Together, conservatives and the SPD will have a narrow majority of 328 seats from 630 seats in the new Bundestag, despite having won less than 45 per cent of the vote together.
The new government will face major problems, as the country's economy has faced two consecutive years of recession and has experienced economic growth of only 0.2 per cent in the first quarter of this year.
Meanwhile, Europe as a whole is largely dependent on the new policy of the United States, under Donald Trump's presidency.
Merz has vowed to make changes to economic and migration policy, which have been two issues that have dominated the election campaign, while the danger from Russia continues to remain a major concern in the years ahead. /REL/
