The euro dips after far-right exceed expectations in the German elections


Angela Merkel has won a fourth term as German Chancellor, but with her party's lead in parliament cut and the country facing a surge in support for the far right.

The AfD, set up just four years ago, took more than 13 per cent of the votes - almost three times the 4.7 per cent it received in 2013 - making it now the third largest political party in Germany.

The results reflect a fracturing of German politics from the mainstream two parties, with the AFD and FDP both recording a vastly improved performance compared to the 2013 elections, while the two main parties suffered significant losses in vote share.

Markel reacting to the election results said, "We had hoped for a better results", to a clapping but subdued crowd at her party headquarters in Berlin.

To form a government, the parties involved must have a combined total of at least 50 percent of the seats in the parliament. Germany has no tradition of minority governments, so that would leave Merkel trying to thrash out an untried coalition with the pro-business Free Democrats and left-leaning Greens.

Chancellor Angela Merkel attends an election campaign event in Regensburg, Germany, on September 18, 2017.

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"And this a question Merkel did not address in her victory speech", Kane said. Of these, 246 will be CDU / HSU, the GSDP will receive 153 mandates (40 less than in 2013), an alternative to Germany will occupy 94 seats, SvDP - 80 seats, Leftists - 69, Greens - 67. activity was 76.2% - 4.7% more than the previous parliamentary elections.

But the biggest change to Germany's political scene was the emergence of the far-right Alternative for Germany (AfD) party as the country's third biggest political force with 12.6 percent of the vote. "But we mustn't forget that we have just completed an extraordinarily challenging legislative period, so I am happy that we reached the strategic goals of our election campaign", Merkel said.

"Many problems regarding immigration have still not been resolved and this is the reason a party like AfD succeeded in this election", she added.

The Left Party took 9.2% of the vote, coming slightly ahead of the traditionally left-leaning Greens who won 8.9%, completing a parliament that now has six caucuses rather than the previous four.

That alliance is known as a "Jamaica" coalition because the parties' colours match those of the Caribbean nation's flag. It channelled voter rage at Ms Merkel for allowing some 1.3 million migrants to enter the country since 2015.

German internet users are flocking to Twitter to express their opposition to the surging nationalist party AfD.