Chancellor Angela Merkel’s conservative-led bloc and the centre-left Social Democratic Party approved a coalition deal early on Wednesday, negotiators told DPA.
A committee of more than 70 members endorsed the agreement hammered out earlier by negotiators during a 17-hour session.
The SPD, Merkel’s Christian Democratic Union (CDU) and its Bavarian-based associate party, the Christian Social Union (CSU), were to present the 173-page draft agreement Wednesday.
The deal is subject to a vote by the SPD’s 475,000 members, with the result due on December 14. Merkel could be reconfirmed in office as chancellor three days later.
The coalition contract lifts a previous obligation on German-born children of foreign parents to choose between the two nationalities before their 23rd birthday.
A nationwide minimum wage of 8.50 euros ($11.55) per hour will be introduced from 2015, with permission for industry and labour associations to negotiate exceptions until 2017.
The minimum wage was seen as key issue for rank-and-file Social Democrats.
“The whole packet is so social-democratic, that we have to recommend that our members approve it,” SPD parliamentarian Karl Lauterbach said after the negotiations.
Starting in January, full retirement would be available at age 63 after at least 45 working years, as requested by the SPD, and pensions would be raised for mothers with children born before 1992, a CDU/CSU requirement.
Agreement was forged on pension changes, including a minimum monthly payment for the lowest-income workers of 850 euros after 2017. Disability pensions will be raised.
The parties also agreed not to raise taxes for new projects up to 2017, and not to incur any new government debt from 2015.
A compromised was reached on renewable energy, which was to make up 55-60 per cent of the grid’s power by 2030. Merkel’s bloc had been pushing to aim for 50 to 55 per cent, with the SPD suggesting a 75-per-cent target.
The precise line-up of cabinet ministers was to be left until after the SPD vote.
But the CDU was to be allocated five portfolios, plus the position of head of the chancellery — a separate position to chancellor. The CSU would have three ministers, and the SPD six.
The SPD and the CDU/CSU ruled in an earlier coalition in 2005—09.