Friedrich Merz 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​.

Friedrich Merz is set to become Germany’s next chancellor after his centre-Right Christian Democratic Union [CDU] party won the election on Sunday night.

Financial markets rose on the likelihood of a two-party coalition between the CDU/CSU and the SPD, with Germany's benchmark DAX Index up 0.7%. Click to read.

Outgoing German chancellor Olaf Scholz conceded the election and decried the historic gains of the far-right conservative party, AfD. Early exit polls show AfD is headed for second place, while opposition leader Friedrich Merz’s conservatives are in the lead and Scholz’s party fell to third.

The leader of the far-right Alternative for Germany (AfD), the second largest party in parliament after Sunday's election, said Germany's likely next chancellor would be held hostage by left-wing parties that would seek to loosen tough fiscal rules.

Merz expressed concern over changing relations with Washington under the Trump administration, emphasizing the need for gradual independence from the U.S.

Whether he can form a strong coalition remains to be seen, but whatever he does will be an essential part of Europe’s response to President Trump’s reshuffling of alliances.

German stocks ended Monday higher in Europe after conservatives led by Friedrich Merz won the national election with promises of pro-growth policies to boost an ailing economy.

Europe must seek to “achieve independence” from the United States, Germany’s likely next chancellor Friedrich Merz said after his opposition conservatives won elections on Sunday, in a vote that also saw surging support for the far-right.

After an election dominated by immigration and economic issues, Germany’s likely new chancellor is Friedrich Merz, the leader of the conservative Christian Democrats. His party finished first with just under 29 percent of the vote and will need to form a coalition government.

Friedrich Merz is set to become the next Chancellor at a time of great tumult at home and abroad, writes John Kampfner.