国际英语新闻:German SPD party approves coalition deal with Merkel's conservatives

But the grand coalition can only become a reality if a majority of the SPD members back the proposed coalition deal. Some SPD members harbor skepticism on becoming Merkel's junior partner again. The party suffered a electoral defeat in 2009 after serving as Merkel's junior coalition party in her first term.

SPD chief Gabriel has worked hard to convince his party members to support the left-right government as he won key concessions from Merkel's camp on the SPD's core concerns and centerpiece policies during the coalition talks.

During the coalition talks, the SPD insisted on the introduction of a national minimum wage of 8.50 euros (11.41 U.S. dollars) per hour, which was a key election platform. Although Merkel has repeatedly reiterated her opposition to the national minimum wage on concerns that it would destroy jobs, she finally gave in.

The national statutory minimum wage is scheduled to be introduced in Germany from January 2015. Merkel said earlier that she would try to prevent job losses that may be caused by the move.

Among other agreed policies proposed by the SPD, dual citizenship will be allowed for children who grew up in Germany and were born after 1990 to foreign parents. Currently they have to choose between German citizenship and that of their parents when they reach 23 years of age.

But the CDU held its ground as the parties agreed there should be no tax rises. The SPD had demanded to raise taxes on incomes above 100,000 euros to 49 percent from 42 percent. Merkel has said such tax hike plans would risk spoiling the good situation of the country's economy.

According to the agreement, the new government would spend an additional 23 billion euros by 2017 without tax increases. The government would also not undertake new borrowing from 2015. The additional money would be invested in areas including infrastructure, education, research and development.

Other agreed policies included lower retirement age from 67 to 63 for those who made pension contribution for 45 years and reform the current Renewable Energy Act.

Both sides also agreed on pushing for a European level financial transaction tax, and structural reforms in European Union member states in order to improve their competitiveness and growth.

The eurozone debt crisis will remain the dominant issue among the new government's European agenda, though foreign policy took a back seat during the election and coalition talks.

Merkel is expected to continue championing painful structural reforms and spending cuts by indebted countries, despite the SPD's call for more pro-growth measures during the election campaign.