In Germany, Chancellor Angela Merkel's conservatives have finally reached a coalition agreement with the center-left Social Democrats, and she said the deal was the basis for a "stable government".

ANGELA MERKEL GERMAN CHANCELLOR "The people had two justified demands for us: firstly, do finally form a government, and a stable government; Secondly, during the negotiations, do consider the needs and interests of the people. I am convinced the coalition contract which we have agreed upon can be exactly that, the foundation of a good and stable government which our country needs and, by the way, many in the world expects from us, too."

Merkel's conservatives were forced into making major concessions to the Social Democrats to end four months of uncertainty, not only in Germany, but it will also bring some relief to the European Union, at a time when the bloc is facing multiple challenges. Talking to reporters after the marathon overnight talks, Merkel said the agreement would help keep Germany's economy strong and guide the country into the future.