Germany's conservative leader warns centrist parties after far-right election surge

Friedrich Merz, leader of Germany's conservative alliance, stated that the rise of the far-right Alternative für Deutschland (AfD) in the recent federal election serves as a "last warning" for centrist parties to unite and provide effective leadership. The CDU/CSU alliance won 28.5% of the vote, while the AfD secured over 20%, doubling its previous support. Merz plans to form a coalition government with the center-left Social Democrats (SPD), despite the SPD's historic low of 16% in the election. The coalition talks are set to begin on March 6, with a goal to finalize the government by Easter. The election results have raised concerns about migration policies, as the SPD lost many voters to both the conservatives and the AfD. Financial markets responded positively to the conservative victory, anticipating a stable government after a period of uncertainty.