Germany is Europe’s, and therefore the eurozone currency’s, largest economy. It is the world’s largest single donor to Ukraine right now and it is the biggest net payer into the EU budget.
When Germany’s finances are in trouble and the country turns inward because of a political crisis, the knock-on effect beyond its borders can be considerable.
Under financial pressure, Merz has been pushing hard, along with a group of other wealthier EU countries to slash their contributions to the bloc’s budget, for example.
This comes at a time when the EU wants to spend more, not less, on common defence projects, migration and AI and tech.
Faced with perceived threats from Russia and China, wars in the Middle East affecting energy supplies and prices, plus the unpredictability – and many in Europe say, unreliability – of the US under Trump, now is a time Europeans must stick tightly together, says Brussels.
The EU is watching Merz’s travails, plus the strengthening of the AfD on the right and the hard left Die Linke too, with concern.
These regional German votes come at the start of bumper election season across the EU, where all the big powers – (including France, Italy, Spain and Poland – go to the polls.
Nationalist, Eurosceptic, anti-immigration parties are predicted to do well. And Beijing and Moscow are watching closely.
