Germany's parliament will hold a second vote on Tuesday on backing Friedrich Merz as chancellor after the veteran conservative failed to secure enough support in a first round, throwing politics in Europe's largest economy into disarray.

Germany was long a beacon of stability in Europe, its politics often reassuringly boring. "Germany and Europe need a strong leader in the German chancellor's office," said economist Holger Schmieding of Berenberg Bank.

German conservative leader Friedrich Merz failed to secure enough parliamentary votes to become chancellor in a major blow.