The conservative coalition by the Christian Democratic Union (CDU) and its brotherly party will lead that the Christian Social Union (CSU) is leading Germany again after the federal elections on Sunday, which puts an end to a period of political instability that prevailed in Berlin for several months.

The right-wing CDU-CSU won 28.6 % of the votes, with the extreme right-wing alternative to Germany (AFD) in second place by 20.8 %, while the Social Democratic Party (SPD) ranked third with 16.4 % voting by voting. Initial results from the federal returning employee.

The results, which will be confirmed later on Monday, means that the CDU-CSU candidate is likely to be installed as the upcoming German advisor, and takes over for Olaf Scholz from SPD’s After his three -year -old coalition collapsed his coalition.

“We won it because CDU and CSU worked well together, and we prepared very well for this election and also to take over the ruling responsibility,” Mirz said on Sunday with the emergence of exit polls.

Winning the Christian Alliance puts an end to a period of uncertainty in the largest economy in Europe, although there may be weeks of trading political horses where an alliance government has been formed.

The most likely result is that CDU-CSU forming an alliance of the two-party dualism with SPD, which is a tried and tested alliance formula in Germany, although an alliance of three parties consists of CDU-CSU, SPD and Greens is also a possibility.

Mirz had already excluded the formation of any alliance that rules with the anti -immigration AFD party, which witnessed the best result in the elections ever on Sunday.

David Mcalaster, CDU and European Parliament member, told CNBC on Monday that Mirz “has a clear authorization to form a new government.”

“He will be a very good consultant because I know him for many years, we can completely trust this man and hope he can restore confidence, and he can restore confidence in Germany, and this is his main task and I wish him all the best that – which.”

European markets They had a somewhat silent reaction to the election result, although Germany Laxative The stock market index opened about 0.4 % on Monday.

But despite this comfort, the new German government has a lot to confront it.

Political division in Berlin is seen as unwanted distraction by investors who warn Germany must overcome a series of challenges. This includes the economic distress that attracted the country in recent years, with the economy directed to cars and export appears weak, as well as a thorny discussion about migration and integration that has witnessed the likes of AFD a rise in importance and popularity.

Germany’s broader role in European political geography is a matter of discussion, especially given the ongoing war in Ukraine, and since US President Donald Trump and his commercial threat poses his potential threat.

Economists Debt brake“It is a financial policy dedicated to the constitution of Germany, which limits the amount of debts that the government can take.

Strategists at Deutsche Bank pointed out that although the electoral result “may reduce the risk of coalition talks in particular, it still emphasizes a continuous trend to combat the institution was visible in Germany and Europe as a whole.”

“The result represents the slightest share of voting at all for the two main parties, even with the turnout (82.5 %) at the highest level since at least 1990. The medieval parties leave less than the constitutional majority 2/3, with CDU/ CSU, SPD and Greens in conjunction with 66 % Of the seats are not impossible, but that will require major political concessions, ”they wrote in a note.

Financial policy has proven that it is a continuous political insect for Berlin, with arguments between the parties about the extent to which the debt brakes are responsible for responsible spending, or limits growth and investment.

Both arguments can be points The economy that was joking with stagnation for several months.

“The less bad news first: Germany will get a new government that can put an end to a long period of exhausted political uncertainty as soon as it agrees on its agenda,” Holgar Schmiding, chief economist at Burnberg Bank, said in a memorandum on Monday.

“We expect an alliance of two parties between CDU/CSU and Centre-Left SPD to enhance some of the repairs supporting growth, alleviating the organizational and civil burden on business to some extent, and following more rational immigration and less effective indicated that Schmiding indicated that the expensive energy policy is. He wondered about the extent to which the popular parties such as AFD and the left (dies Link) changes in the German constitution, such as relieving the base of debt brake.

Other economists indicated that the left (Link dies) indicated that in reality in favor of reforming the base of debt brakes and will not stand in the way of such a step.

“Although AFD and the ease together seem to have a number of seats needed to form a refreshing minority for the amendments and constitutional reforms, which require a majority of two -thirds in Parliament, we note that the left in favor of reform. Economists in the Barclays team said through cross -offs The brake base.

“Although he is still in danger, we believe that the new coalition government is likely to fix it and reduce financial policy modestly,” they noticed in the comments via e -mail.