The agreement was concluded relatively quickly but still took about six and half weeks, during which the country had been virtually rudderless at a critical moment for Europe.

German conservatives under Friedrich Merz clinched a coalition deal with the centre-left Social Democrats (SPD) on Wednesday, aiming to revive growth in Europe's largest economy just as a global trade war threatens recession.

Friedrich Merz and his conservative Christian Democratic Union must now persuade Germans that he can fix the economy and get immigration under control.