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

Germany's Robert Habeck, who had run in Sunday's election as the chancellor candidate for the environmentalist Greens, said he would no longer take a leading role in his party after what he described as a disappointing result.

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

The euro and German stocks rallied on Monday as investors welcomed Germany’s election result that put centrist parties on track to form a coalition, although optimism was tempered by potentially tricky negotiations over economic policy.

Conservative leader Friedrich Merz won a lackluster victory, while Chancellor Olaf Scholz conceded his center-left Social Democrat party’s worst postwar defeat.