Germany is embarking on a potentially lengthy search for its next government after the center-left Social Democrats narrowly beat outgoing Chancellor Angela Merkel's center-right bloc in an election that failed to set a clear direction for Europe's biggest economy under a new leader. Leaders of the parties in the newly elected parliament were meeting Monday to digest a result that saw Merkel's Union bloc slump to its worst-ever result in a national election, and appeared to put the keys to power in the hands of two opposition parties.  Read:Social Democrats narrowly beat Merkel’s bloc in German vote Both Social Democrat Olaf Scholz, who pulled his party out of a years-long slump, and Armin Laschet, the candidate of Merkel's party who saw his party's fortunes decline in a troubled campaign, laid a claim to leading the next government. Scholz is the outgoing vice chancellor and finance minister and Laschet is the governor of Germany's most populous state, North Rhine-Westphalia. Whichever of them becomes chancellor will do so with his party having won a smaller share of the vote than any of his predecessors. Who gets the job looks likely to depend on the decision of the prospective junior partners, the environmentalist Greens and the business-friendly Free Democrats — parties that traditionally belong to rival ideological camps. “Voters have spoken very clearly,” Scholz said Monday. “They strengthened three parties — the Social Democrats, the Greens and the Free Democrats — so this is the visible mandate the citizens of this country have given: these three parties should lead the next government.” The only other option that would have a parliamentary majority is a repeat of the “grand coalition” of the Union and Social Democrats. That is the grouping that has run Germany for 12 years of Merkel's 16-year tenure and has often been marred by squabbling, but this time it would be under Scholz's leadership with Merkel's bloc as junior partner. There is little appetite for that, however. Scholz said the Union “received the message from citizens that they should no longer be in government, but go into opposition.” Read: Germany urged to waive intellectual property rules for COVID19 vaccines Merkel's outgoing government will remain in office until a successor is sworn in, a process that can take weeks or months. Merkel announced in 2018 that she wouldn't seek a fifth term. The Greens traditionally lean toward the Social Democrats and the Free Democrats toward the Union, but neither ruled out going the other way on Sunday night. The Greens made significant gains in the election to finish third but fell far short of their original aim of taking the chancellery, while the Free Democrats improved slightly on a good result from 2017. Julia Reuschenbach, a political analyst at the University of Bonn, told ARD television that a Laschet-led government “isn't excluded in principle,” though the Social Democrats will push the argument that the result shows Germans want them to lead the new administration. “Ultimately, the parties will of course have to agree on matters of substance,” she said. Final official results gave the Social Democrats 25.7% of the vote and the Union 24.1%. Four years ago, they won 20.5% and 32.9% respectively. The Union — made up of Laschet's Christian Democratic Union and its Bavarian sister, the Christian Social Union — had never previously polled below 31% in a national parliamentary election. The Greens took 14.8%, the Free Democrats 11.5% and the far-right Alternative for Germany 10.3% — a decline from the 12.6% it took to enter parliament for the first time in 2017. The smallest party in the new parliament is the Left Party, which won just 4.9% of the vote. Read:Germany to provide $68 billion in aid for flood-hit regions The new Bundestag, or lower house of parliament, will have a record 735 lawmakers. The parliament varies in size because of a peculiarity of Germany's electoral system, which means that it can be considerably bigger than the minimum 598 seats. The Social Democrats took 206 seats, the Union 196, the Greens 118, the Free Democrats 92, Alternative for Germany 83 and the Left Party 39. One seat went to the Danish minority party SSW, which will be represented for the first time in decades.

Germany’s center-left Social Democrats won the biggest share of the vote in a national election Sunday, narrowly beating outgoing Chancellor Angela Merkel ’s center-right Union bloc in a closely fought race that will determine who succeeds the long-time leader at the helm of Europe’s biggest economy. The Social Democrats’ candidate Olaf Scholz, the outgoing vice chancellor and finance minister who pulled his party out of a years-long slump, said the outcome was “a very clear mandate to ensure now that we put together a good, pragmatic government for Germany.” Despite getting its worst-ever result in a federal contest, the Union bloc said it too would reach out to smaller parties to discuss forming a government, while Merkel stays on in a caretaker role until a successor is sworn in. Election officials said early Monday that a count of all 299 constituencies showed the Social Democrats received 25.9% of the vote, ahead of 24.1% for the Union bloc. No winning party in a German national election had previously taken less than 31% of the vote. Read: Germany urged to waive intellectual property rules for COVID19 vaccines Armin Laschet, the governor of North Rhine-Westphalia state who outmaneuvered a more popular rival to secure the nomination of Merkel’s Union bloc, had struggled to motivate the party’s base and suffered a series of missteps. “Of course, this is a loss of votes that isn’t pretty,” Laschet said of results that looked set to undercut by some measure the Union’s previous worst showing of 31% in 1949. But he added that with Merkel departing after 16 years in power, “no one had an incumbent bonus in this election.” Laschet told supporters that “we will do everything we can to form a government under the Union’s leadership, because Germany now needs a coalition for the future that modernizes our country.” Both Laschet and Scholz will be courting the same two parties: the environmentalist Greens, who were third with 14.8%; and the pro-business Free Democrats, who took 11.5% of the vote. The Greens traditionally lean toward the Social Democrats and the Free Democrats toward the Union, but neither ruled out going the other way. The other option was a repeat of the outgoing “grand coalition” of the Union and Social Democrats that has run Germany for 12 of Merkel’s 16 years in power, but there was little obvious appetite for that after years of government squabbling. “Everyone thinks that ... this ‘grand coalition’ isn’t promising for the future, regardless of who is No. 1 and No. 2,” Laschet said. “We need a real new beginning.” Read: Bayern Munich, former West Germany great Gerd Müller dies The Free Democrats’ leader, Christian Lindner, appeared keen to govern, suggesting that his party and the Greens should make the first move. “About 75% of Germans didn’t vote for the next chancellor’s party,” Lindner said in a post-election debate with all parties’ leaders on public broadcaster ZDF. “So it might be advisable ... that the Greens and Free Democrats first speak to each other to structure everything that follows.” Baerbock insisted that “the climate crisis ... is the leading issue of the next government, and that is for us the basis for any talks ... even if we aren’t totally satisfied with our result.” While the Greens improved their support from the last election in 2017, they had higher expectations for Sunday’s vote. The Left Party was projected to win only 4.9% of the vote and risked being kicked out of parliament entirely. The far-right Alternative for Germany — which no one else wants to work with — received 10.3%. This was about 2 percentage points less than in 2017, when it first entered parliament. Due to Germany’s complicated electoral system, a full breakdown of the result by seats in parliament was still pending. Merkel, who has won plaudits for steering Germany through several major crises, won’t be an easy leader to follow. Her successor will have to oversee the country’s recovery from the coronavirus pandemic, which Germany so far has weathered relatively well thanks to large rescue programs. Germany’s leading parties have significant differences when it comes to taxation and tackling climate change. Foreign policy didn’t feature much in the campaign, although the Greens favor a tougher stance toward China and Russia. Whichever parties form the next German government, the Free Democrats’ Lindner said it was “good news” that it would have a majority with centrist parties. “All of those in Europe and beyond who were worried about Germany’s stability can now see: Germany will be stable in any case,” he said. Read:Germany to provide $68 billion in aid for flood-hit regions Spanish Prime Minister Pedro Sanchez sent early congratulations to Scholz. “Spain and Germany will continue to work together for a stronger Europe and for a fair and green recovery that leaves no one behind,” he wrote on Twitter. In two regional elections also held Sunday, the Social Democrats looked set to defend the post of Berlin mayor that they have held for two decades. The party was also on course for a strong win in the northeastern state of Mecklenburg Western-Pomerania. For the first time since 1949, the Danish minority party SSW was set to win a seat in parliament, officials said.