16-year Merkel era draws to a close as Olaf Scholz seals pact for new coalition to take over in Germany

<p>
The 16-year Angela Merkel era draws to an end, with Social Democrat Olaf Scholz sealing a deal to form a new governing coalition in Germany on Wednesday that aims to modernise Europe's largest economy and speed up the green agenda.</p>
<p>
The Centre-left alliance between the Greens, the liberal Free Democrats (FDP) and Scholz's centre-left SPD paves the way for Scholz, 63, to replace Merkel as Chancellor.</p>
<p>
The three parties with different ideologies have come together in what is called a traffic light coalition that gives them a majority in the lower house of parliament. The new government will be sworn in early next month after they ratify the 177-page coalition pact.</p>
<p>
Named after the colours of the three parties, the traffic light alliance will bring a new era of relations with Europe, and plans to speed up digitalisation of the economy while maintaining fiscal discipline.</p>
<p>
<strong>Also read:</strong>  <a href="https://www.indianarrative.com/latest-news/us-warns-against-travel-to-germany-denmark-over-covid-surge-130126.html">US warns against travel to Germany, Denmark over Covid surge</a></p>
<p>
Merkel was a towering leader and leaves behind a huge legacy as she guided Germany and Europe past several crises and championed the cause of liberal democracy in the face of a rising wave of authoritarianism worldwide.</p>
<p>
However, her critics say she has managed rather than solved problems and leaves her successor facing a difficult situation on several issues.</p>
<p>
The incoming government faces immediate challenges as COVID-19 cases are surging again. Europe is also still struggling with the fallout from Brexit and a crisis on the European Union's border with Belarus.</p>
<p>
Scholz, 63, who was finance minister in the outgoing Merkel-led coalition of the SPD and Conservatives, said that fighting the COVID-19 pandemic would be his top priority.</p>
<p>
But his coalition also has an ambitious agenda which includes a big push to renewable energy and a quicker exit from polluting coal, according to the pact.</p>
<p>
Olaf Scholz is also promising the “biggest industrial modernisation of Germany in more than 100 years”. He said the agreement would pave the way for Germany to become a “pioneer on climate protection”, adding that “we will invest massively to maintain Germany’s status as a world leader”.</p>