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​.

Germany's businesses have been frustrated by government inaction on the stagnating economy. Sunday's national election raises hopes of a stable two-party coalition of conservatives and center-left Social Democrats,

Friedrich Merz faces complex coalition negotiations after the far-right AfD surged to a historic second place in a fractured vote after the collapse of Chancellor Olaf Scholz's unloved three-way alliance.

On 23 February, Germany will vote to decide who will run their next federal government. There’s five candidates running to be chancellor – the frontrunner is Friedrich Mertz from the Christian Democrat party. In Germany, a single party rarely wins the majority of seats in the Bundestag, meaning coalition governments often form.

German stocks rallied on Monday and the euro reached a one-month high after Germany’s election result put centrist parties on track to form a coalition. European shares more broadly held steady, while Wall Street futures rose after a U.