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.