Germany has finally a leader. Now comes the difficult part of Mires

After some dramas, about 10 weeks after the German elections, the largest economy in Europe has finally leading: Friedrich Mirz.

His ascension was not easily. On Tuesday, Mirz to fail For a consultant to a shock vote in the first round, an unprecedented event in the modern history of the country. Although the necessary parliamentary support is secured in a The second attempt Later in the day, Mirz appears to have started his new role as a somewhat bruising.

“It is the weakest of the beginning,” said Carsten Barzeski, Macro’s global president in Ing, told CNBC.

Other observers like Cyrus De La Rubia, the chief economist at Hamburg Commercial Bank, seem less interested.

“I think within a week or so from now, no one will talk about it much. Instead, people will look at what the government decides and does,” CNBC told CNBC.

In both cases, hard work has already began for the new consultant and the head of the coalition government, which consists of its Christian Democratic Union, with the Christian Social Union and the Social Democratic Party.

Some challenges include dealing with the division within the country on issues such as migration and geopolitical tensions about defense spending and trade, stagnant economy and preserving the ruling coalition unified and in the queue.

Germany’s economy will be at the head of Mirz, after making Promises Of new reforms and investments, and after harshly criticize The previous government policies during the election campaign.

For more than two years until now, the country has witnessed economic expansion and alternately alternately. The growth of the annual total local products was negative in 2023 and 2024. The latest expectations It does not seem to indicate a lot of comfort.

This is though The main financial package It was paid by CDU/CSU and SPD during their alliance negotiations, which include changes to long -term debt rules to allow more defensive spending and a 500 billion euros ($ 567 billion) infrastructure.

It seems that this money is at least safe, but the questions appeared about other financial and economic policies, said Brzeski’s.

Brzeski said: “I think the 500 billion euro infrastructure package is not touched and is an expired deal,” said Brzeski. He added: “All other measures, such as the fastest deletion of investments or tax discounts of companies in 2028, have become more nonexisial than before,” and this has now been linked to increasing risks now than potential clashes on the country’s budget.

Franzeska Palace, an economist in Europe at Capital Economs, also sees the financial package that is implemented as planned.

“We believe that this will give a big boost to the growth of GDP and the removal of Germany from the recession after six years,” Palmas told CNBC – but note that due to clear dissatisfaction within parts of the coalition factions, the risks of such reinforcement are smaller or take more time.

Another major issue affected by a turmoil on Tuesday is confidence in the coalition – which may be necessary for government’s economic policy plans, according to Otto Frick, the former Bundestag member of the Free Democratic Party.

He said, “The problem here in the end, it relates to the most important issue in politics: trust.”Europe early edition“On Wednesday. The German economy needs changes and quickly, if the goal is to grow, Frick said.

“Therefore, you need confidence within the cabinet, inside Parliament, to do the legislation quickly.”