Friedrich Merzs stumble casts shadow over hopes for rebooting struggling German economy [Video]

Friedrich Merz’s unprecedented failure to win election as German chancellor in the first round of voting in parliament – though he won in the second – raised doubts about his new government’s ability to carry through on plans to push Europe’s largest economy out of stagnation.

Tuesday’s stumble at the start of his new coalition government between his Union bloc and the Social Democrats added uncertainty around the future of an economy that hasn’t seen significant growth since before the COVID-19 pandemic.

Above all, Merz had been expected to end the squabbling over spending and budgets that plagued predecessor Olaf Scholz’s unruly three-party coalition that collapsed in November. His Feb. 23 election win and coalition deal seemed to provide assurance that his government could end policy paralysis and confront challenges including lagging investment in pro-growth projects, choking bureaucracy and a lack of skilled labor.

But the first-round flop in parliament raised questions about how …