Germany's conservatives win election as coalition talks begin

Germany's opposition conservatives, CDU/CSU, won the national election, positioning Friedrich Merz as a potential chancellor. The far-right Alternative for Germany (AfD) achieved its best result, coming in second. Coalition talks are expected to be lengthy. Analysts suggest that a three-party coalition may lead to limited economic changes, focusing on tax relief and increased defense spending. The CDU and FDP's differing economic policies could hinder progress, risking stagnation. A CDU-SPD coalition could improve competitiveness if both parties collaborate effectively. However, the SPD's willingness to negotiate depends on securing more funding for infrastructure projects. The outcome of coalition negotiations remains uncertain.