BERLIN – German Chancellor Friedrich Merz stuck with his center-left coalition partners on Tuesday despite weeks of wrangling over tax, welfare and health reforms that have raised growing questions over the future of his government.
As his first anniversary in office approaches on Wednesday, Merz's approval ratings and support for his conservative Christian Democratic Union (CDU) and the center-left Social Democrats (SPD) have plummeted amid widespread economic gloom.
After two years of recession, Germany returned to growth at the end of last year but the fragile recovery risks being snuffed out by an energy shock from the war with Iran and new U.S. tariffs targeting carmakers that are already struggling with stifling competition from China.