Merz elected German chancellor after initial shock defeat

BERLIN (Reuters) - German conservative leader Friedrich Merz was elected chancellor by parliament on Tuesday in a second round of voting after his new alliance with the centre-left Social Democrats was dealt a surprise defeat in the first attempt.

Merz's failure to win parliamentary backing at the first time of asking was a first for post-war Germany and an embarrassment for a man who has promised to revive economic growth at a time of global turbulence.

His CDU/CSU alliance won February's federal election and secured a coalition deal with the center-left Social Democrats.

Their deal has mapped out plans to revive growth, such as reducing corporate taxes and lowering energy prices. It is also promising strong support for Ukraine and higher military spending.

Merz, 69, who began his political career as a European lawmaker in 1989, has yet to demonstrate his leadership abilities in the political executive as his appointment marks his first time holding a government office.

Only one minister from the previous government will retain his position, Defence Minister Boris Pistorius. The rest of Merz's cabinet are new appointees, many with private-sector experience.

(Reporting Andreas Rinke and Thomas Seythal; editing by Matthias Williams)