German parties seal grand coalition deal to form government

GERMANY’S biggest political parties reached a deal last night to form a coalition government, sealing an accord that would make Angela Merkel the nation’s first woman chancellor.

Ms Merkel’s primary task will be reviving Germany’s economy while taming its huge budget deficit.

The deal still needs to be endorsed by her Christian Democratic Union, its Bavaria-only Christian Social Union sister party and the centre-left Social Democrats of outgoing Chancellor Gerhard Schroeder. The parties will convene on Monday to vote.