Germany is entering a new political era. The election of Chancellor Friedrich Merz in May 2025 ushers in a government focused on industrial competitiveness and a more assertive foreign policy, accompanied by a €500bn special fund for infrastructure, energy transition and digitisation for the next ten years.
As Berlin repositions itself on key issues – from energy and defence to trade and regulation – businesses across the EU and beyond will feel the impact.
What happens in Germany won’t stay in Germany. Policy shifts here shape market dynamics, regulatory trends and investment strategies across Europe.
Our team combines on-the-ground insight with international perspective to help clients anticipate change, respond decisively and stay ahead in a rapidly evolving landscape.
On 6 May 2025, the German Bundestag elected Friedrich Merz as the 10th Chancellor of the Federal Republic of Germany. This was preceded by snap federal elections on 23 February 2025, which led to negotiations between the election winner, the conservative CDU/CSU, and the Social Democratic SPD of the incumbent Chancellor Scholz. The coalition agreement of the new government forms the basis for the government's work during its term of office from 2025 to 2029. The new federal government intends to focus particularly on economic and foreign policy measures.
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