Germany’s political system is set up to exclude extremists. Yet the country is waking up to a new political reality that has lurched to the right with the once outcast Alternative for Germany (AfD) party now firmly established in German politics.

The far-right Alternative for Germany (AfD) and the Left Party jointly secured one third of seats in the new parliament, enough to block a loosening of Germany's debt brake - a mechanism some investors and political parties say stymies economic growth.

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.

He 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.

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.

Friedrich Merz's CDU party emerged as the largest party in Germany's parliament, the Bundestag, earning 28.6% of the vote.

While the far right made historic gains in Germany's elections on Sunday, Conservative politician Friedrich Merz won with nearly 29% of the vote.