German Chancellor had to sacrifice key ministries to secure a coalition agreement with the Social Democrats
With a new government now in place, Europe's biggest economy promises to end austerity in the continent and introduce tougher immigration controls at home.
The Christian Democrats (CDU) and their Bavarian allies, the Christian Social Union (CSU), have announced a cabinet in which six key posts will be held by the Social Democrats (SPD). Surprisingly, these include the finance ministry, labour, and foreign affairs. Significantly, also, the SPD will have one more cabinet post than the CDU.
Martin Schulz, a one time president of the European parliament, will be expected to step down as SPD leader to become foreign minister, with Olaf Scholz, the SPD mayor of Hamburg, also appointed finance minister and vice-chancellor.