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.

"It is clear that this [the U.S.] government does not care much about the fate of Europe," says Friedrich Merz, who is set to be Germany's next chancellor.

Germany’s economy is stalled and its politics fractured. But it sees an opening for a new chancellor to lead Europe’s response to a changing America.