Germany's Social Democrats face historic election defeat and shift leadership focus

Germany's Social Democrats (SPD) faced a historic defeat in the recent election, dropping to 16.3%, their lowest since World War II. Chancellor Olaf Scholz will not participate in coalition talks, shifting focus to Defense Minister Boris Pistorius. Despite the loss, the SPD may still join coalition negotiations with the Christian Democrats, led by Friedrich Merz. Merz has ruled out an alliance with the far-right Alternative for Germany party, making a grand coalition likely. Scholz acknowledged the defeat and will remain as caretaker chancellor. The SPD plans to discuss leadership changes and its future role in government in the coming days, as internal pressures mount for renewal.