German Politics: Advantage AfD as Berlin Bickers

German political polls show the right-wing AfD gaining significant ground as the ruling Merz coalition struggles with energy costs and internal reform disputes. Berenberg forecasts that pro-growth reforms could lead to an economic rebound by 2028, potentially salvaging the coalition's standing before the 2029 elections.

Key Takeaways

• 1.German opinion polls have shifted significantly toward the right-wing AfD as the CDU/CSU-SPD coalition loses support due to internal bickering and economic pressures.
• 2.Energy price spikes following the Iran war and unpopular healthcare and pension reforms are the primary drivers of government discontent.
• 3.Germany is pursuing pro-growth supply-side reforms including tax cuts and reduced red tape to counter stagflation risks.

Table of Contents

• The message of the polls
• Rising discontent
• A new wave of pro-growth reforms
• Time to act
• AfD ante portas?

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