Germany’s Democracy Is Broken

Germany’s political system is in crisis, and the past few months have laid bare its flaws. The collapse of Chancellor Olaf Scholz’s coalition in November 2024, a lackluster snap election on February 23, 2025, and the controversial surveillance of the Alternative für Deutschland (AfD) as a “confirmed right-wing extremist” party have exposed a democracy that prioritizes party maneuvering over voter will. Despite an impressive 83% voter turnout—the highest since before reunification in 1990—citizens remain sidelined, watching as political elites negotiate outcomes that feel disconnected from their ballots. This is not democracy in action; it’s a spectator sport. Germany must embrace bold reforms—referendums, decentralization, and digital participation—to restore trust and give citizens a real voice.

A Betrayal of Voter Trust

The snap election followed the implosion of Scholz’s coalition, torn apart by disputes over budget policy and economic strategy. The campaign that ensued was a masterclass in empty rhetoric, with parties like the CDU/CSU, SPD, and Greens trading barbs instead of offering solutions. The results painted a fractured picture: the CDU/CSU won 28.6% of the vote, the AfD surged to 20.8%, and the SPD slumped to a historic low of 16.4%. Yet, despite this clear call for change, the new CDU/CSU-SPD coalition feels like a rehash of the tired “grand coalition” model that voters have grown to resent.

Chancellor Friedrich Merz, elected on May 6, 2025, has already squandered much of his mandate. His campaign promised a “firewall” against the far-right AfD, yet in January 2025, he passed a non-binding migration motion with their support—a move that stunned centrists and conservatives alike. Merz’s U-turn on fiscal policy, softening Germany’s debt brake to unlock nearly €1 trillion in loans, further eroded trust, contradicting pledges of restraint. The secret ballot debacle during his chancellor election, where he initially failed to secure a majority despite a 12-seat coalition advantage, revealed internal dissent and a leader struggling to unify his ranks. These missteps aren’t just political blunders; they’re a betrayal of the voters who turned out in record numbers expecting change.

The Party Cartel and the Financial Power Grab

At the heart of this crisis is Germany’s “party state,” where established parties—CDU/CSU, SPD, Greens—dominate not just parliament but also the judiciary, media, and trade unions. This cartel, often cloaked as the “democratic center,” thrives on a proportional representation system that dilutes voter preferences. The SPD’s inclusion in the new government, despite its worst electoral performance since 1890, is a glaring example. Smaller parties like the FDP, which failed to cross the 5% threshold, and fringe groups like the AfD or Left Party are routinely sidelined, leaving voters with little influence over coalition deals struck behind closed doors.

The outgoing Bundestag’s decision in March 2025 to amend the constitution, easing debt limits to fund €1 trillion for defense and infrastructure, was a shocking overreach. Critics, including the AfD, called it a “financial coup d’état,” and they’re not entirely wrong. Pushed through by a defeated parliament, this move mocked campaign promises of fiscal discipline and reinforced the perception that major decisions bypass public input. Such actions erode the very foundation of democratic trust, leaving citizens feeling like pawns in a game rigged by elites.

The AfD Controversy: A Double-Edged Sword

The classification of the AfD as a “confirmed right-wing extremist” party by the Federal Office for the Protection of the Constitution, announced by Interior Minister Nancy Faeser, has thrown gasoline on an already polarized landscape. With 20.8% of the vote and 152 parliamentary seats, the AfD is a force to be reckoned with, particularly in eastern Germany, where it commands 34% support. The surveillance, justified by the agency citing the party’s anti-constitutional rhetoric, has sparked accusations of political motivations, especially given its timing just before Merz’s chancellorship. Is this a defense of democratic norms or a cynical attempt to marginalize a rival?

International reactions underscore the stakes. Hungarian Prime Minister Viktor Orbán, no stranger to challenging liberal democratic norms, took to X to slam Germany’s move, calling the AfD “the future” of Europe. Austria’s Freedom Party MEP Petra Steger labeled the surveillance a “massive scandal,” warning of a potential ban that could martyr the AfD and boost its appeal. Foreign media, like the Neue Zürcher Zeitung, question whether the classification targets genuine threats or merely controversial views protected by free speech. Even The Sunday Times notes that Merz’s chancellorship is overshadowed by this debate, with a ban risking the alienation of the AfD’s 10 million voters.

The AfD’s rhetoric—anti-immigrant, pro-Russia, and skeptical of the liberal order—may be provocative, but silencing a party with such broad support is a dangerous gamble. A ban could backfire, particularly in the east, where economic stagnation and migration fears fuel its rise. Merz’s flirtation with AfD votes on migration policy, despite his denials of cooperation, only muddies the waters, normalizing a party he vowed to shun. This delicate balance—addressing extremism without undermining democratic competition—requires a smarter approach than surveillance or bans.

A Call for Citizen Power

Germany’s democracy isn’t doomed, but it’s on life support. The solution lies in empowering citizens, not entrenching party control. The current system, where voters are reduced to checking a box every four years, is outdated in an era of digital connectivity and informed publics. Here’s how Germany can revive its democracy:

First, embrace referendums and popular initiatives. Amending the Basic Law to allow binding federal votes on issues like immigration or defense spending would give citizens a direct stake in policy. Switzerland’s frequent referendums show how expertise and public input can coexist. Germany’s parties resist this, fearing a loss of control, but that’s precisely why it’s needed.

Second, decentralize power. Strengthening local and state governance, where non-partisan groups often thrive, brings decisions closer to citizens. Municipal models of accountability could inspire regional parliaments, diversifying representation and loosening the party grip.

Third, leverage digital participation. Platforms like Taiwan’s vTaiwan prove that technology can democratize policy debates, letting citizens propose and refine ideas online. Germany could pilot such tools for economic or migration reforms, ensuring transparency and inclusion.
Finally, reform the electoral system. Lowering the 5% threshold or introducing preferential voting would amplify smaller voices, reducing the “democratic center’s” stranglehold. Transparency in coalition talks and independent oversight of institutions like the media would further rebuild trust.

These reforms won’t be easy. Established parties, cozy in their ivory tower, will fight tooth and nail to preserve the status quo. Grassroots movements, amplified by alternative media, must lead the charge, but they’ll need to avoid being hijacked by polarizing forces. The risk of fragmentation, as seen with the Left Party’s 8.8% share, is real, but a democracy that fears its own citizens is no democracy at all.

A Fork in the Road

Germany stands at a crossroads. The high voter turnout in February 2025 was a cry for change, but the system delivered more of the same: party deals, broken promises, and a polarized electorate. The AfD controversy, while rooted in legitimate concerns about extremism, risks escalating tensions and alienating millions. International onlookers, from Orbán to the global press, are watching closely, knowing Germany’s choices will ripple across Europe.

Without reform, Germany risks further disillusionment, paving the way for populism or worse. But with bold steps—referendums, decentralization, digital tools—it can forge a democracy that truly serves its people. The 83% who voted deserve more than a front-row seat to elite negotiations. They deserve a voice. It’s time for power brokers to listen.