The business past of the winner of the elections in Germany links him to the Chira Soria megaproject
The name of Friedrich Merz is one of the most frequently mentioned in Europe right now. After the sigh of relief that the European Union has breathed after fearing the worst with an AfD victory and having to deal with a movement for Germany to leave the European Union (called Gexit), the bureaucrats in Brussels are calmly watching how, after the victory of the Christian Democratic Union (CDU/CSU) in the elections last Sunday, the conservative moderation of Merz (who has already warned of a “cordon sanitaire” for AfD) will be in charge of leading the negotiations to form a government in the German country.
Despite his well-known political profile in the country, Merz combined public service with business life until 5 years ago, serving as Chairman of the Supervisory Board of BlackRock Germany between 2016 and 2020. Under his leadership, the firm acquired stakes in large German companies and strengthened its presence in the country.
BlackRock (not to be confused with BlackStone, which As already published by M24H, a few weeks ago announced its intention to sell HIP, the hotel giant from the south of Gran Canaria) is recognized as one of the largest asset managers worldwide and has recently been at the center of recent debates due to its decision to leave the Net Zero Asset Managers Initiative, a coalition committed to carbon neutrality by 2050.
BlackRock has been the subject of debate in Europe not only for its weight in the financial sector, but also for its participation in infrastructure and renewable energy projects. In the Canary Islands, its name has been linked to Chira-Soria, the mega hydroelectric power plant promoted by Red Eléctrica de España (REE), of which BlackRock is a shareholder (as of December 31, 2024, they held 4,644% of the total shares).
The facility, which will be a pioneering engineering project in Spain and seeks to be a strategic tool for the island, will be intended to store renewable energy by raising water between reservoirs and releasing it to generate electricity when needed. It has been widely questioned by various environmental groups due to its environmental impact and multi-million-dollar cost.
The Chira-Soria project has also received considerable support from European institutions. In October 2024, the project received a €300 million loan from the European Investment Bank and Red Eléctrica to boost its development.
BlackRock's involvement in sustainability and environmental issues led the European Commission to grant the company the role of advisor on environmental and social factors in its banking supervision in 2020, when Merz was still associated with BlackRock.
Although it will still be a few weeks before we know what agreements Merz will have to reach in order to govern, the winner of the elections made it clear on election night that his intention is to form a government as soon as possible, setting the end of April as the deadline.
Will Merz be able to establish a stable government after the failure of Scholz, the interference of the United States in European territory with its bilateral mediation in the Ukrainian conflict and the growing discontent with the European Union among many member states?
