Friedrich Merz faces challenges in forming a government after German election victory

Friedrich Merz's victory in Germany's national election signals a major political shift. However, forming a stable government is challenging due to coalition negotiations and the far-right's significant influence, with the Alternative for Germany party securing nearly 21% of the vote. Merz's preferred coalition partner, the center-left Social Democrats, finished third and has major policy differences, particularly on migration. If cooperation fails, he may need to ally with the Greens, complicating negotiations further. Germany's economy faces slow growth and competition from China and the US. Merz aims to reform strict borrowing laws but will need broad support in a divided parliament. His leadership experience is limited, raising questions about his ability to navigate these challenges.