The German Parliament, since its 1999 reopening, has seen the Social Democrats hold a significant position, often utilizing the Otto Wels Hall, named after a prominent leader exiled during the Nazi regime. However, following their disappointing performance in the recent federal elections, the Social Democrats face the prospect of conceding this space to the Alternative for Germany (AfD), which insists it merits the hall due to its second-place finish.

This contention over the Wels Hall exemplifies larger issues confronting Merz's coalition, which also includes the center-right Christian Democrats. The coalition is now tasked with determining an effective approach to counter the AfD, a party described as politically divisive yet potent enough to threaten the coalition's governance plans. Compounding these difficulties is a recent ruling from Germany's domestic intelligence agency labeling the AfD an extremist entity, adding layers of complexity to the political landscape that Merz's new government must navigate.