Monday, September 28, 1998 Published at 11:45 GMT 12:45 UK
World reaction: 'A new era for Europe'
Gerhard Schöder's victory could change face of Europe
The election win by Social Democrat Party leader Gerhard Schröder has been heralded the dawn of "a new era for Europe" by the UK Prime Minister, Tony Blair.
But Mr Blair also paid tribute to Mr Kohl for "all of the things he has done" for Europe.
United States - close ally
President Clinton also called Mr Schröder to congratulate him.
Mr Clinton, who has met Mr Schröder twice in the last six months, said: "He and I had good discussions in Berlin this spring and in Washington this summer.
"I look forward to working closely with him. Germany is one of America's closest allies. As always, our two governments will be fully engaged in a comprehensive policy agenda," Mr Clinton said.
'Third Way' for Germany?
Mr Schröder's call for a new centre or "Third Way" has invited comparisons with the policies of both Mr Blair and President Clinton.
He now has the challenge of leading the country through some major transitions such as the switch to the European common currency and the expansion of Nato and the European Union.
In a BBC interview with BBC after his victory, Mr Schröder said: "We are not going to do everything differently ... Germany will remain a reliable partner abroad, perhaps a bit more dangerous for its competitors on world markets."
If Mr Schröder forms a coalition with the Green Party, there is some concern that his foreign policy agenda could be compromised.
The 54-year-old victor has also worried France with his pledge to offer Britain an equal place in the Franco-German axis at the heart of the European Union.
"We will not win over the British without equal rights for them," he wrote in a French newspaper.
Tentative welcome from France
But he backed the outgoing Chancellor Helmut Kohl in the election, with whom he enjoyed a very close relationship.
But although Mr Chirac's message of congratulations to Mr Schröder was somewhat formal, Mr Jospin and his party were warmer in tone.
France's Socialist Party First Secretary, Francois Hollande, said: "His victory, coming after Tony Blair's in England and that of Lionel Jospin in France, confirms that Socialist and Social Democratic ideas dominate Europe today."
Worry from Europe's right
The Spanish Government - one of the few currently representing the centre-right in the European Union - welcomed the election result, but also expressed hope that Madrid's former co-operation with Germany would continue.
The only dissenting voice among early reactions to the results came from former Italian Prime Minister Giulio Andreotti, who said it was part of a dangerous trend towards socialism in Europe.
In an article in Il Tempo, Mr Andreotti wrote: "Apart from my personal sorrow for Chancellor Helmut Kohl ... I'm worried about the excessive number of socialist governments in the European Union that risk forming a dangerous political monopoly."
Massive media coverage
The story dominates the world's press, many newspapers pointing out that it is the first time since World War II that a sitting Chancellor has been defeated.
The International Herald Tribune says the election result demonstrates the depth of German discontent with record unemployment and the length of Chancellor Kohl's leadership.
The front page headline in Spain's El Mundo newspaper proclaims that the victory accentuates Europe's revolution towards the Left.
Britain's Daily Telegraph comments that France will now be worried that it will be supplanted as Germany's chosen ally by the British.
And Le Figaro in France speaks of Mr Schröder dethroning Kohl, adding that his main task now is to radically modernise the country.