German Chancellor Friedrich Merz carried out a major overhaul of his cabinet midway through his first year in power. As dissatisfaction with the performance of the CDU/CSU and SPD coalition grows, support for the far-right Alternative for Germany (AfD) party is also rising. The changes, made in this climate, are seen as a move by Merz to strengthen his leadership initiative.
Key ministerial posts reshuffled
The reshuffle began after Jens Spahn, the CDU/CSU parliamentary group leader, sparked public debate with his decision to have a child via surrogacy in his same-sex marriage. Under pressure from Merz, Spahn stepped down and was replaced by Thorsten Frei. Health Minister Nina Warken was appointed head of the Chancellery. The vacant health ministry post was filled by CDU General Secretary Carsten Linnemann.
These appointments are seen as part of Merz's strategy to both strengthen loyalty within the party and entrust the power structure at the heart of government to his most trusted allies. Frei's parliamentary group leadership is a position that will protect the Chancellor against potential internal party opposition. Warken's new role, meanwhile, brings a figure he has worked with since the opposition years into a key post in the Chancellery.
Defence and domestic reform commitments
In his speech titled 'The centre delivers' to the Bundestag on 9 July 2026, Merz emphasised his government's capacity to get things done. Buoyed by the NATO summit in Ankara, he announced the procurement of Tomahawk cruise missiles with a range of 2,500 kilometres to close a strategic gap in Germany's defence. He also revealed that ThyssenKrupp Marine Systems had won Canada's tender for 12 submarines.
On the domestic front, the Chancellor highlighted pension system reform and the work of a 'deregulation cabinet' aimed at reducing bureaucracy. In particular, removing bureaucratic hurdles by reversing the burden of proof in payment transactions is central to the plan to improve the investment climate.
AfD's rise is the biggest test
Despite all the government's reform efforts, polls show support for the AfD has risen by 8 percent at both federal and state level. The possibility of an AfD candidate being elected in the state elections in Saxony-Anhalt in September 2026 is being described as an 'earthquake' in German politics.
The government, which Merz describes as a 'learning system', cannot escape the agenda set by the AfD. The failure to yet develop a strategy to expose the party's contradictions in economic policy and its pro-Russian foreign policy stance is seen as the coalition's biggest dilemma.
While the National Security Council's failure to yet become an effective coordination mechanism is also a subject of criticism, Merz pointed to the significance of bringing such a structure to life in four months after 30 years of debate. In his mid-year review, the Chancellor praised coalition partner SPD but also acknowledged unfinished projects. While his manoeuvres on the international stage strengthen Germany's hand, the rumblings of a domestic political earthquake are growing louder.
