German parties reach coalition deal after marathon talks

Chancellor Angela Merkel's conservatives and Germany's main centre-left party have reached an agreement to form a new coalition government after a final negotiating session that dragged on for 24 hours.

However, the deal between Mrs Merkel's Christian Democratic Union (CDU), its Bavaria-only sister party, the Christian Social Union (CSU), and the centre-left Social Democrats will not bring an immediate end to the political limbo following the September 24 election.