Friedrich Merz looks poised to form a coalition between his center-right alliance and the center-left Social Democrats, but Germany is facing political uncertainty with an emboldened far right. The

He has vowed to prioritize European unity and the continent’s security as it grapples with the new Trump administration and Russia’s war on Ukraine.

Germany is set for a shift to the right after the conservative CDU/CSU bloc secured a clear victory in Sunday's elections, as the far-right Alternative for Germany (AfD) recorded its best-ever performance.

Germany faces its second change of leader in less than four years after the head of the center-right opposition won Sunday’s election.

An election win for Germany's conservatives has eased concerns of political gridlock in Europe's biggest economy, though it failed to lift uncertainty around whether a new government can deliver fiscal reforms that would boost sluggish growth.

Germany’s highest-stakes election in years is paving the way for a pivot to increased spending, with markets predicting the end of an era for constrained fiscal policy.