Coalition deal reached in Germany

A three-way alliance is on its way in Germany after the Social Democratic Party reached an agreement with the Green Party and the Free Democrats on Wednesday to form a coalition government.

The center-left Social Democrats won most seats in the federal election held in September.

The SDP's Olaf Scholz appears set to succeed German Chancellor Angela Merkel, who has led the country for 16 years.

Merkel, who headed the center-right Christian Democratic Union, plans to retire from politics after a new government is formed.