German Chancellor Election 2025

Germany these days is in election-mode and all set to cast its votes in one of the most important elections in its history that may decide the future of its economy and may possibly even impact the future course of European politics.

The European economic major is going to voting on February 23; amidst two important world developments that are expected to influence its voting pattern: First, the outcome of the presidential election of the United States of America; and secondly, the long-drawn Russia-Ukraine war.

Why election in Germany holds Global Significance

Germany is the largest economy of Europe and the third largest economy of the world preceded by United States of America and China. Germany has also been a tech-hub, and German technology is revered all over the world. As the largest economy of Europe, the election out-come is sure to impact the politics and economy of Europe—change in Europe’s politics and economy further will have its global reverberations.  

Germany’s economy is undergoing a very tough situation at present—which has been an issue in the upcoming election. Though known for its technology, particularly automobile technology, these days Germany is being given a tough trade competition globally by China and other automobile nations.

Germany, however, has been the nation to record the highest trade surplus in the world—a sum of worth $310 billion, in 2016. Germany is one the largest exporters globally—with an export value of about $1.8 trillion that same year. Germany's trade surplus in 2024 was $250.2 billion. Top export goods include vehicles, electronic items, machinery, chemical goods, pharmaceutical goods, among other things.

Germany’s Economy

Germany’s economic slowdown has been an important subject for debate in the country. In recent, its automobile sector is being given a tough competition by others globally. China’s cheap battery-operated cars are not just giving tough competition to Germany car makers globally, but in Europe itself.

China itself was the buyers of Germany high-end luxury cars—a market which is undergoing change in recent times. German manufacturers sold around 4.3 million cars in China in 2021. In 2024, German car manufacturers sold 310,718 vehicles in China.

LEADERS in race for German Chancellor

Friedrich Merz (69): is the Chancellor candidate for his party Christian Democrats (CDU). Merz, said to be pro-business and a social conservative, is running for the post with the slogan “"A Germany we can be proud of again".

Immigration is a big issue under debate even in Germany—not just that in the United States. Merz has promised to restrict immigration and cut taxes. He has also promised to slash welfare spending to fix the faltering German economy. He also promises to bolster aid for Ukraine.

Olaf Scholz: has already served as the Chancellor for more than three years. With his party Social Democrat party (SPD), his coalition government fell apart over a row over loosening Germany’s strict debt brake rules.

Scholz had to lead a coalition government in Germany amidst Russia-Ukraine war, in which Germany being the most aid-providing nation to Ukraine, had to suffer in its economy.

Sahra Wagenknecht: is at the lead for her party, BSW, founded in 2024. Wagenknecht combines a left-leaning economic, pro-Russian foreign policy.

Alice Elisabeth Weidel (46):  is a German politician, a lawmaker in German parliament and the leader of Alternative for Germany (AfD), a far-right populist party, which has been gaining world attention mostly due to its far-right stand and also due to tech-billionaire Elon Musk’s support for it.

Weidel has expressed support for tax cuts and the abolition of inheritance tax. Weidel has a doctorate in economics. She worked at the Bank of China and lived in China for six years and speaks Mandarin. Alternative for Germany (AfD) has been critical of refugees and asylum seekers.

Will American presidential election impact Germany election?

American voters went by Donald Trump slogans like “America First”, “Make America Great Again”. Immigration was at the heat of the electioneering of Trump and deportation has already kicked off controversy.

In Germany too, immigration is a big election though counter-arguments too are equally strong.

U.S. President Trump has placed American interest at the top in all his policies including foreign policy, and this may impact the German election too.

AfD leader Weidel has backed the mass deportation of migrants; and she wants to end sanctions on Russia.

Russia-Ukraine War

Russia-Ukraine war has put a lot of stress on German economy and Germany’s continued support to the war at the cost of its economy, is an issue of debate.

KEY ISSUES

Economy

Declining German Economy is an important issue for parties and voters in the election. Promises of incentivising private investment and modernising infrastructure have been debated. Social Democrats have promised direct tax refund of 10% on equipment investment by business groups.

Ukraine’s War

While the mainstream political parties of Germany want support for Ukraine against Russia, parties like AfD and BSW want a pause on weapon support to Ukraine and want a good relationship with Russia.

The U.S.-China and Germany

In the increasing tussle for market between the U.S. and China, how Germany will find its place is a question that hangs crucial in the mind of the world’s third largest economy.

Last year, Germany and China have signed agreements to cooperate on car data sharing.  German car-makers have made heavy investment in joint ventures China, but the Chinese car makers have an advantage at home market. In recent years geopolitical situation too has changed and with the coming back of Trump, China too is forced to become more aggressive in its trade. Amidst such change, Germany is in need of reshaping its strategy for car and other trades to maintain its economy.

While economy and geopolitics weigh high on the German Chancellor election, the outcome of the election will largely decide Germany’s position in world trade and European politics.