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 next German government faces calls to loosen borrowing rules, slash energy costs and spur innovation. It won’t be easy.

Friedrich Merz is poised to become Germany’s next chancellor, but his victory may not deliver the stability many voters had hoped for. The 2025 election marks a major turning point for Germany, with a sharp rightward shift and the collapse of the center-left.