German politicians stitch together coalition deal

Berlin

GERMAN Chancellor Angela Merkel's conservatives and the Social Democrats (SPD) on Wednesday agreed to a coalition deal, taking Europe's economic powerhouse closer to a new government after months of uncertainty that spooked allies and investors.

In a move likely to mean a shift in Germany's euro zone policy, the SPD would take the finance ministry, a post held until recently by conservative Wolfgang Schaeuble, widely despised in struggling euro zone states during his eight-year tenure for his rigid focus on fiscal discipline.