Will a new coalition government be good for the country? Angela Merkel, leader of the Christian Democrats will head a "grand coalition" government, after a deal with the Social Democrats.
The coalition between the two main parties comes after September's election left the CDU and SPD with almost the same number of seats.
The deal will still have to be approved by both parties and parliament.
Do you think the "grand coalition" will work? Will it be good for government policy? Will Ms Merkel make a good premier?
This debate is now closed. Please read a selection of your comments below.
The following comments reflect the balance of opinion we have received so far:
Having just moved back to the UK after 34 years in Germany, I think there is an enormous misunderstanding about how far the SPD and the CDU/CSU are apart. The expectations abroad that Angela Merkel will do a Thatcher are bound to be disappointed. With an electoral system that operates on the principle of proportional representation, neither of the major parties is prepared to adopt the radical reforms which are urgently necessary, not only in Germany, but also in many other EU countries.
Malcolm Mitchell, Filey, UK
As someone who had to live through the atrocious Thatcher years, and the crime ridden 90s in the UK, and had to watch the decline of any sort of social strength or sense of community due to the selfishness and greed that goes hand in hand with 'following the market', and having now lived in Germany for ten years, I can honestly say that the last thing anyone here needs is to follow the UK model. We already have a sweatshop UK. Sweatshop Germany? No thanks!
Nick, Germany
 | This coalition will probably crumble in acrimony |
I don't think that the grand coalition will work. The two sides are so different from each other, and Ms Merkel will end up facing not only the SPD but grumblings from her own party due to her newly won position. This coalition will probably crumble in acrimony in about a year with Merkel taking the brunt of the blame, and I can't help wondering if that's what Schroeder was playing for all along!
Kevin, USA Germany's economy has potential, but I doubt whether Frau Merkel is competent enough and strong enough to bring Germany (and not only the economy) out of its crisis. She will have to fight hard during these next four years and stand against many critics that will definitely oppose her more aggressively than they have Schroeder in the past if she fails. I doubt whether the grand coalition will not lead Germany into a legislation period of standstill, but I am open to surprises.
Richard Tackenberg, Frankfurt, Germany
A sensible solution that only Germans think of. In other democracies parties stay in government or in opposition. In Germany it is for the common good. They know how to fix a marriage by necessity, even if nor from love. That's common sense politics.
John Sammut, Mosta, Malta
If ever we needed evidence as to why proportional representation is a bad thing, then the proposed grand coalition is it. What is the point of voting for either one of the (supposedly opposed) main parties if they end up in government with each other? If I was a German SPD or the CDU voter I'd feel cheated by this cynical arrangement.
Marc, London
 | This time next year, I doubt there will have been any improvements in Germany's economy |
Germany has long had many problems with its economy, which previous governments have found difficult to improve. This new grand coalition is in theory impossible; two parties that have very opposing views on how the country should be run to solve it problems. This time next year, I doubt there will have been any improvements in Germany's economy.
Sidney, London, England The world desperately needs more conservative leadership, especially Europe, so this can only be a positive direction.
Tyler Wright, Vancouver, Canada
The grand national coalition government formed back in the 60s worked out very well, and Angie had proved to be a determined and strong lady. That's something Germany needs urgently, a positive change and lots of economic reforms, and now under the leadership of a strong woman.
Carlos Colina, Caracas, Venezuela
I do not think the grand coalition will last for more than a year, because the objectives of the two parties are far too different. One of CDU's primary objectives is to reinforce the bonds with the US, while SPD want to continue investing in the French-German axis.
Yannis, London, UK
All that a grand coalition will ensure is that nothing in any way controversial will be enacted. Germany's economy needs some tough medicine, but a coalition will deliver only half-measures at best.
Brian, Kansas City, USA
 | As an EU citizen, I applaud Ms Merkel becoming Germany's new chancellor |
As an EU citizen, I applaud Ms Merkel becoming Germany's new chancellor. I especially endorse her resolution to stop Turkey's accession to the EU. This will synchronize the whole European adventure with people's wishes and hopes.
Matt, Buffalo, NY I think this was a logical outcome. SPD will still control justice and foreign affairs sectors, which is a good thing. Let's see what the CDU can do for the economy.
Vanja, Sarajevo, BIH
Mrs Merkel shouldn't have given up the foreign portfolio. I'm trying to understand why she'd do that, because what that may mean is that the SPD coalition would exert considerable influence on German foreign policy. All in all, I'm glad she's chancellor.
Gbenga Williams, London, UK
All the Germans I have spoken with seem to think disaster is round the corner. The country certainly is in the midst of an economic crisis. Is a government that by definition must make compromises what is needed in a crisis? I don't think so. Frau Merkel has a difficult road ahead. From what I understand the last "grand coalition" was successful with foreign policy but little else.
Pete Rowing, Frankfurt, Germany
Merkel has to make a good choice for finance minister. He/she may be more important than the chancellor if Germany is to avoid another recession.
Simon Baguley, Schliersee, Germany What Germans need is a Margaret Thatcher of their own. So welcome Angela.
Gerda, Belgium
It may or may not help - but it certainly won't work well under Merkel. She has consistently shown that she cannot even keep her own party on the straight and narrow - how is she to handle two parties? Also, the whole thing is typical of these two large parties. After all, 65% of the electorate do not want the CDU, and 65% of the electorate do not want the SPD - a somewhat differently constituted 65% in each case, but this has not been admitted by either party. Popular support for this government will be lacking.
D Fear, Heidelberg, Germany
I believe the success of the coalition will depend less on the good will of the SPD than on the ability of Mrs Merkel to get rid of her CDU rivals, eg Stoiber, Koch and Merz. The 1966-69 grand coalition was under Kiesinger, by the way.
Martin, Germany
Finally the end of Schroeder, and a new day for Germany. Schroeder was a disaster for Germany, the economy is in dire need of reform and Gerhard took a blowtorch to former allies. When will Germany figure out that they shouldn't look to France for direction but the UK. It sounds like Ms Merkel has a more pragmatic way of dealing with these issues.
Troy, Laguna Beach, CA
There is nothing wrong trying something new. A grand coalition will work if both parties cooperate and work together as a team. They should shun personal politics and put the people and country first. This past election shows that the race was a tough one.
Omorodion Osula, Boston, USA So long as the SPD don't stall the urgently needed economic reforms, there is every chance that the grand coalition will work. Under Willy Brandt, the 1966-1969 grand coalition was actually quite successful on a number of levels. We are dealing with a country still struggling to deal with reunification, which was never going to be as smooth a process as many had hoped. Germany badly needs to swallow some bitter pills before it returns to its former glories.
John Chivers, Coventry, UK
I think the grand coalition may be a good thing for Germany as Mrs Merkel can take the pick of the best policies from each party without losing face. This can only be good for Germany as it may bring about a more balanced delivery of economic and social policies.
Gareth Lukey, Chester
Is this a grand coalition or a grand collision? The two principal sides are so diametrically opposed on so many issues that it is hard to see how consensus policies can evolve. There are likely to be enormous battles resulting in an eventual collapse of this pact of convenience and expediency between political enemies.
Mark, USA
 | In about six months time, the CDU/CSU will have to admit nothing has improved |
I doubt that a grand coalition will work for Germany. Following the German media Merkel is not even supported by her own party. Stoiber, Merz and Koch envy her premier position and as soon as she is announced the new chancellor all their disagreements will come to the surface. Let's just hope for Germany, that she will stand up for herself. In about six months time, the CDU/CSU will have to admit nothing has improved, and then they blame it on the fact, that all their efforts were blocked by the SPD.
Nick, Dubai, UAE It seems a logical outcome. The CDU has the most seats, and therefore had the right to take the chancellorship, but in order to form a viable government, it had to give way on the portfolios. Whatever the outcome, there will some change in the right direction for Germany, although it won't be as radical as Ms Merkel would probably have liked.
Chris, Brazil
I am glad to see that Angela is now the German chancellor but unfortunately this grand coalition will not work and will hinder Angela in pushing through economic reforms. I think they need to get rid of this representation government they have as well.
Joshua Geesing, Farnham, Surrey
This morning a German news channel polled viewers as to whether Ms Merkel would be a good premier. I did not bother viewing the result. Surely the issue is about solving the country's problems and not conjecting superficially on whether Ms Merkel is capable of doing something she has not yet done. A more logical debate would be was Mr Schroeder a good premier.
Gaynor Guth, Muehlheim, Germany