Angela Merkel and SPD agree on coalition gov't

Party leaders and their negotiation teams have reached a deal after 17 hours of negotiating in the final round of talks.  Compromises were reached on the issues of minimum wage, pension reforms, the dual-citizenship right for Germany-born individuals of Turkish descent and imposition of a road toll on foreign drivers.  Conservatives and Social Democrats have agreed on the introduction of a nationwide legally binding minimum hourly wage of 8.5 euros, but delayed its implementation until early 2015. The minimum wage has been one of the key promises of the SPD during its election campaign. On the dual citizenship right of people born in Germany to Turkish immigrant parents, Merkel’s Christian Democratic Union (CDU) and its sister party, the Christian Social Union (CSU) have accepted SPD’s demand. According to the coalition agreement, Turks born in Germany will have the right of dual citizenship. The SPD had long criticized the current practice of “option model,” which demands that immigrants' children choose between Turkish or German citizenship by age 23. The CDU and CSU had long opposed the dual citizenship right of the children of Turkish immigrants, fearing it would undermine their loyalty to Germany and integration efforts.

The conservatives and Social Democrats also agreed on a new road toll, which had been one of the main promises of the Bavarian CSU party's campaign.

The controversial plan foresees imposing a road toll on foreign drivers, but on the condition that the new regulation would conform with European Union rules. CSU leaders had earlier said they would not join the government without such a toll, which they argue is desperately needed for major investments for motorways.

The Social Democrats are set to hold a mini-referendum early next month on the coalition agreement and the party's leadership will seek to acquire the approval of 470 thousand SPD members for the deal with Merkel’s CDU/CSU alliance. The results are expected to be announced on December 15.

The CDU/CSU alliance and SPD will decide on the cabinet, and ministerial posts will be made after the Social Democrats vote.