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GERMAN CONSERVATIVES FACE TOUGH ROAD AFTER ELECTION WIN

German conservatives under Friedrich Merz vowed to quickly form a government after winning a national election but face tricky coalition talks and the prospect of an obstructive parliament after far-right and far-left parties surged. The most likely outcome of the election is a coalition of Merz's conservative bloc and Olaf Scholz's Social Democrats (SPD), who came in third, after the far-right Alternative for Germany (AfD) surged to a historic second place. The AfD and the radical Left party jointly secured one third of seats in the new parliament, enough to block constitutional changes needed to loosen state borrowing limits.

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