Friedrich Merz, leader of Germany’s Christian Democratic Union (CDU), suffered a historic defeat in his bid to become chancellor, failing to secure the necessary parliamentary votes in the first round. Despite his coalition with the Social Democrats (SPD) holding a 328-seat majority, Merz received only 310 votes—six short of the 316 required for confirmation. This unprecedented setback marks the first time in post-war Germany that a chancellor-designate has failed to be elected in the initial round. The secret ballot revealed unexpected internal dissent within the coalition, with several members reportedly voting against Merz or abstaining. The political uncertainty triggered immediate market reactions. Germany's DAX index fell by nearly 2%, and the euro gave up earlier gains. Analysts expressed concerns that the failed vote could undermine Merz's credibility and authority before even assuming office. Merz's ambitious policy agenda, including a €1 trillion debt-financed programme to mo...