Schroder, Greens sign coalition pact

Germany's Social Democrats and Greens yesterday signed a coalition deal that will form the basis of the country's second centre…

Germany's Social Democrats and Greens yesterday signed a coalition deal that will form the basis of the country's second centre-left government since the second World War, Denis Staunton reports. The Chancellor-elect, Mr Gerhard Schroder, said the new government would make job creation its priority and would modernise the economy in a way that took account of social justice. The new government does not take office until the Bundestag convenes next week.

The leader of the Greens, Mr Joschka Fischer, will become Foreign Minister and Vice-Chancellor, and Green ministers will also be responsible for health and the environment. The chairman of the Social Democrats, Mr Oskar Lafontaine, as Finance Minister, is likely to be the second most powerful figure in the cabinet, with responsibility for overall economic strategy.

Mr Schroder expressed confidence yesterday that the new government would survive a full term in office and that the coalition partners would work successfully together.