German Chancellor Friedrich Merz made significant changes to his cabinet midway through his government's first year. The moves, made amid growing dissatisfaction with the CDU/CSU and SPD coalition's performance and rising support for the far-right Alternative for Germany (AfD) party, demonstrated Merz's determination to take the initiative.
The spark for the changes was ignited when CDU/CSU parliamentary group leader Jens Spahn's decision to have a child via surrogacy in his same-sex marriage sparked public debate. Spahn stepped down under pressure from Merz and was replaced by Thorsten Frei. Health Minister Nina Warken was appointed head of the Chancellery. CDU General Secretary Carsten Linnemann took over the vacant health ministry post.
In a speech titled 'The centre delivers' in the Bundestag on July 9, Merz emphasised his government's capacity to act. Buoyed by the NATO summit in Ankara, he announced the acquisition of Tomahawk cruise missiles with a range of 2,500 kilometres to close a strategic gap in Germany's defence. He also disclosed that ThyssenKrupp Marine Systems had won Canada's tender for 12 submarines.
The chancellor also highlighted domestic policy steps such as pension system reform and the work of a 'deregulation cabinet' aimed at reducing bureaucracy. In particular, removing bureaucratic hurdles by reversing the burden of proof in payment transactions was central to the plan to improve the investment climate.
Far-right rise strains coalition
Despite all the government's reform efforts, polls show support for the AfD has risen by 8 percent at the federal and state levels. The possibility of an AfD candidate being elected in the Saxony-Anhalt state elections in September 2026 is being described as an 'earthquake' in German politics.
The government, which Merz describes as a 'learning system', cannot escape the agenda set by the AfD. The fact that a strategy to expose the party's contradictions in economic policy and its pro-Russian foreign policy stance has not yet been developed stands out as the coalition's biggest dilemma.
While the National Security Council's failure to become an effective coordination mechanism remains a subject of criticism, Merz pointed to the importance of bringing such a structure to life in four months after 30 years of debate. In his mid-year assessment, the chancellor praised coalition partner SPD but also acknowledged unfinished projects. While his international manoeuvres strengthen Germany's hand, the footsteps of a domestic political earthquake are growing louder.
