Germany's mainstream conservatives won the country's national election, while a far-right party surged to become the nation’s second-largest party, according to provisional results following Sunday’s election.

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.

Germany’s centre-right leader Friedrich Merz won federal elections on Sunday, clearing his path to become Chancellor at a time of economic and political upheaval for Europe’s biggest democracy. Merz’s CDU/CSU secured around 29 per cent of the vote,