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    Home > Headlines > Far-right's western inroads create headache for German coalition
    Headlines

    Far-right's western inroads create headache for German coalition

    Published by Global Banking & Finance Review®

    Posted on September 15, 2025

    3 min read

    Last updated: January 21, 2026

    Far-right's western inroads create headache for German coalition - Headlines news and analysis from Global Banking & Finance Review
    Tags:political risk insurancefinancial stabilityeconomic growthunemployment ratesfinancial community

    Quick Summary

    The AfD's gains in NRW elections challenge the German coalition, with CDU and SPD facing pressure amid voter concerns.

    Table of Contents

    • Political Landscape in North Rhine-Westphalia
    • Election Results Overview
    • Implications for the Coalition
    • Responses from Political Leaders

    Far-Right Gains in NRW Challenge Stability of German Coalition

    Political Landscape in North Rhine-Westphalia

    By Petra Wischgoll and Thomas Escritt

    Election Results Overview

    COLOGNE (Reuters) -Germany's far-right Alternative for Germany (AfD) party made deep inroads in the country's most populous state in municipal elections on Sunday, reaching mayoral run-offs for the first time and underlining its appeal beyond its eastern heartland.

    Implications for the Coalition

    The conservative Christian Democrats (CDU) remained the strongest party overall but support for their national coalition partners the Social Democrats (SPD) declined in North Rhine-Westphalia (NRW), a western state of more than 18 million, while the AfD almost tripled its score from five years ago to 14.5%.

    Responses from Political Leaders

    "There's no avoiding the AfD in NRW any longer," posted a jubilant party leader Alice Weidel.

    FIRST TEST FOR THE COALITION

    The vote was a first test for CDU Chancellor Friedrich Merz's uneasy coalition with the SPD which critics say is failing to tackle a sluggish economy and voter concerns about immigration.

    Tackling migration is a priority for the AfD, which became Germany's second biggest party in February's federal election and was endorsed by tech billionaire Elon Musk. 

    Although the AfD's share of the vote was slightly lower than in February, its mayoral candidates progressed to second-round run-offs for the first time in three cities of the densely-populated Ruhr Valley, a former industrial heartland - Gelsenkirchen, Duisburg and Hagen.

    SPD SEES SUPPORT SLIDE

    Home to almost a quarter of Germany's 81 million inhabitants, the region's ethnically diverse mix of former mining regions, creative student cities, high-tech metropolises and sloping vineyards makes it an electoral bellwether.

    Merz's conservatives polled 33.3% of the vote, down around one point compared to five years ago. The SPD slipped to 22.1% from 24.3%.

    The losses are likely to heighten the pressure on Lars Klingbeil, Finance Minister and SPD leader, to boost the party's profile and assert himself as junior partner in Merz's coalition.

    "WE CAN'T SLEEP EASY"

    Soeren Link, the SPD mayor of Duisburg, who will face an AfD challenger in run-offs two weeks from now, blamed the party leadership for the debacle.

    "Something is wrong with the strategy," he said, calling for the party to take a harder line on AfD signature themes like immigration. His town, once a steel-making powerhouse with a flourishing river port, is now one of Germany's poorest.

    "This result should give us pause," said Hendrik Wuest, NRW's conservative state premier. "We can't sleep easy - not even my own party, which won the election so clearly."

    Despite rising unemployment and economic uncertainty in Germany, the CDU's only slight decline in NRW could strengthen the case for the 50-year-old centrist Wuest to succeed Merz, 69, if he does not run again for chancellor in elections due in 2029.

    (Reporting by Thomas EscrittAdditional reporting by Erol Dogrudogan; Editing by Alexandra Hudson)

    Key Takeaways

    • •AfD makes significant gains in NRW elections.
    • •CDU remains the strongest party but faces coalition challenges.
    • •SPD sees a decline in support, raising internal pressures.
    • •NRW elections serve as a test for the current coalition.
    • •AfD's rise highlights voter concerns on immigration.

    Frequently Asked Questions about Far-right's western inroads create headache for German coalition

    1What is financial stability?

    Financial stability refers to a condition where the financial system operates effectively, allowing for the smooth functioning of financial markets and institutions without significant disruptions.

    2What is economic growth?

    Economic growth is an increase in the production of goods and services in an economy over a specific period, typically measured by the rise in Gross Domestic Product (GDP).

    3What is the financial community?

    The financial community comprises individuals, institutions, and organizations that engage in financial markets and services, including banks, investors, and regulatory bodies.

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