Merz leads Conservatives to victory as far

In the recent German federal election, the conservative opposition CDU/CSU bloc, led by Merz, secured 28.8% of the vote, surpassing the current Chancellor Scholz's SPD with 16.2%, laying the foundation for Merz to form a new government. This election result marks a major setback for the left-wing camp in Germany, while the rise of far-right forces has also attracted widespread attention. The Alternative for Germany (AfD) achieved a historic breakthrough with 20.2% of the vote, becoming a new political force. After the election results were announced, Merz stated he would quickly move to form a new government and hoped to reach a coalition agreement within the next two months. Facing increasingly complex economic and security situations in Germany and Europe, Merz emphasized: "Germany cannot delay any longer; Europe is waiting for Germany to play a stronger leadership role." Currently, Merz's most likely coalition partners are the SPD or the Green Party, although there are significant differences with the SPD on social welfare and immigration issues. To form a stable majority, Merz might need to rely on a three-party coalition. Meanwhile, the far-right AfD performed especially well in the eastern regions of Germany. The party, focusing on anti-immigration and Brexit agendas, advocates for strict immigration policies and calls for large-scale deportations of illegal immigrants. The rise of the party also signifies a significant victory for far-right political forces in Europe, becoming a major opposition force in the German parliament. Alice Weidel, a candidate from the AfD, publicly declared that the party would surpass Merz's CDU/CSU in the next election and achieve victory. The SPD's performance in this election was disastrous, with a 16.2% vote share being the worst result since World War II. Chancellor Scholz expressed regret, saying, "This is an unavoidable result." Nonetheless, Scholz stated he would focus on ensuring the smooth formation of a new government and would not engage in coalition agreement negotiations with Merz. SPD co-leader Lars Klingbeil hinted that the party might not align with Merz, adding to the challenges Merz will face in forming a new government. Germany's election results have also drawn widespread attention on the European and international stage. Merz's conservative government will face significant pressure from the US and EU, particularly regarding how to address the Russia-Ukraine conflict, global trade wars, and increasingly severe defense issues. EU leaders plan to hold an emergency meeting this week to discuss Europe's security situation and defense matters. On the stock market front, the DAX index saw a significant rise after the election results were announced, as markets broadly expect Merz to promote more market-friendly policies, and investors remain confident in future economic reforms. US President Trump also congratulated Merz on his victory, calling it a "great day for Germany," pointing out the dissatisfaction of the German people with energy and immigration issues, reflecting a reevaluation of current policies. In his post-election speech, Merz also stated: "Europe’s fate cannot rely solely on the US; we must strengthen our independence and enhance Europe’s overall strength." He made it clear that Germany is about to enter a new political chapter, with challenges and responsibilities becoming increasingly daunting.Risk Warning and Disclaimer

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