Germany faces its second change of leader in less than four years after the head of the center-right opposition won Sunday’s election.

An election win for Germany's conservatives has eased concerns of political gridlock in Europe's biggest economy, though it failed to lift uncertainty around whether a new government can deliver fiscal reforms that would boost sluggish growth.

German conservative leader Friedrich Merz, the presumptive next chancellor, has won his constituency in Sunday's parliamentary election, while a number of political heavyweights suffered humiliating defeats.

German conservatives under Friedrich Merz vowed on Monday to quickly form a government after winning a national election but face tricky coalition talks and the prospect of an obstructive parliament after far-right and far-left parties surged.