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Friedrich Merz Begins Chancellor Tenure with Focus on European Unity

New German Chancellor Friedrich Merz to visit Warsaw and Paris to reinforce support for Ukraine and address U.S. trade pressures.

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Overview

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On May 6, 2025, Friedrich Merz was elected German chancellor, overcoming a historic first-round defeat. The DAX fell by over 2% following the initial vote. Merz's first act in office is a visit to Poland and France, aiming to strengthen European unity amid challenges from U.S. President Trump’s trade war and Russia's aggression in Ukraine. Merz and French President Macron, both EU supporters, seek to revitalize Franco-German relations, focusing on EU defense spending. His trips coincide with the 80th anniversary of Nazi Germany's surrender, highlighting deep historical ties as both nations work to ensure stability in Europe.

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Friedrich Merz's initial attempt to become Chancellor was unsuccessful due to a surprise defeat in the first round of voting, marking a first for post-war Germany. He eventually succeeded in a second round.

The main economic policies include reducing corporate taxes and lowering energy prices to revive economic growth.

Chancellor Merz plans to strengthen European unity and coordinate with Poland and France on issues like confronting U.S. trade pressures and supporting Ukraine amidst Russian aggression.

Historically, new German chancellors often prioritize visits to neighboring countries. Merz's visits to Warsaw and Paris follow this tradition to strengthen alliances, which contrasts with accusations against his predecessor of neglecting such ties.

History

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