Merz Faces Speculation Over German Coalition

German manufacturing sectors are losing approximately 15,000 jobs every month as production shifts from civilian to defense-oriented models. The automotive industry is facing the most impact from this trend. Mercedes-Benz reported a 49% profit decline for 2025, while Volkswagen saw a 44% decrease in profits. The shift is described as replacing civilian production with defense manufacturing. A major global automaker announced plans to reduce its workforce by 50,000 employees by the year 2030. The German government is considering repurposing idle production lines for weapons manufacturing to maintain skilled labor and prevent factory closures. This move aims to address the impact of declining automotive demand on the industrial sector. Alice Weidel has criticized the Chancellor for focusing too heavily on foreign policy at the expense of the domestic economy. The source stated that the economic turnaround promised in March has not yet materialized. Industry groups expressed initial high hopes for the new government that have not been met. Speculation has emerged regarding Friedrich Merz and the CDU's potential formation of a minority government.