section_path: Return to politics/Chairman of the CDU (2022–present)/CDU chancellor candidate (2025)
section_name: CDU chancellor candidate (2025)
paragraph_text: CDU chancellor candidate (2025)
  
  In September 2024, Merz became the Union's designated candidate for Chancellor of Germany in the 2025 federal election, after Hendrik Wüst (CDU) and Markus Söder (CSU) decided not to run and after both declared their support for Merz. Due to the collapse of the incumbent governing coalition in November 2024, the election took place seven months ahead of schedule.
  
  Exit polls released following the 2025 federal election showed CDU would win the most seats in the German parliament, albeit with its second worst result ever, thus ensuring Merz the role of Chancellor of Germany.
  
  In the aftermath of the election, the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) initiated coalition talks to form the next government. In the federal election the CDU, led by Merz, emerged as the strongest party but fell short of an absolute majority, necessitating coalition negotiations. The SPD, under the leadership of Lars Klingbeil, entered discussions to explore potential collaboration. The expected CDU/CSU–SPD coalition would form what is historically referred to in German politics as a Große Koalition (Grand Coalition, although that term describes the coalition of the two biggest parties, which the SPD is not since the 2025 election).
  
  On 5 March 2025, Merz proposed a significant increase in defence spending. He stated at the press conference: "Germany and Europe must quickly strengthen their defence capabilities. The CDU, CSU and SPD will table a motion to amend the Basic Law so that defence spending above 1% of GDP is exempt from the debt brake ". This would allow Germany to increase its debt without limits in order to finance its military and provide military assistance to Ukraine. Economists have warned that Merz's plan could trigger inflation and increase Germany's government debt. Germany would pay approximately €71 billion in interest annually from 2035. During negotiations for the next German cabinet, Merz and outgoing Chancellor Olaf Scholz reached an agreement to reform the debt brake by amending Paragraphs 109, 115 and 143h of the Basic Law to exempt defence spending exceeding 1% of GDP. Next to the defence spending Merz agreed to create a special fund of €500 billion for "investments in infrastructure and for additional investments to achieve climate neutrality by 2045". On 18 March 2025, German lawmakers approved the amendment to the Basic Law. The change will allow the Merz government to spend €500 billion on infrastructure and green energy within 10 years and to have defence spending above 1% of GDP to be exempted from the debt brake; this allows an unlimited debt-based financing of defence spending. Merz, who had promised to not touch the debt brake rule prior to the German federal election, justified the increase in defence spending by the threat from Russia, citing Putin's "war of aggression against Europe". He called the decision "the first major step towards a new European defence community." He also planned to increase military aid to Ukraine. The trillion-euro spending package was approved before the 21st Bundestag was constituted on 25 March 2025, where The Left and AfD would have the ability to block it. A two-thirds majority was needed to change the constitution. The plan was supported by the CDU, CSU, SPD, and the Greens. Merz's fiscal package was welcomed by French President Emmanuel Macron, NATO Secretary General Mark Rutte, and European Commission President Ursula von der Leyen.
  
  On 9 April 2025, Merz, together with the CSU party leader Markus Söder and the SPD co-leaders Lars Klingbeil and Saskia Esken, presented the coalition agreement for the planned black-red coalition. This agreement was signed on 5 May 2025, after internal party votes on a government coalition were approved in the three parties in the weeks before.