A few hundred neo-Nazi protesters walking through the heart of Germany’s capital formed part of the backdrop to Sunday’s federal elections. Berlin is used to demonstrations but what’s new is the far-right’s confidence. It was apparent to me, coming face to face with this protest in Berlin, that this group is comfortable voicing its opinion; the counter-demonstrators that watched and jeered from the sidelines are the ones feeling cornered. Far-right sympathies become even louder as you leave the capital – and at the polls.

It was clear from the early exit polls that the far-right Alternative for Germany (AFD) came second in Sunday’s federal elections. Its leader, Alice Weidel, disavows neo-Nazi groups and insists that she’s part of the mainstream, buoyed by a meeting in Munich with US vice president JD Vance and the backing of Elon Musk. This year, for the first time, she took part in televised debates with the mainstream Christian Democrats, Social Democrats and Greens.

The only party that outperformed the AFD is the conservative Christian Democrats, winners of Sunday’s election. Their leader, Friedrich Merz, is likely to be Germany’s next chancellor and has tried to answer voter frustrations with a hard line on migration; he even cooperated with the AFD in attempting to pass a law stopping asylum seekers earlier this year. Merz has vowed not to form a coalition government with the AFD, whom he accuses of Nazi sympathies. But he’s also distrusted by the left-leaning Social Democrats and Greens. This promises difficult coalition negotiations ahead, as Sunday’s results leave no party able to govern on its own.

All this puts Germany on a rocky and tumultuous path. The post-war consensus-building tradition, which had been a bulwark against the sort of populism seen in other nations, is nearing its end. Even if Germany’s centrists refuse to work with the AFD, they will nevertheless have to find ways to form a strong government that regains voters’ trust. This matters for Europe too. After JD Vance admonished the continent in Munich, it’s clear that the bloc needs a confident centre that fights for European values and provides an alternative narrative to the far-right.

Christopher Cermak is Monocle’s senior news editor. Tune in to Monocle Radio for more on the German election results. Or subscribe to Monocle so that you never miss a beat.