Woman set to lead Germany

BERLIN – Conservative Angela Merkel struck a power-sharing deal Monday that will make her the first woman and politician from the ex-communist east to serve as Germany’s chancellor, forging a coalition with ousted leader Gerhard Schroeder’s party to reform the faltering economy.

The country’s two biggest political forces were forced into talks on forming a joint government after a Sept. 18 election gave Merkel a victory – but with a margin so slim Schroeder’s party demanded equal treatment in a “grand coalition.” To resolve the impasse, the Social Democrats gave up Germany’s leadership, but the party secured the bulk of the ministries, including the prestigious Foreign Ministry.

“I feel good,” she told reporters with a broad smile. “But I have a lot of work ahead of me.”

Both sides agreed to start formal negotiations on a new government next Monday. Merkel said both sides aim to complete them by Nov. 12, after which they will need endorsement by party conventions.

Under the terms of the agreement, the Social Democrats would head the foreign, finance, labor, justice, health, transport, environment and development ministries.

Merkel’s Christian Democrats and her sister party, Edmund Stoiber’s Christian Social Union, would get the economy, defense, interior, agriculture, family and education portfolios. With Merkel as chancellor and her chief of staff also a Cabinet-level post, the two sides would have equal representation at the Cabinet table. The parties have the right to propose their ministers.

There was no word Monday on whether Schroeder, Germany’s leader for the last seven years, might play any role in a new government.

Merkel said she was optimistic about agreement on foreign policy, stressing the importance of improving relations with the United States strained by Schroeder’s opposition to the war in Iraq. She sidestepped the parties’ sharp disagreement over whether Turkey should join the EU – a bid that she opposes – saying only that “we’ll see” how membership talks progress.