Germany embarks on tricky search for post-Merkel government

Germany is embarking on a potentially lengthy search for its next government after the centre-left Social Democrats narrowly beat outgoing Chancellor Angela Merkel's centre-right bloc in an electi

Germany is embarking on a potentially lengthy search for its next government after the centre-left Social Democrats narrowly beat outgoing Chancellor Angela Merkel's centre-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 on Monday to digest a result that saw Ms. 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.

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. Mr. Scholz is the outgoing Vice Chancellor and Finance Minister and Mr. Laschet is the Governor of Germany's most populous state, North Rhine-Westphalia.