Germany’s next chancellor, Friedrich Merz, has moved quickly to unveil major figures in his upcoming administration, setting the stage for a government focused on stability, economic recovery, and decisive leadership during a time of significant global uncertainty.
Following a strong performance by his CDU/CSU conservative alliance in the February elections and a recently finalized coalition deal with the centre-left Social Democrats (SPD), Merz announced his initial cabinet selections.
His choices send a clear signal that he intends to build a government ready to meet both domestic and international challenges head-on.
Among the key appointments, utility executive Katherina Reiche has been selected as the incoming Economy Minister. A seasoned leader in the energy sector, Reiche is currently the CEO of Westenergie, a division of E.ON, and sits on the supervisory board of automotive supplier Schaeffler.
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Her appointment was widely praised by industry associations, who regard her as a highly competent and experienced manager capable of steering Germany’s economy through a critical phase of transition.
Meanwhile, foreign policy expert and Merz ally Johann Wadephul has been tapped to serve as Foreign Minister.
A veteran parliamentarian and deputy leader of the CDU/CSU parliamentary group, Wadephul brings deep expertise in foreign and defense matters, crucial areas as Germany navigates an increasingly tense international landscape, particularly with ongoing conflicts in Ukraine and strained NATO alliances.
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The CDU/CSU-SDP coalition agreement assigns the economy and foreign ministries to the Christian Democrats, the interior ministry to the Christian Social Union (CSU), and the defense and finance ministries to the Social Democrats.
Boris Pistorius, currently Germany’s most popular politician, is expected to remain as Defense Minister, while many speculate that SPD leader Lars Klingbeil will take over as Finance Minister.
Friedrich Merz’s government faces the formidable task of reviving Europe’s largest economy amid fears of a global slowdown, fueled in part by U.S. President Donald Trump’s new wave of trade tariffs.
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The coalition plans to jumpstart growth by cutting taxes for middle- and lower-income Germans, reducing corporate taxes, lowering energy prices, and encouraging the electric vehicle industry. It also intends to scrap the controversial supply chain law that has been criticized for burdening businesses.
In a major move to modernize Germany’s economy, Merz’s coalition has created a new Ministry for Digitalization, to be led by Karsten Wildberger, CEO of Ceconomy AG. This development was hailed as a transformative step by digital industry leaders, who see it as crucial for Germany’s future competitiveness on the world stage.
The new government is also signaling a tougher stance on migration, a response to the growing influence of the far-right Alternative for Germany (AfD), which has been making gains in recent polls. Alexander Dobrindt of the CSU has been appointed to lead the Interior Ministry, underlining the coalition’s commitment to a firmer approach on immigration.
Outside of economic and domestic reforms, the Merz government has reaffirmed its strong support for Ukraine and pledged higher defense spending, recognizing the growing threats posed by a more assertive Russia.
While the CDU/CSU has finalized its ministerial picks, the SPD will announce its appointments after the party members approve the coalition agreement in an internal vote, with results expected on Wednesday.
Friedrich Merz is scheduled to be sworn into office on May 6, ushering in a new era of German leadership that aims to combine economic revitalization, digital innovation, and a renewed commitment to international alliances.
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