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The 2025 federal election in Germany was highly anticipated, as individuals and governing bodies around the world recognized the potential implications of the outcome. BAL shared a synopsis of the election outcome in our 2025 Global Election Hub, but the following provides more context around how Germany’s government is structured, why this election was crucial and how the results might play out in the next several years.
How Germany’s government is structured
Germany’s constitution (The Basic Law) established the country as a constitutional federal state system and parliamentary democracy. The parliamentary system incorporates many features of the British system, but unlike the U.K.’s unitary nature, the federal component incorporates elements of a political structure found in the United States and other federal governments. Parliaments belong to the legislative branch, while governments belong to the executive branch and the judicial branch holds a key independent role.
The federal president is the head of state of the Federal Republic of Germany. The formal chief of state is chosen for a five-year term by a specially convened assembly and is the highest-ranking representative of Germany in terms of protocol. The president represents the country in its dealings with other countries and appoints government members, judges and high-ranking civil servants.
The president nominates the federal chancellor, who is then elected by a majority vote and is vested with the greatest political decision-making power. The president sets guidelines for policy and possesses power comparable to the president in a presidential democracy.
The Bundestag is the lower chamber of the federal parliament, made up of elected representatives of the German people. It is the cornerstone of the German system and has 630 members, although the precise number varies depending on the next elections. National elections to the Bundestag are held once every four years. The 69-member upper chamber, known as the Bundesrat, has members who are appointed by the state governments. The body exercises its authority to protect the rights and prerogatives of the state governments.
Under rules designed to prevent the instability that facilitated the rise of fascism in the 1930s, the president can only dissolve parliament and call an election if the federal chancellor calls, and loses, a confidence vote (more on that later).
Why the 2025 election was highly anticipated
Before the most recent election, the chancellor was Olaf Scholz of the Social Democratic Party (SDP). He succeeded Angela Merkel in December 2021 and was elected after the SDP entered into a coalition agreement with two other political parties known as the Alliance ’90/The Greens (Bündnis ’90/Die Grünen) and the Free Democratic Party (FDP).
This three-party “traffic-light” coalition government, ruling Germany since 2021, collapsed in November 2024 after Chancellor Scholz called for a confidence vote in parliament. On Dec. 16, 2024, he lost the vote of confidence, and the German parliament accepted the chancellor’s invitation to withdraw its confidence in him and dissolve the lower house of parliament. The no-confidence vote resulted in the need for an early election on Feb. 23, 2025, to elect the 21st Bundestag, rather than in September 2025 as originally scheduled. The snap federal election has tremendous implications for the EU’s largest member state and biggest eurozone economy.
The center-right Friedrich Merz of the Christian Democratic Union (CDU) was the front-runner to replace Scholz heading into the election. The CDU and Christian Social Union (CSU) had been ahead in the polls for months.
Germany’s party-political system has become more fragmented in recent years, with more parties and more radical upstart political forces. The far-right Alternative für Deutschland (AfD) entered the Bundestag for the first time in 2017, winning 12.6% of the vote. Before the election, it was polling around 20%. Scholz’s SDP and The Greens were two of the other major political players (third and fourth, respectively).
How the election panned out
Germany is getting a new chancellor, with Merz on course to become Germany’s 10th chancellor. The CDU/CSU secured 208 seats (28.52%), while the AfD and its leader, Alice Weidel, secured 152 seats (20.8%) and Scholz’s SDP secured 120 seats (16.41%). Scholz will continue as a caretaker chancellor until Merz is sworn in. It should be noted that AfD doubled its vote share from four years ago in the strongest showing for a far-right party since World War II.
What happens now?
The election determined who would be elected to parliament. Now, Merz must put together a coalition government. Only when a coalition deal has been reached will the 630 lawmakers in the new Bundestag vote to elect the next chancellor, who must secure at least 316 votes. There are no formal deadlines for coalition-building or voting on the new chancellor. Merz has said he wants to begin talks immediately and hopes to form a governing coalition by Easter.
The now-outgoing government of Chancellor Scholz is the most unpopular since 1949. Germany, which has 83 million inhabitants, grew into the world’s third largest economy primarily by making and exporting engineering products. It is considered an export-reliant and manufacturing-heavy economic model. Overall, real GDP is expected to have contracted by 0.1% in 2024, following a decline of 0.3% in 2023, the second year in a row with negative growth.
The next chancellor will have to tackle an economy that has shrunk for two consecutive years for the first time in decades — in part because of a slowdown with trade partner China, high energy costs and growing international competition.
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This alert has been provided by the BAL Global Practice Group.
Copyright © 2025 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The German government launched a new Consular Services Portal, allowing foreign nationals to apply for 28 national visa categories online.
Key Points:
Additional Information: Officials stated further digitalization and expansion of the portal’s functionality will continue as the German government attempts to make it easier for families, groups and authorized representatives to submit joint online applications. In addition, digitizing the visa process is aligned with the government’s desire to strengthen Germany as a business location. In the announcement, Foreign Minister Annalena Baerbock said that every year “Germany is short of at least 400,000 skilled workers.” She also stated that “we are now at last bringing Europe’s most modern immigration law into the digital era” and described the new portal as a “real administrative revolution.”
As BAL reported, a digital transformation is currently underway globally, as governments around the world attempt to create strong and secure digital infrastructures to streamline administrative procedures, reduce processing times and, in turn, recruit foreign skilled talent. Baerbock said that Germany’s national economy is in a global competition and “400,000 clever minds and even more agile hands” are needed to keep the country running.
The German government’s opportunity card will come into effect on June 1.
Additional Information: Sufficient financial means must be proven in order to qualify for the opportunity card. Individuals must demonstrate the ability to secure their livelihood without having to rely on public funds. The level of financial means varies from case to case; however the assumed annual standard requirement is 12,324 euros per person (about US$13,380). Using the points system, prospective applicants match the required selection criteria with their own requirements. Basic requirements are German language skills at level A1 or English language skills at level B2 as well as (at least) two years of vocational training or a university degree. No points are awarded for the basic requirements, and points are awarded for criteria such as additional professional experience, age and a connection to Germany.
BAL Analysis: The measure is designed to attract more highly skilled workers and allow them to use professional training to immigrate to Germany. The opportunity card offers candidates the possibility of permanent residence, while allowing for an immediate work permit.
Copyright © 2024 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The German government announced the passage of a new act modernizing German citizenship law, which will go into effect in June.
Additional Information: Individuals determined to be well-integrated candidates who have shown a high level of civic engagement may also qualify for a reduced requirement of three years of residence to apply for citizenship. The requirements and standards for applying for German citizenship have been increased, and candidates must now demonstrate German language skill proficiency and financial self-sufficiency to apply.
BAL Analysis: The measure is designed to attract more highly skilled workers and to provide increased benefits for well-integrated people. The legislation is a long-overdue simplification for dual citizenship capabilities and should allow more individuals to apply for German citizenship.
The German government announced that Israeli nationals can remain in the country until April 26, 2024, without applying for a residence permit or an extension of their visa-free stay.
Background: The German Minister of the Interior emphasized the country’s solidarity with the people of Israel and said the ongoing situation factored into the decision. Other countries have recently enacted similar measures to support citizens impacted by the Israel-Hamas war. Canadian officials recently announced a new temporary resident pathway for Canadian citizens’ and permanent residents’ extended family members in Gaza. The United States also recently authorized visa-free travel for Israeli nationals and designated Israel into the U.S. Visa Waiver Program, which allows eligible travelers to apply online for authorization to travel to the United States through the Electronic System for Travel Authorization.
BAL Analysis: The temporary measure should provide visa relief to Israeli citizens who are currently in Germany as officials aim to provide support to those affected by the conflict.
The German government introduced new rules governing how foreign nationals can obtain an EU Blue Card.
Background: The new Skilled Workers Immigration Act was published on Aug. 18. The new immigration initiatives are designed to make it easier for skilled workers to live and work in Germany. The new law has several parts. Beginning Nov. 2023, provisions began to be phased in and further regulations will come into force in March 2024. With the new law, existing mechanisms for skilled workers will be improved and extended.
BAL Analysis: The German legislature is implementing the requirements of Directive (EU) 2021/1883 to restructure and widen the migration possibilities with an EU Blue Card. The 2021 EU directive gave EU member states until Nov. 18, 2023, to implement the upgrades for those countries that opted in. The complete list of countries that have updated their requirements can be found here.
IMPACT — MEDIUM
Starting Jan. 1, 2024, Germany is doing away with paper passports for children and replacing them with biometric passport.
Background: Germany is taking this step to make travel abroad, particularly to the U.S. and Australia, easier for families with children. Applications for these passports must be made in person by parents or legal guardians at embassies or consulates general after making an appointment. The children who are to receive the passports must accompany them.
This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
Increased demand for Schengen visas for travel to Germany is creating longer waiting times for appointments and longer visa processing times, according to information from the German Mission in India.
Background: Wait times often increase during peak travel season. In general, neither the Germany mission nor VFS can expedite the Schengen visa process, and some applicants may need to rearrange travel plans at this point.
The German government recently relaxed its short-term visa appointment policies for Indian nationals.
BAL Analysis: German authorities relaxed their short-term visa appointment and submission policies for Indian nationals to streamline the appointment process and reduce processing time frames. Indian nationals should note that they are allowed to submit only applications for short-term work visas at any visa application center.
Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The German government launched a pilot program for travelers departing Germany at Munich International Airport.
Additional Information: The Express Queue pilot program will be available for a 60-day period from Oct. 25. More information regarding the pilot program is available here.
BAL Analysis: German authorities introduced the pilot program to help reduce wait times at security checkpoints and passport control for those traveling to non-Schengen Area countries. After the 60-day trial period, authorities will evaluate the effectiveness of the program and may expand it to other travelers and at different locations.
Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.