What is Germany's 'debt brake?' In Germany, the federal government and the 16 states (Länder) are obliged to balance their budgets and are practically prohibited from taking out extra loans. No other G7 country has such strict limits on new borrowing.

The conservative CDU/CSU party has won the parliamentary elections in Germany. The leader of the formation, Friedrich Merz, is the main candidate for chancellor. During the campaign, the future head of the German government expressed support for closing the borders.

Germany’s centre-right CDU and CSU parties have won the federal elections with about 28.5 to 29 per cent of the vote according to exit polls, paving the way for CDU leader Friedrich Merz to become chancellor at a time of economic and political upheaval in Europe’s largest democracy.

Germany's centre-right CDU/CSU bloc has won national elections by a large margin, with all constituencies counted, paving the way for leader Friedrich Merz to be the next chancellor, as could be seen on the website of the federal returning officer.

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.

Friedrich Merz, the presumptive chancellor of Germany, has confirmed he will seek a coalition with the social democratic SPD after the Christian Democrats (CDU/CSU) won the February 23 election, topping the poll with 28.

Germany’s centre-right leader Friedrich Merz won federal elections on Sunday, clearing his path to become Chancellor at a time of economic and political upheaval for Europe’s biggest democracy. Merz’s CDU/CSU secured around 29 per cent of the vote,