Germany's Rightward Shift: National Election Poised to Reshape Political Landscape

Germans head to the polls in a national election favoring Friedrich Merz's conservatives and the far-right AfD, as the nation faces economic challenges. The election is set against a backdrop of immigration issues, political fragmentation, and concerns over living standards, with potential coalition talks on the horizon.

Germany is poised for a significant political reshaping as citizens vote in a national election expected to see Friedrich Merz's conservative camp back in power, alongside heightened support for the far-right Alternative for Germany (AfD). As one of Europe's leading economies faces rightward political leanings, coalitional negotiations could become complex owing to the divided political climate, especially concerning migration and the AfD's role.

Chancellor Olaf Scholz may stay temporarily if Merz's bloc cannot secure a majority. Meanwhile, economic challenges persist, with citizens expressing deep concerns about living standards, dropping confidence in improvement from 42% in 2023 to 27% in 2024. Economic concerns are compounded by external tensions, such as U.S. trade threats and ongoing Ukraine conflict discussions.

Migration has become central in the election discourse, reflecting a reversal from Germany's 2015 position during the migrant crisis. The AfD, though gaining newfound support, won't enter government as mainstream parties distance themselves. A potential coalition outcome could recalibrate fiscal policies, as Merz's party might reconsider Germany's stringent 'debt brake' stance.

(With inputs from agencies.)