German Politics and Housing: Are Savings Possible in a Welfare State?

With the German federal elections looming in September 2025, the current coalition government finds itself in a precarious position. Public satisfaction with the coalition is at an all-time low, with only 16% of citizens expressing contentment with its performance, a stark contrast to previous governments. The primary concern among the populace remains the issues of immigration and asylum policies, with a significant 77% of Germans advocating for a drastic change to reduce incoming migration.

Electoral Dynamics and Leadership Challenges

The political arena is buzzing with activity as parties prepare for the upcoming elections. The Christian Democratic Union (CDU) has seen a resurgence in popularity, currently leading the polls with 33% support. The question of leadership is critical, with CDU’s Friedrich Merz and CSU’s Markus Söder both seen as potential chancellor candidates. The public’s trust in their leadership capabilities varies, highlighting the ongoing debate within and outside the party regarding the best candidate to lead.

Coalition Considerations and Governance

Post-regional elections in Saxony and Thuringia, the possibility of the Bündnis Sahra Wagenknecht (BSW) joining state governments has stirred public opinion. Approximately 46% of Germans favor BSW’s participation in governance, reflecting a significant shift in the political landscape and indicating openness to new coalition configurations. This sentiment is even stronger in eastern Germany, where a majority supports such political collaborations.

Economic Policies and Housing Crisis

Fiscal policies, particularly concerning debt brakes and tax reforms, are hot topics. Debates are intensifying around the necessity to adjust these policies to better address public and infrastructural financing. For instance, Berlin faces a potential fiscal shortfall that could severely impact public services and infrastructure maintenance. This has led to calls for the reimplementation of wealth taxes to alleviate financial strains on public coffers and ensure equitable economic growth.

Housing and Infrastructure Development

The housing crisis remains a pivotal issue, with leaders like Tübingen’s Mayor Boris Palmer advocating for substantial investment in housing through a special fund mirroring that of the Bundeswehr’s budget allocation. Palmer proposes a 100 billion euro investment to address the acute shortage of affordable housing, emphasizing the need for new social housing to accommodate Germany’s growing demand.

As Germany edges closer to another pivotal election, the interplay of immigration concerns, economic policies, and housing shortages dominate the political discourse. The decisions made in the coming months could shape the country’s political and economic landscape for years to come, highlighting the urgent need for strategic leadership and comprehensive policy reforms. The coalition dynamics, coupled with public sentiment on various national issues, will be crucial in determining the direction Germany takes as it navigates these challenging times.