By Daisy Ayliffe - 9th October 2005
Angela Merkel will head Germany's next government under a deal struck with Chancellor Gerhard Schroder's Social Democrats on Monday.
The move is set to end three weeks of political stalemate since the country’s inconclusive elections last month.
"I feel good, but I have a lot of work ahead of me," Merkel told journalists.
Under the grand coalition deal, Merkel takes top prize and will become Germany’s first woman chancellor – and the first chancellor from East Germany.
Whilst officials say the experience was humiliating for Schroeder, the grand coalition deal sees the centre left alliance take its fair share of power by securing control of some influential portfolios.
Schroder’s Social Democrats have taken eight of the most powerful ministries - including foreign affairs, reform, employment, health, transport and finance.
It is unclear whether Schroeder will now stand down - to focus on his memoirs - or take control of the foreign ministry.
Either way, his party will come to government in a powerful position.
Angela Merkel's Christian Democrats have the department of the interior as well as defence and economics.
EU foreign policy Javier Solana congratulated German Conservative leader Angela Merkel as he heard she is to become chancellor.
“The first thing I have to say is to congratulate her, if that is the final decision,” Solana told reporters.
“I wish her all the best and I wish all the best to the new government and all the best to the people of Germany.”
Nato Secretary General Jaap de Hoop Scheffer said “it is really important for a woman to become leader of the German Federal Republic.”
At a joint news conference on Monday, both refused to speculate on the policies of the new government and their potential impact on relations on the EU and Nato.
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