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German coalition: Merkel's party reaches deal with SPD

27 November 2013 Last updated at 08:15 GMT

After 17 hours of tense negotiations in Germany, Chancellor Angela Merkel's conservatives have agreed to enter a coalition with the centre-left Social Democratic Party.

Ms Merkel's CDU party fell just short of an outright majority in September's election, when its liberal partner won no seats.

Steven Evans reports from Berlin.

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