Germany's Social Democratic Party (SPD) has approved a coalition agreement with Friedrich Merz's conservative bloc, paving the way for the new German government to take office in Berlin next week. The centre-left party said on Wednesday 84.

Germany's Social Democrats (SPD) backed a coalition deal with the CDU/CSU conservatives on Wednesday in the final step to forming a government in Europe's largest economy, and nominated their leader Lars Klingbeil as finance minister.

On foreign policy, Merz aims to take a more active role in Europe in contrast to the more tepid approach of his predecessar Olaf Scholz. Once he is sworn in, he is expected to travel to Paris and Warsaw to meet counterparts Emmanuel Macron and Donald Tusk.