Berlin, Oct 27 (DPA) The new German coalition deal was signed Monday, as the incoming centre-right leaders formally approved the government charter earlier approved by their parties.
Chancellor Angela Merkel of the Christian Democrats (CDU), Free Democrat (FDP) leader Guido Westerwelle and Horst Seehofer of the CDU’s Bavarian Christian Social Union (CSU) sister party signed the agreement in Berlin, paving the way for the new cabinet to be sworn in Wednesday.

The centre-right government takes over from a CDU-led coalition with the Social Democrats, who suffered record losses at last month’s general election.

Merkel told her party that the proposals agreed with the FDP would work to counter the economic crisis, and warned that the country’s future remained unpredictable.

“This is why we have decided to follow a path that focuses entirely on growth,” the CDU leader said, adding that this justified an increase in public debt.

Key points of the coalition agreement are 24 billion euros ($36 billion) in tax cuts, an overhaul of health care funding and a reduction in compulsory military service from nine to six months.

The FDP endorsed the coalition deal Sunday, after three weeks of negotiations concluded early Saturday. The CDU and CSU followed suit Monday.

Parliament is due to reappoint Merkel as chancellor Wednesday.