these challenges, credible announcements of measures could potentially improve public sentiment, as suggested by pollster Matthias Jung [2]. However, the feasibility of quick changes, as demonstrated by the government's policies and legislation, remains a question of contention among the public and political analysts [2].
