German center-right shift augurs new approach in key policy areas
Germany’s election saw conservative Friedrich Merz emerge as the country’s likely next chancellor. He is expected to take office as the EU confronts a highly uncertain global political and economic landscape. His ascent to power could impact EU policy in areas such as trade and competition as well as the bloc's path to breaking energy dependence on Russia. Germany may also finally be able to speak with a more unified voice on tech policy. The Christian Democratic Union, which Merz leads, and its Bavarian sister party will need at least one coalition partner to make their plans a reality, putting a question mark over how much of their political agenda will be achieved.
Read on for specialist analysis from MLex correspondents in Europe.
Looming trade war pressures Germany’s next leader to keep export engine running
Oscar Pandiello and Ansley Franco
24 February 2025
Based on Sunday’s election, Friedrich Merz will lead efforts to form a new government and tackle crucial trade challenges — from looming US tariffs to EU disputes over free trade and sustainability rules. While migration dominated the campaign, Germany’s economic future now depends on securing export markets, expanding trade deals and managing tensions with China and the US. Read more
German election boosts calls for ‘modern’ competition policy
Andrew Boyce
24 February 2025
Germany’s move to the right will boost calls for a “global” European competition policy, but is unlikely to see any major overhaul in the national competition authority’s powers. In their election programs, none of the main political parties called for a rewriting of antitrust or merger law. They all seemed to agree that a “strong” competition policy was essential, with the Christian Democratic Union advocating modernizing it in light of geopolitical challenges and global markets. Read more
Tech sector could see Germany have stronger voice on EU digital policy
Sara Brandstätter
24 February 2025
Germany's conservative bloc CDU/CSU, which won yesterday's national election, wants to bundle digital responsibilities within one new ministry. But it's yet to be seen if those plans can really lead to a stronger and more united German voice in digital policy making. Industry specialists say that Germany needs to move forward on making its public sector more digital, while at the EU level Germany's voice is key, especially on legislation concerning child sexual abuse material. Read more
New German government must leverage IP for economic growth, EU lawmaker says
Inbar Preiss
24 February 2025
EU lawmaker Andrea Wechsler is hopeful that Germany’s new right-wing government will facilitate more chances for companies to commercially exploit intellectual property rights, particularly in new areas such as artificial intelligence and biotechnology. Wechsler’s political party, which will lead Germany after Sunday's election, promises to boost innovation and support its automotive sector. Read more
German carmakers await new government’s first move on green rules
Patricia Figueiredo and Helena Freitas
24 February 2025
Once the backbone of Germany's economy, the struggling automotive industry is watching the new government closely for any hints on how it will help carmakers green their industry. While the sector is pushing for less red tape to promote growth, industry groups say they support the green transition, despite concerns over penalties for missing emission reduction targets under EU law. Read more
Energy sector eyes German election outcome to see if nuclear has a future
Patricia Figueiredo and Helena Freitas
24 February 2025
Europe's nuclear energy companies will be closely monitoring the German election outcome as parties debate re-establishing nuclear power plants in the country. While energy talks were overshadowed by concerns over migration and the economy, the country’s nuclear phaseout, completed in 2023, became a hot topic during the electoral campaign, with parties expressing different views on the possible comeback. Read more
Digital euro negotiations complicated by Germany’s move to the right
Jean Comte and Sofia Gerace
24 February 2025
Germany’s shift to a conservative-led government is expected to slow down ongoing talks to set up an EU Central Bank Digital Currency. The center-right Christian Democrats, which will most likely lead the next government, are reluctant to accept the digital currency. But much will depend on which political party obtains the finance minister position, as Social Democrats or Greens could show more openness. Read more
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