Steve Evans holds German newspaper
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What does German election result mean for business?

Chancellor Angela Merkel's conservative party has won an overwhelming victory in Germany's elections, which many see as a vindication of her handling of the Eurozone debt crisis.

However, the country's economic policy may change direction with the complete exit of her previous coalition partner the "pro-business Free Democrats", says BBC Berlin correspondent Steve Evans.

It is thought Mrs Merkel will now seek a coalition with the Social Democrats, he continued: "The SPD campaigned for a minimum wage, for more protection for workers - it may secure some of that as its concession to take part in a new government."

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