Just hours before the first post-election session of Germany’s parliament, Chancellor Angela Merkel and her coalition partners the Free Democrats have officially signed their deal for government.

FDP head Guido Westerwelle together with the leader of the Christian Democrat’s sister party, the Christian Social Union, added their names to what all three hope will help Germany’s economy recover from recession. Chancellor Angela Merkel said: “We have the courage and the clear intention, as the centre coalition to take Germany forward and to make Germany a country of solidarity through growth and education.” The policy blueprint includes 21 billion euros of tax relief for next year and 24 billion euros of income tax relief from 2011. The 622 member Bundestag, meeting for the first time since last months federal election, is keen to see how the new German government is going to fund the package.More about: Angela Merkel, Germany

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