Scholz cabinet in the context of "Merz cabinet"

The 2025 German federal election was held in Germany on 23 February 2025 to elect the 630 members of the 21st Bundestag, down from 736 in 2021 due to reforms in seat distribution. The 2025 election took place seven months ahead of schedule due to the 2024 collapse of the Scholz governing coalition. Following the loss of his majority, the chancellor called and intentionally lost a motion of confidence, which enabled the approval of a new election by the president. The 2025 election was the fourth snap election in post-war German history, and the first since 2005.

Three opposition parties increased their votes in the election, compared with the previous federal election in 2021. The conservative CDU/CSU alliance became the largest group in the Bundestag, with 28.5% of votes. Although this result was well below the 41.5% vote Angela Merkel had achieved in 2013 and its second to worst since 1949, it positioned them to lead the new government. The far-right Alternative for Germany (AfD) with 20.8% doubled its share and achieved its best result in nation-wide German elections, moving into second place, without any other party willing to work with them. The socialist Left party, polling well under 5% until January 2025, massively improved within a few weeks to 9%. On the other hand, the Sahra Wagenknecht Alliance (BSW), a populist splinter from the Left, fell in the polls, and at 4.98% narrowly failed to enter the Bundestag.

Alliance 90/The Greens (German: Bündnis 90/Die Grünen [ˈbʏntnɪs ˈnɔʏntsɪç diː ˈɡʁyːnən] ), often simply referred to as Greens (German: Grüne [ˈɡʁyːnə] ), is a green political party in Germany. It was formed in 1993 by the merger of the Greens (formed in West Germany in 1980) and Alliance 90 (formed in East Germany in 1990). The Greens had itself merged with the East German Green Party after German reunification in 1990.

Since November 2024, Franziska Brantner and Felix Banaszak have been co-leaders of the party. It currently holds 85 of the 630 seats in the Bundestag, having won 11% of first votes and 11.6% of second votes cast in the 2025 federal election, putting it in fourth place of the seven political parties by number of seats. Its parliamentary co-leaders are Britta Haßelmann and Katharina Dröge. The Greens have been part of the federal government twice: first as a junior partner to the Social Democrats (SPD) from 1998 to 2005, and then with the SPD and the Free Democratic Party (FDP) in the traffic light coalition from the 2021 election until that coalition's collapse in 2024. In the Scholz cabinet, the Greens had five ministers, including Vice-Chancellor Robert Habeck and Foreign Minister Annalena Baerbock.

The German economic crisis is a significant downturn of Germany's economy that marked a dramatic reversal of its previous "labour market miracle" period of 2005–2019. The country, which had been considered to be Europe's economic powerhouse in prior decades, became the worst-performing major economy globally in 2023 with a 0.9% contraction, followed by further 0.5% contraction in 2024 leading to recession. Several economists, business figures, and other experts expressed concern that Germany's economic downturn could cause the nation to reclaim its reputation as the "sick man of Europe" from the 1990s. Economists stated that Germany's economy was in a permanent crisis mode, with the Handelsblatt Research Institute declaring that it was in its "greatest crisis in post-war history" after projecting a third consecutive year of recession in 2025.

This decline was attributed to multiple factors: A lack of urgency in diversifying its energy supply before 2022 leading to increased energy prices (coinciding factors include the Russian invasion of Ukraine, its nuclear power phase-out, slow pace of energy transition, and increased cost of fossil fuels partly due to tax increases), comparatively lower productivity due to slow adaptation of digital technologies, German politics (specifically the debt limitation, the CDU/CSU-filed application to the Federal Constitutional Court successfully deeming a €60 billion climate fund unconstitutional as well as the subsequent in-fighting within the governing Scholz cabinet) obstructing economic stimuli, global shifts in demand hurting the country's export-led economy while its higher internal real wage growth-led demand is delayed due to high cost of living, as well as a skilled worker shortage arising from demographic challenges such as population ageing, low participation of women in the workforce and slowing immigration to Germany.

The Free Democratic Party (German: Freie Demokratische Partei, FDP, German pronunciation: [ɛfdeːˈpeː] ) is a liberal political party in Germany. The FDP was founded in 1948 by members of former liberal political parties in Germany before World War II, namely the German Democratic Party and the German People's Party. For most of the second half of the 20th century, particularly from 1961 to 1982, the FDP held the balance of power in the Bundestag. It has been a junior coalition partner to both the CDU/CSU (1949–1956, 1961–1966, 1982–1998, and 2009–2013) and Social Democratic Party (SPD; 1969–1982 and 2021–2024).

In the 2013 federal election, the FDP failed to win any directly elected seats in the Bundestag and came up short of the 5 percent threshold to qualify for list representation, being left without representation in the Bundestag for the first time in its history. In the 2017 federal election, the FDP regained its representation in the Bundestag, receiving 10.6% of the vote. From the 2021 federal election to the 2024 German government crisis, the FDP was part of governing Scholz cabinet in a "traffic light coalition" with the SPD and the Greens. In the 2025 federal election, the party again failed to win any directly elected seats and came up short of the 5 percent threshold to qualify for list representation, leaving the party with no seats in the Bundestag.

On 6 November 2024, Olaf Scholz, the incumbent chancellor of Germany, announced the dismissal of Christian Lindner, the then-finance minister and leader of the Free Democratic Party (FDP), from his cabinet. This occurred following disputes in the incumbent traffic light coalition government between Scholz's Social Democratic Party (SPD), the FDP and the Greens over the country's economic policies and tensions within the coalition. In response, the FDP withdrew from the government and moved into the opposition, leaving a minority red–green coalition government.

On 16 December 2024, Scholz intentionally called a vote of confidence in the ruling government which he subsequently lost. As a result, an early 2025 federal election was held, with the parties having agreed on 23 February 2025 as the date. The 23 February date for the election was confirmed by Federal President Frank-Walter Steinmeier on 27 December 2024.