Incoming German Chancellor Friedrich Merz suffered a setback on Tuesday after failing to secure the required majority in the initial Bundestag vote to confirm his appointment, Bloomberg reported.

Merz, the leader of the conservative CDU/CSU bloc, had been expected to take office later in the day, but the outcome now casts uncertainty over the timeline of his swearing-in.

Out of 630 members of the Bundestag, Merz received 310 votes, falling six short of the absolute majority of 316 needed to confirm him as chancellor. This comes despite his ruling coalition, formed between the CDU/CSU and the Social Democrats, holding a combined 328 seats in the parliament.

Coalition support fails to deliver required votes

The result suggests that not all coalition members supported the chancellor candidate, raising questions about internal discipline within the CDU/CSU coalition government.

It is currently unclear whether the Bundestag will proceed immediately with a second vote or postpone further action.

According to the Bundestag voting procedure, Germany’s Basic Law permits up to three rounds of voting in which a chancellor candidate must secure an absolute majority. If no candidate achieves this after three ballots, a fourth round may proceed where a relative majority, the highest number of votes among candidates, could suffice.

Potential impact on Germany's coalition government

The vote raises concerns about potential instability within the new coalition and may complicate Merz’s ability to lead effectively. If further ballots are needed, the swearing-in of Merz as chancellor could face delays, and his mandate to govern might be weakened from the outset.

Merz launches Germany's new government in shifting global landscape

Merz was set to be sworn in as Germany's 10th chancellor with a mission to revive the ailing economy and boost the diplomatic standing of the EU's most populous country.

As US President Donald Trump has upended long-standing security and trade ties and reached out to Russia to end the Ukraine war, Merz has vowed to strengthen Berlin's role in Europe as it responds to increasingly turbulent times.

"Germany is back on track," the 69-year-old confidently said in a message to Trump weeks ago after his CDU/CSU alliance agreed to jointly rule Germany with the centre-left Social Democrats (SPD) of outgoing Chancellor Olaf Scholz.

But he faces a mountain of challenges from day one, including the rapid rise of the far-right and anti-immigration Alternative for Germany (AfD) party, which took second place in February's election and has won strong support from Washington.

Merz's domestic agenda and coalition priorities

Merz's new government has already secured hundreds of billions of euros in fiscal firepower under a spending "bazooka" passed by the outgoing parliament, meant to rebuild crumbling infrastructure and the long-underfunded military while boosting an economy which has shrunk for two years.

The alliance of Germany's two big-tent parties has said Germany would continue to support Ukraine as the United States looks to encourage a deal to end the war in Ukraine.

Trump has heaped pressure on European allies, accusing them of spending too little on NATO and taking advantage of the United States through running trade surpluses, threatening tariffs, especially painful to export power Germany.

Challenges facing Merz's leadership

Merz has also vowed to curb irregular migration and deploy extra police to secure Germany's borders, putting an end to the open-door policy that welcomed millions of migrants under his party rival, ex-chancellor Angela Merkel.

Merz has warned only such drastic steps will prevent the AfD from potentially coming out on top in elections in four years' time.

The stakes were heightened when Germany's domestic intelligence service last Friday designated the AfD as "right-wing extremists", reviving debate on whether the government should seek to ban the more than ten-year-old party.

This sparked a furious response from Trump allies who have supported the AfD, with US Secretary of State Marco Rubio accusing the German spy agency of "tyranny in disguise".

"In this moment of geopolitical crisis, chancellor Merz will have to run a marathon on a tightrope," said political analyst and author Michael Broening who serves on the SPD's Basic Values Commission.

"The stakes are high. One misstep could spell collapse -- and Germany's far right is poised to pounce on even the slightest wobble."

Foreign policy under Merz amid Trump pressure

Merz, who boasts a strong business background but has no experience in a government leadership post, on Monday said "we live in times of profound change, of profound upheaval ... and of great uncertainty".

"And that is why we know that it is our historic obligation to lead this coalition to success," he said.

The chancellor-in-waiting also promised "a government whose voice is heard in Europe and the world". His first trip on Wednesday will take him to Paris, followed by a Warsaw visit.

"The end of the power vacuum at the heart of Europe is a major positive on its own," wrote analyst Holger Schmieding of Berenberg Bank. "Although we do not expect a policy revolution, Merz will likely make a difference.

"With his strong transatlantic, pro-European and pro-Ukrainian convictions, we expect him to pursue a more forceful foreign policy, improve relations especially with France and Poland and have a better chance of getting along with US President Donald Trump."

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