Chancellor Merz, one year in office - Faced with a deep transatlantic crisis and increasing German discontent
Chancellor Friedrich Merz marks a year in office this week, facing the biggest crisis with Washington in decades after President Donald Trump said he would hit European auto imports with 25% tariffs and withdraw thousands of troops from Germany.
After two years of recession, a modest recovery risks being snuffed out by the energy shock from the Iran conflict, while a promised package of tax, welfare and healthcare reforms has been overshadowed by coalition squabbles.
Already squeezed by stifling competition from China, carmakers, the backbone of Germany's industrial base, now face a 15-25% tariff hike from one of their most important export markets.
In an interview on Sunday, Merz, who was sworn into office on May 6 last year, acknowledged public doubts, reflected in opinion polls that now place the far-right Alternative for Germany ahead of his conservatives as the country's most popular party.
For much of his first year, Merz has compensated for discontent at home with a relatively confident performance abroad, enjoying for a time a reputation as one of the few European leaders to have developed a good personal relationship with Trump.
A fluent English speaker, Merz remains a believer in the U.S. alliance, which he has tried to preserve as Germany rebuilds its depleted armed forces after decades of neglect. With the war in Ukraine still raging on the European Union's doorstep, he has been careful to persuade Trump not to turn entirely against Kiev.
But he has repeatedly warned that the era of relying on American forces to defend Europe is over and has become increasingly critical of the US-Israeli conflict with Iran, refusing to send German forces to help clear the strategic Strait of Hormuz until the fighting stops and an agreement is reached for a full international mission.
However, the events of the past week have made it clear how thin a dividing line there is with a US administration that has made no secret of its contempt for Europe's leaders, even those like Merz or Italian Prime Minister Giorgia Meloni, who were once praised by Trump.
The German Defense Minister played down the significance of Trump's decision to withdraw at least 5,000 troops from Germany and suspend the planned deployment of Tomahawk missiles, saying over the weekend that the move came as no surprise.
Merz denied that the decision was prompted by his remark to students last week that the US had no exit strategy from Iran and was "humiliating itself," despite Trump's angry attacks on social media against the chancellor he once called a friend.
It remains unclear exactly which troops will be withdrawn from the 40,000 US forces stationed in Germany and how this will affect some of the largest US military facilities outside the United States, including Ramstein Air Base.
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