Germany is preparing for a pivotal election to choose a new chancellor, with Friedrich Merz of the Christian Democratic Union (CDU) emerging as the leading candidate amidst ongoing economic challenges.

Critics attribute part of Germany's economic struggles to the policies of the current Chancellor Olaf Scholz, highlighting the need for a change in direction.

The nation's economy is grappling with significant issues in key sectors such as automotive, infrastructure, and housing, which complicate recovery efforts.

The contentious 'debt brake' fiscal rule remains a topic of debate, with Merz indicating a preference to maintain it, which could hinder growth prospects without incurring additional debt.

The CDU/CSU is promoting a conservative economic agenda that emphasizes tax cuts, deregulation, and innovation support, yet it lacks detailed plans for key investment areas.

Analysts warn that a leadership change may not drastically shift Germany's economic path, predicting only a refurbished economic model rather than a revolutionary change post-election.

Post-election, the CDU/CSU will likely need to negotiate a coalition with either the Social Democratic Party (SPD) or the Green Party, both of which have differing economic policy approaches that could complicate coalition talks.

While economists suggest that tax cuts could potentially boost consumer spending, there is concern that weak consumer sentiment may instead lead to increased savings rates.

Experts are skeptical about the CDU's ambitious 'Agenda 2030', which aims for 2% GDP growth, particularly in light of recent GDP declines and near-recession conditions.