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>> This is the moment more than five months of political uncertainty in Germany, and indeed Europe came to an end. Reuters Paul
] in Berlin to explain why.>> Chancellor Angela Merkel and her coalition partner, the Social Democrats have just signed a coalition deal and are celebrating here over lunch behind me.
It is, however, an awkward alliance of rivals. In fact, Olaf Scholz, the caretaker leader of the Social Democrats, he just said that this is not a marriage of love. However, he said that the two blocks will be able to work together constructively to deliver orderly government.>> Forming that government was delayed after an inconclusive election in September, but now Europe's biggest economy can focus again on the challenges facing the eurozone.
>> This coalition agreement is actually big on Europe. Right at the up front and the beginning of the 177 page document, it talks about a new start for Europe and also the two parties talk about strengthening and reforming the eurozone in close cooperation with France.>> Merkel said on Monday she will soon travel to Paris to discuss proposed reforms with French President Emmanuel Macron.
But domestic arrangements remain fraught. The Conservatives and the Social Democrats suffered their worst postwar election results in last year's poll. Now both are keen to show that the new deal delivers for their party base. For the Social Democrats, that means social reforms, such as increasing childcare benefit. For the Conservatives, it's security and toughening up immigration rules.
Indeed, it was frustration around immigration that saw the far-right's alternative for Germany party enter Parliament for the first time. With the two biggest parties now in joint government, The AfD becomes the main opposition party. A Euro skeptic voice that will try to push German political debate to the right.