Germans yesterday have elected their new Bundestag (lower chamber of German parliament), and thus, indirectly, also their new Chancellor, as the Bundestag elects the Chancellor.
Angela Merkel is the winner of this election. The Union - Merkel's Christ-Democratic Union (CDU) and their Bavarian counterpart Christ-Social Union (CSU)- gained 41,5% of all votes (33,8 back in 2009). Thus they gain 311 out of 630 seats in the Bundestag. This means they miss an absolute majority only close which would have enabled them to govern on their own, without partner. [Situation around 12 AM GMT+1]
This is rather important as Merkel's former junior partner in government, the F.D.P.- Freiheitlich-Demokratische Partei - the Liberals- dropped below 5% and will not enter the Bundestag. The liberals dropped to 4,8& from 14,6% in 2009. [German election law includes this Five-percent-hurdle in order to prevent what is regarded a total mess of small and tiny parties in the parliament].
Merkel's challenger, Peer Steinbrück, clearly lost this election. His SPD only gained 25,7% of the votes(192 seats). This is their second-worst result since 1949 (first Bundestag elections).
The two other parties, which made it into the Bundestag, are the Greens, SPD's traditional coalition partner since they entered the political stage in Germany in the 1980's (they gained 8,4% - 63 seats), and Die Linkspartei (="The Left wing Party"), a conglomerate of former Socialists from former GDR's governmental party SED and frustrated former SPD-members who left their party in protest because of Gerhard Schröder's controversial social politics back in 2007. The Left-Wingers gained 8,6% of the votes - 64 seats.
This leaves us with an interesting situation. The Conservatives - Merkel's Union- can not govern on their own. Their traditional partner, the Liberals can not support them this time (ironically the Union's gain was the Liberal's loss, here. Around 2,1 million estimated former Liberal voters voted Conservative, this time).
The three former opposition parties- SPD, Greens and Left-Wingers- have a tiny majority (319 of 630 seats)- but nobody wants to enter a coalition with the Left-Wingers. A red-red-green coalition is not popular, neither in the ranks of the SPD, nor in the Green party.
A coalition of Greens and Union has been formed in one or two of the state parliaments before, but on federal level, the Union, especially the Ultra-Conservative CSU, try to avoid a constellation like this.
This would leave us with a Grand Coalition (=formed of the two grand parties- Union and SPD). I personally am not too fond of this combination. The last time these two parties ruled together (2005-2009) they did achieve nothing too noteworthy and the country in my opinion did not move forward at all.