Germany’s federal election results are in, with the centre-right Christian Democratic Union (CDU), led by Friedrich Merz, emerging as the winner. The CDU secured 28% of the vote, placing it ahead of all other parties. The far-right Alternative for Germany (AfD) celebrated its best-ever result, gaining 20% and establishing itself as a major force in German politics. Meanwhile, Chancellor Olaf Scholz’s centre-left Social Democratic Party (SPD) suffered a crushing defeat, finishing third with only 16%—the party’s worst performance since 1887.

Coalition Talks Begin Amid Political Uncertainty

The election outcome has triggered complex coalition negotiations. The CDU will need to form alliances to secure a governing majority, but the path forward is unclear. Several smaller parties, including the Free Democratic Party (FDP) and the left-conservative Bündnis Sahra Wagenknecht (BSW), failed to cross the 5% threshold required to enter parliament. BSW narrowly missed out with 4.97%, nearly complicating Merz’s coalition-building efforts.

Die Linke, a far-left party that had been struggling in recent years, unexpectedly secured 8% of the vote following a viral campaign in the final days before the election. This result gives the party a stronger position in opposition or potential coalition discussions.

The SPD has signaled a willingness to engage in coalition talks with the CDU, though divisions within the party remain. A CDU-SPD “Grand Coalition” is seen as the most likely outcome, as Friedrich Merz seeks to avoid a more complicated three-party alliance. However, disagreements over policy priorities could extend negotiations for weeks. Merz has set a goal to finalize a coalition agreement by Easter, though experts warn that deep policy rifts may delay the process.

An SPD lawmaker described the election outcome as a “massive defeat” for the party, adding that trust in Merz’s leadership is at an “all-time low.” Many SPD members have voiced strong opposition to any coalition deal that does not include significant compromises from the CDU. Some within the SPD are pushing for a veto on any potential agreement with Merz’s party.

AfD’s Rising Influence in Eastern Germany

One of the most striking aspects of the election was the AfD’s dominance in former East German states. The party won outright in Brandenburg, Saxony, and Thuringia, further cementing its support base in the region. AfD co-leader Alice Weidel celebrated the party’s success, declaring, “We will have fresh elections—I don’t think we’ll wait four years.” Her remarks suggest that AfD leaders see this election as a stepping stone toward further growth.

Despite its success, the AfD remains politically isolated at the national level. Merz has firmly ruled out forming any alliances with the far-right party. “We will solve the problems that created them,” Merz stated, predicting that the AfD will eventually “cease to exist.”

A New Political Landscape for Germany

The election marks a significant shift in German politics. The CDU’s victory signals a return to dominance for the party after losing power to the SPD in the 2021 election. However, the SPD’s dramatic decline reflects growing dissatisfaction with Chancellor Olaf Scholz’s leadership. The Greens and FDP, both coalition partners in Scholz’s government, also saw weaker-than-expected results, raising questions about their future roles in the country’s political landscape.

Meanwhile, the AfD’s historic rise underscores deep divisions within German society. While mainstream parties continue to reject cooperation with the far-right, the AfD’s strong performance indicates that its message resonates with a growing segment of voters, particularly in eastern Germany.

As Germany enters a period of coalition negotiations, the coming weeks will determine the direction of the country’s political future. Will the CDU and SPD set aside their differences to form a stable government, or will Germany face prolonged uncertainty? The decisions made in the next few months will shape the nation’s policies on key issues such as immigration, the economy, and European Union relations.

For more updates on Germany’s political landscape and economic outlook, visit Wallstreet Storys.