Germany faces its second change of leader in less than four years after the head of the center-right opposition won Sunday’s election.

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

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.

Germany's election winner Friedrich Merz wants to form a government quickly in order to revive a moribund economy, hike defence spending and tackle diplomatic challenges ranging from a confrontational Trump administration to ending the Ukraine war.

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.

The success of the Alternative for Germany, or AfD, is a sign of the times. Across Europe, far-right parties once on the fringe have gone mainstream.