An election win for Germany's conservatives has eased concerns of political gridlock in Europe's biggest economy, but failed to lift uncertainty around whether a new government can deliver fiscal reforms seen as vital to boosting sluggish growth.

Germany’s economy is stalled and its politics fractured. But it sees an opening for a new chancellor to lead Europe’s response to a changing America.

"It is clear that this [the U.S.] government does not care much about the fate of Europe," says Friedrich Merz, who is set to be Germany's next chancellor.