Rival Parties Finally Agree on a Coalition

Germany's main parties sealed an agreement to create a government of traditional rivals under the leadership of conservative Angela Merkel, breaking eight weeks of deadlock after an inconclusive general election.

Merkel will become the country's first female chancellor and the first from the former communist East if, as expected, Parliament formally elects her Nov. 22.

She will head a government that includes her Christian Democrats, their Bavarian sister party the Christian Social Union, and the Social Democrats of departing Chancellor Gerhard Schroeder.