Germany’s political system is set up to exclude extremists. Yet the country is waking up to a new political reality that has lurched to the right with the once outcast Alternative for Germany (AfD) party now firmly established in German politics.

The leader of the far-right Alternative for Germany (AfD), the second largest party in parliament after Sunday's election, said Germany's likely next chancellor would be held hostage by left-wing parties that would seek to loosen tough fiscal rules.

Outgoing German chancellor Olaf Scholz conceded the election and decried the historic gains of the far-right conservative party, AfD. Early exit polls show AfD is headed for second place, while opposition leader Friedrich Merz’s conservatives are in the lead and Scholz’s party fell to third.