Germany’s political system is set up to exclude extremists. Yet the country is waking up to a new political reality that has lurched to the right with the once outcast Alternative for Germany (AfD) party now firmly established in German politics.

The success of the Alternative for Germany, or AfD, is a sign of the times. Across Europe, far-right parties once on the fringe have gone mainstream.

Germany's conservatives won the national election on Sunday, while the far-right Alternative for Germany came in second, its best ever result.

Germany faces its second change of leader in less than four years after the head of the center-right opposition won Sunday’s election.

Merz expressed concern over changing relations with Washington under the Trump administration, emphasizing the need for gradual independence from the U.S.

Wall Street struggled for traction on Monday, ending mixed after slumping last week, while German election results buoyed German shares and Europe's single currency as investors waited for midweek results from artificial intelligence chip leader Nvidia.

The euro nudged higher on Monday after Germany's opposition conservatives won the national election as expected, while the dollar trod water amid worries over the growth outlook for the U.S economy. Friedrich Merz was set to become Germany's next chancellor after his party emerged victorious in Sunday's election,