Merkel and Schulz reach agreement, Germany finally gets a government

BERLIN, (Patria) - German Chancellor Angela Merkel's conservatives and the Social Democratic Party (SPD) led by chairman Martin Schulz have reached a formal agreement on a coalition government, sources from the conservative party have confirmed. 

The Bild newspaper reports that the SPD will receive the ministries of foreign affairs, finance and labour in the new cabinet, according to Radio Free Europe, while Merkel's Christian Democratic Union (CDU) has been allocated the portfolios of economy and defence, the report states without citing a source.

Bild writes that Merkel's ally from Bavaria, Horst Seehofer, who advocates a tough policy on migrants, will become interior minister.

Germany has been experiencing political uncertainty for more than four months, which has weakened the country's position in international affairs and called into question Angela Merkel's survival as chancellor.

Any agreement must be approved by 464,000 SPD members before the coalition agreement is finalised.