Germany on Monday braced for a period of political unpredictability after the Social Democrats (SPD) narrowly won a general election but faced a rival claim to power from outgoing Chancellor Angela Merkel's conservative camp.

After 16 years of Merkel's steady leadership, the coming weeks and months promise to be a rocky ride as Finance Minister Olaf Scholz's SPD and the conservatives led by Armin Laschet scramble for coalition partners.

Preliminary official results showed that the center-left Social SPD narrowly won the vote at 25.7 percent, while Merkel's center-right Christian Democratic Union (CDU)-Christian Social Union (CSU) bloc sunk to a historic low of 24.1 percent.

The Green party placed third at 14.8 percent, its best result yet but still short of expectations. The liberal Free Democrats (FDP) won 11.5 percent of the vote. 

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Scholz, 63, said the conservatives belonged in the opposition. "The CDU and CSU have not only significantly lost votes, but they have essentially received the message from citizens – they should no longer be in government, but should go into the opposition," he said. 

Shrugging off the uncertainties ahead in the quest for a governing majority, he said Germany will not be thrown off by the power struggle that lies ahead. "You should know that Germany always has coalitions, and it was always stable," he said, adding that he aimed to reach an agreement to form a coalition government with the Greens and the FDP before Christmas. 

"My idea is that we will be very fast in achieving a result. It should be before Christmas if possible," he said. 

Laschet said his party was still keen to try to form a coalition with the Greens and the FDP. He also said the CDU needs renewal after putting up its worst election showing since World War II. 

The CDU-CSU alliance "cannot be satisfied with this result," said Laschet, adding that "renewal is needed in all areas."

In the fractured political landscape of the post-Merkel era, the most likely outcome will be a three-way alliance – ending the post-war tradition of two-party coalition governments. Both Scholz and Laschet will be looking to the Greens and the FDP party to cobble together a parliamentary majority.  

The two kingmakers however are not natural bedfellows, diverging on issues like tax hikes and public investment in climate protection. Green Chancellor candidate Annalena Baerbock stayed vague about her preferred tie-up, but said it was time for "a fresh start" in the country of 83 million people. FDP leader Christian Lindner suggested speeding up the process by sitting down with the Greens first before talking with the two bigger parties.

Scholz said a German government led by him would offer the United States continuity in transatlantic relations. 

"The transatlantic partnership is of essence for us in Germany and for a government that will be led by me. So you can rely on continuity in this question," he told journalists on Monday. 

"It is important that we understand ourselves as democracies and that we see that in a world that is becoming more dangerous it is important that we work together, even if we do have conflicts in one or the other question," he added. 

Europe's largest economy will hold the presidency of the Group of Seven next year, and will need a government capable of setting the international agenda. 

From Paris, French Minister for European affairs Clement Beaune stressed that France "has an interest to have a strong German government in place," urging "swift" action from German parties. 

David Sassoli, the head of the European Parliament, congratulated Scholz on Twitter. "After this historic crisis, there is no time to lose: Europe needs a strong and reliable partner in Berlin to continue our common work for a social and green recovery," Sassoli said.

The Kremlin said Monday it hoped for "continuity" in Moscow's ties with Berlin after the election in Germany. 

"Of course, we are counting on continuity in our bilateral relations," Kremlin spokesman Dmitry Peskov told reporters, adding that Moscow was following the vote with "great attention."  

"As far as we understand, the process of creating a coalition will be lengthy and complicated," he said.  

Peskov said Russia and Germany "are united by an understanding that problems can and should be solved only through dialogue." 

(With input from Reuters, AFP) 

(Cover: SPD's candidate for chancellor Olaf Scholz (R) and his wife Britta Ernst react after the first exit polls for Germany's elections are released, in Berlin, Germany, September 26, 2021. /Reuters)