Merz: Germany's Political Crossroad Amid Rising Far-Right

Friedrich Merz, Germany's potential chancellor, plans to refocus on competitiveness amid political and market turmoil. After far-right polls equaled conservatives, Merz faces coalition challenges. Following Trump's tariffs, Germany's equity index dropped, prompting urgent talks. Merz seeks a coalition while maintaining fiscal discipline, as his party's credibility is at stake.

In the face of rising political and market pressure, Friedrich Merz, Germany's would-be chancellor, vowed to steer the focus back on economic competitiveness. This pledge comes amid concerns as the far-right equaled his conservatives in a poll, and financial markets reeled from Trump's tariffs.

Monday's negotiations, temporarily halted for deliberations with the outgoing SPD Chancellor Olaf Scholz, highlighted coalition vulnerabilities. Merz's commitment aims to reassure anxious party members alarmed about potential concessions with coalition partners.

As Germany aligns with European interests, with significant debt ceilings cleared post-election, Merz's challenge is amplified by youth wing leaders urging action on key issues like migration and the economy. The coalition's swift conclusion is critical to avert governing with the far-right or, worse, snap elections.

(With inputs from agencies.)