A conservative alliance made up of the CDU and CSU is set to lead Germany again, but the new coalition government will have to confront pressing challenges.

Chancellor Olaf Scholz conceded defeat for his center-left Social Democrats after what he called 'a bitter election result.'

Merz says he wants to form a new government as soon as possible, noting the world “won’t wait for us” to have lengthy coalition talks. The far-right Alternative for Germany is tracking second and looks on course to become the main opposition force in the parliament.