If the campaign was widely decried as boring, its result was a bombshell -- a populist surge weakened both Merkel's conservatives and the centre-left Social Democrats, handing both their worst results in decades.
After 12 years in power and running on a promise of stability and continuity, Merkel's CDU/CSU bloc scored 32.9 per cent, against 20.8 per cent for the Social Democrats under challenger Martin Schulz.
The election spelt a breakthrough for the anti-Islam Alternative for Germany (AfD), which with 13 per cent became the third strongest party and vowed to "go after" Merkel over her migrant and refugee policy.
"We will take our country back," vowed the AfD's jubilant Alexander Gauland, who has recently urged Germans to be proud of their war veterans and said a politician with Turkish roots should be "disposed of in Anatolia".
While joyful supporters of the AfD -- a party with links to the far-right French National Front and Britain's UKIP -- sang the German anthem late yesterday, hundreds of protesters outside shouted "Nazis out!"
World Jewish Congress president Ronald Lauder called the four-year-old protest party "a disgraceful reactionary movement which recalls the worst of Germany's past and should be outlawed".
While Germany still digests the rise of the right- wingers, Merkel's inner circle will prepare today for what could be lengthy coalition talks ahead with a motley crew of smaller parties.
Party leaders will meet at 0700 GMT at Berlin headquarters to draw their conclusions from the election that some have dubbed a referendum on the refugee crisis, a contentious issue especially for her Bavarian CSU allies.
A weakened Merkel must now find a new junior partner after the Social Democrats (SPD) declared they would go into opposition, to recover the support they lost while governing in Merkel's shadow.
Schulz, putting a brave face on the defeat, vowed that the 150-year-old traditional workers' party would serve as "the bulwark of democracy in this country" and stop the AfD from leading the opposition.
One is the pro-business and liberal Free Democratic Party (FDP), which scored a 10.4-per cent comeback after crashing out of parliament four years ago.
The other is the left-leaning, ecologist Greens party, a pioneer of Germany's anti-nuclear movement which won nine percent on campaign pledges to drive forward the country's clean energy shift and fight climate change.
Weeks, if not months, of jockeying and horse-trading could lie ahead to build a new government and avoid snap elections.
But its leader Christian Lindner has pointed to new "red lines", voicing scepticism especially on French President Emmanuel Macron's plans for a single eurozone budget, which Merkel has cautiously greeted.
The Greens, meanwhile, sharply differ with the FDP and CSU on key issues from immigration to the environment, pushing to expand wind farms, phase out coal and take to task car makers over the "dieselgate" emissions cheating scandal.
With a view to the tough challenges ahead, Bild daily called the vote outcome "a nightmare victory for Merkel".
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
