German conservative leader Friedrich Merz failed to secure enough parliamentary votes to become chancellor on Tuesday, throwing politics in Europe's largest economy into disarray as it seeks to emerge from recession and stem far-right extremism.

Merz, 69, who led his conservatives to a federal election victory in February and signed a coalition deal with the centre-left Social Democrats (SPD), won just 310 votes in the lower house, the Bundestag, six short of an absolute majority. At least 18 coalition MPs failed to back him.

While not a fatal setback, Merz's failure to win backing at the first attempt is a first for post-war Germany and an embarrassment for a man who has promised to restore German leadership on the world stage.

Most immediately, it threw into doubt the trips Merz had planned to France and Poland on Wednesday as the new chancellor.

“The whole of Europe looked to Berlin today in the hope that Germany would reassert itself as an anchor of stability and a pro-European powerhouse,” said Jana Puglierin, head of the Berlin office of the European Council on Foreign Relations think-tank. “That hope has been dashed. With consequences way beyond our borders.”

Nine lawmakers abstained while 307 voted against Merz, said Bundestag President Julia Kloeckner.

Far-right Opposition on the Rise

Merz, visibly shocked, rose to confer with colleagues. It was not immediately clear who had failed to vote for him in the secret ballot and why.

Party insiders on Monday said he would land a majority despite grumblings in both coalition parties about cabinet nominations, policy compromises and a huge borrowing package pushed through the old parliament in its final days.

Kloeckner adjourned the sitting to allow the parties to confer. There was unlikely to be another vote on Tuesday but Merz was determined to stand again, party insiders said. A vote could take place on Wednesday or Friday.

“He is still likely to be elected but this shows that the coalition is not united, which could weaken his ability to pursue policies,” said Holger Schmieding, Chief Economist at Berenberg in London.

The only winner of Tuesday’s debacle was the far-right, anti-establishment Alternative for Germany (AfD), which came second in February and has topped some recent surveys, said Forsa pollster Manfred Guellner.

“Trust in political institutions is being further damaged,” he said.

German shares extended their fall from the near-record levels they had reached on hopes of higher state spending and growth.

The Bundestag now has 14 days to elect Merz or another chancellor.

Coalition’s Popularity Already falling

His conservatives won February's election with 28.5% of the vote, leaving them in need of at least one partner to form a majority.

On Monday, they signed a coalition deal with the SPD, who won just 16.4%. The two parties have vowed to revive growth in an economy facing its third year of downturn amid a global trade war sparked by U.S. President Donald Trump's sweeping import tariffs.

They have also promised to dramatically boost defence spending as the US commitment to the NATO alliance weakens.

But both have lost support since their already dismal performances in February - especially the conservatives, due in part to frustration with Merz’s decision to loosen borrowing limits, despite campaign promises of fiscal rectitude.

“The failed vote is clearly a sign that not everyone in the CDU agrees with the fiscal U-turn,” said Carsten Brzeski, Global Head of Macro at ING Research.

Germany has not had a majority government since the collapse of Olaf Scholz's SPD-led three-way coalition last November.

The abrasive and erratic style of Merz, who has never held government office, has also failed to convince some that he is chancellor material.

Philipp Koeker, political scientist at the University of Hanover, said he expected Merz to be elected in the second round, but added: “The relationship between the parties will be severely damaged because of this and (it will) exacerbate the conflicts that are already bubbling beneath the surface.”