After Six Months, Germany’s Merz Faces Mounting Woes

 Germany's Chancellor Friedrich Merz speaks during the press conference at the Belem Climate Summit of the UN Climate Change Conference (COP30), in Belem, Brazil, November 7, 2025. (Reuters)
Germany's Chancellor Friedrich Merz speaks during the press conference at the Belem Climate Summit of the UN Climate Change Conference (COP30), in Belem, Brazil, November 7, 2025. (Reuters)
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After Six Months, Germany’s Merz Faces Mounting Woes

 Germany's Chancellor Friedrich Merz speaks during the press conference at the Belem Climate Summit of the UN Climate Change Conference (COP30), in Belem, Brazil, November 7, 2025. (Reuters)
Germany's Chancellor Friedrich Merz speaks during the press conference at the Belem Climate Summit of the UN Climate Change Conference (COP30), in Belem, Brazil, November 7, 2025. (Reuters)

After just six months in power, German Chancellor Friedrich Merz's coalition is facing infighting, policy deadlock and sliding poll ratings, undermining its efforts to take on the rising far right.

It marks a difficult start for the conservative politician who ran on bold pledges of reviving the stagnant economy, overhauling the threadbare military and toughening immigration policy after years of drift under the previous government.

In German post-war politics, "there has never been such widespread dissatisfaction with a government in such a short period of time", Manfred Guellner, director of the Forsa polling institute, told AFP.

For Germans who hoped for more decisive leadership after the last government's collapse, "their expectations have been dashed", he said.

The winners of February's general election, Merz's center-right CDU/CSU bloc now find themselves neck-and-neck in the polls with the far-right Alternative for Germany (AfD), which came second in the poll and is now the largest opposition party.

Merz's junior coalition partners, the center-left Social Democrats (SPD) of ex-chancellor Olaf Scholz, have seen their popularity slide further after a terrible election performance, and now sit around 13-15 percent in polls.

"It is clear that many citizens are dissatisfied or disappointed with the government's work so far," Roderich Kiesewetter, an MP from Merz's Christian Democrats (CDU), told AFP.

The government appeared to be "focusing only on migration instead of the economy, education and security", he said.

There have been increasing tensions between the ruling parties in Berlin since Merz failed to be elected chancellor in the first round of voting in parliament in early May, a first in post-war Germany.

In July they were unable to agree on the appointment of three judges to the constitutional court, with the conservatives considering the Social Democrats' candidate too left-wing.

A group of young conservative MPs revolted over a pension reform proposal, which had already been adopted by the cabinet, arguing that it burdened future generations.

Meanwhile, an overhaul of the country's military service system, which was supposed to demonstrate Germany's leadership in NATO in the face of the Russian threat, has turned into a stalemate over whether to bring back a limited form of conscription.

Now Foreign Minister Johann Wadephul, a close confidant of Merz, is under fire from conservatives for expressing reservations about the possibility of sending back Syrian refugees living in Germany.

With their support so low after the February polls, the CDU/CSU and the SPD "are finding it more difficult to reach compromises," Aiko Wagner, a political scientist at the Free University of Berlin, told AFP. Both sides fear they "will become even weaker among their own" supporters if they do, said Wagner.

The coalition's own struggles are making it more difficult for Merz to counter the rise of the AfD, which he declared as his party's "main opponent" ahead of five regional elections scheduled for 2026.

Merz has used increasingly tough rhetoric on immigration to counter the AfD, such as a controversial statement in October about the problems of the "German urban cityscape" -- seen as criticism of the impact of migrants on cities.

But this offended many Social Democrats, as well as some moderates among his conservative bloc.

Guellner argued that Merz made "a fatal mistake" by focusing so much on migration when the struggling economy was the main concern of many voters.

The AfD meanwhile sees Merz's struggles as an opportunity.

A clear majority of Germans backed conservative or right-wing parties in the election, AfD MP Sebastian Muenzenmaier told AFP.

But Merz's coalition with the center-left appears incapable of delivering on his promises, he said.

"No one sees this government staying in power for four years," said Muenzenmaier, who predicted that the AfD would have strong showings in next years' state elections.

"Many believe that at the end of next year, after the elections, the situation will become very difficult for the government in Berlin and that it will collapse".

The prospect of another coalition crisis and early elections did not sit well with Stephanie and Bernd Nebel, two visitors to Berlin from Munich who spoke with AFP outside of the Reichstag, the seat of Germany's parliament.

The biggest problem with the coalition so far, Bernd Nebel said, was that Merz's government "made it their mission to boost the economic recovery a little -- and absolutely nothing has happened in that regard".



Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran on Monday summoned diplomats in Tehran representing France, Germany, Italy and the UK to object to what it described as support by those countries for the protests that have shaken the country, its foreign ministry said.

The diplomats were shown a video of the damage caused by "rioters" and told their governments should "withdraw official statements supporting the protesters", the ministry said in a statement quoted by state television.

In Paris, the French foreign ministry confirmed that "European ambassadors" had been summoned by Iran.


Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran's bazaar merchants, the trader class who were the financial backbone of the 1979 revolution, have turned against the clerics they helped bring to power, fueling unrest over an economy that has morphed into full-blown anti-government protests.

Frustration among bazaar merchants, from small-scale shopkeepers to large wholesale traders, has grown as their political and economic clout in Iran has diminished over the decades while the elite Revolutionary Guards have tightened their grip on the economy, building sprawling and tightly held networks of power.

"We are struggling. We cannot import goods because of US sanctions and because only the Guards or those linked to them control the economy. They only think about their own benefits," said a trader at Tehran’s centuries-old Grand Bazaar, speaking on condition of anonymity.

The wave of protests that has engulfed the country, posing one of the toughest challenges ever to the clerical leadership, erupted in late December in Tehran's Grand Bazaar, where hundreds of shopkeepers denounced the sharp fall in the rial currency.

The demonstrations quickly swelled and turned political, challenging the Islamic Republic's legitimacy. Protesters burned images of Supreme Leader Ali Khamenei and chanted "Death ‌to the dictator" - ‌undeterred by security forces armed with tear gas, batons, and, in many cases, live ammunition.

Iran’s ‌rulers, ⁠while acknowledging economic difficulties, have ‌blamed their longtime foes the US and Israel for fomenting the unrest. They appear intent on holding onto power at any cost, backed by a security apparatus refined over decades of suppressing ethnic revolts, student movements, and protests over economic hardship and social freedoms.

A combination of international sanctions and the Guards' sprawling economic empire has limited the government's ability to ease the dire economic situation.

Tehran-based analyst Saeed Laylaz said the government has lost control over the situation.

"What is striking is that the unrest began in the bazaar. For merchants, the core issue isn’t inflation - it’s price volatility, which leaves them unable to decide whether to buy or sell," he said.

Economic disparities between ordinary Iranians and the clerical and security elite, along with economic mismanagement and state corruption - ⁠reported even by state media - have fanned discontent at a time when inflation is pushing the price of many goods beyond the means of most people.

Iran's rial currency has lost nearly ‌half its value against the dollar in 2025, with official inflation reaching 42.5% in December.

CONTROL ‍OF SECTORS FROM OIL TO CONSTRUCTION

Created by the republic's ‍late founder Khomeini, the Guards first secured an economic foothold after the Iran-Iraq war in the 1980s, when clerical rulers allowed them ‍to invest in leading Iranian industries.

Their influence expanded exponentially over decades, benefiting from Khamenei's full backing and from opportunities created by Western sanctions, which effectively excluded Iran from the global financial and trading system.

The Guards now control vast sectors of the economy, from oil to transportation, communications, and construction.

Another trader said the crisis was not over, as the Guards have long proved adept at defending their economic interests.

"The government wants to resolve the problem, but it lacks the means and power in this system. The economy is not controlled by the government," said the trader, a 62-year-old carpet seller in Tehran.

All aspects of the country's sanctions-hit oil business have come under the growing influence of the ⁠Guards - from the shadow fleet of tankers that secretly ship sanctioned crude, to logistics and front companies selling the oil, mostly to China.

"No one knows how much of the oil money that the Guards get from selling Iran’s oil returns to the country ... they are too powerful to be questioned about it,” said a senior Iranian official, who asked not to be named.

During his 2013–2021 presidency, pragmatist Hassan Rouhani repeatedly clashed with the Guards, accusing them publicly of resisting budget cuts, while his attempts to curb their commercial networks and assets were largely frustrated.

THE ESTABLISHMENT RELIES ON THE GUARDS TO END UNREST

Even as it has relinquished economic power, the clerical establishment has relied on its loyal forces - the Guards and its affiliated Basij paramilitary - to violently crush ethnic uprisings, student unrest, and protests over economic hardship, preserving the political order.

"Given the sensitive circumstances when the country faces foreign threats, Khamenei cannot upset the Guards by curbing their economic influence. The establishment needs them to quell the protests and confront foreign threats," said an insider, close to Rouhani.

US-based rights group HRANA said it had verified the deaths of 544 people - 496 protesters and 48 security personnel - with 10,681 people arrested since ‌the protests began on December 28 and spread around the country. Reuters was unable to independently verify the tallies.

The authorities have not given numbers of casualties, but officials say many members of the security forces have been killed by "terrorists and rioters" linked to foreign foes, including the US States and Israel.


Greenland Says It Should Be Defended by NATO, Rejects Any US Takeover

 A view of houses in Nuuk, Greenland, June 22, 2025. (AP)
A view of houses in Nuuk, Greenland, June 22, 2025. (AP)
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Greenland Says It Should Be Defended by NATO, Rejects Any US Takeover

 A view of houses in Nuuk, Greenland, June 22, 2025. (AP)
A view of houses in Nuuk, Greenland, June 22, 2025. (AP)

Greenland's government said on Monday it will increase efforts to ensure the defense of the Arctic territory takes place under the auspices of NATO and again rejected US President Donald Trump's ambition to take over the island.

Trump has said the United States must own Greenland, an autonomous part of the Kingdom of Denmark, to prevent Russia ‌or China occupying the ‌strategically located and minerals-rich territory ‌in ⁠the future.

"All ‌NATO member states, including the United States, have a common interest in the defense of Greenland," the island's coalition government said in a statement, adding that it can in no way accept a US takeover of Greenland.

"As part of ⁠the Danish commonwealth, Greenland is a member of NATO and ‌the defense of Greenland ‍must therefore be through NATO," ‍the government said.

The European Union Commissioner ‍for Defense and Space Andrius Kubilius said earlier on Monday that any US military takeover of Greenland would be the end of NATO.

Trump first floated the idea of a US takeover of Greenland in 2019 during his first term ⁠in office, although he faces opposition in Washington, including from within his own party.

While Denmark has ruled Greenland for centuries, the territory has gradually been moving towards independence since 1979, a goal shared by all political parties elected to the island's parliament.

"We are a democratic society that makes our own decisions. And our actions are based on international law," Greenland's Prime Minister ‌Jens-Frederik Nielsen wrote on LinkedIn.