Germany Faces Political Struggles and Industrial Changes

German Chancellor Friedrich Merz is facing a difficult first year in office. His coalition government, which includes the conservative Christian Democrats (CDU), the Christian Social Union (CSU), and the center-left Social Democrats (SPD), is experiencing significant tension. Merz recently admitted that there is growing resentment within his own party about the compromises they must make to stay in power. His personal approval ratings are also very low, reflecting the public's frustration with the political instability.

The challenges began even before Merz officially took office. When he was elected as the 10th German chancellor in May 2025, he did not receive the necessary majority in the first round of voting. This was a historic moment, showing that his coalition holds only a thin majority in parliament. To become chancellor, he had to win a second round of voting. This narrow victory highlights the fragile nature of the current political landscape in Germany.

Merz had promised an "autumn of reforms" in late 2025. He planned to change fundamental parts of the German welfare state, including pensions, healthcare, and nursing care. He also wanted to reduce bureaucracy, which is the complex system of rules and paperwork that businesses and citizens must follow. However, none of these major changes were confirmed in the following months. Instead, the government focused on a €500 billion special fund for infrastructure and climate neutrality by 2045. This money is intended for projects like upgrading the rail network and building new bridges, as Germany struggles with old and crumbling infrastructure.

A major source of conflict is the relationship between the finance minister, Lars Klingbeil, and the minister for economic affairs, Katherina Reiche. Reiche wants to reverse many policies of the previous government, which combined economic growth with climate protection. She is also pushing for the return of civilian nuclear power, which was phased out in 2011. Merz has suggested that his party is bearing the brunt of the compromises, describing the coalition as having a "larger partner and a smaller partner." This comment has been seen as a way to warn his own party that they need to be more flexible.

In the healthcare sector, the coalition has presented plans to reform the health system, but nothing has been decided yet. There will be several months of discussion in the Bundestag, during which changes are expected. DW Chief Political Editor Michaela Küfner notes that while Merz’s start has been halting, it is not entirely negative. He has managed to keep the coalition together despite the difficulties.

In the industrial sector, BioNTech, the Mainz-based company famous for its COVID-19 vaccine, is making drastic changes. The company announced it is shutting down its COVID vaccine production entirely in Germany. This decision leaves the production to its US partner, Pfizer. BioNTech is closing production centers in Idar-Oberstein, Marburg, Tübingen, and Singapore. The closures are expected to be completed by the end of 2027.

This restructuring puts up to 1,860 jobs at risk. BioNTech had previously planned to cut between 950 and 1,350 jobs. The company is moving away from COVID treatments because demand has dropped significantly. Now, vaccines are mainly given to the elderly and high-risk people. BioNTech is redirecting its focus to cancer research and other illnesses. However, this shift is costly. The company reported falling revenues and rising net losses in the first quarter of 2026. These losses are due to investments in new research, including an antibody called Pumitamig, which is currently in global phase 2 trials. The company’s founders, Ugur Sahin and Özlem Türeci, also announced they are stepping down to start a new venture.

While Germany deals with internal political and industrial shifts, other European cities are taking bold steps against climate change. Amsterdam has become the first capital city in the world to ban advertisements for meat and fossil fuel products. This includes ads for cars, flights, cruises, and home gas heating. The ban aims to reduce the normalization of high-carbon lifestyles. Reint Jan Renes, a behavioral psychologist, supports this move. He argues that it is inconsistent for a city to have ambitious climate goals while allowing ads that promote pollution.

Researchers estimate that car and airline ads in the EU in 2019 alone could be responsible for up to 122 million tons of greenhouse gas emissions. By banning these ads, cities hope to change public attitudes toward fossil fuel consumption. This approach is similar to the bans on tobacco advertising in the 20th century, which successfully reduced smoking rates. Stockholm will follow Amsterdam’s lead this summer, and more than 50 other cities worldwide have similar bans. This trend suggests a growing global effort to address climate change through public policy and advertising restrictions.