German parties agree coalition deal to make Olaf Scholz chancellor

Social Democrat, Green and liberal parties agree to form government after two months of talks

German Social Democrat Olaf Scholz said on Wednesday he had reached a deal with the Free Democrats and Greens to form a new coalition government that will bring the curtain down on the Angela Merkel era. Picture: Omer Messinger/Getty Images)

German Social Democrat Olaf Scholz said on Wednesday he had reached a deal with the Free Democrats and Greens to form a new coalition government that will bring the curtain down on the Angela Merkel era.

According to 177-page agreement struck after two months of talks, the three parties want to accelerate public investment in green technology and digitalisation while returning to strict debt limits from 2023 onwards.