Friedrich Merz, on course to become post-World War II Germany's 10th chancellor after the country's election, has vowed to prioritize European unity and the continent's security as it grapples with the new Trump administration and Russia's war on Ukraine.

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.