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Germany's coalition teeters as Merz's SPD attack sparks political crisis

A once-stable partnership unravels as sharp words replace compromise. With reforms frozen and elections looming, can Germany's government survive this rift?

The image shows an old newspaper advertisement for the pension inn in Dresden, Germany, with black...
The image shows an old newspaper advertisement for the pension inn in Dresden, Germany, with black text on a white background.

Germany's coalition teeters as Merz's SPD attack sparks political crisis

BERLIN—After weeks of simmering tensions between Economy Minister Katherina Reiche (CDU) and Finance Minister Lars Klingbeil (SPD), Chancellor Friedrich Merz (CDU) had urged his government just last week to show restraint and unity. The black-red coalition, he warned, was presenting a poor image by airing its disputes in public.

Now, however, the chancellor himself has gone on the offensive. At a jubilee event marking the 75th anniversary of the German Banking Association, the CDU leader launched an unexpected and sharp attack on the Social Democrats. Addressing them on Monday evening, he declared that he expected them to "finally lift some of their blockades."

Merz threatened to "seriously sit down with the coalition partner again very soon." At the same time, the 70-year-old provoked the SPD by dismissing the state pension as "nothing more than a basic safety net."

Merz's Sudden Shift: From Conciliation to Confrontation

Until now, Merz had been notable for soothing the wounded pride of the SPD, which has suffered crushing defeats in recent state elections. He had refrained from any public criticism of the party, even siding with his vice chancellor, Klingbeil, in the dispute with Reiche. He went so far as to defend the SPD's constitutional court nominee, Frauke Brosius-Gersdorf, and her controversial views on abortion up to shortly before birth.

But this sudden frontal assault comes against the backdrop of disastrous poll numbers. The chancellor's approval ratings—and those of his government—have plummeted even lower than those of the previous "traffic light" coalition. In many surveys, the far-right AfD has now surged ahead of the CDU/CSU as the strongest political force.

The decline stems in part from the failure to deliver on promises of a "change in policy" and an "economic turnaround." In reality, the SPD has obstructed key reforms wherever possible—currently stalling progress on labor law reforms, the heating law, and the next round of changes to basic welfare benefits.

SPD Fires Back

The Social Democrats have also taken aim at the recent health care reform proposed by Health Minister Nina Warken (CDU). Adding to the friction, the SPD insists on shifting the rising costs of medical treatments and prescriptions for citizens on welfare onto all health insurance contributors.

Merz has now found backing from CDU/CSU parliamentary group leader Jens Spahn, who stated in a recent faction meeting: "I understand the chancellor's impatience." The SPD, he argued, must focus on reforms, as the country's problems "won't be solved with interviews and op-eds alone."

The Social Democrats responded furiously to the chancellor's remarks. Parliamentary leader Mathias Miersch rejected the notion that the SPD was blocking reforms, insisting that the pension system—dismissed by Merz as mere "basic support"—was "not welfare."

In the same breath, Miersch renewed calls for a windfall tax on oil companies—a demand that Economy Minister Reiche had previously rejected, sparking her clash with Klingbeil. At the time, Merz had sharply rebuked his own party colleague. Now, it appears, he has run out of patience himself. The coalition crisis deepens further.

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