German Chancellor Friedrich Merz battles plunging popularity amid pension reform push

Chancellor Friedrich Merz’s government faces a deep credibility crisis a year after taking office. Recent polls show 85 % of Germans dissatisfied with his performance, the lowest approval for any chancellor in post‑war history. Merz has warned that a “big bang” could occur if the governing CDU‑SPD coalition fails to deliver, and he has been criticised for controversial remarks on work ethic and migration. Speculation has grown around a possible successor, North‑Rhine Westphalia premier Hendrik Wüst, as the far‑right AfD gains ground in polls.

At the same time, the coalition is gearing up to unveil a sweeping pension overhaul. The proposal would introduce a state‑run capitalisation fund, gradually raising contributions from 0.5 % to 2 % of gross wages to fund future pensions while retaining the core pay‑as‑you‑go system. The hybrid model aims to secure retirement income for an ageing population and tap long‑term capital for innovation, but it raises concerns over additional payroll burdens and fund governance.

Both the political instability and the reform agenda underscore the challenges Merz faces in maintaining coalition cohesion and public support ahead of upcoming regional elections.