Three German parties reach coalition deal to end the Merkel era

FILE PHOTO: Social Democratic Party (SPD) top candidate for chancellor Olaf Scholz arrives at SPD's headquarters for talks about a new government coalition, in Berlin, Germany, November 23, 2021. REUTERS/Christian Mang

BERLIN (Reuters) - German Social Democrat Olaf Scholz said on Wednesday he had reached a coalition deal to form a new government that will try to modernise Europe's largest economy and bring the curtain down on the Angela Merkel era.

Scholz's centre-left Social Democrats (SPD), the ecologist Greens and the libertarian Free Democrats (FDP) want to accelerate the transition to a green economy and digitalisation while maintaining fiscal discipline, according to a 177-page agreement.